Thinking of setting up a Company in Malta?
Malta is a highly attractive jurisdiction for company formation due to a range of factors such as fiscal and tax benefits as well as the social aspects that the island has to offer. At E&S Group, we provide specialist and tailored company formation services to corporate or individuals who are planning to register a company in Malta. In addition, we also offer quick and most importantly, cost-effective services to assist you forming a company in Malta.
At E&S Group we can also assist with:
- Company Formation in Malta (Trading & Holding)
- Company Redomiciliation
- Purchases for an old company in Malta or Companies
The Malta Business Registry is the regulator for the formation of Companies in Malta. Furthermore, setting up a Company in Malta can take as little as 48 hours. It is important to note that company formation expenses in Malta are relatively low, which further adds to island’s appeal. Therefore, Malta is a cost-effective jurisdiction, not only or large corporation’s tax planning, but also for small and medium-sized businesses.
At E&S Group we can assist you with the entire process of forming a company in Malta. Not only this, however we offer a number of ancillary services to help you with the day-to-day running of your business. These services include:
- Nominee Shareholders
- Maltese Company Directors
- Maltese Company Secretary
- Audit (through Third Parties)
- Registered Office
- VAT Registration
- Bank account
Malta Companies minimum Capital required: The minimum authorised and issued share capital for a Malta Companies is as follows:
- Private Maltese companies – €1,165 with at least 20% thereof paid up.
- Public Maltese companies – €46,590 with at least 25% thereof paid up.
We will help you in all aspects of your Malta companies formation process, as our services do not stop at registering the Malta Companies on your behalf.
Malta Companies Information
Summary of benefits of registering a Company in Malta:
- Effective Tax of 5% for non resident shareholder of a Malta company (Trading); and:
- Full tax refund of a Malta company holding shares in another non resident Company; and:
- No withholding taxes, stamp duties or other restrictions when distributing profits from the Maltese Company to non resident shareholders.
- Low Company Formation costs.
Tax on a Company in Malta(Detailed)
The payment of a dividend from a Maltese company to a non resident shareholder(of the company in Malta) triggers the right to a refund of part or all of the tax paid by the Maltese Company on the profits. The tax paid by the Maltese company is refunded to the shareholder in one of the following forms depending on the source of the profits.
- Refund on 6/7th of the tax paid by the Malta company (except on profits on sale of immovable property in Malta, and profits that have been taxed at source on a final withholding regime)
- Rebate of 5/7th of the tax paid by the Malta company on profits that consist of passive interest or royalties
- Refund of 2/3rd of tax paid by the Maltese company on profits that have already claimed relief for double taxation
- Full refund on profits that are generated from a ‘participating holding’
EFFECTIVE TAX PAYABLE FOR A TRADING COMPANY IN MALTA
The effective rate of tax payable for a trading Company in Malta is therefore 5%. This is due to the 6/7ths refund available to non-resident shareholders of the company registered in Malta.
PARTICIPATING HOLDING RULE FOR A HOLDING COMPANY IN MALTA
A holding by a Maltese Company in a non-resident company qualifies as a participating holding if any of the following is satisfied;
- The holding is 10% or more of equity share capital.
- The Company in Malta has an investment of minimum €1.16million held for at least 183 days.
- The Company in Malta is entitled to appoint a director in the non-resident Company.
- Where the holding is a furtherance of the business of the Company in Malta. The Profits by the Maltese Company from a ‘Participating holding’ is exempt from tax if one of the following is satisfied:
- The non-resident Company is resident in a European Union State; or
- It is subject to foreign tax of 15% or more; or
- It does not have 50% or more of its income derived from passive interest and royalties.
If none of the above conditions is satisfied, both the below requirements need to be satisfied for the participation exemption to apply:
- The holding of the Maltese company is not a portfolio investment. An investment is when non-resident company derived more than 50% of its income from investments.
- The non-resident company pays foreign tax of more than 5%
No withholding taxes, stamp duties or exchange control restrictions apply on distribution of profits from the Maltese Company to non-resident shareholders. Furthermore, you can send these dividends out without any limits.
TAX PAYMENTS AND REFUNDS
Tax is payable on profits arising from overseas income within 18 months from the end of the Financial year those profits pertain. However, if you pay out dividends, then the Tax is payable within 60 days from the end of the months.
Implications for foreign business activities.
By setting up a company in Malta, this would not affect business as usual of current trading activities. The only amendments required are:
- Change of Trading name (If you decide to choose a different company name) to that of the Maltese Company.
- Change of head office address to the Maltese registered office on all Company correspondence.
- Setting up a Business bank account in Malta.
The content on this website is for information purposes only and should not be taken as tax, legal or any other professional advice.
Contact our CBDO on LinkedIn Deborah Vella or email us on [email protected] for more information as well as for a quote. We will happily guide you through the company formation process and also advise you on the solutions that would best suite your needs!