Company Formation

While company formation might seem like a daunting process, opening a company in Malta has various advantages. Our exceptional team at GCS Malta has outlined all the necessary steps and information you need to open a company in Malta. 

Types of companies in Malta

Foreign enterprises wanting to set up a company in Malta can choose between different types of business entities according to the Maltese Companies Act, and depending on their needs:

• Private limited liability companies – the most common business form in Malta

• Public limited liability companies – can also be used by large businesses;

• General partnerships – suitable for small and medium-sized businesses; require at least two members with unlimited liability 

• Limited partnerships – can be used similarly to general partnerships but requires at least one member with unlimited liability and one with limited responsibility

• Sole proprietorships – Fit for people carrying out business activities in their own name

• Investment companies – such as the SICAV (open-ended collective investment scheme) and INVCO (closed-ended collective investment scheme) 

Foreign businesses can choose between subsidiaries, liaison offices and branches in Malta. 

Requirements to open a company in Malta

After choosing the proper structure, check out the requirements necessary to open a company in Malta:

• Deposit a minimum share capital depending on the type of company chosen

• Comply with the regulations applicable to company shareholders and directors according to their residency

• Appoint company secretaries 

• Have a registered address for your company in Malta 

The Company Formation process

Name Reservation (valid for three months)

After deciding on a company name, a reservation valid for three months will be issued. After that, the name will be approved by the Registrar. If a private company, the name must end with ‘private limited company’, ‘limited’ or ‘ltd.’ If a public company, the name must end with ‘public limited company’ or ‘plc.’

Adoption of the Memorandum and Articles of Association 

The Memorandum and Articles of Association is a required contractual document that includes key information about the company such as company name, company directors, capital subscribers etc. The documents are then submitted to the Registrar of Companies in Malta.

Deposit the minimum share capital with a Maltese bank 

The next step would be to deposit the share capital in an account opened with a bank in Malta. The minimum authorized capital for a private company is €1,164.69, and at least 20% of the issued shared capital must be paid upon signing the Memorandum of Association of a company. For a public company, the amount needs to be at least 25% of the issued share capital with a minimum of €46, 587.47

Issue of Certificate of Registration by the Registrar of Companies in Malta

The last step would be to file the application and necessary documents with the Trade Register.

Why Malta?

• A sound banking system

• English-speaking educated workforce

• Reputable jurisdiction and investor-friendly

• Low-tax jurisdiction but is not an offshore tax haven

• A highly ranked financial centre with a stable economy

• An extensive network of Double Taxation Agreements worldwide

• Low VAT rate and easy VAT registration of trading companies

• Possibility of re-domiciling/continuing a company into and out of Malta

• A competitive tax regime with the possibility of a 5% effective tax rate for non-Maltese resident shareholders

• Since Malta, is a member of the European Union since 2004, Maltese companies provide an effective solution as a European Union based company of choice

• All financial services fall under one regulator (MFSA), which is easily accessible, and companies can benefit from streamlined procedures, reduced bureaucracy and lower regulator fees

• Transfer of shares in a Malta Company usually is tax-exempt for non-residents provided that the Company owns no immovable property in Malta

Why GCS Malta?

Interested in setting up a company in Malta? At GCS Malta , our highly experienced corporate department can set up your company within 1 to 2 days from agreement on the contents of the Memorandum and Articles of Association. Contact us today to start the process and for more information on all our services.

Written by Sarah Jane Gauci 

Disclaimer: The information provided in this article is for general informational purposes only and should not be construed as legal or tax advice. Please consult with a professional tax advisor for advice on your specific situation.