Corporate Law

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.

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GTG’s sister company and dedicated CSP arm, Afilexion Alliance Company Limited, can provide company formation and corporate services by virtue of being authorised to act as a Company Service Provider by the Malta Financial Services Authority.

Afilexion Alliance can provide assistance in the following areas:

Company Formation
Afilexion Alliance provides advice on the most efficient corporate structure suitable for your business and operational needs. Afilexion’s main aim is to guide clients through the whole incorporation process and ensuring the Memorandum and Articles of Association, which is the principal corporate document regulating the company, is tailored to the client’s needs.

Registered Office Facility
Every company must have a registered office in Malta. As part of its back-office operations, Afilexion Alliance can provide a dedicated registered office address in Malta in addition to an efficient mail-forwarding service.

Company Secretary Duties
The Company Secretary is responsible for the proper keeping of the company’s records, including the minutes of Board Meetings as well as of Shareholders’ Meetings, and must see to the proper upkeep of the register of shareholders and debenture holders as well as notify the Registrar of Companies of all the changes which take place in the company.

Company Maintenance
Afilexion Alliance also provides ongoing assistance to clients to ensure all their requirements are met in a professional and efficient manner. This includes ensuring that the company is compliant with Maltese laws and rules on an ongoing basis and making the necessary filings with the relevant authorities.

Accounts and Audit
Afilexion Alliance is also able to assist in satisfying all the statutory accounting and audit obligations, including payroll and filing of forms and returns with the tax authority.

Residence Permits & Tax Incentive Schemes
GTG can also provide assistance to Maltese companies seeking to obtain a Maltese residence permit for their employees. As an authorised agent, GTG can also assist individuals seeking to benefit from a number of residence schemes offering beneficial rates of taxation.

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