Is the Malta Limited company similar to the UK Limited company?

Com­pa­nies are get­ting more and more inter­est­ed in opti­mis­ing their com­pa­ny struc­tures in order to save tax­es. Since the recent devel­op­ments in Lux­em­bourg, Ire­land, the Nether­lands and Bel­gium, who are being inves­ti­gat­ed for tax eva­sion of large com­pa­nies, legal­ly sound solu­tions have become an impor­tant part of the estab­lish­ment of a com­pa­ny in anoth­er coun­try.

The Mal­tese tax sys­tem is in line with Euro­pean laws, and the state does not offer pref­er­en­tial tax treat­ment for com­pa­nies, as it is the case in Lux­em­bourg. All com­pa­nies in Mal­ta have to pay the same amount of cor­po­rate tax, which is cur­rent­ly 35%.

Since Mal­ta was under British occu­pa­tion until 1964 the Mal­ta Lim­it­ed used to be just like the UK Lim­it­ed. How­ev­er, after the lib­er­a­tion of Mal­ta, and its entry to the EU and euro­zone, the Mal­ta Lim­it­ed has changed fun­da­men­tal­ly. One of the dif­fer­ences is the cap­i­tal that is need­ed to start the com­pa­ny. Where­as it is £1 in the UK, it is €1,250 in Mal­ta.

The most fun­da­men­tal dif­fer­ence is how­ev­er, that it is pos­si­ble to claim a refund of 6/7 of the cor­po­ra­tion tax with the Mal­ta Lim­it­ed. This is achieved if cer­tain cri­te­ria are met, and the com­pa­ny is owned by a for­eign hold­ing com­pa­ny or stake­hold­er. This results in an effec­tive cor­po­ra­tion tax rate of only 5%.

The Mal­ta Lim­it­ed offers an inter­est­ing oppor­tu­ni­ty for com­pa­nies to pay few­er tax­es, but it is not a suit­able solu­tion for every com­pa­ny. When con­sid­er­ing estab­lish­ing a com­pa­ny on the Mal­tese islands, the com­pa­ny oper­a­tions have to be phys­i­cal­ly moved there, and it is impor­tant to con­sid­er cer­tain fac­tors, such as avail­able work­force, trade oppor­tu­ni­ties and resources. Many com­pa­nies who con­duct their busi­ness on the Inter­net find Mal­ta to be a con­ve­nient alter­na­tive to the UK Lim­it­ed.

If you are inter­est­ed in estab­lish­ing a Mal­ta Lim­it­ed, and would like a per­son­al con­sul­ta­tion with a rep­re­sen­ta­tive of the legal office of Dr. Wern­er & Part­ner in Mal­ta you are wel­come to con­tact us. We have helped many clients in the past to estab­lish their busi­ness and claim the refund of the cor­po­ra­tion tax.


About Philipp Sauerborn

In 2005, Philipp Sauer­born joined the firm of St. Matthew in Lon­don, one of the lead­ing Ger­man account­ing firms in Eng­land renowned for its exper­tise in cor­po­rate, com­mer­cial and tax law, as a depart­ment head. After three years, he was a part­ner and man­ag­ing direc­tor.
Towards the end of 2011, he decid­ed to move to Mal­ta, where he first worked at inter­na­tion­al law firms and con­sul­tan­cies in an employed and con­sult­ing capac­i­ty. Since the begin­ning of 2013, he has been a senior employ­ee at Dr. Wern­er & Part­ner. Mr. Sauer­born is cur­rent­ly com­plet­ing his ADIT ‑Advanced Diplo­ma in Inter­na­tion­al Tax.

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