Starting a business in Malta
The process of establishment and registration of a business is laid out in the Maltese Act on Companies drafted on the basis of the British equivalent. The procedure for company formation stipulated therein is uncomplicated and transparent. Registration can be completed in a day, provided that all necessary documents and payments are received from the Maltese Registry of Companies and the business is established.
The ownership of a company in Malta is connected to many benefits, both financial and practical. The present overview will inform you about the process of business incorporation if you are planning to perform a company formation Malta.
Requirements and restrictions for company formation in Malta
The Company Act does not restrict the shareholders and managers of a business with respect to residence and nationality. Furthermore, after registration is duly completed, no limitations exist regarding the nature of the activity of the company operating in Malta. Still, it is important to mention that some particular activities are regulated on a local level, e.g. by the Authorities of Financial Services or Lottery and Gaming, among others.
The Company Act requires a minimum capital of 1165 Euro for the registration of a private business. No less than 20 percent of it needs to be available in advance in the account of the company, registered in Malta. The actual fees for setup are low. Their amounts estimated depending on the shared capital. In case of minimum capital, the tax to be deposited at the Registry of Companies is 245 Euro.
Every company registered under the Maltese law is obliged to prepare a report on its annual return and submit it to the Registrar. Also, a yearly audit of the financial statements should be arranged.
Directors conditions for company formation in Malta
- In order to establish a Maltese company, the entity must have at least one director. Depending on the circumstances he / she may also hold the position of secretary.
- The director can be a legal person, but in this case the person cannot simultaneously work as secretary. The position has to be taken by a natural person.
- The national legislation regulating business states that the director of a company can also be a shareholder in it.
According to the law in Malta any business shall have no less than two shareholders for the purposes of company establishment. Under particular circumstances, however, it is possible to register your entity in the country with a single shareholder.
Shareholders may be both individuals and corporations. The beneficiaries’ identity can be kept confidential by setting up a fiduciary account managed by a proxy. Every company in Malta is obliged to schedule an Annual General Meeting (AGM) of its members at least once a year.
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