Benefits of Forming a Company in Malta

By | 2019-12-14

Setting up a company in Malta can allow you to enjoy a variety of benefits that the country has to offer to non-residents. You may think that forming a company in Malta will be immensely difficult, but it is not so as the company has a very supportive environment. Some of the top benefits of forming a company in Malta are:

  • Taxation

There is a full-imputation system in Malta when it comes to corporate tax, which means any income tax paid by a Maltese company is credited to the shareholder who gets dividends from the company. Such hefty refunds mean that the corporate tax rate of 35% is greatly reduced, which makes it profitable to set up and run a business in the country.

  • Low formation and maintenance costs

One of the biggest benefits that you will enjoy when starting a company in Malta are the low incorporation as well as maintenance costs. The minimum share capital requirement is very reasonable as is the registration fee. Likewise, the annual payments are also quite low, which makes it a good decision to set up shop in Malta.

  • Exemption from duty

Another advantage of setting up a company in Malta that conducts international activities is that they are exempt from duty on documents. This means that the increase in share capital or transfer of shares will not incur any duty.

  • Capital gains tax

This tax usually arises in the case of increase in share capital or transfer of shares and is taxable in other countries. As long as the company’s assets don’t include immovable property in Malta, it will not have to pay any capital gains tax at all, which is definitely a bonus.

Apart from these benefits, you don’t need to pay any withholding tax on payment of royalties, dividends and interest, which further add to the benefits.

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