How to Register a Company in Malta (Best Guide)
Communication Team
Communication Team

January 19, 2023

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How to Register a Company in Malta (Best Guide)

Establishing and managing a business in Malta can be rewarding, especially because the country provides international entrepreneurs with unique advantages. From regulations that are favorable to incorporation costs that are accessible for any budget - setting up your own business in Malta is an exciting venture. That is why the number of people wishing to register a company in Malta is growing daily.

Let's start with why it's brilliant to consider doing business in Malta. Malta is not just a lovely location; it also has a high-quality workforce and an attractive work-life balance. It is also incredibly business-friendly - after all, it's one of Europe's fastest-growing economies.

It encourages professionalism and regulation while also providing highly appealing international tax planning. On top of all this, Malta's location in the middle of the Mediterranean makes it a gateway to the European, African, and Middle Eastern marketplaces.

A foreign investor may register a company in Malta as overseas investments are not limited. And, thanks to the government's pro-business laws and regulations, it's easy to establish and run a business for entrepreneurs on the island. Registering a company in Malta is even easier for Malta citizens and European Union members than for people outside the EU.

Let's consider the Malta business registry process in more detail. Once you've read the rest of this article, you will have learned everything you need to know, so get ready to get informed! We'll share all the essential information about starting a company in Malta below.

Types of Companies in Malta

According to the Malta Companies Act, numerous types of corporations are available for people interested in forming a company in Malta.

Investors can select the appropriate company type depending on their investment, future development goals, and if they will make shares accessible to the public.

Let's take a look at the types of companies. When establishing a company in Malta, you can pick from four distinct types of companies:

1. Limited Liability Company

 There are two types of limited liability companies; public and private. Public and private limited liability companies are the most preferred form of company. Significant distinctions exist between private and public LLC's regarding the minimum share capital requirements and the number of shareholders.

Private Limited Liability Company

A private limited liability company should not have more than 50 shareholders. A private LLC should have at least two founding members; however, the legislation also permits creation of a specific private exempt company with only one shareholder.

At least one director managing the business and a company secretary managing administrative functions must be designated when registering the company. The minimum share capital of the private company is about EUR 1,200 or its equivalent in another currency. At the time of business registration, the paid-up share capital must be at least 20% of the company's capital.

Public Limited Liability Company

There can be more than 50 shareholders in public companies. The required minimum share capital to register this business entity is about EUR 47,000. This sum can be in either Euros or another currency. The paid-up share capital must be at least 25% of the total share capital.

A public limited liability company's share capital is split into shares with a fixed nominal value. Corporations that issue shares must offer pertinent information about their earnings and losses and their financial statements for investors to make a well-informed decision about purchasing shares.

In Malta, public limited liability companies are subject to different corporate management and yearly financial statements-audited obligations. At least two directors and a company secretary are required to administer the corporation. Knowing that such a company's shares can be traded on the Malta stock exchange is helpful.

On the other hand, private exempt companies cannot exchange their shares. The Articles of Association outline the power to transfer a company's stock and the procedures through which the public can contribute to the company's stock. The stockholders of both kinds of businesses will have limited accountability for the debts and the companies' liabilities. Shareholders' liability will be restricted to the amount contributed to the company formation.

2. Partnerships

These are ideal for medium-to-small enterprises and can be:

General Partnership

This is formed when two or more partners engage in any business activity to produce and share profits.

Partnerships are formed via a Partnership Deed, which specifies the partners' names and the partnership's business operations.

The partners' liability is unlimited in this case, and they can be charged collectively and individually accountable for the partnership's obligations and liabilities.

Each general partnership registered in Malta must have a local office. Regarding taxation, the partners must disclose their partnership profits in their individual tax refunds and are charged at the applicable personal trade tax rate.

Limited Partnership

In Malta, a limited partnership must have at least two partners, with at least one serving as a general partner and having complete responsibility. If there is more than one general partner, they share the obligations towards assets and debts. Limited Partnerships also require at least one limited partner who invests a specific amount of cash into the business.

Once again, a limited partnership has a distinct legal identity from its participants. The limited partners' responsibility is limited to the sum contributed to the partnership; however, general partners' liabilities are not limited to their initial investment in the company.

The general partner is in charge of the limited partnership's administration. However, if a legal authority hasn't been given to carry out certain activities, the limited partner isn't entitled to execute any management tasks or conduct business on the partnership's behalf.

3. Sole Proprietorship

A sole proprietorship is an excellent business model if you are self-employed or don't have employees. If you choose this business structure, you don't have to pay any registration fee. You won't need to register for VAT if your income is under €35,000 for products or €24,000 for services.

4. Overseas Companies 

An overseas corporation is a corporate entity formed outside Malta. An international firm that wishes to establish and conduct economic operations in Malta must register with the Malta Registrar of Companies Association within one month of opening a new branch or an office of the organisation in Malta.

How To Open a Business in Malta Step-by-Step

Look no further if you are attracted by the nation's advantages and would want a concise summary of the process of establishing a company in Malta. Though it may seem easy to become lost in the complexities of creating a corporation in Malta, the process is quite simple. Here's a step-by-step guideline of what you may expect:

Step 1: The first stage in forming a company in Malta is choosing an acceptable business structure for the organisation. You can select one of the types mentioned above.

Step 2: The following step is to select a desired and proper name for your Malta business. The company name should not be identical or similar to another corporation or enterprise. It cannot include language that the general public finds objectionable. Also, the title should clarify the essence of the enterprise's business.

If the firm wishes to utilise phrases like "Insurance," "Bank," or "Blockchain" in its name, it must establish that it is involved in these types of services. Only then can the use of this type of name be legal. Also, the firm name should be distinct and original.

Step 3: The entrepreneur must decide on the firm's share capital. The share capital should be set following the above-mentioned legal restrictions.

At least 20% of the share capital of a private company and at least 25% of a public limited liability company must be paid up when the Memorandum of Association is signed.

Step 4: The last step is to collect all the necessary documents for company formation in Malta. Here is a list of all the documents that are required to form a company in Malta.

The Memorandum of Associations (MoA): This must be done first and is a very important step in the process. The MoA is a document that contains essential and relevant data about your business, including: Type of business

Type of business

The names of the shareholders

Name of the business

The company's registered office address

Firm goals and primary business activity

Authorised Share capital, share classes, number of shares and their minimum share capital, division of shares, and rights associated with each type of shares

Names and details of the company's legal directors

Name and office address of the chosen company secretary

The duration of the business

Identification of all corporate executives, directors, shareholders, legal and judicial representatives

Articles of Association: Each business must file an official legal document known as the AoA that establishes internal rules and specifies how the organization's internal affairs will be managed. The model AoA listed in the First Schedule of Companies Act will be practicable by default if the shareholders fail to file a self-drafted AoA.

Form BO1: The company owners should submit a supplemental paper called Form BO1 with the application if any company's shareholders are corporate bodies. The names of the company's ultimate beneficial owners are disclosed on this form.

The paid-up share capital proof: A bank deposit proving the paid-up share capital's payment should also be included at the time of incorporation.

The Malta Business Registry will charge a registration fee to register a business, and the amount depends on the company's share capital.

The Registrar's office may require additional supporting documents and information.

Step 5: If the Registrar is pleased with the application's integrity and the accuracy of the supplied documents, a registration certificate will be issued. This indicates that the your company has been established and given permission to operate.

The length of time needed to register a business depends on the business's nature and the quality of the supporting documentation. The registration procedure usually takes between 5 to 10 days if all the necessary paperwork is submitted and approved by Company Registrar's Office.

Step 6: After establishing your company in Malta and being given a formal certificate of registration by the Registrar, it should be registered to pay VAT, which is fixed at 18% in Malta.

Step 7: Only limited liability companies require a PE Number because you will be considered an employee by default. Obtaining a PE number is easy and cost-free, but you must complete the application online on the Inland Revenue Center website. Typically, it takes three days to get the PE number.

Step 8: Every business must enroll in the ETC and compile all employee information. When a new business is formed, separate registration forms must be submitted for every employee. When an employee is let go, further documentation must be filled out and filed. These procedures are easy and cost nothing.

Step 9: Data protection is a big deal. If your organisation intends to collect sensitive and individually identifiable information from clients, you must register your business for data protection. Specific security measures must be taken about the information you collect and retain to protect your clients.

It's critical to adhere to European regulations while avoiding software security breaches, data loss, and theft. The company's credibility might be irreparably harmed, and penalties for data loss could be extremely steep. Malta is a part of the EU, so you must also follow GDPR guidelines while gathering data.

Step 10: When a firm is officially incorporated in Malta, it must also submit annual returns and accounts.

Within 42 days of the company formation date, the Annual Returns must be completed, signed by the company secretary or director, and sent to the Registrar; otherwise, a late filing fee will be charged. The following details should be included in the annual returns, which may be submitted electronically or on paper:

The Advantages of Opening a Business in Malta

Malta has a strong economy and a stable political system. Additionally, it is the 15th safest nation in the world, which makes it an excellent place for businesses to establish themselves. There are also several advantages of opening a business in Malta. Here are some:

Supportive Government

The Business Registry of Malta, a one-stop shop established by the Maltese government, offers all the information and corporate services required for firms to register in Malta. The government provides many entrepreneurial funding programs, including the Business First Grant and Malta Enterprise Grant.

Malta Tax Benefits

Malta is among Europe's most benevolent corporate tax systems, with an average rate of corporate taxes of only 35%. Both domestic and international businesses may take advantage of this low corporate tax rate.

Businesses can also benefit from the numerous double taxation agreements that Malta has established with other nations.

The Malta government also provides various tax breaks for companies, such as the ability to deduct income tax from dividend distributions to shareholders. Malta is, therefore, a perfect location for holding corporations.

Numerous factors affect the Malta taxation refund system. Depending on the company's activity and the ownership structure, this might represent 2/3, 5/7, or 6/7 of the paid tax in Malta.

Income from some activities performed in a "knowledge-intensive" setting is subject to a special tax of 15%. These endeavours include high-tech manufacturing, research and development, and the creation of software applications.

Low registration barrier

Foreign businesses or individuals can establish a 100% corporation in Malta. A corporation must also have a minimum of €245 in paid-up capital to register, and there is a nominal registration fee. Malta has emerged as an attractive location for company formation by foreign investors due to its low entry barriers for company registration.

Hiring foreign workers

Malta LLCs can readily engage with foreign workers no matter their country as long as they know they would be responsible for paying contributions and local taxes. 

Duty Exemption on Papers

For people engaging in foreign business, there is a duty exemption on documents that include share transfers and capital expansions.

Simple and Fast Entire Ownership

Malta's limited liability company registration procedures are straightforward, and international investors can quickly begin business operations. In Malta, an LLC must have a minimum of two stockholders.

In Malta, foreign investors can own 100% of their businesses and enjoy full business equality.

Open a Branch Easily

Corporations from abroad can easily set up subsidiaries or branches in Malta that operate following the laws governing limited liability companies. 

Visa-Free Strategic Country

 Malta is a small island in the Mediterranean Sea that visitors can reach by plane from most major cities in Northern Africa and Europe in a couple of hours.

There are also no visa requirements between Malta and the other Schengen Area nations because Malta is a Schengen member.

The Melting Pot of Europe

The nation's incredible diversity draws visitors from around the globe to see its beauty and culture.

Also, there are 360 days of sunshine, making it one of the sunniest places in Europe.

How To Create a Business Bank Account for a New Company in Malta

You will need to create a bank account to launch a business in Malta. You may complete this process quickly and efficiently with the required paperwork.

You will require the following paperwork to open a bank account to register a business in Malta:

a valid ID card or passport

evidence of address such as bank statement and utility bill 

a plan of business

the Articles of Association of the Company

the company's certificate of incorporation

Malta's tax identification number

Compare the various charges that each bank applies before choosing your bank. These might vary greatly; therefore, picking the bank that provides the best conditions for your company is crucial.

Malta offers several possibilities if you search for a bank with suitable business conditions. wamo, as a more than digital bank alternative, offers opening business accounts in the Republic of Malta, the EU, and the UK with lower fees, which is one such choice.

Regardless of location, small and developing businesses may create and manage their business accounts using the financial management platform wamo.

wamo has made it simple and quick for companies to create a business account with them, unlike banks with specific internal regulations that might slow down procedures.

With digital debit cards, accounts in several currencies, SWIFT and SEPA transfer options that allow you to deal worldwide, and much more, you can start operating globally by opening a business account with wamo. The application for the wamo business account is online, and no physical document is needed at all.

Opening a business bank account with wamo is a painless process

The first step is to register on the website using your work email.

After that, you will be prompted to provide some personal information.

You'll then be asked to give a few details about your business, including the company name, registration address, and the type of business.

You can select your preferred account type and create your account password once you have submitted all the necessary information.

wamo's clever technology can instantly confirm your identity and company when you register, so you'll be ready to begin in no time. Registration takes roughly 10 minutes.roughly 10 minutes.

Registering a Business and Opening a Bank Account with wamo Is Easy!

You now know everything you need to know about what's necessary to create a business account in Malta and how to establish a business. Setting up a business account with wamo is a smart next move. While using a regular bank can be time and cost-intensive, getting set up with wamo is fast and easy with all the benefits of a regular bank account and much, much more.

With wamo you can receive and send payments in several currencies, take advantage of tax benefits, and feel secure knowing that your organisation is fully operational as soon as you have a corporate account set up with wamo. You can even issue yourself a virtual card in a few minutes which will be ready to use for online payments and purchases instantly. While wamo's physical Visa debit cards are delivered free to anywhere in the UK and Europe.

Generally speaking, creating a business account in Malta with wamo is indeed a simple procedure. Getting your own business up and running may not be as straightforward but iof you follow the steps as we've laid out here, it can be relatively easy - and very much worth it for all the benefits of doing business in Malta. With a bit of research and planning get started immediately!

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