For foreign investors looking to break into the European market through a country that’s prosperous and easy to set up their business in, Malta offers a great opportunity!
With a strategic location in the middle of the Mediterranean, Malta is a densely populated pearl with innumerable historical sites. The financial sector of this EU member country has been registering massive growth since the last couple of years, and it offers great tax incentives to foreign investors. Malta has no property tax, providing a cost-effective solution to set up an office in the country.
Apart from being a leading tourism destination in the EU, Malta has an abundance of natural resources, one of which is limestone. Some of the thriving industries in this island are biotechnology, electronics, software development, healthcare, and maritime activities.
Being a small island comes as an advantage when it comes to great infrastructure and short distances. Malta also has a well-developed telecommunication system and airfare network.
CompyCo can assist you in tapping into all that Malta has to offer. Working with our experienced team, you can enjoy efficient assistance in meeting the country’s flexible business requirements and setting your company up in no time!
Forms Of Companies In Malta
- LTD—private limited company
- PLC—public limited company
- Partnership en Commandite—limited partnership
- Partnership en nom Collectif—general partnership
What is the difference between PLC and LTD companies in Malta?
In Malta, the two most common types of companies are private (LTD) and public limited companies (PLC). The main difference between them is that PLC can enter the Maltese Stock Exchange, but LTD cannot.
They also differ in terms of the initial capital required. To start a Maltese LTD, a minimum of EUR 1165 must be deposited. The company can have up to 50 shareholders.
The minimum share value of a Maltese PLC is EUR 46, 600.
Fundamentals Of A Limited Liability Company
Corporate Tax in Malta
VAT in Malta
35% but 30% is refunded
Fundamentals of limited liability companies in the Malta
|Limited liability company||LLC|
|Minimum Share capital||EUR 1250|
|Registered office required||Yes|
|Physical office required||No|
|Min. number of Shareholders||1|
|Min. number of Directors||1|
|Local Director required||No|
|Bank signatory must travel||Yes|
|Timescale for company formation||7 days|
|Timescale for bank account opening||14 day|
|Timescale for obtaining VAT number||7 days|
|Statutory audit requirements||Not if the turnover is less than EUR 93000|
|Shelf companies available||No|
How can I set up my company in Malta?
Regardless of where you live, establishing a business in Malta can seem daunting if you’re unfamiliar with the country’s regulations and processes. We provide our clients with efficient assistance in setting up their companies outside their jurisdiction in the simplest and quickest way!
In Malta, registering your new company is a straightforward process as long as all the requirements are met, and the required documentation submitted.
The Articles of Association, which comprise information about the business, the board of managers and the owners, are the quintessential company documents in Malta.
For those who don’t want to go through a long process of registering a business, it’s possible to buy a ready-made shelf company in Malta without having to visit the island.
The hassle-free process involves choosing the right company for your business activities, preparing the necessary documentation and paperwork for registration, depositing the required share capital, obtaining the necessary licensing and tax requirements, and finally, registering as an employer.
This small, densely populated island is the perfect starting place for a business that taps into Europe’s lucrative markets. By working with CompyCo to establish a company in this strategic location and taking advantage of its business-friendly environment, your company will be up and ready to operate in no time!
Maltese company incorporation starts with a free consultation with our experts, a detailed engagement plan, and picking a unique company name. Along the way, we’ll offer guidance and support to ensure you make the right decisions based on your company’s needs.
Two Maltese companies may not have the same case and aren’t the same. Our expert team uses its vast experience to create an incorporation process that caters to your business’s unique circumstances.
From obtaining the documents and getting the necessary registration to representing you where necessary, our network of contacts offers unwavering support every step of the way!
Bank Account Opening
One of the most vital steps during the business registration process is setting up a bank account. Non-residents of the country can open up a Maltese bank account in a few easy steps and avail the sophisticated range of business services offered by the various local and foreign financial institutions.
Certain banks allow you to open a bank account remotely in some cases, while others require in-person interviews and verification before your account can be set up. Either way, we offer custom banking solutions by working with the leading experts in the field.
Some of the documents you’ll need to open your Maltese bank account are:
- Identification documents, including your passport or any identification card or driving license
- Residence permit
- Any proof of income to show how viable your business is in other jurisdictions
- Your Maltese company’s registration documents as proof
- Any documents that prove you have a valid connection to Malta, including work contracts or rental agreements for your office.
To learn more about opening a bank account, head over here.
Accounting & Taxation
The accounting and taxation related requirements to consider are:
- The tax year is the calendar year in Malta.
- You are liable to pay taxes on profits from trading, investments, or selling your assets for more than their original cost.
- Your Maltese business is required to keep all accounting books.
- In Malta, the corporate income tax is 35%, flat rate, but 30% of this is refundedby the government within a few days. This makes Malta one of the few countries in Europe that offers the lowest tax rates.
- Malta doesn’t impose a real estate tax, making it easier and less costly to set up your business’s office.
- In Malta, the current VAT rate is 18%on most goods and services. However, exceptions may apply.
- Maltese companies are issued VAT numbers with the format of the country code MT followed by a 9-digit number that ends with a letter.
How can you employ staff in Malta?
A world-class service-based economy, high-tech manufacturing processes, and a highly industrialized economy make Malta a viable option for foreign investment. This doesn’t just apply to the infrastructure, but the people you hire to work for your organization too.
Foreign business owners outside their jurisdiction may experience some hiccups along the way when setting up their company. Having to hire employees in a country where you’re unfamiliar with the regulations and laws can quickly become overwhelming.
With CompyCo’s experienced team, you can obtain an employer identification number (PE number) and register your new staff with the Employment Training Corporation (ETC) in no time.
We don’t just advise you on the hiring best practices or help you get the necessary documentation sorted, we also offer full-service HR solutions. By taking care of all aspects of employment, you have the freedom to focus on your new business activities.
CompyCo caters to all your company’s needs by offering registration, employment agreement writing, recruiting, and payroll services. With extensive knowledge of Maltese businesses and a network of professionals, you can rest assured that your company’s HR needs are in great hands!
For a more in-depth involvement in the payroll and recruiting processes and obligations, we’ll set up an account for you with software that provides the information you need about these HR processes in Malta.
Do you have any queries? Take a look at our HR services page for more information about our International HR services!