FAQ - Setting Up Your Business in Malta
These questions are crucial for anyone considering setting up a business in Malta, as they cover the legal, tax, and administrative aspects needed to ensure smooth incorporation and operation.
What types of companies can be incorporated in Malta?
Malta offers several types of companies, including Private Limited Companies (Ltd), Public Limited Companies (Plc), partnerships, and branches of foreign companies. The most common type is the Private Limited Company (Ltd).
What are the steps to incorporate a company in Malta?
The basic steps include choosing a company name, preparing the Memorandum and Articles of Association, registering with the Malta Business Registry (MBR), opening a company bank account, and acquiring a VAT number if applicable.
What is the minimum share capital required?
For a Private Limited Company, the minimum share capital is €1,165, with at least 20% of it to be paid up at the time of incorporation. For a Public Limited Company, the minimum share capital is €46,587.
How long does it take to register a company in Malta?
Company registration usually takes 2-5 working days, provided that all the necessary documentation is correctly submitted to the Malta Business Registry.
What are the tax benefits of setting up a company in Malta?
Malta offers an attractive tax regime, with a corporate tax rate of 35%. However, foreign shareholders can benefit from a tax refund system, potentially reducing the effective tax rate to 5% or lower.
Do I need to be a Maltese resident to set up a company?
No, foreign individuals and entities can incorporate a company in Malta without being residents. However, it is common to appoint a local resident as part of the management or administration for practical reasons.
What are the requirements for a registered office in Malta?
Every Maltese company must have a registered office in Malta, where official documents can be sent. The registered office must be a physical address and not just a P.O. box.
What are the roles of directors and shareholders in a Maltese company?
A company must have at least one director and one shareholder. The director can also be the sole shareholder. Both natural persons and legal entities can serve as directors and shareholders.
Are there any licensing requirements for specific industries?
Yes, certain activities in Malta, such as financial services, gaming, and telecommunications, are regulated and require additional licenses from relevant authorities like the Malta Financial Services Authority (MFSA) or Malta Gaming Authority (MGA).
What are the ongoing compliance obligations for Maltese companies?
Companies are required to file annual returns with the Malta Business Registry, prepare and file annual financial statements, and undergo an audit if certain thresholds are met. Compliance with tax obligations, including VAT and corporate tax returns, is also mandatory.
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Who We Help
We work with a wide range of clients who want to protect their assets, grow their businesses, and expand internationally. Our typical clients include:
Entrepreneurs & Startup
Looking to establish a formal business structure to enhance credibility and attract investors.
Small Business Owners
Seeking simplicity in the formation of one’s business and legal protection
Freelancers & Consultants
Wanting to legitimize their operations and protect personal assets.
Foreign Investors
International businesses establishing a presence in Malta.
E-commerce & Online Businesses
Needing a reliable structure for managing their operations and protecting intellectual property.
