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Formation of Trading Companies in Malta

A trading company may be incorporated in Malta within 48 hours of receiving all the necessary documents. Malta’s business-friendly tax laws allows a number of financial benefits to company owners and shareholders.

Read more to find out how Integritas can quickly get you started.

Benefits of Trading Company Formation in Malta

Besides the favourable net tax rates for trading companies incorporated in Malta, such companies also benefit from:

  • low incorporation and maintenance costs
  • no withholding tax on payment of dividends
  • interest or royalties
  • no controlled foreign company legislation or transfer of pricing rules
  • no thin capitalization rules
  • no exit taxes
  • wealth taxes
  • payroll based tax or trade tax
  • more than 60 double taxation treaties signed

Maltese companies that carry out international activities are exempt from duty on documents, which effectively means that transfer of shares and increases of share capital are exempt from duty.

Capital gains derived by non-residents on such transfers of shares and increases of share capital are not subject to tax in Malta if the assets of the company do not include immovable property situated in Malta.

Shareholder benefits

A trading company incorporated in Malta would be subject to the standard corporate tax of 35% of the chargeable income of the company.

However, due to the fact that Malta has a full-imputation system of corporate taxation, any income tax paid by a Maltese trading company is fully credited to the shareholder receiving the dividends of the company in order to benefit from the full relief of economic double taxation of corporate profits.

The shareholder of the company would be entitled to a refund of any tax, which is paid by the company of 6/7ths on trading activities of the company. This typically results in an effective net tax rate applicable to the shareholder of approximately 5%.

This refund may be reduced if double taxation relief is claimed on the income and is usually refunded within a period of 3 weeks following the day on which the refund becomes due.

Process of Trading Company Formation

A trading company may be incorporated in Malta within 48 hours of receiving all the necessary documents.

The minimum share capital of a Malta trading company is €1,165 which can be paid 20% paid up. The Registry fee based on the minimum share capital is €245. At least one director and one company secretary are required.

A trading company can be set up with one or more shareholders. The registration of every company is renewed annually and the registration fee based on the minimum share capital is €100.

How Integritas Can Assist You

The Integritas Group assists clients with the full formation process for your holding company. Additionally, we can provide a variety of services, including directorship, company secretary, fiduciary shareholding, registered office, payroll, accounting, tax and VAT services.

For assistance in the Process of Trading Company Formation in Malta, Contact Us!

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