Open a company in Malta: our guide to the main steps

Malta is the ideal base from which to develop your business project. Open a new company, with a permanent organization in the Mediterranean archipelago is simple: just follow some procedures with the support of the team of Malta Business Agency, a network of professionals specialized in various fields of business consulting, ready to guarantee you a strong rooting in the territory and in the Maltese economic fabric, accompanied by an excellent knowledge of Italian, English and Maltese language and a deep knowledge of the practices to be followed to start your new business in the Maltese context. Now Malta Business is a member of MALTACHAMBER and FINANCEMALTA, as well as having direct relationships with the main governmental authorities.

Let’s review the main steps to open a new company in Malta.

What type of company to choose? A preliminary analysis is aimed at the best formula of company to be established in Malta to give the most appropriate response to the needs of your business. We will be at your side to share all the possible solutions and offer you our evaluation on the best decision to take. The choice will depend very much on your business model, so the first thing you need to do is to clearly identify not only the activities you want to carry out, but also how you want to achieve them. Our team will be able to support you in identifying the most appropriate procedures to build a real business model, concrete and durable, which can consolidate the identification of “permanent establishment” in the Maltese island.

Preparation of documents: to open a company in Malta it will be necessary to provide and fill in some documents to certify the real existence (Due Diligence) of the directors and shareholders, which will be examined by our team of consultants. Attention: the procedures are not complicated, but the vigilance of the Maltese authorities on unfair and illegal practices in the economic and financial field is more and more punctual and inflexible. Particular attention will be given to the stage of recognition of the last beneficiary of the company, with the completion of some questionnaires with respect to the latest anti-money laundering provisions.

Registration procedure: in order to open a company in Malta, it is necessary to register through the Malta Business Registry with an online procedure, through an automated system, characterized by simple steps. However, it is necessary to have a clear idea of the information and documentation required to successfully complete the process. We will define everything through a first meeting remotely, after which you can safely think about the management of your future business. We take care of the simple bureaucracy!

Social capital: the minimum capital to open a company in Malta is 1.200,00 euro, of which 20% to be paid together with a tax of 320 euro. Obviously, if you are thinking of opening a more structured company and with a business idea that will also need to be accompanied by public and private funding, we recommend starting with a more credible share capital.

Tax benefits: as is well known, to open a company Malta guarantees an important tax refund during the distribution of dividends, which will bring the final net tax rate to be paid between 5% and 10% tax on profits made. This tax relief, which is part of the prerogatives of individual states to encourage foreign investment, is recognized only to shareholders with a permanent residence outside the Maltese territory. The tax benefit is not granted directly to the company set up, but to its shareholder who has made the investment, who each year, after the company has paid to the Maltese government the taxes foreseen by the regulations in force, will receive a refund of the taxes paid. The shareholder will receive the refund directly on his bank account and will then have the obligation to declare it in his personal income tax return in the State where he is resident for tax purposes. We will take care of following the correct procedure for requesting the reimbursement in order to seize the advantages offered by a competitive system such as the Maltese one.

Open a bank account: In Malta, the opening of a bank account with the traditional banks is strongly linked to the activity of the applicant. The Maltese banks, in this last period, have reviewed the procedures of engagement of the clients, going to analyze in particular the real connections on the territory and the presence of employees.

Obviously, this approach does not allow a serene and structured development of the ecosystem of startups that, arriving on the island without knowing the mechanisms, have seen their growth path uphill precisely because of the rigidity of the banking system, often hesitant in the face of business risks and careful to follow in detail the correct procedures on anti-money laundering. In this regard, in order to facilitate the start of the business idea, Malta Business has created some structured partnerships that will allow, to the new business initiatives, to be able to start their activities with the opening of online payment accounts, which provide security and operability, especially in an initial phase with annual costs in line with the costs of the banking system.

All current accounts are equipped with IBAN, with the possibility to make and receive SEPA and Extra SEPA transfers and rechargeable cards linked to the most important transaction circuits.

Company organization and commercial development: once the company in Malta is created, it needs to be activated according to the business model outlined. Our team will support you in the search of commercial and productive spaces, in the selection of personnel, in the management of eCommerce for the online sale of your products, in the communication and marketing activities, in the networking operations within the Maltese context, in the access to funding and numerous incentives guaranteed by the Maltese Government, in the activities for internationalization and in the correct management of the procedures aimed at safeguarding your company from international tax audits.

Not only that, we will also accompany you in the commercial development of your initiative, especially if it will be directed abroad. Our team of professionals, specialized in processes related to internationalization, will be able to support you in your company’s growth activities.