Company in Malta
Over the past few years, Malta has unexpectedly taken the place of Cyprus as the most popular tax heaven in Europe. The main reason is that this country offers a unique CIT refund system.
Background information you need to know before you open business in Malta
Malta, the Republic of Malta is the southernmost European country in the Mediterranean basin. Maltese speakers are fluent in English because it is the second official language, after Maltese. The capital of the country is Valetta and the currency used by the people of this island nation is the euro.
Company registration in Malta
The establishment of the business in Malta has been enjoying increasing interest following Malta’s accession to the European Union. However, let’s answer the question for whom it will be a good choice to open company in Malta? Malta is an extremely tax attractive country due to its legal standards. The tax authorities in Malta make it a good direction for entrepreneurs looking for tax optimization of their business.
Company registration in Malta and choosing its legal form
The most popular type of company in Malta is LTD.
The company’s headquarters have to be located in Malta, a significant facilitation in this respect is the huge number of virtual offices that can be rented for a good price. Therefore, it is not necessary to have property in Malta. The minimum share capital of the company is EUR 1,164,69 and the maximum number of shares is 50. The composition must be at least one director and one shareholder. In addition, it is required to have a company secretary who is not necessarily a resident of Malta.
Business in Malta and taxes there
It is worth mentioning that Malta has signed a double taxation agreement with Poland among others.
Let us present below a brief summary of tax rates in Malta:
- Natural person
- Personal income tax:
- tax-free amount of 3250 Maltese lira 0-3250 0% 3251-5500 15% 5501-6750 25% over 6751 35%, tax reliefs depending on marital status.
- Legal entity
- Corporate income tax:
- CIT rate is 35%
- VAT
- The standard rate is 18%,
- Reduced rates are 7%, 5% and 0%.
Company registration in Malta – get to know the whole process
In this point we will show you how company registration in Malta looks like and which documents are necessary.
Let’s move on to the completion of information concerning the documents necessary to company formation in Malta, these are first and foremost:
- the original agreement or articles of association signed by the shareholders or their authorised representatives,
- confirmation of payment of the entire share capital,
- certified copy of the passport together with a confirmation of permanent residence not older than three months, e.g. in the form of utility bills,
- payment of all necessary registration fees.
Malta maintains a public electronic register of entrepreneurs, similar to our Polish National Court Register, which, however, does not preclude confidentiality at the highest level. Maltese law allows for the use of a nominee director.
Ready made company in Malta
The purchase of a ready company in Malta is also possible if the entrepreneurs start their business quickly.
