Malta Company Formation Considerations

However, if you have any questions that you wish to discuss with us directly, contact us by clicking on the button below and we will arrange a consultation to discuss your questions.

Substance Requirements

Without a confirmed definition of the management and control requirement, you would need the below measures when you set up a company in Malta:

Director – this can be either a resident or non-resident, however for a stronger case for substance in Malta, having a Board of Directors with at least 50% or more being a Maltese national or having a permanent place of residence in Malta;
Business decisions take place in Malta – recording the meeting minutes locally and regular board meetings and annual general meetings;
Economic substance – such as an office and employees.

The basic requirements for substance depend on the country who would challenge the management and control of the business. If you want to know more about what substance we can offer, contact us directly for a discussion on your requirements.

Malta Company Formation Fees

The Malta company formation fees are payable to the Registrar of Companies for the registration of a company and are calculated according to the company’s authorised share capital as indicated in the table below:

A minimum annual fee of €100 is payable with the submission of the Annual Return. We offered the back-office services that meet Malta standards and we coordinate with our team accordingly.

Malta Company Bank Account

With compliance and anti-money laundering being a hot topic in Malta, opening a bank account can be a tricky process to navigate. Moreover, if you have no local substance (such as a local office with a resident director) you have very little chance of being approved for a bank. However, our team of experts can guide you on what steps you can take to get a Malta company bank account opened that is both compliant and fitting to your needs.

Documents to Set Up a Malta Company

To set up a Malta company, you need to have several documents to form the company with Papilio Services:

Complete our establishment forms and financial activity forms enabling us to understand what type of Company is required and what annual services are required from our end.

• Complete the required due diligence documents required on all of the directors, shareholders and UBO’s.

• Once these are received, our compliance team will review the documents.

• Once received, the company will be set up within 3-5 business days.
  Once all is cleared, the memorandum and articles of the company will be drafted for signature. Original signed documents need to be sent to our office directly by courier.

Malta Company Tax Planning

Most of the companies incorporated in Malta are subject to a corporate tax rate of 35%. However, the Malta Tax System is a full imputation system. This system means that a shareholder can claim a 6/7th tax refund on any tax paid by the company on profits distributed as dividends. This system makes the effective rate of tax 5%. It is also possible to get a full refund should a company have a participating holding.

If you need Malta tax advice, contact us so we can assess your requirements and create a tax strategy.

Malta Holding Company

Malta is a popular choice as it offers many tax planning opportunities. The holding company and the Malta Tax System helps investors or companies reduce their effective rate of tax. The Malta tax benefits include:

• Malta Participation Exemption – this is a 100% tax exemption that applies to dividends and capital gains derived from a participating holding

• Malta Tax Refunds – this lowers the effective corporate tax rate to 5%. The passive income tax rate can be lowered to an effective rate of 10%.

No Withholding Tax in Malta
European Union tax programmes – this includes the Parent-Subsidiary Directive and the Interest and Royalties Directive
Malta has in place more than 70 double taxation treaties in force with countries all over the world

What does a Malta Company Secretary do?

It is a legal requirement for every company in Malta to have a company secretary, which must be an individual and not be a corporate entity. The Company Secretary is responsible for the filing of all statutory forms and ensuring specific company resolutions are filed with the Registry of Companies.

In an increasingly complex environment, the Company Secretary is also responsible for providing technical advice on legal, financial and compliance matters. As part of our corporate services, we can offer an experienced and competent Company Secretarial Services in Malta to carry out the company’s official duties and ensure that all compliance is adhered to and done to a high standard.

The responsibilities of a Malta company secretary include the keeping of:

• A minute book of general meetings of the company;

• A minute book of meetings of the board of directors;

• The registrar of members;

• The keeping of other records the board of directors require;

• Ensure proper notices are given for all meetings;

Ensure that all returns and documents of the company are prepared and delivered following the Companies Act

What does a Malta Company Director do?

Company directors in Malta can be of any nationality although having at least one local Maltese director is advisable. Alongside having local expertise and knowledge, company directors in Malta usually have established communication lines with government authorities such as the Maltese VAT department and Inland Revenue Department, to name a few. Therefore, this ensures that any issues that may arise can be dealt with quickly and efficiently.

Moreover, it is a requirement that all company directors in Malta are listed on the Malta Business Registry (MBR) website.

Accounting, Bookkeeping and Auditing Requirements

Our first accounting and bookkeeping services in Malta will include a review of the practical methods your business follows to ensure that the information is stored and passed on in the most efficient way possible to carry out the bookkeeping services in Malta diligently and thoroughly.

Our team will ensure all to record all transactions accurately and that all ledgers are maintained, and that we carry out all necessary reconciliations.

The financial transactions will be ordered and stored in an orderly way to make the audit process as simplified as possible. We prepare financial accounts using either International Financial Reporting Standards (IFRS) or using the local General Accounting Principles for Smaller Entities (GAPSME) regulations.

We offer full support with in-house accounting services, payroll services as well as many other back-office services including VAT advice & registered offices. We also assist clients with the coordination of the auditing of financial statements by third-party auditors.

Papilio Services Limited – Malta Company Formation Agents

We are registered to act as a Company Services Provider by the Malta Financial Services Authority. Through an associated company, we are also licenced to carry out services related to Malta trusts and foundations.

Our clients’ requirements are all unique; however, here is some of the recent work that Papilio Services has carried out for our clients to name a few:

• The setting up of beneficial royalty structure in Malta;

• Establishing holding companies with a variety of complex private equity interests;

• Setting up a holding company that contains several subsidiary companies as part of a worldwide international trading group;

Establishing a holding company holding private equity vehicles

Contact us for an initial no-obligation consultation to understand your requirements and provide a full quote for the cost of setting up a Malta Company within 24 hours.