Overview of Company Incorporation in Malta
Malta is an island located in Southern Europe. The capital of Malta is Valletta, and the largest city is St. Paul's Bay. An excellent and tranquil country with a primarily English-speaking population, it is a catch for investors worldwide. There are a lot of profitable opportunities in Malta that attract different investors to carry out business. Setting up a company in Malta is hassle-free, as only one shareholder and one director are required to incorporate a company. There is no need for a resident director or shareholder to start a company in Malta. As an added advantage, a company has the option to register with EU VAT, which enables different types of incentives for running and operations of the business.
Why Should You Register Your Company in Malta?
Incorporating your company in Malta provides an entrance to the European markets to foreign investors. It is a small country with great potential for exploring different business sectors.
Other reasons are:-
- Good market structure and corporate-friendly atmosphere,
- Lowest Corporate Tax in EU,
- Social stability amongst the residents.
- Big Business network
Prerequisites for Incorporating a Company in Malta
Where do You Want to Open a Business?
- Demographics: Demographics indicatively play a vital role in choosing the place of your business. Demographical study of an area includes knowledge of the masses residing near the location of business. It is conducted to study the pattern of customers and develop the products accordingly.
- Supply Chain Management:Supply chain management includes things like transportation, storage, and movement of the product that is being manufactured/created in the business. Hence the infrastructure of the place of establishment should be considered before making a decision.
- Local competition:Local Competition is both a friend and foe for the business friend because it signifies the presence of customers and a foe as it can hamper the profits and market share of a newly established business.
- Overhead costs: Costs related to labor, property, and other overhead services of the business differ region-wise, and all the upcoming companies should be aware of these costs that they might incur other than the standard product development costs.
- Local laws, regulations, and Tariffs: An important fact to consider while starting your business in a country. Every country in the world has different rules, tariffs, and regulations in different areas of its state. Hence it is necessary to obtain vital information related to any local taxes.
- Quality considerations: Quality considerations have a vast ambit, it starts from as essential as the quality of the product or service to be created to the quality of banks.
Name and Nature of The Business
Naming your Company
The desired officeholders need to choose a name for their business. They have to keep in mind that the word should not be similar to any other name already registered into the Trade Register of Malta.
Nature of business
In Malta, it's essential to choose between different types of companies considering the officeholders and capital requirements for various entities eligible for incorporation. The Major Types of establishment are as follows:
- Public Limited Companies The minimum requirement for starting a Public limited Company is two directors and a minimum of two shareholders. Unlike a private company, it can raise capital from the public by registering itself to the stock exchange of that country. The minimum capital required for registering a Public Limited company is €46,588, and at least 25% has to be paid up.
- Limited Liability Company or Private Limited Company: This is the most sought-after establishment for registering a company in Malta. An LLC requires a minimum of one director and one shareholder (Maximum 50) to run its business in the country. This setup can be wholly foreign-owned and has an independent existence from the officeholders. The minimum capital required for opening a Limited Liability Company in Malta is Euro €1,165, of which at least 20% has to be paid up.
- Partnerships: When two or more people come together to do business, it is called a partnership. The liabilities and other regulations between the partners are covered by the agreement that may be in written or oral form. According to the liability of the partners, it is classified into Limited partnerships and General Partnerships. In a Limited Partnership, the liability is limited to the extent of the partner's share in the capital invested. In the latter, the liability is unlimited.
- Sole Proprietorship: A sole proprietorship is easy to establish a business that can be started with minimal paperwork. The liability of the owner is unlimited in a sole proprietorship.
- Overseas Company: An overseas company is one that is incorporated in a foreign land and wants to open a branch in Malta. These establishments are governed by the rules and regulations of the parent country, where the home branch of the business is established.
Documents Required for Company Incorporation in Malta
- Colored Passport Copies.
- Photo Identity Proof of the officeholders
- Utility Bills not older than three months
- Specimen Signatures.
- Business name for your company
Benefits of Company Incorporation In Malta
The benefits are as follows:
- Digital and cost-efficient process;
- Liberal Trade market;
- Good corporate environment;
- Availability of skilled labor;
- Easy disposal;
- Lowest corporation tax in EU.
Process for Company Incorporation in Malta
The process is as follows:
- Choose the name of business and approval from the competent authority
- KYC details of proposed shareholders and directors
- Filing of forms and other documents
- Online Application submission
- Incorporation Certificate.
- Bank Account opening for depositing capital of the company.
Other Important Instruments
- Articles of Association: AOA is the document that covers the internal regulations of an organization. These documents set out the rules and bye-laws of the entity. This document should be made strictly in compliance with the company law of the country concerned.
- Memorandum of Association: MOA is the document that signifies the object of the company that is being created. This document has the details of the business founders, and the goals and objectives of the organization are also set by MOA.
- Physical/ Virtual Address: An address in the name of the company is another requirement that is necessary for making any communication to the company by the public or the authorities. Having a virtual office is sufficient in Malta, there is no specific requirement for a physical address.
- Bank account: For handling domestic clients and depositing capital in the company's name, it is advised to open a bank account in Malta. After issuing a Certificate of Incorporation by the authority concerned, the officeholders can proceed with bank account opening for the business in case of foreign ownership.
- Building a Website and Logo: A website and unique logo are a must requirement of every business. After the pandemic, most of the products and services are being sold online, hence having a website enables the company to reach prospective customers in every part of the world.
- Registered Phone number: A Registered phone no. should be given to the concerned authority, which is operative on every business day of a company. It should be open for communications or complaints from customers.
From drafting to filing of all the necessary documents, we are a team of specialised Chartered Accountants, Company Secretaries and Advocates that will assist you in every step in the Company Incorporation Process in Malta.