Malta

The Republic of Malta is a state situated in the Mediterranean Sea, not far from the coasts of Africa and Sicily.
The Maltese archipelago comprises the islands of Malta, Gozo, and Filfla, St Paul’s Islands, the sparsely populated island of Comino, and the very small islands of Cominotto and Filfoletta. The Republic faces serious freshwater shortages.
The country is characterised by favourable climate, which is neither too hot nor cold.

The largest share of Malta’s GDP comes from the tourism industry, with the islands attracting constant flow of tourists. The Republic is famed for its English language schools, which warmly welcome learners from all over the world. Malta also harbours high-tech manufacturing facilities. Moreover, the archipelago is one of the most popular filming locations.
There are two official languages in the country: Maltese and English. The currency used on the islands is the euro.
The state’s foreign policy is aimed at international integration, cooperation in all spheres of activity and strengthening financial links with other countries. Malta is a member of the United Nations and many of its specialised agencies and related organisations (UNESCO, WHO, ILO, WIPO, IAEA, etc.). The Republic is also an EU member state. In 1995, Malta acceded WTO. The country maintains close relations with Libya, with which the Treaty of Friendship and Co-operation was signed in 1984.

6 simple steps to purchase a company

  1. choosing a country

  2. choosing a bank

  3. payment (by any method)

  4. sending documents

  5. company registration

  6. bank account opening

Main advantages of incorporating a company in Malta

Among all the benefits of setting up a business in the country, special mention should be made of the following:

  1. Registration procedure takes comparatively little time.
  2. Malta has concluded agreements on avoidance of double taxation with a large number of states, including the Russian Federation.
  3. The Republic of Malta is the most popular and recognisable location for running a profitable business.
  4. National legislation draws on the English law.
  5. Malta is currently a member of the European Union.
  6. The jurisdiction is classified as a mid-shore and stands out for some of the best terms of taxation in Europe.
  7. Relatively low taxes.

Popular types of companies

In accordance with the current legislation of the Republic of Malta, foreign nationals may choose from the following organisational and legal forms when setting up a business:

Private Limited Liability Company;

As in most other countries, Limited Liability Company is a preferable option for carrying out business activities in Malta. The minimum share capital required is EUR 1,164.69. The main advantage of such form is that shareholders’ liability is limited. There may be a maximum of 50 shareholders.

Public Limited Liability Company.

The minimum share capital required if establishing a public company is EUR 46,587.47. There is no maximum number of shareholders. Public offering of shares is permitted.

Essential features: registration

With regard to the peculiarities of incorporation procedure, they are as follows:

  1. One of the legal requirements is a local registered office address.
  2. The articles of association shall specify the objectives for which the company is established.
  3. There must be not less than two directors in a public company and at least one director in a private company.
  4. Every company shall appoint a secretary.
  5. Both individuals and entities may be shareholders of the enterprise.
  6. Information on the company directors is publicly available.

Essential features: taxation

Specificities of taxation in Malta are as listed below:

  1. Every company registered in the country is required by law to file an annual report.
  2. Locally registered company is considered as a resident of the Republic.
  3. Companies are subject to corporate income tax at a fixed rate of 35%.
  4. In the general case, a standard VAT rate of 18% is applied to delivery of goods and services. However, under certain conditions, the value added tax is charged at reduced rates. For example, the supply of accommodation is taxed at the rate of 7%; electricity supply, importation of works of art, collector’s items and antiques, the supply of certain confectionery items, medical accessories, and printed matter is taxed at the rate of 5%.
  5. Maltese companies may enjoy 0% rate of the tax on dividends.
  6. Royalties paid to non-residents are not subject to the tax at source, provided that the recipient is not owned by a tax resident of Malta.
  7. A yearly fee payable to the Registry of Companies varies depending on the amount of the company’s share capital, the minimum being EUR 100.

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