Malta is an extremely attractive jurisdiction to consider having your company set up in or moving your business to. There are many benefital reasons why owners would consider moving to Malta including the attractive and unique tax system, Malta’s memebership to the EU, ease of travel and many more reasons. So in this article we will disucss the main reasons why people choose to set up a company in Malta.
Setting up a business in Malta is a popular choice for owners because of the beneficial and unique tax system, which can offer foreign shareholder’s a possible refund on tax suffered by the company.
As an example a company set up in Malta that carries out trading activities could be entitled to a 6/7th refund of the tax paid. This would make the effective rate of tax 5%. The Malta Tax refund system also allows for further refunds, which scale downwards from 6/7th’s on tax suffered on other types of income streams.
An added point of interest for a company set up in Malta is that it may also be able to take advantage of a number of double tax treaty agreements that Malta has in place.
It is not just the tax benefits that are enticing owners of businesses or those looking at having their company set up in Malta, with an increasing awareness and appreciation of the convenient location in the middle of the Mediterranean. Malta has easy travel connections to most of Europe’s major cities within a few hours, is conveniently placed for travel to the Middle East and now has flights to the US.
Malta also benefits from a sound and reputable education system which transcends into a highly skilled work force. A further benefit for those looking at having a company set up in Malta is that English is a national language alongside Maltese and virtually most people speak both languages. Legislation is available in both languages and business is conducted in English. Generally, a lot of people also have a good understanding of Italian, French and German.
Currently, setting up an online business is a hot topic as the IT infrastructure in Malta has developed significantly over the last few years to a very high standard, which has contributed to making it a focal point for e-commerce business companies and an ideal place to start an online business.
Malta Company Formation – Considerations
The business could be a completely new start up or could be a continuation of operations in a newly opened Maltese subsidiary if part of a bigger group. Once the business owner is clear in their mind on setting up a business in Malta, it is a relatively simple process once all of the customer due diligence has been collected and processed. If the owner has a name in mind for the company set up in Malta, then this can be reserved with the Malta Registrar.
If the business is being set up as a private limited company, the initial share capital will have to be deposited into a company bank account. However, should the company bank account not be in operation, the initial deposit can be provided to the corporate service provider whom will issue a practitioners certificate to the registrar alongside proof of receipt. As part of the Malta company set up process all relevant documentation is drafted such as the Memorandum of Articles and when everything is in order it is presented to the Malta Registrar whom will inspect before accepting and issuing a company registration number and an incorporation certificate.
Setting up a Malta Bank Account
Whilst it is not essential to have a Malta bank account, a company set up in Malta will usually have one and owners should be aware that this can take up to two months to set up. Moreover, it is difficult to set up a bank account in Malta if you don’t have office space, active operations and employees. Bank accounts can be opened in differing currencies and online banking is available. The banks will usually charge a fee and will work only through authorised agents, of which Papilio Services Limited is one.
As part of the Malta company set up process, the owner of the business should consider whom they want as directors of the company and also whom they wish to be the company secretary. Directors can be individual directors or the owner could choose for the Malta company set up to appoint a corporate director. For a number of reasons, it is advised to have a local director on the board either as the sole representative of the company or as part of the management team with other directors in place. The company secretary usually is appointed because of the technical expertise in a certain area.
If the company set up in Malta is a trading organisation, there will in the majority of cases be a requirement to register for Value Added Tax. When setting up a business in Malta, the company will also be registered with the Inland Revenue department and be issued with a corporate tax number.
Malta Company Formation and Registration – Your Move
To sum up, Malta company set up is a very straightforward and easy process. We can help to develop your idea and offer a full range of services to assist with setting up a business in Malta including corporate, compliance, tax advisory and back office services to help your business succeed. Your business is unique to us, thus we will provide you with tailor made tax efficient structures and guide you through the entire business lifecycle of your company.
Some of our initial Malta company formation services include vetting relevant Customer Due Diligence (CDD) documentation, drafting statutory formation documents, liaising with banks for the opening of bank accounts and liaising with the relevant authorities with regards to the registration of a Maltese company and setting up a business in Malta.