Setting up a company in Malta is not as difficult as you might think it is. Guidelines and regulations for establishment are very clear, and the costs are comparatively low. So, what are the actual benefits that you get when you set up business in Malta?
First of all, the most interesting aspect of operating your company in Malta is that you can take advantage of the 6/7 refund if the shareholder of the company is not resident in Malta. As you can see, not everyone can take advantage of this refund. In this case people that are resident in the Maltese islands cannot get the refund. However, it is a great incentive for foreign companies to move their operations to Malta.
The cost of company formation in Malta is lower than in other countries. When registering a Malta Ltd company you will also only need a minimum authorised share capital of €1165 for a private company. This is higher than in the UK, where it is only £1, but still lower than in other countries. However, you need to keep in mind all the other advantages a Malta Ltd company has to offer.
Another benefit is that you can get a full tax refund for your company in Malta that holds a participating interest in another company that is not resident on the islands. However, certain criteria apply to this rule, and it basically depends on where the company is resident and if it is subject to foreign taxes.
Stamp duties and withholding taxes, as well as exchange control restrictions will not apply when the profits from the company in Malta are distributed to non-resident shareholders. These dividends do not have any restrictions.
If you are now interested in moving your company operations to Malta, and you would like some assistance with the procedure of the company formation, you are welcome to contact us. You can count on professional expertise at the office of Dr Werner & Partner.