Re-domiciliation of a company is the process by which a company moves its ‘domicile’ (place of formation and incorporation) from one jurisdiction to another. Therefore, this allows the company to change the country under whose laws it is registered while maintaining the same legal structure.

Redomiciliation has become more prevalent in recent years as companies aim to take advantage of different jurisdictions and their laws. However, this has led to several countries to stop companies redomiciling, including countries like Austria, Luxembourg and Hungary. Therefore, it is essential to check your countries laws before committing to redomiciling a company.

Benefits of Redomiciliation of a Company to Malta

There are many benefits that your business can receive when redomiciling itself to Malta. These benefits include:

  1. The business would not have to wind up and liquidate, therefore reducing the costs in the foreign country.
  2. Take advantage of the Malta tax system. Your business could have an effective tax rate of 5%, perhaps even 0%.
  3. Redomiciling does not affect the property of the company. Therefore, the company retains all its assets, rights, liabilities and obligations — for instance, intellectual property.
  4. There are no withholding taxes or stamp duty on the distribution of dividends or profits to the shareholders for Maltese companies.
  5. Malta has over 70 double taxation agreements with countries around the world.

Process of Redomiciling a Business to Malta?

The request to the Registrar of Companies must be accompanied by at least the following documents as per the Malta Business Registry:

  1. The resolution of the foreign company authorising it to register as being continued in Malta
  2. A copy of the revised constitutive document of the foreign company
  3. A certificate of good standing issued by the foreign competent authority
  4. A declaration signed by at least two directors confirming:
    • The name of the company now and going forward
    • The jurisdiction under which the company is incorporated
    • The date of incorporation
    • The decision to have a foreign company registered as continuing in Malta
    • Evidence that formal notice has been presented to the competent authority of the foreign country of its intention of continuing in Malta
    • That no proceedings for breach of the laws of the country or jurisdiction of incorporation were initiated against the foreign company
  5. A signed declaration by at least two directors of the company confirming the solvency of the company
  6. List of directors of the foreign company including the company secretary
  7. Other evidence or information which the Registrar may require
  8. Any applicable fees

Do You Need Help with Redomiciling Your Business?

If you require assistance and advice when redomiciling your business to Malta, contact our team today to arrange a consultation by calling us directly on +356 2122 7553 or email us on enquiries@papilioservices.com, and we will respond to you within 24 hours.

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