Malta

Key benefits

Located in the heart of the Mediterranean between mainland Europe and North Africa Malta is the perfect place to conduct business. Malta is a strategic hub due to its location and is easily accessible.

Key benefits:

  • Malta has been a full EU member since 2004 and entered the Eurozone in 2008.
  • Malta is a highly reputable jurisdiction with laws in line with applicable European Union legislation
  • English is used throughout the island and all documents produced are in English
  • Corporate income tax is subject to a flat rate which currently stands at 35% however Malta is currently the only member which allows a full imputation system to eliminate the double taxation of company profits, therefore tax charged to the company is imputed to the shareholder upon dividend distribution by the company. Since the tax rate of 35% applicable to companies is also the highest tax rate in Malta, shareholders will not suffer any additional tax on the receipt of dividends. The shareholder may even receive a tax refund if his income falls to be taxed at a lower rate of tax than the 35% tax rate incurred by the company
  • A system of tax refunds is in place so that upon dividend distribution, depending on the nature of the taxable profit, a 6/7ths, 5/7ths or 2/3rds tax refund of the corporate tax paid by the company, may be paid to the shareholder. The effective tax rate is therefore reduced to 5%.
  • Furthermore, Malta’s tax system grants a full participation exemption with respect to dividend income derived from a participating holding and to capital gains derived from the transfer of said holding; a number of anti-abuse conditions must be satisfied before a company may be classified as a participating holding.
  • Malta has a highly professional workforce

Procedure of company registration

To begin incorporation of a Maltese company the following is required:

  • Company Name
  • Director/s full name, date of birth, address and nationality
  • Shareholder/s full name and address

Documents you are required to provide:

  1. Proof of identity. Either passport, national identity card, photographic driving licence
  2. Proof of residential address. Gas/electricity bill or credit/debit card bank statement dated within the last 3 months

A Maltese company must have at least one director, they may be an individual or corporate body and do not need not be Maltese nationals.

Nominee Director:

In order to obtain a Maltese bank account the company requires a resident nominee director. Eltoma Corporate Services can provide this service. However, directors/shareholders residency is not important to establishing resident status for the purpose of the treaties.

Shareholders:

A minimum of two shareholders are required who may be corporate or individual. The personal details of a Maltese company’s registered shareholders are public information but, anonymity can be retained by the use of nominee shareholders.

The maximum number of shareholders for a private company is fifty. The minimum number of shareholders is normally two; however a single member company may also be registered under the Maltese Companies Act. A single member company is a private limited liability company, which qualifies as an exempt company and which is incorporated with one member.

Company Secretary:

A Maltese company must have a company secretary. It is the duty of the directors to take all reasonable steps to ensure that the company secretary is an individual who appears to them to have the requisite knowledge and experience to discharge the functions of company secretary. The law does not require that the company secretary be resident in Malta.

Registered Office:

Every Maltese company must maintain a registered office in Malta. Any changes to the company’s registered office must be notified to the Registrar of Companies. Eltoma Corporate Services can provide this service.