Forming a company in Malta involves several steps and considerations. Here's an overview of the process:

1. Decide on Company Type

• Private Limited Liability Company: The most common type, known as "private limited" (Ltd) or "limited liability" (LLC) company.
• Public Limited Company: Suitable for larger businesses intending to raise capital through public offering.
• Branch of a Foreign Company: Establishing a branch of an existing foreign company in Malta.

2. Requirements and Steps

a. Name Reservation

• Choose a unique company name and ensure it complies with Malta's naming rules. The name can be reserved with the Maltese Registrar of Companies.

b. Memorandum and Articles of Association

• Draft the Memorandum of Association (MoA) and Articles of Association (AoA), outlining company objectives, share structure, and internal regulations.

c. Share Capital

• Determine the share capital structure. For private companies, minimum share capital is €1,165, with 20% paid-up at incorporation.

d. Directors and Shareholders

• Appoint at least one director (natural person) and shareholder. Directors can be non-residents.
• Nominee directors and shareholders are permissible.

e. Registered Office and Agent

• Maintain a registered office address in Malta where legal documents can be served.
• Appoint a company secretary who must be resident in Malta.

f. Registration and Licensing

• Submit incorporation documents, including MoA, AoA, and details of directors/shareholders, to the Maltese Registrar of Companies.
• Obtain necessary licenses if operating in regulated sectors such as financial services or gaming.

g. Taxation

• Malta offers a competitive tax regime with a standard corporate tax rate of 35%. However, effective tax rates can be lower due to various tax credits, refunds, and participation exemption for dividends and capital gains.

3. Post-Incorporation Obligations

• Annual Compliance: File annual returns and financial statements with the Registrar of Companies.
• Tax Filings: Submit annual tax returns and pay taxes to the Maltese Inland Revenue Department.
• Corporate Governance: Adhere to local corporate governance requirements and maintain statutory records.

4. Professional Advice

Given the complexity and regulatory requirements, it's advisable to seek professional advice from local lawyers, accountants, or corporate service providers specializing in Maltese company formation. They can assist with navigating legal requirements, tax planning, and ensuring compliance with local regulations.

Forming a company in Malta can be advantageous due to its strategic location, EU membership, and favorable tax system. However, thorough preparation and understanding of local laws are essential for a smooth and compliant incorporation process.

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