Company Formation
The most popular type of company that can be incorporated in Malta is the limited liability company. A limited liability company can be either a private (“ltd”) or a public company (“plc”). The main differences between the two are as follows:
| Private | Public | |
| Minimum Shareholders | One (1) | Two (2) |
| Maximum Shareholders | 50 | No limit |
| Minimum Share Capital | Not less than € 1,164.69 | Not less than € 46,587.47 |
| Paid up Share Capital | Not less than 20 % | Not less than 25 % |
| Minimum Director | One | Two |
| Can issue shares to public? | No | Yes |
Benefits under Maltese Law The Maltese limited liability company is a reliable and efficient vehicle for conducting business. This is mainly due to the business incentives around which Maltese corporate legislation is built. Foremost amongst these are its significant tax benefits. In fact, while all companies resident in Malta are subject to income tax at the rate of 35% on company profits, this is subject to a full imputation tax system wherein tax paid by a company in Malta is, on the distribution of dividends, imputed to the shareholder as a tax credit against the shareholders’ tax liability. This means that, upon distribution of dividends, a shareholder is entitled to a total or partial refund of any advance-tax levied on the distributing company. As a result, Malta is a popular forum from where foreign investors and multinational companies hold and manage their business.