An Overview of Company Formation in Malta

A Short Guide to Company Formation in Malta - []

Malta, with an advanced position between Africa and Europe, is home to around 400,000 inhabitants. This tiny island in the Mediterranean Sea boasts over five centuries of history of rich culture.Malta is one of the best destinations to form companies and other types of commercial partnerships.

As an entrepreneur, you can choose to conduct your business operation as a limited company, establish a commercial partnership with one or more shareholders, or do trading in your name as a sole trader. Starting a business will also require you to register your company at the Registry of Companies.

Setting up a business with a limited liability company in Malta comes with more benefits than other ways of running a business on the island. It limits the liability of the shareholders to unpaid amounts on share capital. You can form a company with one shareholder only. It is a single-member company, in which the person may also act as the sole director and the secretary of the company.

Forming a Maltese company includes preparing the essential documentation – the Memorandum or deed of the constitution. This document comprises the name and registered address of the company. It also tells if the company is public or private and the details of the shareholders.

The deed of the company’s constitution also has other details, such as the number of shares taken by every shareholder, the amount of authorized and issued share capital, and vice versa. The Memorandum of our company needs to have the Articles of Association, which will govern the internal working of your company. 

You can choose any name for your company, as long as no existing or reserved company has a name same or almost similar to it. The Registrar of Companies is also likely to decline your request to register a name for your company if it sounds offensive or undesirable.

Another essential step of the initial company set up in Malta is depositing the minimum share capital in a bank. For example, you will need to deposit at least 20 percent of €1,165 for a private company, whereas a public company registration requires at least 25% of the €44,588 minimum share deposit.

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