5 Benefits of Using a Company Formation Agent in Malta

Are you considering starting a business in Malta? You're not by yourself! Malta has become an increasingly popular location for entrepreneurs looking to establish themselves. It's no surprise, given its strategic location, business-friendly environment, and appealing tax system. Working with a company formation agent is one of the best ways to take advantage of these advantages. 

In this article, we'll look at the top five advantages of hiring a company formation agent in Malta to help you navigate the process and get your new business off to a good start. Let's get started!

1. Expertise and Experience: A Malta company formation agent will have the knowledge and experience to guide you through forming a company in the country. They will be familiar with the laws and regulations governing the formation of a company and can offer valuable guidance and advice.
2. Saving Time: Starting a business can be time-consuming, especially if you are unfamiliar with the local laws and regulations. A company formation agent can handle all of the administrative tasks associated with company formation, freeing you up to concentrate on other aspects of your business.
3. A Company Formation Agent Can Help You Save Money: By ensuring you meet all the legal requirements for forming a company in Malta. They can also help you with tax planning and other financial matters, allowing you to make the most of your available resources.
4. Peace of Mind: Working with a company formation agent in Malta can provide peace of mind, knowing that your company is being set up correctly and following all relevant regulations. This can save you money and time in the long run.
5. Ongoing Assistance: A good company formation agent will provide ongoing assistance and advice to assist you in successfully managing your company. They can advise you on regulatory compliance, accounting, taxation, and other business issues, allowing you to grow your company and achieve your objectives.

Procedure for Registering a Company in Malta

The process of registering a company in Malta is simple and efficient, making Malta company registration appealing to businesses of all sizes. The following are the main steps in forming a company in Malta:

• Choose a Company Structure: Begin by deciding on the best company structure for your company, such as a private limited company, a public limited company, or a holding company. Consider liabilities, taxes, and shared capital requirements.
• You Must Reserve a Unique Company Name: Register a name not similar to any existing Maltese companies. This is handled by the Malta Business Registry (MBR), and you can check the availability of your desired company name on their website.
• Prepare the Memorandum and Articles of Association: Write the Memorandum and Articles of Association, which outline the company's goals, share capital, shareholder rights, and management rules. Legal counsel is advised to ensure compliance with Maltese laws.
• Establish a Corporate Bank Account in Malta and deposit the minimum share capital. The bank will issue a deposit confirmation, which is required for the company registration process.
• Submit the Completed Registration Forms, Memorandum, Articles of Association, and deposit confirmation to the Malta Business Registry. Identification documents must also be provided for shareholders, directors, and the company secretary.
• Pay the Registration Fee: The registration fee varies depending on the company's share capital. After reviewing the submitted documents, the MBR will issue a Certificate of Registration if everything is in order.
• Register for Taxes and Social Security: After receiving the Certificate of Registration, apply to the Commissioner of Revenue for tax identification and VAT numbers. Register your company with Jobs Plus for social security and employment purposes.
• Obtain the necessary licenses and permits: Depending on the nature of your business, you may need to obtain specific licenses or permits to operate legally in Malta.

By following these steps, you can complete the Malta company registration process and begin operating your business in this appealing and business-friendly jurisdiction.

What Kinds of Businesses Can Be Established in Malta?

Malta provides diverse company structures to meet various business needs and objectives. The following are some of the most common types of businesses that can be established in the country:

1. Public Limited Companies (PLC) and Private Limited Companies (Ltd): Malta allows public and private limited liability companies to form. The most common option is a private limited company, which requires at least one shareholder and one director and a minimum share capital of €1,250. On the other hand, public limited companies can issue shares to the general public and must have a share capital of at least €46,587.47. Both structures provide shareholders with limited liability, shielding their assets from business liabilities.
2. Holding Companies based in Malta: These companies are especially advantageous for mergers and acquisitions because they provide tax efficiency, added flexibility, and EU compliance. The Maltese tax system offers many advantages, including tax refunds and exemptions, making holding companies an appealing option for international businesses.
3. General Partnerships (GP) and Limited Partnerships (LP): General partnerships comprise two or more partners who are jointly and severally liable for the partnership's debts and obligations. Limited partnerships, on the other hand, include general partners with unlimited liability and limited partners whose liability is limited to the amount they contribute to the partnership.
4. Sole Proprietorship: This business structure is owned and operated by a single person who bears unlimited liability for the debts and obligations of the company. While it is simple to set up, it does not protect the owner's assets from business liabilities.
5. Foreign Company Branch: Foreign companies can establish a branch in Malta to conduct business. The branch is not a separate legal entity but an extension of the parent company, which is liable for the branch's liabilities.
6. Trusts and Foundations: Trusts and foundations can be used to protect assets, plan for estates, or support charitable organizations. The Trusts and Trustees Act governs trusts in Malta, while the Second Schedule to the Civil Code governs foundations.

The company formation process in Malta is streamlined and accessible regardless of the type of business, allowing entrepreneurs to create a company in Malta and join the diverse range of companies in Malta.

Conclusion

Malta company registration is a good choice for entrepreneurs and businesses looking to establish a presence in a well-regulated, business-friendly environment with access to the European market.

Malta is still a popular place to start a business because of its low taxes, skilled workers, and strong economic growth.

Foreign and local entrepreneurs can navigate the registration process smoothly and efficiently by partnering with professional service providers such as company formation agents, ensuring legal compliance and a solid foundation for future success.

Frequently Asked Questions for Malta Company Registration

How do I form a company in Malta?

To complete company registration in Malta, you must submit all required documents to the Malta Business Registry, including the Memorandum and Articles of Association.

What is the timeframe for establishing a business in Malta?

Once all required documents are submitted and approved, Malta's company registration usually takes 2-3 working days.

What are the costs of establishing a company in Malta?

The costs of establishing a company in Malta vary according to the type of company and the complexity of the process but typically include registration fees, professional service fees, and any required license fees.

Is a local director required for Maltese company registration?

No, there is no requirement for a local director when registering a company in Malta. On the other hand, having a local director can provide practical benefits and assistance in navigating local regulations.

Is it possible for a foreigner to own a company in Malta?

Yes, people from other countries can own businesses in Malta and get the same benefits as the locals.