Starting a company in Malta is easy and you do not have to pay expensive company consultants for the job. Here I have summarized a guide on how to minimize the cost of registering companies in Malta. Don’t be afraid to start a business abroad.
Step 1. Create a holding company outside Malta
As an international entrepreneur, it is fiscally advantageous to own the Maltese company through a foreign (non-Maltese) holding company. The benefits are several, but you can sum it up with the fact that you have more opportunities to plan when you choose to withdraw the money for private consumption (or if you even want to).
Choose a country that has a low corporate tax rate or non-existent tax on dividends from abroad. Common countries are Gibraltar or Cyprus. Here it can be tempting to choose an offshore country, eg. Panama or Seychelles, but it usually only leads to more problems than benefits. The banks’ extra documentation requirements will eat up your working hours.
Contact an accountant in the selected country and request a quote to create a holding company. State that the company’s purpose is to own a Maltese trading company (Maltese Trading Company). This should not cost you more than 2000 – 3000 EUR. The annual cost of having the company registered with their address should be between 1500 and 2500 Euro.
Step 2. Find an accountant in Malta
Auditors in Malta are good at setting up companies. There are expensive accountants who specialize in selling corporate solutions to foreigners. They put a zero on the price. If you want a cheap accountant you can do a search in Malta’s yellow pages. There you will find much more humane prices.
Request a quote at:
- Setting up Maltese Trading Company
- Yearly Audit
Step 3. Authorization from the Holding Company to form a company in Malta
The auditor needs a power of attorney from your holding company to set up your Malta company. A proxy stating that he has the right to represent your holding company when registering the malting company. The auditor who arranged the holding company for you can arrange this. He can charge a small fee for it.
Registering a company in Malta should not cost you more than registering the holding company. That is, between 2000 and 3000 euros.
Step 4. Bank account in Malta
The last step and perhaps the most difficult is to arrange a bank account in Malta. Due to current international regulations, banks are very cautious when hiring new customers. Be prepared to disclose a great deal of information about you and your companies when you do this. This can take months.
This is also one of the reasons for avoiding offshore companies as holding companies – offshore companies mean that banks will ask for a larger amount of paper.