Malta has a strategic value that far surpasses its size. The island has evolved into an international financial and business centre with economic stability at the heart of the European Union.
Malta is one of the EU’s fastest growing economies with its forward thinking approach. Malta has embraced new technology and emerging sectors providing many opportunities within a well-regulated framework. Over the past decade, there has been a growing focus on value-added knowledge services such as FinTech, ICT, remote gaming and blockchain, as well as in high value add manufacturing such as aviation and bio-tech industries. Sectors such as property, public administration, entertainment, tourism and retail remain significant elements in a strong economic climate.
The benefits of having a company in Malta?
Setting up a company or a business in Malta is an effective EU solution and a simple & fast process. Malta’s competitive tax system, network of double taxation agreements and highly educated, English speaking workforce make this a popular destination for companies across the globe.
The Malta Company Formation process and timeline?
The process is generally straight-forward, a Maltese company can be registered within 24–48 working hours. The first step in incorporating a company in Malta is to obtain the necessary due diligence on the involved parties such directors and shareholders of the proposed company. Once the due diligence process is completed, we pass on to the successive stage, which is the company name reservation with the Malta Business Registry (‘MBR’), the settlement of the Company’s initial share capital into a company in-formation account at one of the local banks, as well as the drafting of the Company’s Memorandum and Articles of Association. Once all this is done, the final step would be to send the necessary documents to the Malta Business Registry for the company to be incorporated, following which the Malta Business Registry would provide a certificate of registration issued in the name of the company.
Taxation in Malta
Corporate tax in Malta is at a rate of 35% on the company’s taxable profits. However, if certain conditions are satisfied, the shareholders of the company have the right to a partial refund of such tax paid by the company. As a result, the effective corporate tax rate can be substantially reduced to approximately 5%. Furthermore, Malta tax law does not impose any withholding taxes upon a distribution of profits by the company. Malta also adopts the full imputation system, meaning that dividends paid by a company resident in Malta carry a tax credit equivalent to the tax paid by the company on such distributed profits.
How can ARQ help?
Our dedicated team of corporate, legal, advisory, accounting & tax experts is able to provide a full range of company setup and related management services providing bespoke services to our international clients. These services include:
- Opening a bank account in Malta
- Applying for a Value Added Tax (VAT) number
- Applying for a PE number
- Provision of Directorship Services
- Provision of Company Secretarial Services
- Accounting & Payroll Services
- Tax Advisory
- Malta yacht, ship and aircraft registration
- Gaming license applications and related services
- Setting up of Trusts in Malta
- Malta residency/citizenship programmes
Get in touch with our Corporate Team on [email protected] for a free consultation.