Registering a company in Malta for tax planning purposes
- The Maltese jurisdiction
- Malta is a well regulated yet flexible jurisdiction with elaborated legislation covering different forms of legal entities and specific business activities, e.g. online gaming (gambling), maritime services, financial services, registering and holding intellectual property rights. Due to its tax system Malta is a perfect location for registering companies holding shares in the entities within or outside the EU. Maltese holding companies are excellent gateways to and from the EU as, if certain conditions are met, no tax is paid on incoming dividends from subsidiaries situated outside Malta.
Registration of a company in Malta - the advantages
- Malta has an attractive tax system based on tax refunds upon the distribution of dividends. A company can chose to be taxed at 35% on incoming dividends and then apply for 6/7 refund on the Malta tax paid, which means 5% actual tax. Interest and royalties received from outside Malta are taxed at 10%. There is no withholding taxes payable on outbound dividends, interest or royalties.
- Also there is a well developed network (namely 57) of double taxation agreements with all EU countries, with the US and others.
- Registration cost and operational expenses
- Setting up a company in Malta and maintaining its good standing is quite cost-effective comparing with the expenses required in other EU countries.
- Other benefits include a sound banking system with major banks represented, established legal system based on UK law and English being the official language, corporate legislation conforming EU law and standards and remarkable IT infrastructure.
- Incorporation in Malta:
- Maltese company share capital. The minimum share capital of a private company is Euro 1,165 of which at least 20% has to be paid up. Maximum amount of shareholders is 50 and minimum number is 2 (although a single member company may also be registered under the Companies Act).
- Documents and information required to register a company in Malta:
- 1. Two proposed company names.
- 2. A passport copy, full residential address and a bank reference for each shareholder (a minimum of two is required).
- 3. A passport copy, full residential address and a bank reference for each director (a minimum of one is required).
- Fees - to register a company and have the corporate package issued
- Maltese company registration fee is Euro 1 980, which include: registration, filing with the Registrar of Companies, apostilled Certificate of Incorporation, Memorandum & Articles of Association, company registered office and registering a shareholder with tax office for tax refund.
- In addition to the above fees a minimum of authorized share capital EUR 240 should be paid up to have the company registered.
- Additional documents:
- Tax Residence Certificate - EUR 80
- Company in Malta renewal:
- Annual renewal is due on the anniversary of the incorporation and costs Euro 1 200. This includes provision of the company registered office, preparing and filing of the government annual return
- All Maltese companies must prepare an annual return on each anniversary of its registration. The return must be filed with the Registrar of Companies within 42 days after preparation. A payment between EUR 100 and EUR 1,500 depending on the authorized capital is to be submitted along with the return
- Companies are also required to file a copy of the annual accounts, which must be accompanied by a copy of the auditors' report and the directors' report
- Maltese companies ameeting two of the three following criteria: - balance sheet total: EUR 46,587.47;
- turnover: EUR 93,174.94
- average number of employees during the accounting period not exceeding 2;
are exempted from auditing of accounts and such companies may draw up abridged balance sheets and abridged layouts of profit and loss account.
- For your convenience we may assist in preparation of these accounts and statements. Fees charged by the accountants and auditors depend on the work load.
Banking in Malta
We can assist with opening a current bank account for your newly registered company either in Malta or in other jurisdiction. No personal visit to the bank will be required.
Please contact us email if you would wish to proceed with registering a company in Malta.
- Companies in Malta law (Summary of the Companies Act, 1995):
- Summary of the Companies Act, 1995