Business entities in Malta
Healy Consultants will assist our Clients engineer the optimum Malta corporate structure and guide you throughout the Malta business setup process. Most of our Clients choose to setup an LLC in Malta. Alternatively, our Clients can also set up a PLC, branch office or a representative office.
The Malta limited Liability Company
- Only 2 shareholders and 1 director is required for Malta LLC setup. There are no requirements for resident directors or national shareholders. This entity does however require a registered address and resident company secretary in Malta. Healy Consultants will provide these services to our Client.
- For Malta company setup, the minimum authorized share capital required is €1,165, out of which at least 20% must be paid up. Hence the minimum paid up share capital required is €233 which must be deposited into a corporate bank account before the company is incorporated.
The Malta public limited company
- A Maltese PLC requires at least 2 shareholders and 2 directors who can be of any nationality and residency. This type of entity is allowed to issue its shares to the public.
- The minimum authorized share capital of this entity should be €46,588 of which 25% must be paid up. Hence the minimum paid up share capital required is €11,647.
The Malta branch office
- Foreign companies can also setup a branch office in Malta for their parent company. The parent company will be fully liable for the activities of the branch office.
- A branch office is allowed to make sales in Malta, and profits are taxed at the normal corporate tax rate of 35%. There are no branch remittance taxes.
The Malta representative office
Malta representative offices/ liaison offices are only allowed to engage in i) market research and ii) promotion of the business of the parent company. These entities are not allowed to generate any revenue in Malta
Table of comparison between entities in Malta
|Summary at a Glance||LLC||PLC||Branch||Representative office|
|Considered a Malta tax resident company||Yes||Yes||Yes||No|
|Access to double taxation treaties||Yes||Yes||Yes||No|
|Resident director required?||No||No||No||No|
|Resident company secretary required||Yes||Yes||N/A||N/A|
|How long to set the company up?||2 weeks||3 weeks||3 weeks||3 weeks|
|How long to open company bank account?||4 weeks||4 weeks||4 weeks||4 weeks|
|Malta registered address required?||Yes||Yes||Yes||Yes|
|Virtual office address allowed?||Yes||Yes||Yes||Yes|
|Can be wholly foreign owned?||Yes||Yes||Yes||Yes|
|Minimum authorized share capital?||€1,165||€46,588||N/A||N/A|
|Minimum paid up capital||€233||€11,647||N/A||N/A|
|File annual tax return?||Yes||Yes||Yes||No|
|Corporate bank account?||HSBC||HSBC||Bank of Valetta||Bank of Valetta|
|Does our Client need to travel?||No||No||No||No|
|Minimum directors allowed?||1||2||N/A||N/A|
|Corporate shareholders allowed?||Yes||Yes||Yes||Yes|
|Corporate tax rate on Malta sales?||35%||35%||35%||N/A|
|Annual audited financial statements required?||Yes||Yes||Yes||Yes|
|Allowed to issue sales invoices in Malta?||Yes||Yes||Yes||No|
|Allowed to sign contracts with Maltese entities?||Yes||Yes||Yes||No|
|Can rent an office in Malta?||Yes||Yes||Yes||Yes|
|Can own equity in other Maltese companies?||Yes||Yes||Yes||No|
|Average total business set up engagement costs||€9,675||€11,125||€10,275||€10,275|
|Sample engagement fee invoice|