Malta is a rapidly developing country in the European Union, which, thanks to a flexible tax system and progressive legislation, has long been considered one of the centers of international trade. In addition, the Malta government aims to establish the status of a “blockchain island” for the state.
Malta is included in the list of the most favorable jurisdictions for conducting gambling business, since the state provides maximum protection and confidentiality to gambling market participants. Hence, Malta company incorporation is very popular.
Benefits for IT companies
For IT company, Malta is an attractive jurisdiction for incorporation. By company registration in Malta, you get the following benefits:
- A company in the EU member state that is not in the “black” and “gray” lists.
- Security and confidentiality for IT company – Malta company registration enables to do so.
- Incorporation of company in Malta allows to avoid the double taxation with many countries.
- Comfortable conditions for the legal conduct of gambling business, including online, obtaining gambling licenses.
- Malta company registration provides an opportunity to obtain an ICO license and conduct activities in the field of cryptocurrencies.
- Maltese gambling licenses are recognized by all EU countries.
- The corporate tax rate (35%) is one of the highest in Europe, but with proper business structuring it can be reduced by up to 5% through tax refunds.
- If you want to register a company, Malta is a good choice: tax on dividends and royalties paid to non-residents are absent in Malta.
- Company registration in Malta provides an opportunity to choose a bank for opening a corporate account outside Malta.
- Malta incorporation services include ability to use the services of a nominee shareholder/director.
Business in Malta can be conducted in the following organizational and legal forms:
- Private Limited Company;
- Public Limited Company;
Why do companies register in Malta?
Most often, Private Limited Company is chosen for incorporation of company in Malta since in such a company the shareholders’ liability is limited to their contributions to the authorized capital.
Features of Private Limited Company:
- Obligatory choice of the company status as a trading or holding company.
- Minimum authorized capital is EUR 1165.
- Number of shareholders is from 1 to 50.
- A shareholder can be either an individual or a legal entity, regardless of residence.
- A director can be an individual or a legal entity. A shareholder can be a director at the same time.
- Information about shareholders and directors is publicly available, the register of beneficiaries is closed.
- A secretary can only be an individual, including a director.
- To register a company, Malta laws require a legal address to be in Malta only.
- Accounting and passing the annual financial audit are obligatory.
- Convocation of the annual General Meeting is obligatory.
How to register a company in Malta?
Company registration in Malta includes the following stages:
- choice, verification of uniqueness and reservation of the name;
- preparation of documents;
- contribution of the authorized capital;
- registration in the business register Malta.
What do you need for opening a business in Malta:
- unique name;
- copies of passports of beneficiary, shareholders, director;
- if a shareholder/a director is a legal entity, copies of constituent documents;
- bank statement for each beneficiary, shareholder, director, as well as proof of address (utility bill);
- tax registration number for Malta.
VigoLex specialists will gladly consult you on how to register a company in Malta.
Tax law in Malta
Opening a business in Malta is tax-profitable. Malta tax laws provide the 35% corporate tax rate. However, they allow to significantly reduce the effective tax rate due to the following principle: the company pays all taxes in full, then its shareholders are entitled to claim tax refunds.
The amount of compensation depends on the type of income received:
- 6/7 refund on active business income of the company (effective tax rate 5%);
- 5/7 refund for “passive” income including royalties (effective tax rate 10%);
- compensation in the amount of 2/3 – regarding the company’s income from foreign sources which are subject to the benefits provided for by double taxation agreements (the effective tax rate will be 11.7%);
- a 100% refund – regarding the income derived from the participation of a Maltese company in the capital of a subsidiary (effective tax rate is 0%).
However, tax refunds do not apply to income related to Maltese real estate and in some other cases. Malta also has no withholding tax for income received from dividends, interest and royalties.
How much does it cost to set up a company in Malta?
Cost of registration of Malta companies depends on particular circumstances, e.g. whether it is necessary to find a nominal director, form a substance on Cyprus etc. Thus, cost of Malta company incorporation has to be calculated personally in every separate case. Also, it is always possible to buy a business in Malta.
Please contact us and we will calculate the cost of registration of Malta companies due to your needs.
How we can help?
VigoLex has excellent experience in Malta incorporation services related both to the corporate and financial field (company registration, opening bank accounts, connecting to payment systems, tax refunds) and the gambling field.
In particular, VigoLex lawyers helped their clients to collect a full package of documents and obtain a Maltese license for online casino, as well as buy a business in Malta. In addition, VigoLex specialists regularly take part in the annual international gambling exhibition, which is traditionally held in Malta, in order to be in the know of all new products at the market.
We will gladly advise you on how to receive a tax registration number in Malta, how to list you company in business register in Malta, trademark registration in Malta jurisdiction etc.