Malta - Company Incorporation

Gained independence from the United Kingdom in 1964, Malta is an independent republic, situated about 60 miles south of Italy in the Mediterranean.

The Malta Company

Malta now offers two types of company:

• International Holding Companies - IHC.
• International Trading Companies - ITC.

These companies are designed to take advantage of the tax treaties signed by Malta. The ITC is statutorily defined as a company which is engaged solely in carrying on trading activities from Malta with persons outside Malta and has objects expressly limited to such trading activities. The ITC may not hold foreign investments or equity.

An IHC is a company whose activities are limited to foreign equity participation and other similar passive income generating activities. Such entities are taxed in a particularly advantageous manner where income is received from participating holdings.

Shareholders

A minimum of two shareholders are required who may be corporate or individual. The shareholders details appear on public file but anonymity can be retained by the use of nominee shareholders.

Directors

One Director is required, either corporate or individual, and details appear on the public file in Malta. In order to establish that the company is tax resident in Malta, and therefore to gain tax treaty benefits, it will be necessary to have the majority of the board of directors based in Malta.

Local Requirements

Every Maltese company must maintain a registered office address in Malta and must also appoint a licensed Maltese nominee company as company secretary or sole director. Although there is no strict requirement that the director(s) be resident in Malta it is likely that tax treaty relief would not be afforded to any company which did not have a majority of directors resident in Malta. For most practical purposes it will therefore be necessary to appoint Malta resident directors.