Malta is becoming increasingly popular as a hub for international businesses due to its strategic location, excellent infrastructure, and business-friendly environment. The Maltese government has also introduced favorable tax laws, making it an attractive destination for foreign investors looking to set up a company. In this article, we will discuss the different types of companies that can be registered in Malta and the benefits of each.
1. Private Limited Liability Company (Ltd)
A Private Limited Liability Company (Ltd) is the most common type of company that is registered in Malta. It requires a minimum of two shareholders and one director, who can be individuals or corporate bodies. The liability of the shareholders is limited to the amount of their investment in the company. This type of company can be used for any legal business activity and is easy to set up and maintain.
One of the main benefits of registering a Private Limited Liability Company in Malta is the favorable tax regime. The corporate tax rate is currently 35%, but companies can benefit from various tax incentives, such as the participation exemption and the notional interest deduction.
2. Public Limited Liability Company (Plc)
A Public Limited Liability Company (Plc) is a company that is registered in Malta and has the ability to issue shares to the public. It requires a minimum of two shareholders and two directors, who must be residents of Malta. This type of company is more complex to set up and maintain compared to a Private Limited Liability Company.
The main benefit of registering a Public Limited Liability Company in Malta is the ability to raise capital through the issuance of shares to the public. This type of company is also subject to the same tax incentives as a Private Limited Liability Company.
3. Branch Office
A Branch Office is a type of company that is registered in Malta but is an extension of a foreign company. The foreign company must be registered in its home country and can operate in Malta through its Branch Office. This type of company is subject to the same legal and tax regulations as a local company. The liability of the Branch Office is limited to the assets of the parent company.
One of the main benefits of setting up a Branch Office in Malta is the ability to establish a presence in the country without having to set up a new company. This can be a cost-effective way to expand into new markets.
4. Sole Trader
A Sole Trader is a self-employed person who operates a business in Malta. This type of business does not require registration with the Malta Business Registry. The sole trader is personally liable for any debts and losses that the business incurs.
One of the benefits of setting up as a Sole Trader in Malta is the ability to have full control over the business operations. This type of business is ideal for small business owners who want to start a business without the administrative burden of setting up a company.
5. Partnership
A Partnership is a type of company that is registered in Malta and is formed by two or more individuals who agree to run a business together. The partners can be individuals or corporate bodies. The liability of the partners is unlimited, which means that the partners are personally liable for any debts and losses that the business incurs.
One of the main benefits of setting up a Partnership in Malta is the shared ownership of the business. This type of company is ideal for small business owners who want to start a business with a partner.
6. Limited Partnership
A Limited Partnership is a type of company that is registered in Malta and is formed by two or more partners. The partners can be individuals or corporate bodies. This type of company has two types of partners: General Partners and Limited Partners. The General Partners have unlimited liability, and the Limited Partners have limited liability.
The main benefit of setting up a Limited Partnership in Malta is the ability to attract investors while limiting the liability of the General Partners.
7. European Company (SE)
A European Company (SE) is a type of company that is registered in Malta and is established under European Union law. It requires a minimum of two shareholders and a minimum share capital of €120,000. The liability of the shareholders is limited to the amount of their investment in the company.
The main benefit of setting up a European Company (SE) in Malta is the ability to operate in multiple countries within the European Union. This type of company also benefits from the favorable tax regime and the participation exemption.
To summarize, Malta offers a range of company types that can be registered to suit the needs of foreign investors. The most common types of companies are Private Limited Liability Company (Ltd), Public Limited Liability Company (Plc), Branch Office, Sole Trader, Partnership, Limited Partnership, and European Company (SE).
Investors should carefully consider which type of company is best for their business before registering in Malta. The Maltese government has implemented various incentives to encourage foreign investors to set up businesses in the country, such as the participation exemption, the notional interest deduction, and the favorable tax regime.
10 FAQs About Registering Companies in Malta
1. What is a Private Limited Liability Company in Malta?
A Private Limited Liability Company in Malta is a type of business entity that requires a minimum of two shareholders and one director. The liability of the shareholders is limited to the amount of their investment in the company.
2. Can a Public Limited Liability Company be registered in Malta?
Yes, a Public Limited Liability Company can be registered in Malta. This type of company is more complex to set up and maintain compared to a Private Limited Liability Company.
3. What is a Branch Office in Malta?
A Branch Office in Malta is a type of company that is registered in Malta but is an extension of a foreign company. The foreign company must be registered in its home country and can operate in Malta through its Branch Office.
4. What is a Sole Trader in Malta?
A Sole Trader in Malta is a self-employed person who operates a business. This type of business does not require registration with the Malta Business Registry, and the sole trader is personally liable for any debts and losses that the business incurs.
5. Can a Partnership be registered in Malta?
Yes, a Partnership can be registered in Malta. This type of company is formed by two or more individuals who agree to run a business together. The partners can be individuals or corporate bodies.
6. What is a Limited Partnership in Malta?
A Limited Partnership in Malta is a type of company that is formed by two or more partners. This type of company has two types of partners: General Partners and Limited Partners. The General Partners have unlimited liability, and the Limited Partners have limited liability.
7. Can a European Company (SE) be registered in Malta?
Yes, a European Company (SE) can be registered in Malta. This type of company is established under European Union law and requires a minimum of two shareholders and a minimum share capital of €120,000.
8. What are the benefits of registering a company in Malta?
The benefits of registering a company in Malta include the favorable tax regime, the participation exemption, the notional interest deduction, the ability to operate in multiple countries within the European Union, and the ability to attract investors while limiting liability.
9. What are the requirements for registering a company in Malta?
The requirements for registering a company in Malta vary depending on the type of company. However, all companies must have a registered office in Malta, a company secretary, and submit annual accounts to the Malta Business Registry.
10. How long does it take to register a company in Malta?
The time it takes to register a company in Malta varies depending on the type of company and the completeness of the application. Generally, it takes between one and three weeks to register a company in Malta.
