Malta Company Formation FAQs

Company law: The Companies Act 1995.

Types of company:

(a) Type of company preferred for international transactions: Public and Private limited liability companies, typically distinguished by their activities (i.e. Holding and Trading).

(b) Shareless companies: Not possible.

Capital requirements: Minimum Authorised Shares to be Issued - EUR1,200 – 20% paid up.

Costs to incorporate, excluding government fees: See (5) below.

Fees paid to authorities to incorporate: Eur345 for authorised share capital up to Eur1500

Annual fees paid to authorities: Registration of an annual return, EUR100 where Company’s authorised share capital does not exceed EUR1500.

Taxation rates applied to companies generally: Standard corporate tax rate of 35%. Refunds of up to 6/7ths of Malta tax may apply in favour of non-resident shareholder(s); holding companies may benefit from participation exemption subject to the satisfaction of certain conditions.

Method of incorporation: Submission of Memorandum and Articles of Association and supporting documentation with a centralised Registry of Companies together with relative costs.

Who may incorporate – are local professionals required? No local professional are required for the incorporations of Maltese companies. Incorporations are usually handled by local corporate service providers, accountants and lawyers. Auditors must hold a valid warrant in terms of Maltese law.

Are ready made/shelf companies available? No

Length of time to incorporate: 3 to 5 working days.

Minimum number of members: Two, but there are exceptional circumstances where single member companies are permitted.

Must there be a resident director/secretary? No

Are Corporate Directors allowed? Yes

Is a local registered agent required? No

Are “shadow” directors required to be registered? No

Amount of fees payable to appointee directors/secretary: Depends on whether they are corporate or individuals.

Annual Meetings: Annual General Meeting of Shareholders is required. Notice to be given to every member of the company and its auditor.

Is an annual return filed with details of directors and members? Yes

Must financial statements of a company be audited? Yes

Are annual accounts filed with annual returns? These are submitted on separate dates.

Are there any exchange control or other financial restraints? No

Is migration of companies permitted? Yes

Must foreign companies administered locally be registered? Yes, upon establishing a branch or place of business in Malta.

Are Protected Cell Companies permitted? Yes, for companies conducting insurance business.

Are civil-law type Foundations possible? Yes, having limited commercial scope.

Are common-law Foundations (limited by guarantee, or limited by guarantee and having shares) possible? No

Can LLCs be formed? Yes

Are regulators empowered to request the production of:

(a) Information on the identity and background of beneficial owners and officers: Yes

(b) Accounting information on companies: Yes

Can such information be exchanged with other jurisdictions? Yes- principally in terms of EU Savings Directive and prevention of money laundering legislation

For Corporate Services, including Malta Company Formation, Back Office Management and Accounting & Payroll Services; kindly forward your query to corporate@csbgroup.com