Company registration in Malta

Malta is one of the most attractive countries in Europe for those who want to set up a new company.

It offers attractive tax rates, such as 18% VAT, and the ability to operate not only in the Maltese market but worldwide.

In order to create a company in Malta, it is not necessary to be a citizen of this country or to live there permanently.

A permanent residence permit in Malta can bring additional benefits to individuals, investors, and businessmen by being a director of a Maltese company.

There are several organizational and legal forms for conducting business in Malta:

1. Limited liabilities company (LLC). Legal entities of this type can be both public and private.

Private LLC:

• restricts the transfer of shares;
• limits the number of shareholders to 50;
• prevents the public from buying any shares or debt obligations of the company.
• Public LLC – a company that offers its shares or debt obligations to people who are not members of the company.

2. Partnership (Partnership). There are two types of partnerships: full and limited.

• A general partnership (en nom collectif) is a legal entity where the partners bear equal responsibility for the business. There are also no liability shields: partners cannot protect their assets from lawsuits or debts incurred by the business.
• A limited partnership (en nom commandite) is a legal entity where at least one person is the general partner with full responsibility for the business and the others have limited liability. They only invest in the company but do not participate in its activities. In case of losses and debts, they lose their money in the amount of invested funds.

3. Sole proprietorship. This is a type of business where one person owns 100% of the company’s shares.

The business registration process in Malta takes 1-2 weeks and is easier than in some other European countries.

To do this, you need to do the following:

• Select the type of company.

When starting a company in Malta, a person can choose any of the above forms.

• Select a company name.

It should be original and not contain offensive words.

It should also reflect your company’s business activities.

In some cases, you may need to prove that you are allowed to use words like “bank”, “blockchain”, etc.

• Prepare Memorandum and Articles of Association.

A memorandum is a document that contains essential information about the company.

This includes the type of company, its name, the address of its registered office in Malta, the amount of share capital, the number of directors and their identification, etc.

The charter is a document defining the company’s internal regulations.

• Deposit the minimum authorized capital into a local bank account.

The minimum authorized capital for a public company is EUR 46,587.47, and for a private company, it is EUR 1,164.69.

If you have a public company, you need to deposit at least 25% of the share capital, and if you own a private company, the deposit must be at least 20% of the capital.

There is no minimum capital for a limited liability company. After making a deposit, you need to receive a confirmation.

• Submit all documents and pay the fee.

Registration can be done online at the Malta Business Registry.

In addition to the memorandum and articles of association, it is necessary to provide confirmation of the deposited authorized capital and fill out forms that correspond to the situation.

The fee for company registration in Malta depends on the size of the authorized capital and the registration format: paper or electronic.

• Get a registration certificate.

It is usually processed within 5-10 days if everything is in order with the documents.

The certificate confirms that the company can do business in Malta.

• Get the necessary licenses.

The licenses you need depend on the field in which you plan to work.

For example, companies that sell products need licenses, but those that provide repair services do not. License fees are paid annually.

• Register as a VAT payer.

To register as a VAT payer, you must fill out an application and submit it to the Tax Service Office.