company formation MALTA
Company Formation in Malta can be a complicated, lengthy, bureaucratic process, but it doesn’t have to be. We streamlined the process as much as possible and offer all our experience and talent in dealing with local authorities such as the Trade Register and the Fiscal Authorities.
In the following text, you will find key data and an executive summary to assess if Malta is the right place for your entrepreneurial aspirations:
What are the benefits of a Company Formation in Malta?
- Extremely low corporate tax rate as low as 5% on profits, standard CIT is 35%
- 0% Withholding Tax on dividends
- Limited Liability for the shareholders
- Progressive and politically stable EU jurisdiction
- A very business friendly environment, also fiscally
- Affordable accounting and fiscal representation
- Access to funds from Malta and the European Union
Under these ideal circumstances, we are not surprised
at all, that more and more global players, but also SMEs
are setting up branch or shop in Malta.
How much does it cost to form a company in Malta?
We charge 1.499 € for a streamlined company formation. This does not include the provision of a registered office, registered agent, notary, interpreter, translation or legalization fees. You can find our detailed fee schedule here:
Questions about doing business in Malta
A company in Malta can be formed by any person who exceeds the legal age of 18 years and who is of mental health.
Foreigners with or without residence in Malta can also form a company in Malta, but it is necessary to prove the identity and residence of such an individual.
In order to form a company in Malta it is necessary to file loads and loads of paper work, provide a registered office, name the shareholders and directors, proof their identity and residence, suggest and reserve company names, provide the share capital, describe the nature of business and submit all signed application documents to the trade register.
Once the company is established, it’s time to register it for tax purpose and to appoint a legal representative for tax affairs, apply for the relevant tax numbers and open a business bank account with a reputable, stable bank.
- Proof of Identity (Passport Copy)
- Proof of Residence (Official Document confirming residence)
- Our filled and signed Order Form
- Proof of payment of our rendered fees
Compared to other jurisdictions, the company formation in Malta is very fast. We usually form companies within 15 business days.
In case of a legal entity such as the Limited Liability Company. the following tax rates apply:
Corporate Income Tax
- 35% Standard CIT
- 5% Effective CIT
Withholding Tax
- There is no Withholding Tax in Malta
Value Added Tax
- The VAT/TVA rate is currently 18%
Personal Income Tax
- The income tax for individuals in Malta ranges from 0% – 35%
Social Security Contributions
-
The Social Security Contributions of the employer and the employee total to approximately 20%
As of 1.1.2023 the minimum wage per month in Malta is about 835 EUR.
An employee is entitled to 26 days per year of paid vacation.
Yes, you can be an employee of your own company, also as the director or in any other function.