Company Incorporation

A limited liability company is the most common form of business entity in Malta. It may have the status of a public or private company. A limited liability company is validly constituted in accordance with the Companies Act once a memorandum of association is entered into and subscribed by at least two persons and a certificate of registration is issued in respect thereof by the Registrar of Companies.

PRIVATE OR PUBLIC COMPANY

A private company is a company that must, by its memorandum or articles:
1) restrict the right to transfer its shares;
2) limit the number of members to fifty; and
3) prohibit any invitation to the public to subscribe for any shares or debentures of the company.

A public company is a company which does not qualify as a private company. A public company may offer shares or debentures to the public but it may not issue any form of application for its shares or debentures unless the company is registered and the issue is accompanied by a prospectus.

STATUTORY REQUIREMENTS

The basis statutory requirements for the formation of a Malta Company or International Holding Company and its principal characteristics are as follows:

Corporate Requirements

Standard issued share capital

EUR1,200 (approx. USD1500 or ₤800) (in any foreign currency)

Minimum paid up share capital on incorporation:

20% (EUR240 - approx. USD300)
(£160)

Minimum number of Shareholders required:

One shareholder (if the company director is a natural person) or
Two shareholders (if the director is corporate).
(At least one non-resident shareholder)

Nominee shareholders permitted:

Yes (service available)

Minimum number of directors:

One. In certain cases, director may also act as company secretary.

Local directors required:

No, but strongly recommended

Corporate directors permitted:

Yes

Local company secretary required:

Yes (Company secretary services are also available)

Local meeting required:

No

Meetings:

At least one General Meeting each year, in addition to any other company meetings.

Local Registered office required:

Yes. We offer registered office services .

Exchange Control:

No exchange control regulations - may conduct business in any currency

Average timeframe to set up a new company

24-48 hours (depending on availability and adequacy of documentation/information provided)

Audit

A yearly audit is necessary for filing with the Registrar of Companies and Income Tax authorities

Taxation

Corporate tax rate:

5% (after tax refunds to non-resident shareholders)

Malta Tax residence to benefit from Tax Treaty network:

Based on incorporation in Malta.

Ordinary tax base:

Worldwide income

Corporate tax rate:

5% (after tax refunds to non-resident shareholders)

Withholding tax on interest:

None

Withholding tax on dividends

None

Withholding tax on licence fees and royalties:

None

Double taxation treaties:

Treaties with 43 countries

Withholding tax on dividends

None

Value Added Tax rate (trading only):

18% - only for intra-EU trading

 Disclosure and Reporting Requirements

Disclosure of beneficial owner to Company Registrar

No (when using nominees)

Government register of directors

Yes

Government register of shareholders

Yes

Annual return

Yes

Submission of accounts

Yes

Audit

Yes