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According to the Maltese Company Act, there are several types of companies for those interested in company formation in Malta. Among these, the most employed business vehicles are the private and public limited liability companies. There are several differences between the two business forms regarding the number of shareholders and the requirements for the minimum share capital. Investors can choose the right type of company based on their available capital, future plans for expansion and the willingness to list their company and make shares available to the public. Ouragents specialized incompany formation in Malta are at your disposal with company registration services in any chosen city for business.
Who can register an LLC in Malta?
Domestic and international investors
Best use for an LLC in Malta
- import & export,
Number of shareholders
At least 2 shareholders
Minimum share capital
- EUR1,200 for private LLC,
- EUR47,000 for public LLC
Formalities and documents
- name verification and reservation,
- Articles of Association,
- licenses and permits application,
- registration for tax payment
Local corporate bank account required
Resident director required (YES/NO)
Legal representative required (YES/NO)
Local office required (YES/NO)
Government approval for foreign investors (YES/NO)
Time frame for company registration
Around 9 weeks
Time frame for tax registration
Around 3 weeks
Possibility of hiring foreign employees
Investment incentives offered (YES/NO)
We provide support for business registration (YES/NO)
How can I set up a private limited liability company in Malta in 2022?
The Malteseprivate limited liability company must have less than 50 shareholders, as regulations are stil available for business in 2022. It needs to be incorporated by at least two initial members, however, the law also allows for a special form of private exempt company with only one shareholder. At least one director and one company secretary are necessary to ensure the management of the company. The minimum share capital for the private limited liability company is approximately EUR 1,200 or its equivalent in another currency. 20% of this amount must be deposited in a bank accountat the time of company formation in Malta. If you are also interested in immigrating to Malta, we can recommend you our local partners specialized in immigration issues.
How can I open a public limited liability company in Malta?
The public limited liability company can have more than 50 shareholders. The minimum share capital required to incorporate this business form is EUR 47,000. This amount can be submitted in euros or in another currency. The entire capital must be submitted upon incorporation if the amount is no larger than EUR 47,000. The share capital of a public limited liability company is divided into shares of a fixed nominal value. Companies that issue shares must provide relevant information about their profits and losses and financial status in order to allow the investor to make an informed decision regarding the purchase of shares.
Public companies in Malta have different requirements for corporate management and annual financial reporting. At least two directors are needed to run the company and also a company secretary. It is good to know that the shares of such a company can be listed on the stock exchange in Malta. As for the private ones, these cannot trade their shares. The Articles of Association include details about the right to transfer the stocks in a company and the methods through which the public can contribute to the company stocks. The shareholders of both types of companies will have limited liability with respect to the companies’ debts and obligations. Shareholders’ liability will be limited to the amount they contributed to the foundation of the company.
Private companies can be converted into public ones by changing the memorandum and articles of association. The resolution to make these changes must be submitted for registration with the Registrar of Companies together with other relevant documents. Our company formation consultants in Malta can help you with more information about the distinct requirements for each type of company. In case you are interested in opening a company in Estonia, we can put you in contact with our Estonian partners.
Steps in opening an LLC in Malta in 2022
The first step to open a limited liability company in Malta is to draft the Memorandum and Articles of Association of the company. The documents will be submitted to the Maltese Companies Register. The incorporation procedure will take about 24 hours. Other requirements for opening a limited liability company in Malta are:
•to have a registered office in Malta (we can help you choose the city for business in Malta);
•to open a corporate bank account for depositing the minimum share capital;
•to appoint a local auditor and then to register for taxation purposes in Malta;
•to register with the Employment Training Corporation in case the company will hire staff.
The company must also apply for a trading license with the competent authorities depending on the type of activities it will carry out. Such aspects can be entirely overseen by one of our specialists in company formation in Malta who know the business regulations for 2022 in this country.
Can I open a subsidiary or a branch in Malta?
Yes, companies from overseas can easily establish branches or subsidiarieswhich run under the rules of limited liability companies in Malta. There are several benefits for each type of entity, but for a better understanding of how you can set up such a structure in Malta, we recommend you talk to one of your advisors.
Taxes for LLCs in Malta
The tax structure for limited liability companies in Malta is appealing to most of the investors from abroad. The corporate tax is set at 35% but it can be reduced to 5% if an offshore company is created in Cyprus owning the shares in an LLC in Malta. One should know that there is no tax imposed for dividends and interests of a bank account. There are no licenses fees, and no withholding tax on royalties, and dividends. The standard VAT is set at 18% and it is applicable to companies in the trading sector in the EU. We invite you to address your inquiries about the taxes for limited liability companies to our team of consultants. You can also watch the video presentation we prepared:
Hiring foreign staff in Malta
Maltese LLCs can easily hire foreign workers regardless of their nationality bearing in mind that they are subject to local taxes and contributions. Among the conditions of hiring staff in Malta, we mention the work permit which is issued by the authorities in charge.
Is an annual general meeting necessary for an LLC in Malta?
Yes, an LLC in Malta is subject to annual general meetings which can be held not only in Malta but in any country worldwide as long as it is a unanimous decision in the company. We remind that a limited liability company in Malta can have nominee shareholders if they are interested in complete confidentiality. We remind that the company management is handled by a board of directors with complete control of the activities in the firm. Also, the rights and responsibilities of the managers in the Maltese LLC are stipulated by the Articles of Association, the company’s important documents. Feel free to get in touch with us for comprehensive information and support for company incorporation in Malta, tax compliance and advice, and even accounting services on request.
The advantages of LLCs in Malta
A Maltese limited liability company has several benefits among which a fast incorporation, a low corporate tax imposed, an unlimited number of shareholders for public LLCs and advantageous minimum share capital. Foreign entrepreneurs looking to open a limited liability company in Malta can have complete ownership in their firms, complete confidentiality, and an easy registration procedure with the Maltese authorities which is subject to approximately two working days. We remind that the LLCs in Malta can be registered by at least one stockholder and managed by a board of directors. Being a cost-efficient business structure in Malta, a limited liability company is the preferred entity for establishing most of the activities in this country.
How much does it take to register an LLC in Malta in 2022?
Limited liability companies in Malta can be registered fast, in about 2 days, as soon as the Trade Register accepts the Articles of Association, the main documents of the company. It is good to know that the next step after the incorporation certificate is obtained is to register the company as a taxpayer and apply for the company’s seal. Registering an LLC in Malta in 2022 is not complicated, yet our agents can tell you more in this sense.
Our company formation agents in Malta may draft the Articles of Association and help you with the registration procedure. You may also contact us for registration with the tax authorities and other accounting services.
Call us now at +356 21 376 686 to set up an appointment with our specialists in company formation in Valletta, Malta. You can incorporate your company without traveling to Malta.
As a Ciantar Associates client, you will beneficiate from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Malta.