• Minimum number of directors is 1 (ideally a local nominee director). However, the company may have foreign directors, including corporate directors.
• If Director is a private person, one shareholder is permitted. With Corporate Director the Company must have at least 2 shareholders (nominee services are available).
• Company secretary is required.
• Share capital is €1,250
• Amount of State duty depends on the size of share capital (with share capital up to €1,500 State Duty is €390)
• Beneficial Owner is disclosed to the Company Register.
• Company formation packages available. Ask now.

TRADING COMPANY

Maltese Company with VAT is favored for general trading purposes due to unique tax regime. When dividends are paid by a trading company to its non-resident shareholder, this shareholder is entitled to claim refunds of the 35% tax rate paid by the company. 6/7ths of the tax amount are refunded to the   non-resident shareholder. As a result, the total tax rate is reduced to 5%.

The refund is guaranteed and is paid by Inland Revenue Department to shareholders account 14 days after application is submitted.

Key advantages:

• 6/7 refund of the paid corporate tax (at rate 35%) brings down effective tax rate to less than 5%.
• Tax Residence Certificates are available provided that management & control is carried in Malta.
• EU VAT number registration generally takes 2 weeks.
• Malta is in EUR-zone.

HOLDING COMPANY

Dividend Income is 100% exempt from tax if Maltese company

• holds at least 10% of the foreign company shares,
  or
• has investments in a subsidiary company for a minimum  amount of 1.5 million euros for at least 183 days.

The foreign subsidiary must comply with one of the following rules:

• It is incorporated in EU,
  or
• it pays >15% corporate tax in any country,
  or
• at least 50% of its income derives from trading

• CORPORATE INCOME TAX (CIT): Resident companies are taxed at 35% rate on worldwide income. The amount of tax refund (up to 100%) depends on Company’s structure
• INCOMING DIVIDENDS: 0% if Participation Exemption applies.
• CAPITAL GAINS TAX (CGT): 0% if Participation Exemption applies.
• WITHHOLDING TAX:
  ROYALTIES: 0%
  DIVIDENDS: 0%
  INTERESTS: 0%
• BILATERAL TAX TREATIES with 57 countries including Cyprus & UAE.
• VALUE ADDED TAX (VAT). EU VAT regime. The standard rate for inland sales is 18%.

• Chose the structure that fits your business. Need help? Contact us.
• Contact us for Company Package Fees.
• Follow our Compliance Policy