Background & General Outline
Malta is an archipelago situated in the Southern Mediterranean. It was once a British colony but gained independence in 1974 and remains as a member of the Commonwealth. While it is a small country with around 500,000 inhabitants, it is a member of the United Nations, the eurozone, the Council of Europe, OSCE, and OECD.
Official languages in Malta are Maltese and English, but Italian, French, German, Arabic and a number of Scandinavian languages are spoken widely.
The Maltese economy is one of the strongest and most stable in Europe. It is well known and respected for its iGaming sector as well as pioneering the way with blockchain and cryptocurrency legislation. Other important sectors. include finance, fintech, maritime and aviation, film and media, and tourism.
Political Structure & Legal System
Malta is a parliamentary representative democratic republic where the President is the head of state. The Prime Minister is the head of government who is elected every five years, along with MPs. Judicial power in Malta is in the hands of the Chief Justice and the Judiciary.
The Maltese legal system is a hybrid of both English common law and European Civil Law. The Companies Act of 1995 regulates all matters in relation to company formation in Malta.
Name Restrictions for Company Formation in Malta
When you incorporate an offshore company in Malta, you need to ensure you abide by various naming restrictions. The company name must be in the Latin alphabet and must include Limited, Ltd, or similar. You cannot choose a name that is similar or the same as another, or that is deemed offensive or obscene.
There are no restrictions on trade and activities for an offshore company in Malta. If you opt for company formation in Malta you may need to acquire the applicable license depending on the activities you will undertake.
Taxation in Malta
If you choose the company incorporation in Malta, you can enjoy a corporate tax rate of 35%. This is however subject to a full imputation system where shareholders are entitled to receive a refund on tax paid on dividends, up to a maximum of 30%. This can effectively lower the tax rate to 5% depending on the individual circumstances. Any dividends paid to non-resident shareholders are also not subject to withholding tax in Malta.
Depending on the activities of the company, you may also need to register for VAT. The standard rate of VAT in Malta is 18%.
Double Taxation Treaties
If you incorporate an offshore company in Malta, you can benefit from over 70 double taxation treaties. Be aware that you’ll need to register as tax resident in Malta if you want to avail of the benefits of any of these treaties.
Accounting & Financial Statements
Any offshore company in Malta is required to prepare financial statements each year. These must be audited by a Maltese auditor, even if the company is inactive. These must be submitted on a periodic basis. It is also required that an annual return is submitted to the Registry of Companies along with a copy of the financial statements. Annual tax returns also have to be submitted to the authorities.
Disclosure of Beneficial Owner
If you go ahead with company formation in Malta, you are required to disclose the ultimate beneficial owners to the authorities. In the case of an offshore company, this is the Registrar of Companies. The information will be kept on a Register which is accessible to the public under the provisions of the 5th AML Directive. In some cases, it is possible to appoint a fiduciary to maintain some level of confidentiality.
Capitalization Requirements for Company Formation in Malta
The minimum authorised capital for an offshore company in Malta is EUR 1,164.69 of which 20% should be paid up upon the signing of the Memorandum of Association of the company.
In light of Malta’s EU membership, there are no exchange controls in place. This means an offshore company in Malta can move money in and out of the country without any restrictions.
How Much Does Company Formation in Malta Cost?
Get your Offshore Company in Malta for as little as €3,600 with our Formation Package. Additionally, you can benefit from our special renewal package and additional optional services. To get full price details, related documents and services click on the button below:
Contact Us for Company Formation in Malta
Company formation in Malta brings with it a host of benefits including great fiscal incentives with an effective tax rate of as little as 5%. In addition to this, Malta is a hub for iGamingand crypto, making a Malta offshore company a great idea for those looking to operate in those markets. Contact us today to get your offshore company registered in Malta.
More Locations to Incorporate Your Company
Not sure about Malta? No problem! There are several other locations to consider. Select any of the countries below to learn more:
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