If you plan to start a business in Europe, Malta is an excellent choice for registering your company. The Manimama team has conducted in-depth research, analyzed the main subtleties of incorporating in Malta, and is ready to share its results and help you choose the right jurisdiction. 

What are the main advantages of incorporating a company (business) in Malta?

1. Promising location

Malta’s unique strategic location in the heart of the Mediterranean makes it an ideal hub for trade between Europe, Africa, and the Middle East. This central positioning provides seamless access to EU markets, allowing businesses to expand efficiently across diverse regions. Additionally, its proximity to North Africa opens up opportunities for international partnerships and growth, giving businesses a strong foothold in emerging markets.

2. Sound legal framework and flexible regulation

Malta is known for its stable and robust legal framework that aligns with European Union directives, ensuring transparent and predictable business conditions. The regulatory authorities in Malta actively promote business development by implementing progressive rules and supporting companies across various sectors. The flexibility of the regulatory environment allows for quick adaptation to market changes, offering businesses effective governance in line with international standards.

3. Strong Banking System

Malta’s banking system is regarded as one of the most reliable in Europe. It provides high stability and access to a wide range of financial services for businesses. Maltese banks offer modern solutions for financial management, supporting companies with international transactions, investments, and capital protection. As a result, businesses can be confident in safeguarding their commercial interests, creating a secure and trustworthy environment for growth.

4. Political stability and modern infrastructure

Malta is one of the most politically stable countries in the region, creating a safe and predictable environment for doing business. Continuous economic growth fosters investment and supports the development of various sectors, opening up new opportunities for startups and established companies. Additionally, the country is investing in modernizing its infrastructure, providing high-speed internet access, contemporary office spaces, a well-developed transportation system, and convenient connections to international transport hubs.

5. Highly skilled workers

Malta is known for its highly educated and skilled workers, resulting from the country’s investment in quality education and professional training. Local workers are proficient in English, which is the second official language, greatly facilitating communication for international companies and enabling swift integration into business processes. Moreover, Maltese universities and educational programs closely collaborate with European institutions, equipping employees with up-to-date knowledge in finance, IT, law, and business.

How to register a company in Malta and what are the main requirements for such registration?

Step 1. Initial setup

• Initiating a preliminary project assessment, assessing risks, choosing the type of company, preparing the necessary documents and obtaining the necessary permits, determining the time frame, budget, and resources required to complete the process.
• Preparation and filing of the package of documents.

Step 2. Company registration

• Verification and reservation of the company name at the Registrar of Companies (Malta Business Registry)
• Facilitating the notarial process for the company’s official registration
• Opening a bank account and depositing share capital (€1,164.69) in the amount of 20%. This payment must be paid up upon incorporation
• Incorporating the company’s data into the Malta Business Registry
• Obtaining the Certificate of incorporation from the Malta Business Registry, Memorandum and Articles of Association
• Registration for tax and social security purposes
• Obtaining licenses and special permits (if necessary)

Requirements for registering a company in Malta on the example of a Private Limited Liability Company (LTD):

• Shareholders: the company must have at least 1 shareholder. It can be either natural persons or corporate entities and are not obligated to be Maltese residents.
• Director: the company is required to have at least 1 director who can be a natural or legal person, resident or non-resident in Malta.
• Company secretary: at least 1 company secretary.
• Minimum share capital: the minimum authorized share capital is €1,164.69. The capital shall be subscribed by at least two persons. In the case of a private company not less than 20% of the nominal value of each share taken up shall be paid up on the signing of the memorandum.
• Legal address: every company must have a registered office in Malta.
• Liability: the liability of the shareholders for the Malta LTD is limited to the amount of their respective shareholdings.
• Accounting: the company must prepare an annual return upon each anniversary date of its registration. The return must be filed with the Registrar of Companies within 42 days after the date to which it is made up. There is also a requirement to file a copy of the annual accounts. The annual accounts must be approved within 10 months from the end of the financial year.

What do you have to know about taxes when registering a company in Malta?

Corporate income tax (CIT):

• A company which is incorporated in Malta is considered to be both domiciled and resident in Malta and is therefore subject to worldwide taxation.
• The standard rate is 35%.
• When companies are taxed at the standard rate, after dividends are paid, shareholders are entitled to a refund of some or all of the tax paid by the company.

Personal income tax (PIT):

• In Malta the taxation of an individual’s income is progressive; i.e. the higher an individual’s income, the higher the tax paid.
• The PIT rates (for single persons) are as follows:
  • €0 to €9,100 – 0%
  • €9,101 to €14,500 – 15%
  • €14,501 to €19,500 – 25%
  • €19,501 to €60,000 – 25%
  • €60,001 and over – 35%

Value-added tax (VAT):

• The standard rate is 18%.
• The reduced rates are 12% (health care services, hiring a pleasure boat, and management of credit and credit guarantees), 7% (accommodation in a hotel or guest house, in any premises, where for the purpose of that accommodation, it is required that the premises be licensed in terms of the Malta Travel & Tourism Act; use of sporting facilities), 5% (supply of electricity; medical accessories; printed matters; admission to museums, art exhibitions, concerts and theaters, etc.), 0% (food for human consumption; pharmaceutical products; scheduled bus service (tal-linja); domestic inter-island sea passenger transport; international passenger transport; exports; intra-community supplies of goods).
• Companies based in Malta must register for VAT if their annual turnover exceeds the threshold of €35,000 for goods and €30,000 for services.

For readers 

Manimama provides assistance in choosing the right jurisdiction for company incorporation and in registering a business specifically in Malta. We have a good understanding of the tax and legal peculiarities of specific jurisdictions, which helps our clients make an informed choice based on their unique needs and development strategies. In our work, we take into account factors affecting the business environment, such as the level of competition, access to financial and human resources, as well as opportunities for further growth and development in different jurisdictions. 

By choosing our company formation service in Malta, you are working with a law firm that values integrity, competence, and client satisfaction. Let us help you set up a company in Malta and pave the way for your business success!

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The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.