Set up a Malta Limited Liability Company
Malta is a reputable, compliant and transparent financial hub, and the gateway to the European Union, a market of more than 500 million people.
Due to its advantageous tax regime, Malta is the jurisdiction chosen by a large number of international companies and holding companies, to establish their headquarters and do business in the European Union.
Although its corporate standard rate is 35%, in practice there is a system of tax credits and refunds for individuals and corporate shareholders of part of the tax suffered on the distribution of profits.
The tax refund may be either a six-sevenths refund for trading income, a five-sevenths refund for passive interest and royalties, or a two-thirds refund for passive income. This may lead to a reduction of corporate tax to effective tax rates of between 5 and 10 percent, the lowest across the European Union.
Holding companies may benefit from a participation exemption. Dividend income, profits from a foreign P.E., and capital gains may be tax-exempt if the holding fulfills certain participation conditions. Furthermore, certain investments that yield a fixed rate of return may also be tax-exempt.
Malta is a full member of the EU and since 2008 has adopted the Euro as its official currency, with the benefits that it entails, such as the availability of funding opportunities or the European tax directives, including the Parent-Subsidiary Directive, the EU Mergers Directive, and the EU Interest & Royalties Directive.
Malta has also signed a large list of Double Taxation Agreements, and companies doing business in Malta have access to an English-speaking high-skilled workforce, make it even more attractive to incorporate in the jurisdiction.
Malta costs to obtain and administrate licenses are one of the lowest of the European Union and often valid for the whole EU territory. This makes Malta an attractive jurisdiction to establish businesses related to e-gaming, shipping, airline or investment funds.
All in all, Malta is a reputable jurisdiction and its private company limited by shares an excellent vehicle, whether to conduct international trade, hold immovable assets and intellectual property, conduct e-gaming business, or as a holding group company, a ship-owning company, an investment vehicle or a captive insurance company.
