How Do I Set Up An LLC Company In Malta?
by Abdul Aziz Mondal Business 18 April 2023
Malta’s law on how to start a business lets more than one kind of company exist. Most business owners use private or public limited liability firms. These corporations differ in shareholder numbers and minor share capital requirements. When starting a company, investors in Malta can choose a firm based on their budget. Growth and a desire to list and sell shares are also needed.
Most foreign investors set up limited liability companies in Malta. It is how this type of business structure became most common in Malta. Malta has two kinds of limited liability companies: private and public. Our Maltese lawyers can explain both types of systems.
How Do I Make A Private Limited Liability Company In Malta?
Private LLCs in Malta need 50 shareholders. Since it’s still good this year, it fits their business rules. At least two people must start it. But the law allows for a private, exempt company with only one shareholder.
For the business to run smoothly, it needs a director and a secretary. The minor share capital for PLLC is either 1,165 EUR or the same amount in another currency.
A company based in Malta must put 20% of this money in the bank. If you want to move to Malta, we can put you in touch with our local partners, who are experts in immigration issues.
Maltese LLC registration takes two weeks. The registration for paying taxes takes about three weeks. Our professionals can manage the simple rules.
When starting a company in Malta, companies with limited liability must open a bank account. The steps are accessible here, but you must wait about four weeks. There are no limits on the type of bank. This strategy can be used by any bank.
How Do I Create A Public Limited Liability Company In Malta?
Public limited liability firm shareholders can exceed 50. You need at least 46,500 EUR in share capital to use this business form. You can send this amount in euros or another currency. Pay in full at the time of incorporation if the value is less than EUR 46,500. Public limited liability companies have fixed-value shares. A company must inform its stockholders of its finances. The investor decides whether to buy stock.
The government of Malta governs and declares the finances of its public firms. For the company to run, it needs at least two directors and a company secretary. It’s good to know that we can trade shares of this kind of company on the Malta stock exchange. Private company shares are unchangeable.
The business’s Articles of Organization specify who can sell company stocks and how the general public can purchase them. Both company owners will have limited liability for company debts and responsibilities. Shareholders will only be responsible for as much as they put into the company when it started.
Changing the memorandum and articles of association makes a private corporation public. The Registrar of Companies must register these modifications. Our Malta company formation advisors can explain what each firm needs. We can put you in touch with our partners to form a company in Malta.
How To Start An LLC Business In Malta In 2023
Step 1: Write the company’s Memorandum and Articles of Association
The Company Register in Malta will receive the papers. The process of becoming a corporation will take about 24 hours. Start a Malta limited liability company with these steps:
Step 2: Have a registered office in Malta;
Step 3: Open a bank account for the business and put in the minor share capital;
Step 4: Hire a local auditor and then register in Malta for tax purposes;
Step 5: Sign up with the Employment Training Corporation (ETC) if the company hires people.
Also, the company must apply for a business license with the appropriate authorities. The type of license needed depends on what the company will do. Our Malta company formation specialist can handle all these things.
How To Tax Llcs In Malta
Malta’s limited liability company tax system attracts most foreign investment. If an offshore business in Cyprus has shares in an LLC in Malta, the corporate tax is 5% instead of 35%. One should know that dividends and interest on a bank account are not taxed. Royalties, rewards, and license fees are not taxed. The standard VAT rate is 18%, and all businesses in the EU selling things must pay it. Please ask our team of consultants about taxes for limited liability companies.
Furthermore, Malta has signed more than 70 agreements to avoid double taxation. You will only tax your business income once. People interested in Malta’s tax system should talk to our experts there.
In conclusion, setting up an LLC in Malta can be a straightforward process if you have the right guidance and knowledge of the different types of companies available.
With the help of Maltese lawyers who can explain the private and public limited liability systems, investors can choose the best option based on their budget and growth aspirations.
With the right company structure in place, investors can take advantage of the business-friendly environment in Malta and thrive in their chosen industry.
Frequently Asked Questions
What Is The Time Required To Set Up An LLC In Malta?
As an EU citizen or firm, incorporating a company in Malta usually takes two days. The corporation may prohibit non-EU citizens and companies operating only in Malta.
- Company name registration takes a few hours;
- Preparing and notarizing incorporation documents takes a day;
- Depositing share capital takes a day;
- Business and tax registration may take two days;
- VAT registration takes a week;
- Employer identification numbers take three days, while employment registration takes two.
How Much Will It Cost To Register A Company In Malta?
- Registration fee: The Malta government charges EUR 245 for new company registration. The company’s share capital may affect this.
- Least Share Capital: PLLCs must pay 20% of their EUR 1,165 share capital. Malta’s cheap registration makes it competitive. Two shareholders must buy authorized share capital. This step requires a bank account—the smallest allowed capital share. The memorandum must completely endorse it. If it’s better, support it.
- Virtual office package: The monthly cost for the virtual office package is 125 euros.
- Physical Office: EUR 400–180, depending on the office.
- Business creation fee: Compliance expenses vary by a company profile. Our professionals can customize a proposal.
- Maximize monthly bookkeeping, tax counseling, and other accounting services for EUR 160.