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FAQ

 

    • What type of companies do you incorporate?

      We incorporate different types of trading and holding companies; Private Exempt Single Member company, Private Exempt Company, and Private Company. The type of company that is incorporated depends on your business needs. Companies are incorporated both in Malta and offshore, with the most common jurisdictions being UK, Gibraltar and Cyprus.

      Malta companies governing legislation can be found under Chapter 386 of the Companies Act.

    • What is the most popular package you recommend?

      We have two most popular packages: Silver Package A and Gold Package A. The Silver Package A consists of a two-tier structure (Malta Holding and Trading companies), while the Gold Package A consists of a three-tier structure (Malta Holding and Trading companies and a UK Holding company).

    • Why should I setup a Malta company?

      Refer to the various websites and tax legislation available on the web, and speak to your tax consultant, whereby if you choose to operate with a Malta company you can trade worldwide and profits earned through this company are taxed at 35% but the International Tax Unit channels back up to 30% of this tax back to the shareholders. This makes Malta one of the most efficient tax jurisdictions in Europe. Check whether your country’s local legislation allows you to open a foreign company. Refer to your tax practitioner. We do not offer tax advise on this website.

    • Which are the most common uses for Malta’s jurisdiction companies?

      Malta is mainly used for trading and holding companies, whilst other jurisdictions are typically recommended as holding companies.

    • Which limited liability designations are allowed in Malta (e.g. Ltd, Limited, Inc., Incorporated)?

      Designations allowed are Malta Co Ltd and Malta Company Limited/Co Limited/Company Ltd/Ltd/Limited.

    • What are the different structures you propose?

      We have a simple tier structure that is one company owned by individual shareholders, the Bronze Package. Then we offer a two-tier structure which is our most popular package, the Silver Package, consisting of a holding and trading company. Finally we have a three-tier structure called Gold Package that is an offshore holding, Malta holding, Malta trading company.

    • How long does it take to incorporate a Malta company?

      If all due diligence is forthcoming, the Malta company takes 3 days to open (depending on the backlog of the Registry of Companies, within the Malta Financial Services Authority).

      Refer to due diligence checklist here: Due Diligence Checklist

    • Do I need to be physically present in Malta to open the company?

      No, there is no need for you to come to Malta, we will do everything online once you give us authority. Moreover, this platform has been established specifically to assist people in incorporating companies easily 24/7. We give you flexibility to purchase a company any time, from anywhere. Otherwise, we can deal with you online, through emails, phone and online video calls.

    • Should my company have a physical office in Malta or is it enough to have a virtual office?

      All incorporated companies must have a local address, but it is not obligatory to have an actual physical office in Malta. We can offer virtual office services. This includes a postal address in central Malta, post mail redirection, scanning and emailing, telephone line rental, and more.

    • Do I need a licence for carrying out my business activities?

      In Malta, most business activities do not require a trading licence but some activities such as gaming and financial services in Malta, do require one. A full list of activities that do and do not require a trading licence are listed in Legal Notice 420 of 2016 which came into effect on 1st January 2017.

      If your business activity requires a licence, we can assist you in obtaining one.

    • Are there any restrictions on choosing the company’s name when opening a company in Malta?

      You may choose any name; however, this cannot be similar to an already existing name. Therefore, we usually ask clients to provide us with three alternative names to make sure there is availability.

    • Can the company’s name be in another language other than English?

      As long as the standard English alphabet is used, any name can be suggested. For instance, companies can be named in English and Italian, but not in Greek.

    • Do I need to pay share capital?

      Optionally you can pay the share capital in advance if you choose product number 17, however you can pay directly to your bank account at a later stage.

    • Do I need to open a bank account for my company?

      Your company can be incorporated without a bank account, but you’ll need to open one later, once that the company has been approved and you’ll have all official constitutional documents in hand. This will enable you to carry out economic activities.

    • Do I need a personal bank account?

      If you are opting for a single-tier company we recommend to open a personal bank account in Malta, however this is not necessary.

    • Can you assist me in opening a bank account?

      We are working with digital banking institutions. We can assist you in the preparation of all requested forms.

    • Can you guarantee that a bank account will be opened?

      We always put our best efforts, expertise and experience in order to help our clients have their desired bank accounts open, but the final decision is made by the bank. Each application is evaluated individually by the bank, and if it does not meet the bank’s internal requirements, the application might be rejected. The bank may also require additional information and documents for further verification prior to its final decision.

    • How long does it take for a company with a non-resident owner to open a bank account?

      This will depend on the financial institution one will opt for. Usually an account is opened within 1 or 2 months as from when we submit the pre-onboarding form. However, the financial institution may request additional information and documents at its’ own discretion and therefore we do not have any control over the time taken for the account to be opened.

    • Do you assist me with a visa application for the bank visit?

      Since we are offering e-banking solutions, we do not require to set up a meeting in Malta to process the application.

    • Once the account is opened, can I transfer funds from my bank account without limitations?

      This will depend on the jurisdiction, currency and amount to be transferred since the financial institution might require supporting documentation for the transfer.

    • Can I open an account for my Malta company in a foreign bank?

      Yes, this can be done.

    • In which currencies can the share capital be denominated?

      The standard currency is the Euro (€); however, any currency is accepted.

    • What is the minimum share capital of a Malta limited liability company?

      The minimum share capital for such instances is €1,200. At least, 20% of this sum should be paid upon subscription.

    • Where can I open a bank account?

      Accounts can be opened with any e-Money Institution, however it is best to get advise from your tax practitioner as to which is the best e-Money Institution that accepts the structure/s you are purchasing. We recommend Institutions that hold accounts with regulated banks.

    • Do I need to have a Malta Company Secretary?

      No, you can nominate your own company secretary, and a shareholder and director can also be a company secretary.

    • Are there any conditions of appointment of the Malta company secretary (e.g. qualifications, residence)?

      No.

    • Do you offer fiduciary service or director service?

      We are not licensed to offer fiduciary shareholding or director service, however once you order a setup from us, you can either nominate a fiduciary to act as your shareholder, or we can recommend firms who accept your appointment subject to their own firm’s due diligence procedures.

    • Do I need to have a Malta director?

      A director carries with it responsibility. So we do not offer nominee directorship service as we are not authorized or licensed to do so. Whether you need a Malta director or not, pretty much depends on your setup. Please consult your tax practitioner.

    • Can I be the sole board member (director) of my company?

      Yes, you can. The minimum number of directors that is accepted is one.

    • Can the same person act as a sole director, secretary, and a shareholder in Malta?

      Yes, the same person can act as all three. This type of company is referred to as a single-member private exempt Malta company, as long as there is no corporate shareholder or director.

    • Are corporate shareholders allowed?

      Yes.

    • Are local (Maltese resident) directors required?

      No, this is not required. However, it is advisable to appoint a local director if you want to confirm effective management and control in Malta. This depends on the setup of the company.

    • Are corporate directors allowed in Malta?

      Yes, as long as the company has more than one shareholder. In that case, we put a second shareholder with one share having no voting rights and no rights to dividends.

    • Can I have more than one member of the board and shareholder in my private limited company?

      A director carries with it responsibility. So we do not offer nominee directorship service as we are not authorized or licensed to do so. Whether you need a Malta director or not, pretty much depends on your setup. Please consult your tax practitioner.

    • Do I need to have a Malta director?

      Yes, it is possible. A Maltese LTD is required to have a minimum of 1 director, 1 shareholder and 1 company secretary.
      – A private Exempt or a Single Member company cannot have a director who is Body Corporate
      – A private company cannot have a director who is company secretary as well
      – A private exempt company cannot have foreign body corporates

    • Where can director and shareholder meetings of Malta companies be held?

      Such meetings can be held anywhere, even by telephone/video conference.

    • Is the information about shareholders and directors of my Malta company public?

      Information of shareholders, directors and company secretary, among others is available to the public. Details of all parties involved in a Malta company include their identity number, nationality, and residential address. This is according to regulation 8 of the Companies Act (Register of Beneficial Owners) Regulations, 2017.
      Financial statements can be bought by anyone who has an account with Maltese Authority. On the other hand, anything related to financial matters such as mortgages and bank statements are not made available to the public.

    • What documents do I physically get from you?

      Initially we will send you all official documents in soft-copy. We send you all the original certificates of the company registration including original memorandum and articles of association of the company.

      If you decide to use a Maltese service provider for maintaining your company, we recommend that we keep the originals, and will provide certified true copies of such documents in bona fide. We will work upon your instructions.

    • Do you provide administration and bookkeeping services?

      Yes, we operate through a number of Malta companies forming part of a group in one Malta office with the ability to provide the following services:

      – Administration of the company (company maintenance and annual returns).
      – Back office and secretarial services.
      – Malta VAT returns, payroll services, bookkeeping up to trial balance, financial statements preparation.
      – Audits, tax computations and tax refund applications.

      If the service you have in mind is not listed above we can introduce you to our other business partners.

    • Can I trade with an offshore company?

      An offshore company can be set up as a holding company or a consultancy services company but it cannot actually trade in physical goods because it cannot have a VAT number. Certain countries deem offshore to be black-listed, so please consult your tax advisor before purchasing.

    • Do I have to audit my company?

      Auditing a company is compulsory for Malta companies. Maltese registered companies should submit a copy of the financial statements to the Registrar of Companies at the Malta Financial Services Authority (MFSA) on an annual basis. These should also be audited by an external auditor registered with the local Accountancy Board. We are able to service you through A+A Assurance Services Ltd, that also forms part of Business Concept International plc.

    • Is it possible to maintain the statutory records outside the Maltese registered office?

      Yes, as long as these are made available upon request.

    • When should the first Annual General Meeting be held when you operate a Malta company?

      The first AGM should be held a year after the company’s incorporation.

    • What is the VAT rate in Malta?

      Regular VAT rate in Malta is 18%. This is taxable on supply of goods, services and importation. There are few exemptions (lower VAT rates) from the general rule. In fact, VAT on accommodation supplies is 7%, while a 5% VAT is taxable on printed matter, supply of electricity, various confectionery items, medical accessories, various items for the exclusive use of the disabled, and more. There are also instances when no VAT is charged as items will be VAT exempt.

    • In which case my Malta company should register for VAT?

      Whether or not one should apply for VAT, depends on the company’s activity. This will determine whether to register under Article 10 or 11, determined by the company entry and exit thresholds. If the company is involved in trading, then it is obligatory to register for VAT. Holding companies do not need to register for VAT. Detailed information can be found here.

    • Do I have to pay payroll taxes for employees that do not work in Malta?

      Salaries are subject to taxation in the country where business activities are performed. If your employees are working in another country other than Malta, the payroll taxes are presumably not due in Malta. Their payroll taxation should be applied in the country, where they work.

    • Which countries signed double tax treaties jurisdiction with Malta?

      The full list of such countries is found on the MFSA website.

    • How do I distribute profit / receive remuneration from my Malta company?

      Through yearly dividends, one can distribute profits after the payment of corporate tax which is 35% in Malta. However, if all the below criteria are met, a 30% tax refund can be claimed:
      – Income is not related to property
      – Shareholders are not resident in Malta
      – Business interest is more than 90% outside of Malta.

    • When should I add VAT to my invoices?

      There are set rules when one should add VAT to invoices. This will depend on a number of factors, including:
      – the activity being undertaken through the company since exceptions to the general rule might apply.
      – the countries involved in a transaction whether EU or NEU.
      – the parties to the transaction whether these are taxable persons or individuals without a vat number.

    • Can my newly incorporated Malta company be considered a tax resident in my country?

      This depends on the jurisdiction in which the client resides since CFC (Controlled Foreign Corporation) rules might kick in. Generally, the company is considered to be resident in the country where it is managed and controlled and in which it has registered for a tax number..

    • Can I receive a residence permit if I set up a company in Malta?

      When incorporating a company in Malta, you won’t be given a residence permit automatically. There are various ways to get a Malta resident permit, such as through employment or through MRVP (Malta Residency and Visa Programme). We can help you apply for one..

    • What are a company’s annual maintenance costs?

      There isn’t a set price as annual maintenance costs depend on the requested services such as the company share capital, bookkeeping, accounting, registered address, directorship services and more. Fees will be calculated on the number of services that you request from us..

    • Who are you and how long have you been in business?

      Incorporate in Malta, having its services provided by Fairwinds Management Limited, with company registration number C61079, is a Corporate Service Provider in Malta. We are a team of accountants, auditors and administration professionals and have been in business for over three years and successfully incorporated hundreds of companies in Malta and abroad. Our company is based in Malta and has a paid up share capital of Eur 100,000 and have over 400 satisfied clients who deal and trade in various industries and range from various parts of the world, but mainly from Malta, North Africa, Central Europe and Scandinavia.

    • Why should we work with incorporateinmalta.com and not any other service provider?

      We are honest and transparent. What you see is what you get, there are no hidden surprises nor any additional fees. Once you assign the job to incorporate for you, we will give you a personalized approach. We have a 15 day grace period in place, and should you change your mind we will return the funds back less a processing fee of 10% of the order value with a minimum of €70 and a maximum of €200 to cover administration and bank charges, with no questions asked.

    • Can you refuse me as a client?

      Yes, Malta as a country is quite strict in terms of due diligence requirements, and our team will do a due diligence check with Regulatory DataCorp. (RDC) in order to comply with the anti-money laundering regulations and provisions. We are regulated by the FIAU (www.fiumalta.org). We have the right to refuse you as a client if we believe that it can jeopardize the image of the company. If we accept you as a client it does not mean that the bank introduction will be 100% successful, because banks perform their own due diligence procedures.

    • I want to do more than one Malta setup, do you offer discounts?

      The prices are very attractive, therefore, we cannot offer any discounts. However, you can rest assured that if you work with our partnering companies in Malta for administration and maintenance, and you create further Malta setups, we will take special care of you and offer discounted rates on after-sales services.

    • I am checking out, what do I need to do now?

      Once you check out, you will receive an acknowledgement for the payment made, together with a checklist of the documents you need to provide us. Please expedite this to us at your earliest so that we can start working on your new Malta or offshore setup.

    • I have made a mistake and ordered the wrong package.

      It might be the case that you make a wrong choice. This can be fixed, either by refunding back the difference you overpaid, or else we raise a new proforma invoice for the difference. Please contact us by email should this be the case.

    • I am a foreigner but plan to move to Malta in the future, what setup should I go for?

      You should go for the Silver Package A (Malta Trading and Holding Companies).