Ranked among the most prosperous countries in the European Union and classified as an advanced economy by the International Monetary Fund and the World Bank, Malta has become more and more attractive for foreign investors. Since its accession to the European Union, Malta has undergone significant changes in order to become competitive. The strength of the Maltese economy comes from its strategic location, its taxation system, skilled and multilingual workforce and the developed financial, tourism and IT industry, which attracted numerous businessmen interested in company formation in Malta.
Malta has strong economic ties with EU countries, but also with states outside the European Union, which grants it a great advantage when it comes to foreign investments. Realizing the importance of foreign investment for the economic growth, the Government has designed different programs and schemes providing incentives or tax deductions for foreign entrepreneurs from various industries. Some of these incentives refer to the easiness of setting up different types of companies in Malta.
The main types of companies available for registration in Malta are:
The private limited liability company is the most employed type of business vehicle in Malta. According to the Maltese Company Act, a private limited liability company must have a minimum share capital of 1,165 euros. However, if the share capital does not exceed the minimum requirements, it must be fully subscribed upon incorporation, while if it exceeds the minimum share capital, at least 20% of the amount must be deposited. The private company is also required to have at least two shareholders, one director, one company secretary and a registered office. The legislation does not require for the company’s directors to be Maltese residents.
Limited liability companies may also be registered as public companies. This type of company is required to have at least two shareholders who will subscribe a minimum share capital of approximately 46,600 euros of which at least 25% must be paid upon the incorporation of the company. Compared to the private company, the public company must have at least two directors and may trade its shares on the Maltese Stock Exchange.
Foreign companies may also set up branch offices in Malta, while for individuals looking for a simpler way of doing business in the country, the sole proprietorship is the best option. Our experts in company formation in Malta can help you choose the right type of company.
The most important documents when opening a company in Malta are the memorandum and articles of association. These must contain:
Copies of the passport or other identification papers of the directors and secretaries must also be submitted with the Maltese Trade Register. Foreign citizens are not required to come to Malta for the incorporation procedure. They can appoint a representative and give him power of attorney for legal representation.
Once the registration procedure is concluded, the company must also apply for a business license and other necessary permits depending on the activity to be carried out. The company must also apply for a tax identification number (TIN) and register for VAT. The last step is to obtain an employer identification number (PE number) and register its employees with the Employment Training Corporation (ETC).