How to Open a Company in Malta – Full Process

Malta is a popular destination for businesses and private individuals seeking to register their company in a foreign country. Its main attraction is the investor-friendly tax regime that gives 6/7 refunds for taxes remitted by overseas shareholders and tax exemption for holding companies. It also and exempts repatriated profits from stamp duty and withheld taxes. What’s more, the country has low business registration and operational costs, which is a major incentive for foreign investors to open a company in Malta. 

Foreign investors wishing to set up companies in Malta have several options to choose from depending on their interests. The Maltese Commercial Code is the body that registers corporations and permits the following available legal forms for company formation.

• Private limited liability companies- popular with wealthy individuals seeking a tax haven
• Public limited liability companies- used by multinationals to evade hostile tax regimes
• General partnerships-suited to small and medium-sized enterprises wishing to make tax savings
• Limited partnerships-similar to general partnerships but the liability of the owners is limited to their stake in the business
• Sole proprietorships- these are enterprises where the owner registers the firm under their official names

Buying an Aged/Shelf company in Malta

Individuals and firms seeking to open a company in Malta can also acquire a shelf company, which is a registered entity that will be customised to meet the concerns of the buyer. Typically, the shelf company comes with all the registration documents as well as business name, titles of executives, legal address, and scope of operations. It is these details that are modified when you acquire it to reflect your interests. 

Stipulations for opening a company in Malta

The type of company you open in Malta largely depends on the amount of capital you intend to put into the enterprise, otherwise known as the share capital. This is because the Commercial Code requires investors to deposit different amounts of money, depending on whether the company is public or private. 

The minimum amount of share capital for private companies is 1,165 Euros, while that of public companies is 46,000 Euros. Maltese law requires investors to deposit all the monies before registering public companies, but owners of private limited companies can deposit 20% of the share capital. In addition, investors of the two types of companies must list two shareholders, though Maltese Company Law requires only one shareholder. 

To open a company in Malta, you need to:

• Secure a unique name at the Maltese Commercial Register
• Draft and ratify the memorandum and articles of association
• Send the minimal share capital to your preferred bank
• File an application together with other documents requested by the Trade Register
• Typically, the Malta Trade Register will request the following documents:
• A written confirmation of the reserved company name
• The memorandum and articles of association
• A bank statement confirming deposition of the share capital
• Copies of the identification documents for the shareholders, company secretary, and directors

After registration, the firm must secure a business license, make VAT registration, and sign up with the Employment Training Corporation.