Malta Company Incorporation

As an EU Member State, Malta company law is in conformity with EU directives, offering effective tax rates within a professional infrastructure and a legal, respected, and regulated jurisdiction. The Malta Financial Services Authority (MFSA) is the only regulator for financial services in Malta and it also houses the Companies Registry (Malta Business Registry). Malta`s main appeal is the favourable tax environment. In Malta, apart from having the lowest corporate tax rate, we also have the lowest intellectual property rate, VAT rate and gaming tax in Europe.

A Malta company formation requires a Memorandum and Articles of Association together with identification documents of the subscribers, and also proof of the initial paid up share capital. The minimum share capital required to set up a company in Malta is €1,165. The share capital does not need to be paid in full, however a minimum of 20% needs to be paid up. At least two subscribers (natural or legal persons) are required to form a private company. Fairwinds Management Limited also offers the possibility to take up the second shareholding, however thus can be without any economical rights. A single-member company can be formed having a sole member whereby it needs to specify the main objects that the company will trade in.

It is therefore essential that upon an application for incorporation each new company presents a tailor-made set of constitutive documents highlighting the specific needs and objectives of the company. Our corporate professionals will help you create the necessary framework so that your company is enabled to undertake the desired trading, holding or other activities. Key features of a Malta company are that we offer the highest level of privacy protection and that it can be part of a tax efficient corporate structure. Furthermore, here at Fairwinds Management Limited we are able to do introductions to financial institutions, apply for a Malta VAT number and other related services for your newly formed Malta company.

The formation procedure for a private limited liability company in Malta

Companies in Malta are registered with the Malta Business Registry (MBR) according to the Maltese Companies Act. Once you decide on the best business structure, to form a private limited liability company, you will need to provide the following information: A name for the company, the primary and secondary objects of the company, the authorised and issued share capital, a registered address in Malta, and at least one shareholder, one director and one company secretary. The identification documents of these individuals also need to be presented. A set of due diligence documents on the shareholders and directors also need to be presented for compliance purposes. Generally, the compliance team sends out KYC forms which need to be filled out.

It’s important to know that in the case where a shareholder of the proposed company is a body corporate, then a Form BO1 must be filed and submitted to identify the beneficial owner of the company.

With all this information in hand, the authorised corporate services provider, generally a lawyer or an accountant or similar firm, will be able to draft the memorandum of association and articles of association for approval and signatures, and then submit to MBR for the registration of the limited liability company. Once these documents are processed, it’s a matter of days until the Certificate of Incorporation is issued.

Watch our informative video about Company Formation Procedures in Malta here.

 

For more info check the following Informative Q&A related to the Malta jurisdiction!