malta

KEY CORPORATE FEATURES
Approximate time to incorporate 5-10  days
Minimum number of Directors 1
Local Director required No
Local Secretary required No
Shareholder required 1
Disclosure of Beneficial Owner requirement No
Audit Requirement Yes
Accounts Filing Requirement Yes
Taxation 5%

Malta

Malta flag The Republic of Malta is a small island with a population of approximately 410,000 (this figure includes foreign nationals residing in Malta).
Over the last ten years the financial services industry of the country has grown rapidly.
Despite the large number of players in this sector, Malta has tried to maintain its competitiveness by updating the relevant legislation, having a flexible regulator and a unique tax system.

 
For a quotation to incorporate in Malta or for more information about offshore company formation Malta, click here

TAXES

While Malta Companies are taxed at the Advanced Corporation Rate of 35% on chargeable income, its non-resident beneficial owners are eligible for a refund of tax paid on dividends.
Specifically, the full imputation system allows the shareholder, upon distribution of dividends, to be entitled to a refund partly or fully from any advance tax levied on the distributing company.
The tax refunds that apply are:

  • 6/7ths refund – On profits earned from trading activities. Final maximum net tax:  5%.
  • 5/7ths refund – On profits derived from passive interest and royalties. Final maximum net tax: 10%.
  • 2/3rds refund – In cases where the company has claimed double taxation relief.
  • Holding Companies – Effective Tax rate 0%. With respect to participating holdings a full 100% refund applies. A participating holding “arises where a company holds at least 10% of the equity shares of a non-resident company”, or meets certain other criteria set out in the law.

LANGUAGE BARRIERS

The official languages are Maltese and English while the business language is English. This should make business transactions easier for your Maltese offshore company. Italian is also widely spoken.

ECONOMY

Malta’s biggest sector of the economy and the largest contributor to national GDP is Tourism.
Over the last ten years the financial services industry has witnessed a rapid growth and it is now contributing more than 10% to the country’s GDP.
Malta's banks are continually expanding and improving their services.

RULES AND REGULATIONS

  • The company is required to have a registered office and address in Malta, which should be notified at the Registrar’s Office.
  • The company is required to have a Maltese resident secretary.
  • Company meetings need not be held in Malta.
  • The minimum number of directors is one, who may be corporate or individual. . Details of shareholders appear on public file but anonymity can be preserved by the use of nominee directors.
  • As a rule the minimum number of shareholders is two, but a "single member company" may also be registered. Details of shareholders appear on public file, but anonymity can be retained by the use of nominee shareholders.
  • A Maltese Limited Liability Company may be registered with a minimum authorized share capital of EUR 1,250. It is also required that 20% of the authorized share capital is paid up.
  • The company name must be in the Latin alphabet and must end with the word "Limited" or "Ltd". It must not be identical or similar to the name of a company already incorporated. Any name that in the opinion of the Registrar of Companies is offensive or otherwise undesirable is not permitted.
  • All Malta registered companies must file annual returns showing details of shareholders and directors and must submit their audited accounts.
    To register a limited liability company usually takes between 5 to 10 days.