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Registration of Companies
Any commercial partnership may be registered with the Registry of Companies by the shareholders/partners or their authorised agent/s. Subscribers or partners thereof may be both individuals and/or corporate entities. The shares in a limited liability company may also be held by a licensed trustee - thereby safeguarding anonymity with respect to the ultimate beneficial owner. There are no restrictions as to the nationality of the shareholders/partners/officers of any such commercial partnerships.
The most widely used commercial partnership is the private limited liability company, which can be set up with a minimum capital of €1,164.68. At least 20% of the issued share capital must be paid on incorporation.
The fees payable by a company to the Registrar of Companies upon registration are calculated according to the company's authorised share capital as follows:
Authorised Share Capital |
Fee Payable |
Does not exceed €4,658.75 |
€349.41 |
Exceeds €4,658.75 but does not exceed €11,646.87 |
€349.41 with the addition of €23.29 for each €2,329.37or part thereof in excess of €4,658.75 |
Exceeds €11,646.87 but does not exceed €58,234.33 |
€419.29 with the addition of €11.65 for each €2,329.37 or part thereof in excess of €11,646.87 |
Exceeds €58,234.33 but does not exceed €232,937.34 |
€652.22 with the addition of €11.65 for each €11,646.87 or part thereof exceeding €58,234.33 |
Exceeds €232,937.34 |
€826.93 with the addition of €11.65 for each €11,646.87 in excess of €232,937.34 up to a maximum of €1,747.03 |
Incorporation of a Malta company may take as little as 24 to 48 hours, invariably depending on the type of company to be registered and subject to all documentation, information and funds representing share capital being available and in order.
Every company registered in Malta must have a registered office in Malta. It must also have at least one director and a company secretary.
Malta Branch
A company incorporated outside Malta may wish to carry on business in Malta through a branch (permanent establishment) in Malta. Where such company constituted or incorporated outside Malta does carry on business through a branch or a place of business within Malta, such company must within one month be registered in Malta as an 'oversea company' for company law purposes. The same fiscal treatment applicable to companies resident in Malta is also applicable to the Malta branches of companies registered or incorporated outside Malta.
Absence of Capital Duty
Malta does not impose any Capital duty neither upon the initial contribution of capital to a limited liability company, nor upon a subsequent increase of share capital. Furthermore, Malta does not impose any tax on the conversion of, or upon the redomiciliation of a limited liability company to or from Malta.
Absence of “Thin Capitalisation” Rules
As mentioned above, the issued share capital of a Malta company can be as low as:
Private companies |
€1,164.68 - 20% paid up |
Public companies |
€46,587.46 – 25% paid up |
The absence of specific debt/equity ratios, coupled with Malta's extensive double taxation treaty network in effect means that Malta can be, amongst other things, an ideal Group Treasury location.
Absence of transfer pricing rules
There are no transfer pricing rules currently in place in Malta.
Absence of CFC legislation
There is no Controlled Foreign Company legislation in Malta.
Absence of withholding taxes
Malta does not generally impose any further tax on outbound payment of dividends.
Furthermore, there is no withholding tax on interest or royalty payments provided that the recipient is not owned and controlled by and does act on behalf of persons ordinarily resident and domiciled in Malta, and does not carry on a trade or business in Malta through a permanent establishment situated therein, with which the said interest or royalty payment is effectively connected.
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