Malta has been a member of the European Union since 2004 and is known for its robust financial services industry. As such, it’s no surprise that Maltese legal terminology can be quite complex. Common terms you may come across include ‘Registrar of Companies’, ‘GDPR’, ‘full imputation system, and ‘indirect tax.’ It can be intimidating to face all this information when trying to establish your business in Malta, but it doesn’t have to be. One thing that can help is finding a licensed agent who can guide you through the process with ease. We can explain any legal jargon in plain English so that you understand everything completely before taking any steps forward. Having someone on hand who knows about setting up a company in Malta will save you time as well as money by helping you avoid costly mistakes due to misunderstandings. It’s also a good idea to have someone who speaks both English and Maltese fluently so they are able to translate anything complex into understandable language for your benefit.
The Malta Business Registry (MBR) assumes responsibility for various tasks such as registering new commercial partnerships and legal entities, issuing certified documentation including certificates of good-standing, reserving company names, collecting fees, publishing notices, and imposing and collecting penalties. Additionally, the MBR conducts investigations of companies and maintains the company and partnership register.
GDPR stands for General Data Protection Regulation. It is a regulation created by the European Union (EU) in 2018 to protect the privacy and personal data of EU citizens. The GDPR applies to all companies that collect, process, and store the personal data of EU citizens, regardless of where the company is located. The regulation sets guidelines for how companies must obtain and handle personal data, provides rights for individuals to control their own data, and imposes fines for non-compliance.
The Malta corporate tax system works off a Full Imputation System. In simple terms, this means that company profits are taxed at the source, but dividends distributed to shareholders are not taxed again.
This system is different from the classical system, whereby company profits are subject to tax and shareholders are taxed on dividends.
Tax collected by one entity, such as a manufacturer or retailer, and paid to the government, then passed on to the consumer.
Navigating through Malta’s legal terminology can be a daunting task for those looking to do business in the country. However, with the right guidance from experienced lawyers and corporate service providers who speak both English and Maltese fluently, understanding Maltese legal jargon doesn’t have to be intimidating. Additionally, it’s essential to understand key concepts such as the role of the Registrar of Companies, GDPR compliance, and the Full Imputation System used in Malta’s corporate tax system. By being familiar with these terms, international organizations will be able to successfully establish their businesses in Malta and avoid costly mistakes.