How can a foreigner open a company in Malta?

Starting a business in Europe represents multiple business opportunities and one of the largest consumer markets in the world. When it comes to choosing a jurisdiction for it, an EU member country is, without a doubt, the best option for simplified trading procedures. And if you want to combine the flexibility of an EU state with the English rigour, then Malta is a great destination. The lines below describe the business incorporation process in Malta for foreigners.

Choose a legal structure

While it is not an actual step in the company registration procedure in Malta, it will surely influence it, as it has to do with choosing the right business form for your enterprise. According to BridgeWest, a firm specializing in company incorporation, the private limited liability entity is the fastest to set up, as it takes about 10 days to have it up and running.

You can also choose to operate as a self-employed person or create a partnership with a friend. Even so, the main advantage of the limited company is the exact limited responsibility of the owner in case of debts or default.

Ensure the registration requirements

Starting a business in Malta as a foreigner implies securing the following:

• a local address (a virtual office will do to start with);
• a director (the person does not need to be a resident);
• a secretary, who must be a Maltese resident (there are specialized services you can hire).

Following that, you can focus on the documents to file with the Companies Register.

Documents required to open a Maltese company

Here is a list of the documents to draw up for the incorporation of the company:

• the trading name reservation form, which is issued by the Companies Register;
• the Articles of Association, should you decide on the limited liability company;
• information about yourself as a shareholder;
• the details (ID/valid passport) of the director;
• proof of depositing the share capital.

With respect to the capital requirements, you should know that for a private company, you only need €1,250, which is one of the lowest mandatory incorporation amounts in Europe.

Registration fee payment

An interesting fact about setting up a business in Malta is the payment of the registration fee, which is completed after the actual incorporation. This occurs as the amount is calculated based on the authorized capital of the enterprise. So, you should also consider this aspect when opening a company here.

Tax and VAT registration

The last step in opening a company in Malta is obtaining the tax identification and Value Added Tax codes. While the second procedure needs not be completed right away, it is recommended that you do so, especially if you plan to engage in commercial activities. It will save you time later.

You can register with the Office of the Commissioner for Revenue yourself or through an authorized service provider, such as the one mentioned above.

Residence and work permits

Since you are a foreign citizen, you should also know about the legal living requirements you must adhere to in Malta. Specifically, if you are a non-EU citizen, you must apply for a residence card and/or work permit, depending on whether you want to work here or not. The same applies to a non-resident director – as a business owner, you must apply for a work permit on their behalf, should you relocate them here. This is why many foreign investors choose resident directors from the start.

These are the main steps to open a company in Malta as a foreigner. They are not hard to complete, as the authorities here have straightforward procedures in place. And even when they don’t, there are professionals you can find and having things sorted out for you in no time.