Company Formation and Consulting Services in Malta

Malta offers several legal structures for business formation: Private Limited Liability Company (Ltd): The most common company type in Malta. Minimum share capital of €1,165.25, with at least 20% (€232.94) to be paid up at incorporation. Can have between 2 and 50 shareholders. Shareholders' liability is limited to their capital contributions. Public Limited Company (Plc): Minimum share capital of €46,587.47, with at least 25% paid up at incorporation. Shares may be offered to the public. Partnership en nom collectif: General partnership where all partners bear unlimited liability. Partnership en commandite: At least one general partner with unlimited liability and one limited partner. Single-Member Company: A limited company with a sole shareholder. Carries all the advantages of the Ltd structure. Holding Company: Malta's participation exemption regime makes holding structures particularly advantageous.

Company names in Malta are verified through the MBR (Malta Business Registry). The name must be unique and not confusingly similar to existing registrations. "Limited" or "Ltd" must appear in the company name. The MBR handles all commercial registry functions including company registration, annual returns and updates to company information.

Company formation in Malta is a relatively swift and efficient process: Required Steps: 1. Verify company name availability at the MBR 2. Prepare the Memorandum and Articles of Association 3. Deposit share capital in a Maltese bank 4. File registration application with the MBR 5. Obtain a Tax Identification Number (TIN) 6. Register for VAT (if applicable) 7. Register for social security The formation timeline is typically 3-5 business days. Malta's use of English as an official business language is a significant advantage for international investors — all official documents and legal proceedings are conducted in English.

Malta's capital requirements for company formation are notably low: • Ltd: Minimum share capital €1,165.25, at least 20% (€232.94) paid up at incorporation • Plc: Minimum share capital €46,587.47, at least 25% paid up at incorporation Opening a business bank account in Malta requires the MBR registration certificate, shareholders' identification documents, a business plan and proof of source of funds. Bank of Valletta, HSBC Malta, APS Bank and various international banks operate on the island. Malta's EU membership provides full access to SEPA payments and European banking infrastructure.

Malta's tax system is uniquely advantageous for international investors thanks to its refund mechanism: • Corporate Tax: Nominal rate of 35% • 6/7ths Tax Refund: Shareholders resident outside Malta can claim a refund of 6/7ths of the tax paid by the company, reducing the effective tax rate to approximately 5%. • 5/7ths Refund: Applies to passive interest and royalty income • 2/3rds Refund: Applies to income benefiting from double taxation relief • Full Refund: Available for income falling under the participation exemption VAT: Standard rate 18%, reduced rates 7%, 5% and 0%. Malta has double taxation agreements with over 70 countries.

Malta's holding company regime offers powerful advantages for international tax planning: Participation Exemption: • Dividends received from qualifying participations are exempt from tax • Capital gains from the disposal of qualifying participations are exempt from tax Qualifying Participation Conditions: • At least 10% shareholding in the foreign company, or • Investment of at least €1,164,000, or • Right of first refusal on the shares, or • Right to appoint a director to the board Malta holding structures also benefit from parent-subsidiary exemptions under EU directives.

Malta is one of Europe's leading regulatory centres for iGaming and fintech: iGaming (MGA Licence): • Regulated by the Malta Gaming Authority (MGA) • B2C and B2B licence types available • EU-wide regulatory framework • Over 300 licensed operators are based in Malta Fintech and Blockchain: • Virtual Financial Assets (VFA) framework • Regulated by the MFSA (Malta Financial Services Authority) • Licensing for crypto exchanges and DLT service providers • Malta is known as the "Blockchain Island" Other Licences: • Investment services licence • Insurance company licence • Payment services licence • Electronic money institution licence

Employers in Malta are required to pay social security contributions: • Employer contribution: 10% of gross salary (weekly cap applies) • Employee contribution: 10% of gross salary • Total: 20% Key Maltese employment law rules: • Written employment contracts are mandatory • Probation period can be up to 6 months (12 months for managerial roles) • Minimum annual leave is 192 hours (for full-time employees) • Standard working week is 40 hours • Minimum wage as of 2024 is €192.73 per week Due to Malta's small population, international recruitment is common for sourcing skilled workers.

Companies in Malta must comply with the Companies Act and IFRS for financial reporting: • Annual financial statements must be prepared and filed with the MBR • Simplified reporting is available for small companies • Annual corporate tax return • VAT returns (quarterly) • Social security declarations • Audit requirement (exemption conditions apply) Malta's accounting system, rooted in the English legal tradition, provides a familiar and transparent framework for international investors.

Malta's EU membership since 2004 provides companies with significant advantages: • Full access to the EU single market • Free movement of goods and services • Access to SEPA payments • Parent-subsidiary exemptions under EU directives • Ease of doing business across Europe with an EU passport Additional Advantages: • English as an official business language • Legal system based on the English common law tradition • Strategic Mediterranean location (proximity to Europe, North Africa and the Middle East) • High quality of life and safe environment • Double taxation agreements with over 70 countries