The Republic of Malta is an island state located in the center of the Mediterranean Sea. Being a member of the EU, Malta has a business-friendly tax system & actively implements blockchain technology. The main sectors of the Maltese economy are tourism & agriculture. Company registration in Malta is a smart choice for foreign businessmen seeking to open a startup in Malta or expand their business.
Ranked 84th for ease of doing business & 71st for ease of taxation, Malta is an excellent destination for business development, international trade or opening a crypto company in Malta. Foreign investors can invest in the pharmaceutical, biotechnology, electronics, transportation, tourism, financial services, energy, construction & real estate industries.
A company can only be considered a tax resident if it’s incorporated in Malta & managed from its Malta-based head office.
Corporate tax is levied at a rate of 35%. However, this applies only to companies whose profits in Malta exceed 10%. If a company is engaged in international business, Malta returns 6/7 (30%) of the corporate tax paid. Thus, the actual corporate tax is 5%.
Another feature of the Maltese taxation system is passive income & royalties, which are taxed at a rate of 10% (5/7 refundable). There’s no capital & property taxes in Malta. The standard VAT rate is 18%; however, there’s also reduced rates of 7%, 5% and 0%. Stamp duty is levied at the rate of 5%. State duty is 85 euros. Also, Malta has signed agreements on avoidance of double taxation with many countries.
There’s basically two options:
- obtaining a residence permit in Malta;
- obtaining citizenship by investment.
The 1st method involves purchasing 5-year government bonds for 250 thousand euros; purchasing real estate worth 320 thousand euros or renting housing for at least 12 thousand euros per year. You also need to pay a state fee of 30 thousand euros.
In the second case, it’s necessary to make a contribution to the National Fund. After that one has to invest in real estate development, rent housing or invest in securities. You get a residence permit for 12 months & then a Maltese passport.
What Does It Take to Register a Company in Malta?
The basic requirements are as follows:
- The name of the company must reflect its business organization form;
- the name must differ from the names of existing companies;
- using the Cyrillic alphabet & offensive words is unacceptable.
Once a name is chosen & approved, the process of registering a company in Malta commences. An agreement between the founders & a package of the required documents are submitted to the Register. To register a Maltese company, one also has to apply for a trade license. After the approval of their application, a company’s founders get a certificate of company registration in Malta & a tax ID.
How Long Does It Take to Register a Company in Malta?
Usually, registering a company in Malta takes 2 weeks or more.
Considering opening a company in Malta? Need advice on company registration in Malta? Why not contact IQ Decision UK?