While the economy is paralyzed in Greece and other Mediterranean countries, or even shrinking, it grows up in Malta. GDP grows more than the European average. Many foreign companies are increasingly discovering Malta as a manufacturing base and financial center.
Corporation tax in Malta is currently set to 35% on the company's worldwide income. However, both for trading companies and participating holding ones there are in place provisions for the partial return amount paid, directly to the shareholder. The amount of compensation is generally 6/7 of collected tax of 35%, with the result that the tax is often reduced to 5%.
It does not matter whether the shareholder is an individual or legal entity, but rather whether the shareholder is domestic or overseas. In Malta registered branches of foreign corporations may participate in this compensation system. The tax credit itself is not taxable under Maltese law.
In Malta there is no withholding tax on dividends, interest or royalties. Maltese law does not provide for any thin capitalisation or transfer pricing rules.
Malta Financial Centre
Meanwhile, Malta is increasingly developing as a financial center. Pension funds, hedge funds and banks increasingly shift their business to Malta.
Since late 2010 the number of registered hedge funds in Malta has increased by 30 percent. Among them are at least a dozen large UK hedge funds with billions portfolios that previously had its headquarters at the Caribbean islands.
In the World Economic Forum's Competitiveness Index, Malta as a financial market already occupied position eleven. The oldest and largest banks are BoV and HSBC.
Last revised in January 2005 the "Maltese Trust and Trustees Act" is characterized by flexibility and a high safety standard and also provides the necessary discretion to protect our own private sphere and wealth.
The Company Formation Malta
There are many reasons to start a company in Malta. Start-ups, Business Office, Limited in Malta, Holding Companies in Malta.
The establishment costs are relatively low, which makes Malta a cost-effective place, not only for large companies, but also for small and medium sized companies.
Malta has an active business development. The authorities are service-oriented, business-friendly and will help in most cases quickly and easily. The ROC "Registry of Companies (ROC)" is a section of the MFSA (Malta Financial Services Authority) and has produced a guide with information on the types of companies in Malta and the establishment procedure.
A private limited liability company in Malta can be formed within 2-5 working days provided all the necessary documentation has been received by the client.
In relation to the incorporation on a Maltese company the following apply:
- At least one (1) Director is required, who can be resident of any jurisdiction, but who is recommended to be Malta resident, especially in the cases of self-managed investment funds and investment services licences. A nominee Director can be used, who can be either a natural person or a legal entity.
- The company shares can only be registered, as bearer shares are not permitted.
- There is no restriction as to the nationality of the shareholder. The company can be formed with 1 shareholder, however it is recommended that it is formed with 2 shareholders, typically with the second shareholder owning 1 share and no rights to dividends. The use of a nominee shareholder is permitted and the shareholder can be either a natural person or a legal entity.
- In relation to the share capital of the company, the minimum share capital for private companies is 1,200 euros, 47,000 euros in public establishments. The capital should be paid up in full (100%), if nominee shareholders are used. Where the beneficial owner of the company is also a shareholder, then not less than 20% of the nominal value of each share must be paid up on the signing of the Memorandum.
- It is a requirement for the Secretary to be an individual resident in Malta. The Secretary can only be a natural person as legal entities are not permitted to act as company Secretary. In the cases of sole Director, the same individual can not act as a Secretary also, with the exemption of some holding companies.
- The registered office of a Maltese company must be located in Malta. That is the address used by the Authorities for correspondence with the company and the address for the carrying out of local business activities.
Beside company formation in Malta (and other countires f.e. BVI, Switzerland)
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