The liaison office acts as a communication way between the head office of a foreign company and the clients the company has in Malta. The liaison office can also be regarded as a proxy between the headquarters of a company and its suppliers in Malta. The liaison office is not allowed to conduct any commercial activity; therefore it will not be subject to the Maltese tax system. Our company formation specialists in Malta can provide you with information about the company registration process in Malta.
The functions of a liaison office in Malta
The functions of a liaison office in Malta are restricted to non-profit undertakings, such as providing information about the parent company, promoting the company’s services, maintaining relations with the customers in Malta. The liaison office carries no right to issue invoices or sign contracts in the name of the company. A liaison office in Malta can only provide information regarding the company’s products and it is only enabled to conduct research and inform the headquarters about the results. Whether you want to register a company in Malta or a liaison office, we invite you to talk to one of our consultants.
Registering a liaison office in Malta
The process for registering a liaison office in Malta can take a few weeks, but before establishing the representative office in Malta, the main company must announce the Maltese authorities two months prior to the opening. The approval for opening the liaison office in Malta is granted for a limited number of years depending on the company’s profile, but it can be extended, if the company applies for a renewal. The documents required to open a liaison office in Malta are:
- notarized copies of the memorandum and articles of association of the parent company;
- an audited financial statement of the company;
- a letter from the management board of the company declaring the objective of the liaison office;
- a letter from the board management authorizing a representative for the liaison office;
- copies of identification documents, usually passports, of the Maltese liaison office’s personnel;
The video below shows the main steps on opening a Maltese representative office:
A liaison office in Malta must carry its activities independently and must have a separate office from other commercial undertakings of the company’s and its employees are not allowed to carry any financial activity in Malta.
What are the attributes of a liaison office in Malta?
Because a liaison office is not a legal entity and addresses to other type of activities, a foreign investor must observe a few characteristics linked to a liaison office in Malta which are mostly applicable in any European country:
A liaison office in Malta cannot have financial operations.
A liaison office can have employees who must communicate with the foreign company.
A representative agent with residency in Malta can represent a liaison office in this country.
Through a liaison office in Malta, a foreign company cannot agree and sign contracts with a local or overseas business.
Even if there are no complicated formalities for establishing a liaison office in Malta, it is recommended to have the support of a company formation agent in Malta who can handle all the requirements imposed by the authorities.
Who can establish a liaison office in Malta?
International companies wanting to have an idea about the business climate in Malta can, first of all, open a liaison office. This is in most cases the suitable option for foreign entrepreneurs who would rather skip the formalities of opening a company from zero. The main idea is to verify and test the market and to see what kinds of sectors suit most the needs of a foreign businessman, with the help of a liaison office in Malta. This is among the choices of international investors who do not want to take any risks and instead want to see and know from the start the ways in which their businesses can be successful.
Can I promote import and export activities with a liaison office?
Yes, a liaison office can promote the trading activities of a foreign company in Malta. There are numerous import and export companies that are interested in having their operations in Malta, but need to, first of all, find the proper place on the market. It is quite recommended to inspect the market you want to develop your activities and find out more about the business direction in Malta before establishing a company. If you want to know more about how to set up a liaison office in Malta, do not hesitate to solicit the support of our company formation specialists in Malta.
The suitability of a liaison office in Malta
A communication between a foreign company and potential clients in Malta can be properly sustained by a liaison office in this country. This is the proper method through which a foreign enterprise can establish several business contacts in Malta, collect market information and develop promotional schemes for the goods and services the company wants to sell. If the liaison office comes with fruitful and positive results, the owners of the foreign business can think of establishing the company in Malta, as a limited liability company, joint stock company or partnership, depending on the needs.
FAQ about liaison office in Malta
1. Can a liaison office have financial operations?
No, liaison offices in Malta do not have retail activities and therefore, no financial operations. This is an office that connects potential clients in Malta to foreign companies.
2. Can a liaison office in Malta develop marketing activities?
Yes, this is the first activity a liaison office can have in Malta or anywhere in the world.
3. Can a liaison office develop commercial activities in Malta?
No, a liaison office in Malta cannot have commercial activities in Malta but can get in touch with potential business clients.
4. Is a liaison office in Malta subject to taxation?
No, liaison offices in Malta do not need to register for tax purposes.
5. Who can set up liaison offices in Malta?
Any foreign entrepreneur who wants to have an idea about the business and the market in Malta can open a liaison office in Malta and develop all sorts of marketing activities.
Investments in Malta
Malta is quite appealing from foreign investments and the government provides a series of attractive incentives to sustain the economic development in this direction. The financial sector, and the tourism field are top investment destinations in Malta. Below you can find information and facts about foreign investments and the economy in Malta:
• a total FDI stock of approximately 206 billion has been registered in 2018;
•Malta ranks 84th out of 190 international economies, as reported by World Bank this year;
• the small island already hosts more than 200 international companies;
Call us now at +356 21 376 686 to set up an appointment with our specialists in company formation in Valletta, Malta. You can incorporate your company without traveling to Malta.
As a Ciantar Associates client, you will beneficiate from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Malta.