An Overview of Company Types in Malta

Malta is a popular destination for entrepreneurs and businesses looking to establish themselves in the European Union. The country offers a range of advantages, including its strategic location, favorable tax regime, and simple company formation process. However, before forming a company in Malta, it’s important to understand the different types of companies that can be established. In this article, we will provide an overview of the different types of companies in Malta.

Introduction

Malta offers several types of companies that can be established, each with its own legal requirements and regulations. The choice of company type will depend on several factors, such as the nature of the business, the number of shareholders, and the desired level of liability protection.

Private Limited Companies

A private limited company (Ltd) is the most common type of company in Malta. It is a separate legal entity from its shareholders and offers limited liability protection. The company can have a minimum of one shareholder and one director, and its shares cannot be publicly traded. A private limited company must have a registered office in Malta and be registered with the Malta Financial Services Authority.

Public Limited Companies

A public limited company (plc) is a company whose shares are publicly traded on a stock exchange. It requires a minimum of two shareholders and two directors and has a minimum share capital of €46,587.47. A public limited company must have a registered office in Malta and be registered with the Malta Financial Services Authority.

Partnerships

Partnerships are an alternative to limited liability companies in Malta. They are typically used for small businesses or professional practices, such as law firms or accounting practices. Partnerships can be general partnerships, where all partners have unlimited liability, or limited partnerships, where some partners have limited liability. Partnerships must have a registered office in Malta and be registered with the Malta Financial Services Authority.

Other Types of Companies

Malta also offers other types of companies, including branches of foreign companies, trusts, and foundations. These companies have their own legal requirements and regulations and may be more suitable for certain types of businesses.

Comparison of Company Types in Malta

The table below provides a comparison of the different types of companies in Malta.

 Conclusion

Choosing the right type of company is essential when establishing a business in Malta. Each company type has its own legal requirements and regulations, and the choice will depend on several factors, such as the nature of the business, the number of shareholders, and the desired level of liability protection. By understanding the different types of companies in Malta, entrepreneurs and businesses can make an informed decision when establishing a presence in the country.

FAQs

What is the most common type of company in Malta?

The most common type of company in Malta is a private limited company.

Can partnerships have limited liability?

Yes, partnerships can be limited partnerships

Can foreign companies establish a presence in Malta?

Yes, foreign companies can establish a presence in Malta by opening a branch office.

Is it possible to convert a private limited company to a public limited company in Malta?

Yes, it is possible to convert a private limited company to a public limited company in Malta, subject to certain legal requirements.

Are there any tax benefits to forming a company in Malta?

Yes, Malta offers a favorable tax regime with a corporate tax rate of just 35%, making it an attractive location for businesses looking to establish themselves in the European Union.

Ash

I like to keep it short. I am a writer who also knows how to rhyme his lines. I can write articles, edit them and also carve out some poetic lines from my mind. Education B.A. - English, Delhi University, India, Graduated 2017.

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