Contact us for more information as well as for a quote. We will happily guide you through the Malta company formation process and also advise you on the solutions that would best suite your needs! [email protected]. Or +356 2010 3020
Registration of companies in Malta is regulated by the Malta Financial Services Authority (MFSA). Formation of companies can take as little as 48 hours. Malta is a tax efficient jurisdiction for holding and trading companies. Expenses of formations of companies in Malta are relatively low, thus making Malta a cost effective jurisdiction, not only for large corporation’s tax planning, but also for small and medium sized businesses.
Companies in Malta are registered as limited liability companies. There is only 1 form that all Malta Companies take. Limited Liability Malta Companies are a separate legal personality and offer shareholders limited liability to the capital invested in the Malta Companies. The Malta companies can take the form of private companies, or public Malta Companies.
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 companies in Malta:
- 6/7 refund to the non resident shareholder of Malta companies (Trading).
- Full tax refund of Malta companies holding a participating interest in other non resident companies.
- No withholding taxes, stamp duties or exchange control restrictions apply on distribution of profits from Maltese companies to non resident shareholders.
- Low Company Formation costs.
Tax on companies in Malta(Detailed)
The payment of a dividend from Maltese companies to a non resident shareholder(of the companies in Malta) triggers the right to a refund of part or all of the tax paid by the Maltese Companies on the profits. The tax paid by the Maltese companies 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 companies
- Refund of 5/7th of the tax paid by the Malta companies on profits that consist of passive interest or royalties
- Refund of 2/3rd of tax paid by the Maltese companies 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 Trading Malta Companies
The effective rate of tax payable for a trading Company in Malta is therefore 5% due to the 6/7ths refund available to non-resident shareholders of the company registered in Malta.
Participating Holding rule for a Holding Malta Companies
A holding by Maltese Companies in non resident companies qualifies as a participating holding if any of the following is satisfied;
- The holding is 10% or more of equity share capital
- The Companies in Malta have an investment of minimum €1.16million held for at least 183 Days
- The Companies in Malta are entitled to appoint a director in the non-resident company
- Where the holding is a furtherance of the business of the companies in Malta. The Profits by the Maltese Companies from a ‘Participating holding’ are exempt from tax if one of the following is satisfied:
- The non-resident Companies are resident in an European Union State; or
- They are subject to foreign tax of 15% or more; or
- They do not have 50% or more of their income derived from passive interest and royalties
If none of the above conditions is satisfied, then both the below conditions need to be satisfied for the participation exemption to apply:
- The holding of the Maltese companies is not a portfolio investment. If the non resident companies derived more than 50% of its income from portfolio investments, this will be deemed as a portfolio investment.
- The non resident companies have paid foreign tax of more than 5%.
Other Taxes on Malta Companies trade
No withholding taxes, stamp duties or exchange control restrictions apply on distribution of profits from the Maltese Company to non resident shareholders, and these dividends can be expatriated without any restrictions.
The content on this website is for information purposes only and should not be taken as tax, legal or any other professional advice.
Contact us 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!
[email protected] Or call +356 21 2010 3020