A vast majority of investors doing business in Malta opt for a Private Limited Liabilitybusiness entity. This is the most widely used company type in Malta, for good reasons — it’s quite flexible and offers the most benefits for foreign investors.
The Maltese jurisdiction provides two kinds of limited liability entities in Malta:
- The Private Limited Liability company;
- The Public Limited Liability company.
Understanding the legal framework of a Private Limited Company in Malta
The private limited liability company framework in Malta is generally referred to, as LLC or LTD in other countries. All companies formed under this legal structure should comply with the stipulations made in Malta’s Commercial Code. As a general rule, such a company should meet the following requirements:
- A minimum of 2 shareholding partners;
- Not more than fifty shareholding partners;
- Transferring shares is strictly limited to the shareholders;
- The entity cannot trade its shares on the stock exchange.
Non-resident investors opening a private limited liability company can do the registration process on their own, or alternatively, they can hire third-party experts, proxies or lawyers based in Malta to handle the process on their behalf.
How to register a Maltese Private Limited Liability company
One of the most important steps during the registration process of a Private Limited Liability company in Malta is drafting the articles of association. As a matter of obligation, this piece of documentation is expected to plainly and openly indicate that the company will operate as a private entity.
Every company in Malta which wants to be recognized as a local company must have a registered address in the confines of the Maltese territory, and each of its shareholders should contribute a share capital of at least 1165 euros.
How long does it take to register a Private Limited Liability company in Malta
Malta has recently lessened the duration of time required to finalize the incorporation process of a Private Limited Liability entity. Nonetheless, post registration the company representatives might also need to apply for a few additional licenses or permits depending on their field of activity.
The registration process in summary
The registration procedure for a Maltese LLC company can be summarised to the following seven steps:
- Getting the entity’s name reserved;
- Organizing and preparing of the requisite statutory documentation;
- The share capital is then deposited;
- Registering formally with the Commercial Registrar;
- Procurement of the commercial license;
- Registration for Value Added Tax (VAT);
- Registration for reasons to do with employing workers.
Setting up a company in a foreign country can be a daunting experience.
Get in touch with SIGTAX experts for professional help with the registration process. Our experienced team of lawyers, accountants, and consultants will smoothen the whole process for you and help you jump the common pitfalls. Reach out to us for more profound insights into the Maltese business landscape!