Malta Private Limited Liability Company (LLC) Formation

The Republic of Malta is a Southern European island country in the Mediterranean Sea.
Since joining the European Union, Malta has had to adapt from their traditional Off-shore company formation to what is now known as a non-resident company. The most popular of these being the Private Limited Liability Company (LLC).

With Malta’s very flexible tax system it has maintained much of the previous foreign financial businesses which were formed as traditional off-shore companies.
Malta is a reputable jurisdiction in a fantastic location and with an international, highly rated banking system and rebates and credits, which are achieved through their tax imputation system, companies which are structured correctly can manage to pay lower corporate taxes.

Malta offers the option of a private exempt LLC, which allows for single member ownership. There are also a number of differences between a private a public liability company, such as the fact that the Malta Private LLC has restrictions on the rights to transfer shares, off the public any of its debentures or shares, as well as a limit on the number of employees which it may have, which is currently, only under 50.

  • Single member Ownership Permitted
  • Re-domicile permitted
  • Corporate Tax Benefits
  • Administrative Flexibility
  • Asset Security
  • Non-resident companies many of the benefits of resident companies
  • Modern legislation
  • European Union ease of access
  • EU Member Country
  • Access to over 70 Double Tax Treaties
  • Holding Company
  • Holding of Intellectual Property Rights
  • E-Commerce
  • Online Gaming
  • International Trading Company
  • Maritime vessel ownership

A Malta Private LLC has no trading restrictions, however a company which seeks to own real estate must be given the appropriate authorisation.

A few of the requirements to form a LLC in Malta are the following: – Confirmation of the acceptance of the proposed company name, a registered office address. The names and address for each Shareholder and Director, as well as certified copies of valid passports or national ID cards, such as those issued in the European Union. These need to be certified by either a Notary Public, Bank or by the issuing country’s Embassy, each of the above also require a bank reference.

These are all submitted to the Companies Register.

Overview
Company TypePrivate Limited Liability Company (LLC)
Country LawCivil Law (with Common Law influence)
Company Law

The Companies Act, 1995 (as amended)

Additional financial legislation:-

Business Promotion Act 1988

Trusts and Trustees Act 1988

Malta Financial Services Authority Act, 1994

Banking Act 1994

Investment Services Act 1994

Financial Institutions Act 1994

Financial Markets Act 2002

Registered Office RequiredYes
Local Registered Agent RequiredNo
Shelf Companies PermittedNo
Migration Of DomicileYes
Average Time To Form Company5 to 7 Business Working Days
Government Fees
Minimum Government Formation Charge€245 EUR to €2,250
Recurring Minimum Annual Company License Fee€245 EUR
Annual Return Filing Fee€100 – €1400 Dependant on authorised capital
Corporate Tax
Corporation TaxYes
Access to Double Taxation TreatiesYes - 70

Maltese companies may be registered for VAT purposes. The Value Added Tax rate of 18% is applicable to companies who are trading within the EU. The VAT prefix is ‘MT’

Please the Taxation section for further information regarding Corporate Tax in Malta.

Directors
Minimum Required Directors1
Local Director RequiredNo
Records PublicYes
Board Meeting LocationAnywhere in the World
Corporate Directors PermittedYes
Privacy - Publicly Available RecordsYes

There is a minimum requirement of one Director.  Directors can be either individuals or corporate bodies of any nationality and resident of any country.

Company Secretary
Secretary RequiredYes
Local or Qualified PositionNo

A secretary is required but is has to be an individual. In the instance of the Director being an individual (not a corporate body – Corporate Director), they may also be the secretary.

Share Capital
Standard CurrencyEURO €
Permitted Share CurrencyAny
Minimum Paid Up Shares€250 EUR
Usual Authorised€1,165 EUR
Bearer Shares PermittedNo
No Par Value Shares PermittedNo

Permissible share for a Maltese LLC are, ordinary shares, registered shares, redeemable shares and preference shares.

Shareholders - Members
Minimum Number2
Corporate MemebersPermittedYes
Meeting LocationsCan be held anywhere in the world
Privacy - Publicly Available RecordsYes
Company Accounts
Requirements To PrepareYes
Audit RequiredYes
Keep Financial RecordsYes
Requirement To File AccountsYes
Requirement to File Annual ReturnYes
Accounts Publicly AccessibleYes

Malta’s Tax System is not straightforward but offers many benefits such as no inheritance, wealth or annual property tax, as well as no tax on dividends or interest. Corporate income tax is at the rate of 35%.

With Malta’s tax system, it is comprehensible to establish a very tax efficient structure. Malta’s many double taxation agreements are also very favourable.

It is advisable to consult with an International or Maltese Tax Consultant or Accountant to see if the Malta LLC is suitable for your business needs.

Malta Facts
LocationSouthern European island country, in the Mediterranean Sea
SizeApproximate area of 316 sq. km
PopulationApproximately 445,426
Languages Spoken

Main and Official Languages

Maltese

English

CurrencyEURO €
Politics

Parliamentary Republic

Economy

Main Industries:

Foreign Trade

Manufacturing - electronics and pharmaceuticals

Tourism

Transport

Air

Road - Driving on the Left

Boat

Time Zone

CET (UTC+1)

Summer (DST) - CEST (UTC+2)

International Dialling Code+356
Internet TLD.mt

Contact us today to enquire about the Cost of Formation or if you have further questions regarding the application process.

Malta Private Limited Liability Company (LLC) Formation Enquiry

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