Foreign companies registered outside Malta are allowed to conduct business activities through the redomiciliation procedure. Company redomiciliation to Malta happens mostly due to the country’s skilled labor force or great infrastructure. The regulation and incentives for foreign investments have also led to a great number of companies wanting to redomicile to Malta.
The Maltese law has recently changed and, according to the Legal Notice 344/2002 in the Companies Law, if some requirements are met, foreign companies can change their domicile. The first step to company redomiciliation is registering the business in Malta. Other requirements for company redomiciliation to Malta are:
- the company must have a legal status recognized by the Maltese laws;
- the laws of the country the company was incorporated in must approve the company’s migration. Usually foreign authorities issue a statement agreeing to the redomiciliation of a company.
- the company must be registered under a consented jurisdiction by the Maltese Trade Register. Currently the Malta Companies Register approved migration of companies from EU, EEA and OECD member states, but also from Bahamas, Bermuda, British Virgin Islands, Cayman Islands, Gibraltar, Guernsey, Isle of Man, Jersey and Mauritius;
- the articles of association of the company allow the company to undertake business activities in another country.
In order to migrate a company to Malta, the following documents must be submitted with the Maltese Registrar of Companies:
- an application form released by the Trade Register in Malta;
- a decision of the foreign company allowing the registration of the company in Malta;
- the articles of association of the company that must comply with the Maltese laws regarding the minimum share capital, the registered office, the shareholders, directors and secretary of the company;
- a certificate of good standing issued by the Trade Register of the foreign country the company was incorporated in;
- a statement signed by two or more directors of the company containing the name of the company overseas, the name of the company in Malta, the country it was first incorporated in, the decision of incorporating a company in Malta, evidence that the company gave notice to the authorities in the foreign country for continuing the business in Malta;
- a list of the directors, secretary and, if it is the case, the administrator of the company;
- other documents required by the Maltese Trade Register;
- the company registration and additional fees.
Redomiciliation of companies to Malta has many benefits and among the most important are:
- there are no exit, set-up taxes or duties for migrated companies;
- companies can apply for tax refunds;
- companies can benefit from Malta’s participation exemption tax system;
- Malta’s double taxation agreements apply to foreign companies as well;
- companies have access to EU Directives.
If you want details about company redomiciliation, you can contact our Maltese agents in company formation.