Starting a new business in Malta
Company formation and incorporation process in Malta is set out by The Malta Companies Act, which is modeled after it’s UK counterparts example. This process allows business owners in Malta enjoy a simple and straightforward company formation procedure. Registration of the company can be done within a day after all required documentation, information and funds from the Registry of Companies in Malta are received and company formation process is finalized.
Company formation in Malta is associated with many financial and operational benefits. This page will help you to understand what to expect from business incorporation process if you are considering registering company in Malta.
Requirements and restrictions for company formation in Malta.
There are no restrictions in the Maltese Company law on the nationality and residence of the shareholders and business directors. Also no restrictions are applied on the types of activities that a company in Malta can carry out after its successful registration. But you should not forget that activities of particular businesses in Malta can be regulated by local authorities, such as, the Malta Financial Services Authority (MFSA) or the Malta Lotteries and Gaming Authority (LGA).
According to The Maltese Companies Act, the minimum share capital of a private company registered in Malta, is € 1165, and at least 20% of this amount must be paid-up front and deposited in a bank account under the name of the company that is registered in Malta. Fees for a registration are quite low. They are calculated according to the company’s share capital, for example, a company with a minimum share capital will pay € 245 for its registration to the Registrar of Companies.
The law requires a company registered in Malta to submit an annual return to the Registrar of Companies, as well as audit of all annual financial statements must be held.
Directors conditions for company formation in Malta:
- at least one director is required for a company in Malta. In certain cases the director may also act as the company’s secretary
- a body corporate can act as the director of a business, but he or she can’t take the role of company’s secretary. This position must be filled by an individual.
- according to Maltese business laws an individual may occupy the position of company’s director while being company’s shareholder.
Shareholders role in company’s formation
Maltese law requires a business to have at least two shareholders in order to have successful company formation, but it is also possible to register a business in Malta with only one shareholder if the company fulfills certain conditions.
Shareholders can be individuals as well as corporate bodies. In order to keep the identity of the beneficial owners confidential, the shares in a Maltese company can be held by an authorized fiduciary. At least once every year a Maltese company is required to hold a members’ Annual General Meeting (AGM).