Malta Company Formation & Taxation FAQ | Expert Guidance by Bris Group

Are you considering expanding your business to Malta? Bris Group specializes in providing comprehensive Malta company formation services, helping entrepreneurs and investors establish a strong presence in this thriving Mediterranean jurisdiction. Our detailed FAQ offers valuable insights into the company registration process, legal requirements, and the numerous benefits of doing business in Malta.

Malta is renowned for its favorable tax regime, strategic location within Europe, and robust legal framework, making it an attractive destination for international companies, holding structures, e-commerce, and financial services. Whether you’re interested in forming a Limited Liability Company (Ltd), setting up a branch, or establishing a holding company, Bris Group’s team of experts will guide you through every step — from choosing the right corporate structure to opening bank accounts and ensuring compliance with local laws.

This FAQ addresses essential topics such as Malta’s corporate tax incentives, minimum share capital requirements, licensing procedures, and the process for registering your company. We also cover how Malta’s extensive network of double taxation treaties, political stability, and EU membership provide significant advantages for foreign investors.

At Bris Group, our goal is to simplify your Malta company formation journey. With years of experience and in-depth local expertise, we offer tailored solutions to meet your specific business needs, ensuring a fast, compliant, and efficient setup. Explore our FAQ to discover how Malta can serve as a strategic base for your international growth, and contact us today for personalized support in establishing your Malta company.

Frequently Asked Questions About Malta Company Setup

Looking to establish a company in Malta? Our Malta Company Formation FAQ provides essential insights for entrepreneurs and investors seeking to benefit from Malta’s favorable tax system, strategic EU location, and stable legal environment. Discover the advantages of registering a Limited Liability Company (Ltd), including low corporate tax rates, access to double taxation treaties, and flexible legal requirements. Learn about the registration process, minimum capital, and ongoing compliance obligations. Bris Group offers expert guidance to streamline your Malta company setup, ensuring compliance and efficiency. Explore our FAQ to find answers and start your international business journey in Malta today.

Related FAQs & Resources:

🇲🇹 Malta Company Formation FAQs

1. What is a Malta company?

A Malta company is a legal entity incorporated under the Companies Act, Cap. 386, designed for international business, investment holding, and global trade. Learn more on our Malta company formation page.

2. What types of companies can be formed in Malta?

Common company types include:

Private Limited Company (Ltd) – most popular for SMEs
Public Limited Company (PLC) – for larger corporations
Sole Proprietorships and Partnerships – suitable for small businesses or family-run operations
Special Purpose Vehicles (SPVs) – for investment and holding purposes

3. Who can incorporate a company in Malta?

Both residents and non-residents can form a Maltese company. There are no nationality restrictions, making it highly attractive for international investors.

4. How long does Malta company registration take?

The registration process typically takes 3–7 business days, depending on the company type and the submission of all required documents to the Malta Business Registry (MBR).

5. What documents are required for incorporation?

Passport copies of shareholders and directors
Proof of residential address
Memorandum and Articles of Association
Bank confirmation of share capital deposit

6. What is the minimum share capital for a Maltese company?

For a Private Limited Company, the minimum share capital is €1,165, with at least 20% paid up at incorporation.

7. Do I need a local director?

No. Foreign directors are allowed, but companies must maintain a registered office in Malta.

8. Can a Malta company hold international assets?

Yes. Maltese companies are widely used for international holdings, intellectual property management, real estate, and financial investments.

9. Is physical presence required?

No. Companies can be incorporated remotely via a licensed local corporate service provider, ideal for non-resident investors.

10. How private is ownership in Malta?

While director and shareholder information is filed with the MBR, beneficial ownership remains confidential, accessible only to regulatory authorities.

11. Can I open a corporate bank account in Malta?

Yes. Companies can open accounts with local and international banks, facilitating multi-currency operations and cross-border transactions.

12. What are the annual compliance requirements?

Filing annual returns and financial statements
Maintaining statutory accounting records
Paying annual government fees

13. Can a company be owned by another company?

Yes. Maltese law allows corporate shareholders, enabling holding structures and international subsidiaries.

14. How can a Malta company be dissolved?

Voluntary dissolution is done through the MBR, following settlement of debts, distribution of assets, and submission of liquidation forms.

15. Why choose Malta for company formation?

Malta offers EU membership, robust legal frameworks, attractive tax incentives, and strategic Mediterranean access, making it ideal for international business and investment structures. More details are available on our Malta company formation page.

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💰 Malta Company Taxation FAQs

1. What is the corporate income tax rate in Malta?

The standard corporate tax rate is 35%, but effective taxation for non-resident shareholders can be reduced to 5%–10%through tax refund mechanisms, making it highly attractive for international investors.

2. Are dividends taxed in Malta?

Dividends distributed to non-residents are eligible for partial or full tax refunds, reducing effective tax to as low as 5%in most cases.

3. Are capital gains taxed in Malta?

Capital gains on shares and securities may be exempt from tax under specific conditions, particularly for foreign investors and holding companies.

4. Does Malta have VAT?

Yes. The standard VAT rate is 18%, with reduced rates of 7% and 5% for certain goods and services.

5. Are there double taxation agreements (DTAs)?

Malta has a network of over 70 DTAs, helping businesses avoid double taxation and optimize cross-border operations.

6. Are retained earnings taxed?

No. Retained profits are not taxed until distributed, enabling reinvestment and growth strategies.

7. How are payroll and social contributions handled?

Employers contribute 10%–15%, and employees contribute 10%, covering social security, health insurance, and pensions.

8. Are there tax incentives for holding companies?

Yes. Malta offers favorable holding company regimes, with participation exemptions on dividends and capital gains from qualifying subsidiaries.

9. Can a Malta company benefit from EU tax directives?

Yes. Companies can access the Parent-Subsidiary and Interest & Royalties Directives, reducing or eliminating withholding taxes on EU payments.

10. Are research and development (R&D) incentives available?

Yes. Malta provides tax credits and deductions for qualifying R&D activities, making it attractive for innovation-driven businesses.

11. Are transfer pricing rules applicable?

Yes. Malta follows OECD transfer pricing guidelines, requiring documentation for related-party transactions to ensure arm’s length pricing.

12. Can non-resident companies be taxed in Malta?

Non-resident companies are taxed only on Maltese-source income, including income from local operations, real estate, and Malta-sourced dividends.

13. Are there capital or stamp duties?

Yes. Certain share transfers, property acquisitions, and capital contributions may attract stamp duties or registration taxes, but Malta remains highly cost-efficient for corporate transactions.

14. Can losses be carried forward?

Yes. Business losses can generally be carried forward indefinitely to offset future taxable profits.

15. Why is Malta ideal for international tax planning?

Malta provides favorable tax structures, EU membership benefits, strategic Mediterranean access, and a robust legal framework, making it a prime jurisdiction for corporate tax efficiency and offshore planning. Learn more on our Malta company formation page.

Interested in setting up an offshore company in Malta?
Visit our Malta Company Formation page for detailed guidance, packages, and expert support tailored to your needs.

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