I have mentioned in previous posts that more and more companies are settling their business in Malta, and that we are getting more requests from clients who are interested in finding out more about the Malta company model. The finance minister of Malta, Edward Scicluna, has now stated that the number of registered companies in Malta has surpassed the 70,000 mark. 30% of these companies have been registered in the last five years, which means an increase of 12% every year.
The finance minister confirmed that the Companies Act is a very important contributor, and most of the commercial activity in Malta is carried out by means of the Malta limited liability company model. He also said that it is important to keep the Companies Act as modern as possible and to upgrade it in order to be in line with the needs of the companies and those providing credit and financing for the companies, to further ensure economic growth.
The number of registered companies in Malta and the increase also reflect the popularity of the nation with companies. There are several reasons for a company to move their business to Malta or to establish a brand-new venture here. Malta is part of the European Union and is therefore a strategic location. The country also has a very stable economy and banking system and the banks in Malta passed the ECB stress test last year. However, most companies will consider Malta probably because of the favourable taxation structures it offers. It is possible to lower the effective tax rate with the proper implementation of the Malta limited company model, and companies are able to get a 6/7 refund of the corporation tax of.
The Malta company model is not suitable for every company and it is important to carefully assess whether the company can be established in Malta. To avoid being accused of tax evasion it is necessary to move the company operations to the islands, which means that it is not possible to just have a letterbox company in Malta.
If you would like more information about the Malta limited company model, or you would like to schedule a personal consultation, you are welcome to contact us at the legal office of Dr. Werner & Partner. We have assisted many clients to successfully establish their company in Malta, and would be happy to assist you too.
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