Here are some compelling reasons why incorporating a company in Malta is a wise choice:
Secure and Regulated Environment: Malta provides a stable and well-regulated business environment, offering entrepreneurs the security and legal protection they seek.
Tax Benefits: Although the standard corporate tax rate in Malta is 35%, the tax system is highly advantageous. It prevents double taxation on company profits and allows non-resident shareholders to claim tax refunds on income attributed to the Maltese Taxed Account and Foreign Income Account.
Strategic Location: Malta’s geographical position provides easy access to major European and North African markets, making it an ideal base for companies looking to expand. It also serves as a gateway to the larger European market.
Currency and Language: With the Euro as its currency and English as one of its official languages (alongside Maltese), Malta offers a significant advantage for international businesses, simplifying communication and transactions.
In Malta, the process of registering companies is managed by the Malta Business Registry (MBR) under the provisions of the Maltese Companies Act. The MBR also manages and oversees the deadlines for company registration. In addition to standard and annual deadlines, the MBR issues notifications to provide general updates to companies in line with local legal notices and EU regulations.
To establish a private limited liability company, certain essential information must be provided, such as the company name, primary and secondary objectives, authorized and issued share capital, a registered address in Malta, and at least one shareholder, director, and company secretary, along with their identification documents. Additionally, compliance requires submitting due diligence documents for shareholders and directors, typically through the completion of KYC forms.
Steps to Incorporating a Company in Malta
If you’re ready to take advantage of Malta’s favourable business environment, follow these essential steps to incorporate your company:
Choose a Business Structure: Decide on the structure of your company, with a private limited company (Ltd) being the most common choice. Define the shareholders, shareholding structure, directors, and appoint a company secretary.
Select a Company Name: Choose a unique company name that ends with “Limited” or “Ltd.” Ensure that the name is not already in use by another Maltese company.
Register the Company: Prepare and submit the necessary documents to the Malta Business Registry, including the memorandum and articles of association and proof of identity for directors and shareholders.
Obtain Tax and VAT Numbers: After registration, apply for a Tax Identification Number from the Office of the Commissioner for Revenue. Additionally, obtain a VAT number from the VAT Department to manage Value Added Tax transactions.
Open a Corporate Bank Account: Set up a corporate bank account to handle your company’s financial transactions.
When incorporating a company in Malta, it is essential to understand and fulfill the accompanying obligations. Adhering to regulations and submitting documentation within the required timeframes ensures the smooth operation of the company. It is crucial to comply with the obligations set forth in the Companies Act (Chapter 386 of the Laws of Malta) throughout the company’s lifespan to meet all statutory filing requirements. Non-compliance with these regulations can lead to penalties as imposed under Article 401 (3) to (17) of the Companies Act.
As a corporate services and business solutions provider, Fairwinds Management is available to assist with the formation of your new Malta company and ensure that all obligations and important deadlines are met, so your business runs smoothly without incurring penalties for missed deadlines. Malta companies can rely on Fairwinds Management for services such as company incorporation, day-to-day business operations, bookkeeping, and accounting, including VAT registration and returns, taxation, and payroll services. For more information, you can contact one of our directors, Ms. Joceline Caruana M.Acc, MIA, Cert.Tax, CPA, at jcaruana@fairwindsmanagement.net.
Fairwinds Management Limited is a MFSA licensed firm offering Business Solutions in Malta. As part of our services, we offer Accounting, Administration, Corporate and Legal solutions. Fairwinds Management also manages the brand Accounting Services. More information about us and our key services please visit our website. You may reach Fairwinds Management on +356 2704 0903 or info@fairwindsmanagement.net.
Article written by Ms Charlene Sciberras, B.A. (Hons), guest writer, a marketing and business administration specialist with a special focus on corporate, accounting, and legal matters.
