Malta: prospects for business in 2020

The Republic of Malta is a small State that is part of the Maltese Archipelago. The population of the country does not exceed 400 thousand people. Maltese is recognized as the official language, but French and English are common.

It is profitable to buy a company in Malta, as the country's tax system is well-developed and it is relatively easy to register a company, given good conditions for business development.

Features of doing business

The peculiarity of registering a company or offshore in Malta is that the procedure is carried out fairly quickly, and a foreign company may receive benefits and bonuses on an equal basis with resident companies. Companies' capital and property are exempt from taxes.

There is no duty on the transfer of shares and it is possible to transfer to the jurisdiction of an existing business without additional costs. Banks of the country provide quality services, it is possible to use online banking. It is profitable to open holdings and financial organizations in the country.

There are several forms of organizations in which business can be registered - trusts, partnerships, private companies with limited liability and shipping companies. For foreign investors, the most popular form is LLC. The organization can take advantage of double taxation avoidance agreements.

The advantages of opening a company

Before registering a company in Malta, we recommend considering important advantages of this step. The country has a stable economy. The state is one of the business centers and many internationally - renowned companies are represented in Malta.

It is possible to use the services of reliable banks that provide asset protection. The country is one of the safest with a low crime rate. The state actively supports business development and offers participation in programs designed to help entrepreneurs.

Advantageous conditions for tax payments are offered. If a person gets the resident status, there are more benefits. The country has a program for obtaining citizenship for investment and the possibility of obtaining a second passport in 18 months.

Taxation

Income tax in Malta is 35% but can be reduced to 3.75% when operating outside the jurisdiction if all requirements are met. Depending on the share capital, the amount of annual contributions to the budget to be made annually is set.

When opening a shipping company, you are not required to pay income tax and contributions are made depending on the parameters of the ship. There are privileges that allow optimizing tax assessment. It is possible to finance the project with credit security.

You could finance the project up to 75% with participation in some business support programs. There are tax benefits when working in the field of science. Beginner entrepreneurs can receive grants. Every year a company is required to submit a report from the year following registration.

Offshore registration

To set up a company in Malta, you must register the articles of association and pay the fee. You can then obtain a certificate of incorporation. A limited liability company may have a capital of €1250 or more. A director may be a legal entity, but only a private person may be a secretary. There are no restrictions on citizenship.

There must be at least two shareholders in the company, who may be private or legal entities. The average time to incorporate a company is 2 weeks, by the end of which the firm must obtain an office in Malta. If you have any questions about establishing a firm in Malta, please contact our experts at IT-OFFSHORE.