Photo by Mikhail Nilov:
Many entrepreneurs are attracted by the possibility of investing abroad by opening a company directly in a foreign country. Obviously, they are looking for those nations that offer a fairly low tax impact, greater flexibility, and streamlined bureaucracy. One of these nations is Malta, undoubtedly one of the most interesting destinations for those who want to start (or transfer) a business abroad.
If your country, from the point of view of entrepreneurship, seems stagnant, both for high taxation and the presence of a bureaucracy that is often cumbersome, you can shift your investments to the Mediterranean nation. You’ll have an easy time because the process of registering a business in malta isn’t that complicated.
Not that Malta offers a much more active market than others, or rather: to work on the island, it is still necessary to set up an adequate business plan and bear in mind that one will have to deal with often ruthless competition. However, taxation is much lower and the bureaucratic formalities necessary to open and maintain a company are also fewer.
Tourism is not Malta’s only resource. Thanks to its central and strategic position in the Mediterranean, this island is a good hub for imports and exports. However, it is necessary to make an adequate plaid business and also calculate the rental costs and the distances between the strategic points of Malta to be able to manage the activity appropriately.
If you want to open a company in Malta, you can contact commercial firms that offer consultancy for opening a company in Malta. They can give you excellent advice on the most suitable type of company for your needs. Here’s what you should know if you want to open a company in Malta.
Businesses in Malta and their incorporation
In Malta, a company can assume, as in the rest of the world, different morphologies. They range from the Sole trader, with a single owner, to a general partnership, a limited partnership, from the branch of a foreign company to a Trust.
The company is established by filing the documentation required by law, i.e.
- memorandum,
- articles of association,
- the identity documents of the shareholders and the legal representative,
- the copy of the capital payment.
The documents are checked with the Company Registry, which verifies the regularity of the documents and usually, within 24 hours, issues a certificate of registration. Therefore, setting up a company in Malta is very quick if you bring all the documentation required by law.
Each company, every year, prepares an annual report and deposits it within 42 days of its preparation, with costs ranging from 100 to 1000 euros depending on the paid-up capital. With regard to the financial statements, the company presents each year a copy of the financial statements with a copy of the auditors’ report and the report of the top management. Each budget can be more or less complex depending on the type of company.
Once the company is registered in Malta, it is necessary to be VAT registered with registration in the tax register and have the import and export license.
Taxation in Malta
How much is a company taxed in Malta? Corporate taxation on the island is 35% of taxable income after deductions. In addition, a tax credit system also applies to the taxation of shareholder dividends. If you are a resident of Malta and even if you are not a resident, you do not pay any further tax on the dividends.
The shareholders of Maltese companies can claim and obtain a tax refund, which is paid by the company.