Benefits of Company Formation in Malta
Registering your company in Malta brings with it a lot of benefits. These range from a fast process of Malta company formation to beneficial tax rates.
Primarily, Malta is a member of the European Union and its has an advantageous location at the commercial crossroads of Europe, Africa and the Middle East. Additionally, both the Malta Freeport and the Malta International Airport offer remarkable connectivity, allowing the island to connect in real-time with European and regional hubs.
Malta boasts beneficial tax rates where capped social security contributions offering a competitive labour cost base. Malta also has signed double taxation treaties with several countries therefore providing relief from foreign taxation. This will be issued in the form of a credit against tax which will be due to be paid Malta.
Malta also offers an attractive incentives’ package designed to support direct investment, which includes allocation of space, fiscal benefits and access to finance.
Company registration in Malta is a very straightforward procedure which can take as little as 48 hours for the incorporation since the moment of submission of all documents to the Malta Business Registry (MBR).
In order to open a company in Malta one is required to submit the following:
- Completed SMM client questionnaire, providing answers to all specific questions related to the company one is looking to incorporate.
- Provide the requested due diligence documents for all shareholders and directors.
Once the mentioned-above documents have been received and found to be satisfactory, SMM Corporate team will proceed with company registration, preparing the necessary documents for registration and submission of the documentation to MBR.
What does the Incorporation of a Private Company in Malta Entail?
Initially, to incorporate a company in Malta, Memorandum and Articles of Association must be drafted and delivered to the Registrar of Companies alongside a registration fee.
The Memorandum and Articles of Association must include:
- The chosen name of the company — This can not be the name of any other company which is already registered in Malta. In the case of a private company, it must also end with the words limited or ltd.
- The registered address — The registered address of the company must be an address located in Malta which is necessary for domicile purposes. If required, SMM Group can provide its clients with the services of a registered address in Malta.
- Objects of the company — The objects of the company must explain the company’s purpose and detail its main trading activity.
- Share capital — The minimum authorised share capital under Maltese law is EUR 1,164.69 which must be at least 20% paid up. The shareholder’s personal liability is limited to the amount of unpaid share capital. Thus, if shares would be 20% paid up, the shareholder would be 80% personally liable with respect to the company. The share capital amount must be deposited in a Maltese bank account under the name of the company in formation. Also, the share capital must be denominated either in Euros or any other currency.
- Information on Shareholders — The minimum number of shareholders that a private company may have is one, which in such case would be referred to as a single-member company. In the case of more than one shareholder, details as to the amount of shares they will hold would need to be included. Furthermore, under Maltese law, there are no restrictions on the nationalities of directors or shareholders.
- Information on Directors — The minimum number of directors that a private company may have is one and there is no maximum amount. Details of directors must be given including their name, address, and ID or Passport number.
- Company Secretary — Every private company must have a company secretary. It shall be the duty of the directors to ensure that the company secretary is an individual who appears to them to have adequate knowledge and experience to discharge the functions of company secretary.
- Legal and Juridical Representation — The Memorandum and Articles of Association must state who will be vested with the legal and juridical representation of the company. This is generally vested within the directors of the company.
Once this process is complete and the necessary documentation is delivered to the registrar, if the registrar deems that all the necessary documentation is provided, company formation in Malta may take from as little as 24 hours.
For more information about company formation in Malta check our Frequently Asked Questions on Corporate Law.