Malta Company Formation

Opening a company in Malta

Why open a company in Malta? What are the advantages in the country of Malta?
Malta, a country that is part of the European Union, is a convenient solution for many entrepreneurs.

Malta is an independent island nation below Sicily, which is the "ball" in Italy's "boot".

Malta is part of the European Union for all intents and purposes, and therefore the local currency is the Euro (EUR). In Malta they speak the Maltese language, which is very similar to Italian in its sound, but it is not Italian.

Because of its location, Malta even played a fairly significant role in the military operation to win World War II.

Being a gateway to the European Union, Malta has important advantages.

Low taxation in Malta
In Malta the corporate tax is very low, which gives it a significant advantage over other countries. We will discuss taxation in a special chapter later in the guide.

Financial regulation for virtual currencies
Malta was one of the first countries to create financial regulation for the practice of virtual currencies (crypto).

Maltese citizenship - Golden Visa
The meaning of the term "golden visa" is that you can get citizenship and a passport, if you invest a certain amount in some property in the country. In principle, many countries allow you to get a "golden visa", but in Malta this involves a relatively low investment, because it is a small island country. Because Malta is part of the European Union, according to the Schengen rules, the Maltese passport can be used to live in any country in Europe, and this makes Malta a hub for investments for obtaining a golden visa.

The process of opening a company in Malta
Opening a company in Malta begins with the signing of a notarial power of attorney to open a company by a local agent. The document will then be sent to Malta with a courier and we will set up the company for you.

In Malta there is no need for a local director or local shareholder. In practice, sometimes a local director is occasionally used, mainly for local practical needs.

In Malta you also do not need any European citizenship to open a company. You can open a Maltese company even if you are a foreign citizen. This means that it is possible to open the company with 100% shareholding in the name of a foreign citizen - in your name, or even in the name of a foreign company. The director can be foreign and there is no need for a local director.

Equity Requirements
The equity capital of a new company should be at least 1,165 euros. This amount should be in the company's account, but at the opening stage only 20% of the amount is actually required to be deposited in the company's account (about 233 euros), with the balance remaining as the shareholder's debt to the company.

After opening the bank account and depositing the equity capital, the company is opened and a "Certificate of Registration" (Maltese Certificate of Incorporation) is issued.

Opening a bank account in Malta - a current account for the company
During the opening of the company, it is required to open a bank account for the company, as a condition for opening the company.

In Malta, there are only about 5 banks where you can open an account. However, you should know that in these banks in Malta, it takes a whole year to open a bank account! In addition, banks will not open an account at all unless there is a physical office in Malta and at least one local employee.

The good news is that we know a completely legal way to bypass this requirement to open the company without opening a bank account.

Also, a company in Malta does not have to have a bank account in Malta. Because of the long time it takes to open a bank account in Malta, in 100% of the cases where a company is opened, an internet bank account is opened outside of Malta. What is an internet bank account? Similar to our "Zero One" bank, there are internet banks in Europe that would be happy to have your company in Malta as a customer. After that, when the company is already open and there is already an internet bank account, those who still want can approach a local Maltese bank with peace of mind and patience to open an account.

VAT registration
After the opening of the company, at the same time as the opening of the current bank account for the company, the registration of the new company with VAT will also be carried out. The company will receive a VAT number and can start trading.

EORI number
If you need to, we can obtain an EORI number for you so that you can import or export with the company within Europe.

EORI is an abbreviation of Economic Operators Registration and Identification number.

Company maintenance
The company requires annual maintenance of payment of fees, annual submissions, local address (which we will provide for you), as well as submissions to the tax authority.

Corporate tax in Malta
Taxation in Malta on limited companies is very attractive.

At first glance and in principle, the corporate tax in Malta is one of the heaviest in Europe, at 35%.

However, for foreign residents only (you), the effective tax rate is only 5%.

There are two options to get this tax benefit.

Option 1: Establish a limited company in Malta, at the end of the year pay 35%, then request a tax refund of 6/7 of the tax as a foreign resident. The result: tax at a rate of 5%. In this option there is a period of 4-6 months until you receive the refund The tax. For example, the company pays 100,000, so there is a 4-6 month repayment period, and in the end you get 80,000 back.

Option 2: As of 2019 there is an arrangement called "fiscal unit" consisting of the establishment of two Maltese companies: a mother company and a subsidiary company; Trading company and holding companies. The shares of the Maltese trading company are held by the Maltese holding company, whose shares in turn are held by the foreign resident - you. In such a corporate structure, instead of paying 35% and then getting a tax refund, you can directly pay only 5%, and then it helps in terms of the company's cash flow. In this option, you only pay 5%, without waiting for any repayment period of 4-6 months.

The VAT in Malta is 18%, which is also one of the cheapest in Europe.

In Malta, taxes are paid only 18 months after the end of the fiscal year.

Questions and answers
Question: Is it necessary to physically fly to Malta to open a company in Malta?
Answer: The entire process is carried out remotely and at no stage is it necessary to physically come to Malta. There is no need to fly to Malta to open the company, nor the company's bank account. The entire process of opening the company and the company's bank account is carried out remotely without setting foot on Maltese soil.

Question: Who provides the local address for the company in New Malta?
Answer: We will provide the local address.

Question: How can I find a good accountant who can handle the company in our new Malta?
Answer: We will connect you with a local accountant.

Question: What type of company in Malta should I open?
Answer: In Malta there is only one type of limited company, and it is the LIMITED (LTD), therefore there is nothing to hesitate in choosing the type of company to open in Malta.

Question: Do you need a European passport to open a company in Malta?
Answer: There is no need for a European passport. We can open a company in Malta for any foreign citizen as long as he has a valid passport.

Question: How long does it take to open a company in Malta?
Answer: The process of opening the company, including signing the power of attorney and sending it, should take no more than a week to a week and a half. After that, opening the bank account also takes about a week, depending on the readiness of the banks to accept the new company as a client. Of course, these are times that depend on third parties, so this is only an estimate.

Question: Is it possible to open a company in Malta for a person with American citizenship or a person living in the USA?
Answer: Yes. We know how to open a company in Malta for a person with American citizenship or a person living in the USA.

Question: How much does it cost to open a company in Malta?
Answer: Click here to contact us and get an up-to-date quote for free!