Offshore Company Formation in Malta

Malta is a group of islands located in the Southern Mediterranean. It used to be under foreign rule, gained independence in 1974, and is now part of the Commonwealth. 

Despite its population of 500,000 people, Malta holds membership in prestigious international organizations such as the United Nations, the eurozone, the Council of Europe OSCE and OECD. A Malta Offshore Company Formation is highly advantageous for purposes such as acquiring real estate assets or engaging in trading activities. 

Malta's legal system combines features of common law and European Civil Law. The Companies Act of 1995 regulates company formation processes.

Features of a Malta Offshore Company - Note the Essentials

The Maltese economy stands out as one of Europe's strongest and most stable, so an offshore company setup will prove to be very profitable.

Business Prospects for a Malta Offshore Company Formation 

It is particularly attractive for entrepreneurs, business leaders, e-commerce ventures, and web agencies. It has gained recognition for its iGaming industry and innovative legislation on technology and cryptocurrencies. 

Additionally, important sectors driving Malta's economy include finance, fintech, maritime and aviation services, film production, and media, such as tourism.

The Naming Restrictions

When incorporating a Malta Offshore Company, it is essential to adhere to naming restrictions. The chosen company name must be written using the Latin alphabet with terms like Limited or Ltd included.

When selecting a name for your company, it is important to avoid choosing a name that's similar or identical to another company's name. In addition, it's important to avoid using names that could be considered offensive or inappropriate.

Trade and Activities

Regarding trade and activities for a company in Malta, there are no restrictions. Depending on your business operations, you may also need to acquire licenses.

Taxation

In terms of taxation in Malta, if you decide to incorporate your company, you can benefit from a tax rate of 35%. It's worth noting that there is an imputation system in place that allows shareholders to receive refunds on taxes paid on dividends (up to 30%). 

This can potentially reduce the tax rate to as low as 5% based on individual circumstances. Furthermore, non-resident shareholders are not subject to withholding tax on dividends received from companies.

It is important to consider whether your business activities require VAT registration. The standard VAT rate in Malta stands at 18%.

Double-Taxation Treaties

A Malta Company Incorporation grants access to over 70 taxation treaties. However, it's crucial to be aware that if you wish to enjoy the benefits of any of these treaties, you will need to register as a tax resident in Malta.

Accounting and Financial Reports

Every year, an offshore company in Malta must prepare reports. These reports need to be audited by an auditor even if the company is not actively operating. 

They must be submitted periodically. Additionally, it is mandatory to submit a return to the Registry of Companies along with a copy of the statements. Tax returns also need to be filed with the authorities.

Disclosure of Beneficial Ownership

If you decide to establish a Malta Company Setup, you are required to disclose the owners to the authorities, specifically the Registrar of Companies for offshore companies. This information will be recorded on a register as per the regulations outlined in the Anti-Money Laundering Directive. 

In some cases, it may be possible to appoint a fiduciary who can help maintain some level of confidentiality.

Some Important Information Regarding a Malta Offshore Company Formation

Make sure to review your compliance measures to adapt to any changes in the landscape. 

Building a network of contacts in your chosen location will give you insights into the business environment. Connecting with professionals, authorities, and peers not only enhances your credibility but also provides valuable knowledge about the area. 

Stay informed about any rule changes in both your home country and other relevant jurisdictions where you operate or plan to expand. Adjust your structures accordingly to meet business needs while still complying with frameworks. 

When considering company incorporation in Malta as an investor, it's important to take into account the Malta Company Formation Cost involved. These include registration fees that may vary depending on the chosen city for business minimum share capital requirements and virtual office costs, which depend on customised requirements.

For information on registration fees or minimum share capital requirements in Malta, feel free to get in touch with our company formation professionals. Starting a company involves costs, and our team can provide you with a customised offer to help you with the setup process.

If you're considering starting a Malta Offshore Company, there are some requirements you need to be aware of. Once the registration process is finalized, your company will also be required to apply for a business license and obtain any permits based on its activities. 

Additionally, obtaining a tax identification number (TIN) and registering for VAT are steps. The final stage involves obtaining an employer identification number (PE number) and registering your employees with the Employment Training Corporation (ETC).