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:
Standard issued share capital |
EUR1,200 (approx. USD1500 or ₤800) (in any foreign currency) |
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Minimum paid up share capital on incorporation: |
20% (EUR240 - approx. USD300) |
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Minimum number of Shareholders required: |
One shareholder (if the company director is a natural person) or |
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Nominee shareholders permitted: |
Yes (service available) |
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Minimum number of directors: |
One. In certain cases, director may also act as company secretary. |
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Local directors required: |
No, but strongly recommended |
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Corporate directors permitted: |
Yes |
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Local company secretary required: |
Yes (Company secretary services are also available) |
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Local meeting required: |
No |
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Meetings: |
At least one General Meeting each year, in addition to any other company meetings. |
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Local Registered office required: |
Yes. We offer registered office services . |
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Exchange Control: |
No exchange control regulations - may conduct business in any currency |
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Average timeframe to set up a new company |
24-48 hours (depending on availability and adequacy of documentation/information provided) |
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Audit |
A yearly audit is necessary for filing with the Registrar of Companies and Income Tax authorities |
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Corporate tax rate: |
5% (after tax refunds to non-resident shareholders) |
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Malta Tax residence to benefit from Tax Treaty network: |
Based on incorporation in Malta. |
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Ordinary tax base: |
Worldwide income |
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Corporate tax rate: |
5% (after tax refunds to non-resident shareholders) |
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Withholding tax on interest: |
None |
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Withholding tax on dividends |
None |
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Withholding tax on licence fees and royalties: |
None |
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Double taxation treaties: |
Treaties with 43 countries |
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Withholding tax on dividends |
None |
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Value Added Tax rate (trading only): |
18% - only for intra-EU trading |
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Disclosure of beneficial owner to Company Registrar |
No (when using nominees) |
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Government register of directors |
Yes |
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Government register of shareholders |
Yes |
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Annual return |
Yes |
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Submission of accounts |
Yes |
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Audit |
Yes |