Company structure in Malta
Legal basis - Mixed (civil law and common law)
Legal framework - Companies Act
Company form - Private company limited by shares (Ltd.).
Responsibility - The shareholders' liability for the company is limited to the amount of their respective shareholdings.
Share capital - The minimum required share capital is EUR 1,164.69, of which twenty percent (20%) of the nominal value of each share must be paid up. It can be denominated in EUR or in any other currency. Bearer shares are not permitted.
Shareholders - Public limited companies can be set up by one shareholder and not more than 50 people, who can be natural or legal persons, residents or non-residents, without limitation. A minimum of two shareholders may be required if the director is a corporation. The contact details of the shareholders are accessible to the public.
Administrators - At least one director, who can be a natural person or a legal person, resident or non-resident. A shareholder can be the entrepreneur. The contact details of the directors are accessible to the public.
Secretary - A secretary is needed who must be an individual, a resident or a non-resident. In some cases, the administrator can also act as the company secretary. The secretary must meet the conditions set out in the company law.
Registered address - Limited liability companies must have a registered office address in Malta, where the company must keep all statutory records and other documents which must be available for review.
General assembly - Each company must hold an annual general meeting, which can be held in Malta or abroad, in addition to any other meeting held during the year. The first general meeting must be held no later than 18 months after the incorporation of the company. No more than 15 months can elapse between one general meeting and the next. A shareholder company should appoint a company representative to sign documents on behalf of the company, individual shareholders can appoint attorneys to attend on their behalf.
Electronic signature - authorized.
Re-domiciliation - Incoming and outgoing redomiciliation is authorized.
Conformity - Limited liability companies are required to include financial statements audited or certified by officially authorized auditors or accountants and a statement in the tax return. These requirements also apply to companies without taxable income or to dormant companies.
The directors are required to file with the clerk a copy of the annual accounts of the company filed with the company at a general meeting, as well as a copy of the auditor's report and the directors' report.
The audit and director reporting requirements may be waived for a business that qualifies as a small business.
Public limited companies are required to submit an annual report to the Registrar of Companies each year. The annual returns of the company are calculated based on the authorized share capital.
Key Figures of Companies in Malta
|Official name||Republic of Malta|
|Proper noun||Repubblika ta 'Malta (mt); Republic of Malta|
|Population||446,555 inhabitants (2018)|
|Population growth||1.39 % / year|
|Density||1,376.35 inhabitants / km²|
|GDP||14.542 billion $USD (2018)|
|GDP / capita||30,075 $USD (2018)|
|GDP growth||6.60 % / year (2018)|
|Life expectancy||82.40 years (2018)|
|Birth-rate||10.10 ‰ (2016)|
|Fertility rate||1.40 children / woman (2015)|
|Mortality rate||7.20 ‰ (2016)|
|Literacy rate||94,44 % (2015)|
|Official languages||Maltese, English (Italian often spoken)|
|Change||Euro (€ EUR)|
|HDI||0,885 / 1 (2018)|
|Nature of State||Republic|
|Head of state||President George Vella|
|National Holiday||September 21 (independence of 1964)|
|Codes ISO||MT, MLT|
|Tourists||2,274,000 people (2017)|
Malta is an island state in Europe, the smallest in the European Union. It consists of an archipelago of 8 islands of which 4 are inhabited. Located in the middle of the Mediterranean Sea, between the south of Sicily in Italy and the Tunisian and Libyan coasts, it is one of the obligatory passages to the Union for a large number of migrants from all over Africa.
The conditions of detention of these migrants are often blamed for the failure to respect fundamental human rights. Most of these migrants can in fact spend eighteen months in reception centers which mainly resemble prisons, before being sent back to their country.
For about two years, the number of these migrants has fallen sharply, and illegal immigration has practically stopped, without the authorities knowing too much for what reason.
The economy of the archipelago is relatively well diversified. Industries, with pharmaceuticals and electronics in particular, fishing, tourism - the country has specialized in language learning, finance.
Although increasingly dependent on foreign trade, the global crisis has not affected Malta too much.
The country, small in size, is one of the most densely populated on the continent and in the world.
Corporate Taxation in Malta
Corporate tax rate (IS)
|Global CIT rate (%)||35|
The Maltese government has put fiscal measures in place with the aim of attracting foreign investors, which improves the island's economy and creates jobs.
First measure, foreign investors by creating an offshore company can benefit from advantageous taxation under corporation tax at 5% in particular thanks to the effective tax refund within 6 months in addition to the tax credits from which it is possible to benefit by creating jobs.
Corporate tax (IS) due dates
|CIT return deadline||No later than nine months from the end of the accounting period or March 31 following the tax year (although the Maltese tax authorities usually extend this deadline by one or two months in case of electronic submission).|
|CIT final payment due date||With the deadline for filing the tax declaration (the extension in case of electronic submission does not apply for the payment of the tax).|
|Estimated due dates for CIT payments||The advance tax (provisional tax) is paid every four months: April 30, August 31 and December 21.|
Personal income tax rate (PPI)
|Global PIT rate (%)||35|
Personal income tax (PIT) due dates
|PIT return due date||End of June.|
|IRP final payment due date||End of June.|
|Estimated PIT Payment Due Dates||Interim tax payments are divided into three installments: April 30 (20%), August 31 (30%), and December 21 (50%). However, it should be noted that the percentages may vary from month to month depending on the end of the business year.|
Value added tax (VAT) rate
|Standard VAT rate (%)||18|
Withholding tax rate (WHT)
|WHT rate (%) (Div / Int / Roy)||Resident *: 0 or 15/0/0;|
Non-resident *: 0/0/0
* See Malta Corporate Tax Summary for more information.
Capital gains tax rate (CGT)
|Corporate capital gains tax rate (%)||See Malta Corporate Tax Summary for capital gain rates.|
|Tax rate for individual capital gains (%)||See Malta's personal income tax summary for capital gain rates.|
Wealth / Equity Tax Rate
|Global wealth / equity tax rate (%)||N / A|
Rate of inheritance and gift tax
|Rate of inheritance tax (%)||N / A|
|Gift tax rate (%)||N / A|