Share capital refers to the amount of money that a company raises from its shareholders by issuing shares in exchange for funds. In Malta, the minimum share capital requirements depend on the type of company you want to register. For a private limited company (ltd), the minimum share capital requirement is €1,165. This means that if you want to register an ltd in Malta, you need to have at least €1,165 in share capital. For a public limited company (plc), on the other hand, the minimum share capital requirement is €46,587. This is because a plc is a larger company that is allowed to issue its shares to the public, and therefore, requires more capital to operate.
It’s worth noting that there are also different types of companies in Malta, such as partnerships and sole proprietorships, which do not require share capital. However, these structures have different legal frameworks and tax obligations than limited companies. When registering your company in Malta, it’s important to keep in mind that the share capital requirements are only one aspect of the process. You will also need to prepare documents such as the Articles of Association and Memorandum of Association, and comply with other legal and regulatory requirements such as obtaining a tax identification number and registering for VAT.
How to Raise Share Capital in Malta
The minimum share capital required to set up a company in Malta is €1,165. This amount can be raised in various ways, such as through private investments, venture capital or an Initial Public Offering (IPO). For corporate clients, private clients and high net worth individuals, our team of professional advisors are experienced in navigating the legal and regulatory requirements for raising capital and providing tailored advice to ensure successful outcomes.
Legal and Regulatory Considerations
In order to operate a business in Malta, companies must comply with various legal and regulatory requirements. This includes obtaining permits, licenses, and other documentation as required by law. For example, businesses in certain industries may need to obtain special permits or licenses before they can begin operating. Additionally, companies must register their business with the Malta Business Registry, which requires the submission of various documents such as company formation documents and articles of association. There may also be other regulatory considerations to take into account when registering a business in Malta, such as compliance with data protection regulations and anti-money laundering laws. Companies operating in certain industries, such as finance or gaming, may be subject to additional regulatory requirements and oversight. It is important for companies to understand and comply with all relevant regulations in order to operate legally and avoid potential fines or other legal issues. Seeking the advice of a legal professional is recommended to ensure compliance with all applicable laws and regulations.
Tax Environment in Malta
Malta has a competitive tax regime that attracts many foreign investors. Corporate Tax is charged at a standard rate of 35%, but there are cases where companies can benefit from reduced rates of 5% or 10%, depending on their business activities. Value Added Tax (VAT) is another important tax in Malta and is charged on goods and services supplied locally and those imported from outside the EU. The standard VAT rate is 18%, with reduced rates of 7% and 5% for certain goods and services. Other relevant taxes businesses may need to consider include the Social Security Contributions that are payable by both employers and employees, as well as Property Tax which is charged annually on the value of immovable property owned in Malta. It is important for businesses to understand and comply with all applicable tax laws and regulations in Malta to avoid penalties and ensure a smooth operation in the country.
Benefits of Registering a Company in Malta
Many businesses around the world have found Malta to be an ideal location to register their companies. Here are some of the benefits of registering a company in Malta: English speaking, strategic location, skilled workforce, and government incentives for businesses. Overall, registering a company in Malta can offer many advantages to businesses looking to expand their operations into the Mediterranean region and beyond.
Starting a business in Malta can be a rewarding experience, but it’s important to be aware of the minimum share capital requirements when registering your company. As always, it’s recommended that you seek out the advice of a qualified accountant or lawyer to ensure that you are in compliance with all legal and regulatory requirements.
 Thomas Jacobsen |  Szabolcs Toth |
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