Forming a Company in Malta: How Much Does it Cost?

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Businesses around the globe consider Malta their destination of choice to set shop and not without reason.  Malta’s competitive tax system, double taxation treaties, hassle-free company formation, and educated workforce make it a popular choice for businesses to start their enterprise there. You would be surprised if I told you it is surprisingly easy to incorporate a company in Malta.  The company registration fees in Malta are paid to the registrar of companies. This happens upon the incorporation of the company. 

A Malta company registration fee varies from a minimum of EUR 245.00 to a maximum of EUR 1, 750.00. How much exactly will depend on the value of the authorized share capital. A minimum annual fee of EUR 100.00 is paid together with the submission of an annual return. This is usually coordinated through secretarial, directorship, and back-office services. 

The share capital can be divided into ordinary shares, preferences, classes, or variants. However do note that in the company formation in Malta, bearer shares are not allowed. The ownership of the shares is evidenced by their entry in the company’s register of members. The ownership of the company’s shares is also evidenced by the issuing of a share or debenture certificate.

It’s important that upon application for incorporation, your company presents a tailor-made set of constitutive documents. The documents must highlight the company’s specific needs and objectives. The key features of a Malta company are that you’ll be provided with the highest level of privacy protection. The company will also be part of a tax-efficient corporate structure.

The Process of Company Formation in Malta

If you’re intrigued by the country and would like information on how to set up a company in Malta, look no further. You may easily get lost in the intricacies of company formation in Malta, but it’s a fairly easy process. Here is a guide on what it looks like.

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1. Choose the Type of Company to Set up

There are various types of companies to choose from when setting up a shop in Malta. They are: 

• Limited liability company. This is the most common type of company and it can either be private or public. A private company is one that limits the number of members to fifty. It also prohibits any invitation to the public to subscribe to any of its shares.

Some private companies qualify for certain advantages. But that’s only if they meet specific criteria that enable them to list themselves as Private Exempt companies.

• General partnership companies. These types of companies are best suited for medium-to-small-sized businesses. They can be En Nom Collectif or En commandant.

En Nom Collectif refers to a partnership between 2 or more partners. One of the partners can either be an individual or a corporate body. En commandant, which is also referred to as a limited partnership is where members hold limited liability over the company.

• Single proprietorship. This is an enterprise that’s held in ownership by one person. This can either happen at the time of incorporation or through the acquisition of the shares by one person.

• Overseas companies. These types of companies have a branch in Malta but have their corporate body outside Malta.

 2.  Choose the Name of the Company

Apart from the type of company you want to set up, deciding on the name of the company is also an important aspect. The name of the company mustn’t be the same as that of a pre-existing enterprise. It shouldn’t contain words that are deemed offensive either. 

Additionally, the name of the company shouldn’t misrepresent the nature of your business. In certain instances, you will be required to show evidence that you’re allowed to use certain words as part of your company’s name. Simply put, your company’s name must be unique and correctly represent your business’s endeavor. 

3. Prepare the Documentation

Once the type of company you’re forming has been established, some documents will have to be prepared and submitted to the registrar of the companies association in Malta. 

To begin with, you’ll have to get the memorandum and articles of association. This document contains important information such as:

• The type of company and its name
• The company’s registered office in Malta
• The number of directors including their identification
• The identification of the company’s subscribers whether person or corporate bodies

 The articles of association documents outline the company’s internal regulations. If your company is not registered, it implies that you’ll adopt the model articles in the first schedule to the company’s act. 

Moreover, if you’re registering a new company and its shareholders are a corporate entity, you’ll have to get Form Bo1, which is a supplementary document that will have to be annexed. The form will have information on the identification of the company’s owners. You will also have to provide evidence of paid-up share capital. 

You may also be required to provide supporting documentation, which will be at the discretion of the registrar. 

4. Get a Certificate of Registration

Once all the required documentation is provided and accepted, you will be issued a certificate of registration. 

A certificate of registration is proof that your company is now in existence and is authorized to conduct business. Note that the time required for the incorporation of a company in Malta is dependent on the type of company being registered. You’re good to go if all the documentation is satisfactory and everything is in order.  

Conclusion

If you’re thinking of taking up the opportunity of company incorporation in Malta, you must be sure to understand the formation process. You must also research to know the details on the approximate time and money needed to begin operations in Malta.  Malta’s links with countries inside and outside the European Union and double tax treaties make it an attractive option for investment. With this article, having understood the advantages, you can now start your own business in one of Europe’s most dynamic economies.  Setting up a company in Malta has many advantages and there are lots of benefits to reap from.  So get started, launch your business, and emerge successful.