The Malta Companies Act sets out the framework for incorporating in Malta. It is modelled on it's UK counterpart and features straight forward company registration in Malta. The Island is known for it pro-business environment and this reflects in the frameworks both from a requirements perspective and time needed to form the company. It can take as little as one day, given that all the required documents, such as the Memorandum and Articles of Association, are in place. Furthermore, there are numerous operational and financial benefits associated with incorporating in Malta.
Requirements When Incorporating In Malta
Shareholders, directors and company secretaries of Maltese companies do not have any restrictions when it comes to nationalities. Provided that the business activity is legal, there are also no restrictions on the types of business activities that can be carried out by a Maltese company. Some activities are further regulated by local authorities, such as the Financial Services Authorities (MFSA) for financial related businesses, The Malta Gaming Authority (LGA) for iGaming and Lottery based business activities, and the Malta Digital Innovation Authority (MIDA) for blockchain and crypto related companies.
The minimum share capital required to incorporate a private limited liability company is also only €1165, where at least 20% has to be deposited in the companies bank account upon registration.
Company Directors
Maltese registered businesses need to have at least one director and a company secretary. These are the few requirements when incorporating in Malta:
- At least 1 company director
- A company secretary (position must be filled by an individual)
- The director may also be the company secretary (in certain cases)
- A body corporate can act as the director of the company
- Company director can also be a shareholder
Company Shareholders
The Companies Act states that the business has at least 2 shareholders, however if certain conditions are met it is possible to incorporate in Malta with only one shareholder. The following requirements are needed for company shareholders:
- At least 2 shareholders (One shareholder under certain conditions)
- Shareholders can be individuals or corporate bodies
- Shares can be held by an authorised fiduciary (keeping beneficial owners confidential)
- Once every year a Annual General Meeting (AGM) is required
Auditing Requirements
Maltese companies are required by law to submit an annual return to the Registry of Companies. All annual financial statements must also be audited. The company formation fees and annual return fees rates vary depending on the authorised share capital.
Company Income Tax
Companies incorporated in Malta can also benefit from attractive tax systems. There are various ways to go about it so we advice you to read our corporate taxation articles and get in touch with us to see how we can help setting up the most tax beneficial structure for your needs.
We can assist and give you professional advice on the entire Malta company incorporation, together with ongoing tax and auditing requirements. Contact us today to establish your Maltese company!
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