As an alternative to Malta Company Formation, we provide clients, including private and public companies, with advisory services on a general and transactional basis regarding moving management and control of a non-Malta registered company to Malta.
Our assistance when moving management and control of a non-Malta registered company to Malta includes all necessary local resolutions and ancillary documents and forms, including liaising with the Maltese Registrar of Companies and the Maltese Inland Revenue Department. It also very often includes appointing at least one Maltese resident director (which must be registered in the company’s home country or jurisdiction, which remains the country or jurisdiction of formation, incorporation or registration).
The process of Management and Control in Malta
The company is registered as resident in Malta with the Maltese Registrar of Companies (if having a place of business or branch in Malta) and the Maltese Inland Revenue Department.
The real management and control of the company’s business must take place in Malta after the move. Importantly, it is necessary to make sure that a non-Maltese tax or other authority accepts the claim that the company is effectively managed and controlled in Malta, and this varies from country to country. However, some typical indicators that management and control are taking place in Malta include holding all (or at least the majority) of the Board Meetings of the company in Malta. Directors being physically present in Malta and ensuring that all significant decisions are made during such meetings in Malta. Other indicators that may help in the case of substance is that is:
- Directors are resident in Malta
- The company has a Maltese bank account through which its income and expenses are directed
- The office of the company is based in Malta
- Employing local staff and services to assist the business in its growth.
Taxation of non-Malta domiciled Companies resident in Malta
A company which is resident in Malta by management and control being practised in Malta, but is not domiciled, i.e. not incorporated in Malta, is charged to tax in Malta only on:
- Income arising in Malta
- Income arising outside Malta, but received in Malta.
Capital gains arising outside Malta but not remitted to Malta are not subject to tax in Malta. Moreover, the company may qualify for a 6/7th tax refund, provided that all the conditions are met. Finally, Malta resident companies benefit from Malta’s vast network of double tax treaties with over 70 countries.
Management and Control in Malta – the importance of it and point of contact
For assistance on moving Management and Control of a non-Malta registered company to Malta, please contact our team today to arrange a consultation by calling us directly on +356 2122 7553 or email us on firstname.lastname@example.org, and we will respond to you within 24 hours.