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Share Capital Requirements for Company Formation in Malta

Share Capital Requirements for Company Formation in Malta
by
May 14, 2023
in Banking, Finance News, NEWS Malta
211

When starting a business in Malta, it is important to understand the share capital requirements for company formation. Share capital is the amount of money that a company raises by issuing shares to its shareholders. In Malta, share capital requirements vary depending on the type of company being formed. In this article, we will discuss the different types of companies in Malta and their share capital requirements.

Types of Companies in Malta

There are several types of companies that can be formed in Malta, including:

Public Limited Company (PLC)

A public limited company (PLC) is a type of company that is owned by shareholders who have limited liability. PLCs can be traded on a stock exchange, and can raise capital by issuing shares to the public. The share capital requirement for a PLC in Malta is €46,587.47.

Private Limited Company (Ltd)

A private limited company (Ltd) is a type of company that is owned by shareholders who have limited liability. Unlike a PLC, shares in a private limited company cannot be traded on a stock exchange. The share capital requirement for a Ltd in Malta is €1,165.82.

Sole Trader

A sole trader is a type of business that is owned and operated by one person. There is no share capital requirement for a sole trader in Malta.

Partnership

A partnership is a type of business that is owned and operated by two or more people. There is no share capital requirement for a partnership in Malta.

Share Capital Requirements for Company Formation

When forming a company in Malta, it is important to ensure that the share capital requirements are met. The share capital requirements vary depending on the type of company being formed.

PLC Share Capital Requirements

The share capital requirement for a PLC in Malta is €46,587.47. This amount must be fully paid up before the company can be registered.

Ltd Share Capital Requirements

The share capital requirement for a Ltd in Malta is €1,165.82. This amount must be fully paid up before the company can be registered.

Payment of Share Capital

Share capital can be paid in several ways, including:

  • Cash
  • Property
  • Services

When paying share capital in cash, the money must be deposited into a bank account in the company’s name. The bank will then issue a certificate of deposit, which must be presented to the Registry of Companies as proof of payment.

When paying share capital in property or services, an independent valuation must be obtained to determine the value of the property or services.

Conclusion

Understanding the share capital requirements for company formation in Malta is important when starting a business. The share capital requirements vary depending on the type of company being formed. It is important to ensure that the share capital is fully paid up before the company can be registered. By following these requirements, entrepreneurs can ensure a smooth and successful company formation process in Malta.

FAQs

What is share capital?

Share capital is the amount of money that a company raises by issuing shares to its shareholders.

What are the types of companies in Malta?

The types of companies in Malta include public limited companies (PLCs), private limited companies (Ltds), sole traders, and partnerships.

What is the share capital requirement for a PLC in Malta?

The share capital requirement for a PLC in Malta is €46,587.47.

What is the share capital requirement for a Ltd in Malta?

The share capital requirement for a Ltd in Malta is €1,165.82.

How can share capital be paid?

Share capital can be paid in cash, property, or services. When paying share capital in cash, the money must be deposited into a bank account in the company’s name.

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