Malta

Private limited liability company (Ltd) is the most popular form of the companies among foreign investors.


The minimum number of directors and shareholders is one director and one shareholder who can be both individual person and legal entity, resident or non-resident of a country. Also a Maltese company needs one secretary who must be individual person and can be both resident or non-resident of Malta.


The minimum amount of announced authorized capital is € 1 250.


Taxation:

  • Income tax is 35 %. Maltese company's shareholders are entitled to a tax refund in the amount: 6/7 of the total amount of active tax, in this case, the effective rate of tax paid will be 5 % and also 5/7 of the total amount of passive tax as a result the maximum rate will be 10 %;
  • Standard rate of value added tax (VAT) when selling inside the country – 18 %,  reduced rate – 5 %;
  • Royalties, dividends, interest payments are not taxed.


Accounting and audit.


Maltese company is obliged to submit an annual report to the registrar of companies starting next year from the date of incorporation for 42 days.  

The company is also required to submit a copy of an accounting report with a copy of an auditor’s report and director’s  report. Annual accounting report must be submitted for 10 months from a date of the end of the company’s financial year.


Information about the directors and shareholders is publicly available in the register of companies. There is a possibility of using nominee service.  In this case, the information can be opened only by decision of a court.


Advantages:

  • Malta is a member of the EU;
  • Country is a low tax jurisdiction;
  • Hidden information about beneficiaries;
  • Absence of income tax on the payment of dividends to shareholders.


Disadvantages:

  • It’s necessary to prepare and submit an annually accounting report of the company with a copy of an auditor’s report and director’s report.