Lexon Incorporations: Corporate, accounting, trust
Lexon Incorporations: Corporate, accounting, trust
Malta: Private Limited Company

General information about the country

The Republic of Malta is located on seven islands in the Mediterranean Sea and is in the centre of sea routes from Europe to Asia as well as Africa.

Due to its beneficial location, Malta has always been an attractive target for the conquerors at different times and from different countries.

In 1798, Malta was captured by the French army. In 1800 the capital of Malta, Valetta, was occupied by British troops, with Malta becoming a colony and naval base for the United Kingdom for the next 150 years.

Whilst Malta gained independence in 1964, the Queen of England was still the official head of the state until 1979, when the last British naval base was liquidated in Malta.

Malta joined the European Union in 2004 and adopted the Euro as the national currency in 2008.

English is the second official language of Malta. In practice all international business correspondence is in English.

Legislation

Whilst Malta is generally a civil law jurisdiction, many of its modern legal enactments such as the Companies Act are based on common law and largely replicate the legislation of its former metropolis being the United Kingdom.

When Malta joined the European Union, the legislation of the country was harmonized in accordance with the European Union general regulations.

The tax system of Malta is one of the most favourable amongst all European Union countries for international business and investment.

Corporate characteristics:

Main:
Company typePrivate Limited Company
Corporate legislationMalta Companies Act 1996, Cap. 386
Language of company documentsEnglish
Corporate endingLimited, Ltd.
Authorised capital:
Minimum amountEUR 1,165
Standard amountEUR 1,165
Standard currencyEUR
Permitted currenciesEUR
To be paidAt least 20% must be paid at registration
Shareholders:
Minimum number1
Maximum number50
Publicly accessible recordsYes
Directors:
Minimum number1
Local directorRequired for tax residency
StatusAn individual or a legal entity
Publicly accessible recordsYes
Secretary:
Minimum number1
Local secretaryRecommendable
Publicly accessible recordsYes
Reports:
Filing an Annual ReturnYes
Fiscal yearJanuary 01 – December 31
Financial StatementsYes
Publicly accessible Financial StatementsYes
AuditorMandatory
Filing a Tax ReturnYes
Corporate taxation:
On trading incomeEffective rate – approximately 5%
On passive incomeIn most cases - 0%
Double Tax Treaty network:Agreements with more than 50 countries

Additional information on taxation

Malta’s tax system provides significant advantages for entrepreneurs. These include:

Conclusions

A company registered in Malta has wide range of benefits such as tax exemption for holding income, an imputation system for trading income, no withholding tax on dividends, interest or royalties, no regulation of transfer pricing, no taxes on capital and assets, a wide network of double tax treaties, and application of European Union directives.

Maltese companies are therefore advantageous tools for operations on the European Union market. A wide network of Double Tax Treaties also makes a Maltese company the optimal corporate instrument for use in many other countries outside of the European Union.

http://lexcorp.com/en/jurisdictions/malta/ - Malta: Private Limited Company

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