I know, yon want to know how it is possible to get company in Europe and only pay a 5% tax.
You can do it too!!
If you like to have a company in Europe and pay less tax possible, we suggest you setting up a company in Malta.
Malta Company has many advantages and executive features and has become a very popular location for foreign investors and businesses on an international level.
Malta has Double Tax Treaty Agreements with over 70 countries, and the procedure of incorporation is easy and fast.
100% foreign ownership is allowed. Additionally, there are valuable advantages of the tax system in Malta. Malta tax rate can be decreased to %5, which is the lowest in the EU area. Since Malta is one of the members of the European Union, effective tax handling can be done.
If you do not mind where the company is incorporated as long as it is a tax haven, we suggest you to look as our article about offshore company formation.
Courier fee: 70EUR
The official name is Republic of Malta, located in the center of the Mediterranean Sea, just 93 km south of Sicily.It is a small island country, whichthe total area is 316 km2and the capital city is Valletta. Malta is one of the EU countries and also a member of the Commonwealth of Nations.
Malta is well-known as a tourist resort, with beautiful areas and historical monuments. Also, Maltese people are known as independent, highly educated and hard workers. Their official languages are Maltese and English.
The state has unique programs for high net income retirees. Malta is appealing to entrepreneurs, staff and retirees alike.
The tax benefits of living in Malta are several. Only revenue transferred to Malta is taxed, so you can possess offshore investments without paying tax dime. In addition, the capital gains that are transferred to Malta are tax-free. Malta does not have an inheritance tax, property tax, or a yearly property tax. Combine low taxes, low living costs, and sunshine all year round, and it is evident why it is very appealing to live and work in Malta.
Recently, the Maltese government reduced the threshold to provide residency for foreigners who rent or purchase land in Malta. The program is known as the "Global Residence Programme" which offers foreigners the possibility of residing in an EU country. This allows foreigners to obtain residence permits if they purchase property in Malta for a minimum of € 220 000 or are renting at a total rental value of € 8,750 (or € 730 monthly). The previous residence limit for investment in immovable was € 400,000.
Merits of a Malta Company Malta has a lot of advantages and merits as follows:
In Malta, official tax decisions can be obtained. Rulings ensure that a particular transaction and the law are enforced and are five years ' long binding on Malta Revenue.
There is also an informal revenue management system. This comes in the form of a guidance letter from the revenue. Such letters are not specifically governed by legislation but generate a legitimate expectation for a taxpayer. The authorities of Malta Revenue consider letters to be binding.
As mentioned above, the tax rate in Malta is 35% and its flat rate applies to all types of business. At first glance it looks somewhat like a high tax rate, but in Malta a specific refund system considering tax exists. In fact, under this system your company will be able to pay less tax.Here under is a simple summary of the refund system:
In the result, the actual tax rate will be 5% on average. This is the most beneficial feature of the Malta Company.
There are two types of Malta Company available: one is a Private Limited Liability Company, and the other is a Public Limited Liability Company. The acronym that should follow a Private Limited Liability Company should be “Ltd.”, “Limited”, “Co Ltd”, “Company Limited”, “Co Limited”, and “Company Ltd”. In the case of Public Limited Liability Company will be “plc.” and similar. Each type has different regulations about minimum capital and a government fee.
Usually, a Private Limited Liability Company would be the best choice.
When it comes to Private Limited Liability Company, at least two shareholders, one director, and one company secretary are required. The company’s directors, shareholders, and secretaries are not required to live in Malta or be Malease. A Malta company can have a corporate as its shareholder. However, the company must have more than one individual shareholders. In contrast, a company secretary must be an individual person and you cannot register a business as a secretary. It is possible to form a company with a single person and appoint him/her as shareholder, director and secretary. In such case, we call the company a “Single Member Company” and they are qualify as private exempt company. This kind of companies are limited to specific or single business activity.
The minimum capital of a Private Limited Liability Company will be EUR 1,164.69 (one thousand one hundred and sixty-four Euro & sixty-nine cents).This odd amount has been used after Malta joined the EU (2004) andchanged the rate from their own currency to EUR. Of course a company can incorporate with more capital and they can increase the amount of capital later on as well.
Please note that 20% of the capital should be deposited in a bank by cash when incorporating. In other words, 20% of capital will be considered as “paid” capital, and would be needed to be prepared beforehand. With a larger amount of capital, the needed deposit capital will be increased. That is why normally the above-mentioned capital amount is most suitable.
A Memorandum of Association shall be drawn up and signed in the original by the shareholders before a company formation can take place. Alternatively, an approved official may also sign papers on behalf of the shareholders when the powers of attorney / resolution are presented. When the paper is finalized, it is usually a good idea to consult an accountant or lawyer. Moreover, many businesses send the Articles of Association describing the governance of the business.
Documentary proof is needed at the time of incorporation that the paid-up share capital was placed on an account in the name of the business, which will be provided by the bank on opening of the company's bank account. However, we will help you to get this process done without bank account at first.
Although the kinds of trade that the IBC can participate in are not restricted, certain company operations may require license such as gaming, insurance, investment, and financial services.
An annual meeting should be held every year and first annual meeting should be a year after company registration date. It is not necessary to hold the meeting in Malta and it can happen anywhere in the world.
The Companies Act 1995 is the Maltese law regarding companies. The Registry of Companies malta is one of the departments of The Malta Financial Services Authority (MFSA) where the registration of companies proceeds. During the process with the Registry of Companies malta, some documents such as The Memorandum and Articles of Association (M&A) must be submitted. Although it is not required to visit Malta during the registration process, it will waste time if you proceed it without knowing the exact procedure. We can support you with our incorporation package. It will include:
Fees are calculated based on the above-mentioned capital. Higher capital would result in higher fees, depending on the amount needed. Details are written below. Please note that one director and two shareholders are required in Malta, as well as a company secretary, but no need to appoint a Malta residence. We can provide full nominee service for protecting your security.However, the structure and fee will be different from our general nominee services fee.
As mentioned above, all information regarding directors, shareholders and secretaries will be available to the public. So if you incorporate a Malta company under your name, all your information will be available to the public. We recommend using our Nominee Service. By using a Nominee Director and a Nominee Shareholder, your personal information would not be on public records that put you at risk. Please contact us for further details about our Nominee Service in Malta.
For further details on the Nominee Service, refer to the following pages:
The formation of Malta Company will take just one week after all necessary documents are prepared and submitted to the Registry of Companies malta.
The registration fee to the Registry of Companies is calculated based on the authorized share capital. If the authorized share capital is less than €1500, the fee is €245. For companies whose authorized share capital is more than €2,500,000, the maximum fee is €2,250. Also, companies must pay the annual return fee every year, which is calculated based on the authorized share capital as well. Up to €1500 of the authorized share capital, the fee is €100. For companies whose authorized share capital are more than €2,500,000, the maximum fee is €1,400.
Since 2019, there a big change in Malta Central bank regulation and it is almost impossible to get bank account inside the malta for companies owned and managed by foreigners. Thus, If you really need a Malta bank, you need to use our nominee services.
In fact, we have other solutions for your company to get a bank account. There are a few e-banking systems in Europe that are almost similar to actual banks and in some cases even better. Also we can help you to get an offshore bank account in the following countries:
Malta is well-known as a suitable place to obtain various financial licenses. Most common licenses that businesses are looking for are gaming, financial services, ICO consultancy, and lottery licenses. Please contact us if you need more information regarding obtaining license in Malta.
As far as we know, Malta is supposed to be a Blockchain Island. However, from our recent experience it is not yet a suitable place for cryptocurrencies. We hope we can go back to this Island for this matter in the future. We would suggest Estonia as a place to obtain a license for cryptocurrency exchange and wallet.
No, the bearer shares are not allowed in Malta company law. In order to protect your privacy and identity, the best way will be using nominee.
It is a structure in which a Malta/Cyprus holding company will be the shareholder of Malta trading company. This will help you to secure some information and benefit from the tax refund mechanism (effective tax rate of 5% only). We suggest a Cyprus holding company with nominee for additional security and privacy. In addition, Cyprus company maintenance fee is cheaper.
Yes. This is mandatory for all Maltese companies to prepare their audited financial statements whether the company trades or not.
Yes, for malta trading company you need to register for VAT. However, you do not need to register it if your company is just a holding company.
Every company registered in Malta should have a registered address inside the Malta and any changes to address must be notified to the Registry of Companies malta.
The company account, auditor’s report, and directors report must be filed within 10 month from the end of financial year.
Yes and the company name can be reserved for three month.
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