Opening a company in Malta has many advantages among which the taxation system, which provides up to 6/7 refunds to foreign shareholders, full tax exemptions for holding companies and no withholding taxes or stamp duties in case of profit repatriation. Also, when taking into account the low company formation and maintenance costs, foreign investors have many other reasons to open a company in Malta.

Types of companies in Malta

Foreign enterprisers setting up companies in Malta may choose between several types of business entities according to their needs. The Maltese Commercial Code allows the incorporation of the following structures:

1. private limited liability companies - the most employed business form in Malta,
2. public limited liability companies – which can be used by large businesses,
3. general partnerships – which are suitable for small and medium-sized businesses,
4. limited partnerships – they have the same characteristics and can be used for the same purpose as general partnerships,
5. sole proprietorships which are employed by persons carrying out business activities in their own name.

Foreign businesses also have several options, among which they can choose between subsidiaries, branches and liaison offices in Malta.

Structures employed by foreign companies in Malta

Foreign companies are also allowed to operate in Malta through one of the following business forms:

•  subsidiary companies which can be registered as limited liability companies;
•  branch offices;
•  liaison or representative offices.

The main differences between these structures reside in the degree of independence in relation to the parent company and the activities which can be undertaken on the local market. All three business forms are regulated by the Maltese Company Law.

The subsidiary company which can be set up as limited liability company offers the highest degree of independence and can also carry out activities which are not related to the parent company’s main object of activity. In comparison to this, the branch office depends on the foreign company completely and its activities are bound to the parent company’s main object of activity.

The liaison office is the simples business form a foreign company can establish in Malta, as it cannot perform any economic activity. It can only carry out marketing activities.

Our law firm in Malta can offer legal support to foreign companies interested in setting up any of these structures here, in accordance with their needs. We can also assist in EORI registration in Malta.

Buying a shelf company in Malta

Those who want to open a company in Malta also have the option of acquiring a ready-made or shelf company which can be customized based on the needs of the investor. The shelf company is an already registered company; however, its name, directors, legal address and object of activity can be changed in order to accommodate the requirements of the new owner.

Requirements for opening a company in Malta

When deciding to start a business in Malta, foreign enterprisers will consider the amount of money, also called a share capital they will have to invest in the company. From this point of view, the Commercial Code only requires private and public companies to deposit a specific amount of money.

In the case of a Maltese private company, the minimum amount accepted is 1,165 euros, while for the public company the minimum share capital is approximately 46,600 euros of which only 25% must be deposited prior to registration. Private limited companies with authorized share capital above the minimum threshold must deposit 20% of the amount of money.

Both types of companies must have at least two shareholders, even if the Company Law also allows a single shareholder to establish a company in Malta.

Steps to open a company in Malta

The main steps to set up a company in Malta are:

•  to reserve a company name with the Maltese Commercial Register,
•  to draft and notarize the company’s memorandum and articles of association,
•  to deposit the minimum share capital with the chosen bank,
•  to file the application and the other documents required with the Trade Register.

The documents to be filed with the Malta Trade Register are:

•  the memorandum and articles of association,
•  a confirmation of the company name reservation,
•  the bank receipt confirming the share capital deposit,
•  passport copies of the shareholders, directors and company secretary.

Once the Maltese company is registered, it must obtain a business license, register for VAT and with the Employment Training Corporation.

How much does it take to register a company in Malta?

Below, our Maltese lawyers show you how long it takes to open a company in Malta:

• the business name reservation takes a few hours;
• drafting and notarizing incorporation documents takes 1 day;
• depositing the share capital takes 1 day;
• company and tax registration take 2 days;
• VAT registration takes 7 days;
• obtaining an employer identification number takes 3 days;
• registration for employment purposes takes 2 days.

Assistance in opening a company offered by our Maltese lawyers

Opening a company in Malta is not difficult, however, as a foreign investor, one will need guidance in several matters. Our attorneys in Malta can assist in:

• preparing all the documentation related to registering the company, including notarization of the foreign owners’ identification papers;
• assistance in relation with the Maltese Companies Registrar during the whole incorporation procedure;
• assistance in relation with the Maltese tax authorities for the company to be registered for taxation, social security, insurance, and pension purposes;
• guidance in applying for the necessary business permits before commencing the activities.

You can reach out to our law firm in Malta for any questions related to the registration procedure of a new business in this country.

You can contact our Maltese law firm for company registration services and for details about the main reasons to invest in the country.