Open a company in Malta
Flexible legislative measures on investment and an attractive taxation system are among the many factors that have made Malta a hotspot for foreign investment. Malta’s economy is rated as one of the best, stable, and fastest-growing across the globe, providing investors with the most conducive business environment to open a company in.
The country is also attractive to investors as it offers them a diverse business portfolio to make their investments. As far as investing in Malta is concerned, having a Malta bank account is a necessity.
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Overview of the Process to Open a Company in Malta
- The first step is to decide whether you want to establish a limited liability company (LTD) or register as self employed. A limited liability company has the main benefit of separating the business (legal person) from the natural person.
- If you decide to opt for an LTD, you will need to draft your memorandum and articles of association. Once completed, you need to submit them to the Malta Registry of Companies.
- In order to open a company in Malta, you will need to deposit a minimum share capital in a bank account. This has to be a minimum of 1,200 Euro. Below in this article, we explain the process and requirements to open a bank account in Malta.
- Register your new business with the Malta Financial Services Authority. Your registration has to be submitted with the share capital receipt from the bank you open the bank account with.
- Once you completed the steps above, you need get your business licence from the Commerce Department in Malta. This can be done through the submission of a form. Licence fees in Malta for a company can be as low as 70Euro per annum.
- Obtain your Tax Identification Number (TIN). This allows you to submit your yearly tax returns for your company. For assistance with tax advice in Malta, contact us.
- Registering for VAT is required for a business when their turnover exceeds 35K a year. For those with a turnover between €7,001 and €35,000, VAT registration is optional. The registration is free and is usually a quick process. Visit the VAT department for more information on how to register.
- Register for a PE Number. This is only required for LTDs in Malta. Simply fill out the form provided by the Inland Revenue Department’s website.
- Any new business in Malta has to register with the ETC – Employment and Training Centre which is now know as, Jobs Plus. A new form must be completed for every employee hired by the company.
- Register your company for Data Protection. This is required if the business is gathering personal and sensitive data from clients.
For the full and detailed process, visit our guide on How to Register a Company in Malta – 10 Steps.
Opening a Bank Account in Malta
Is it required to open a Malta Bank account when registering a company in Malta?
When it comes to opening a company in Malta, opening a bank account for your company is compulsory. The primary reason is to deposit your minimum share capital to open a company in Malta. Additionally, in order to register your company with the MFSA, a bank receipt is required. This also enables your business to carry out daily financial transactions, as well as to aid in your investments.
On the other hand, in order to make use of the tax benefits in Malta, you should bank in Malta and you would be able to enjoy the advantageous corporate tax system that offers tax incentives to EU-based investors, nomads, and expats.
Which Type of Bank Account to choose?
Malta allows individuals and corporate entities to set up a wide range of bank accounts, including the following;
Corporate bank accounts
This type of account is only available to companies registered in Malta. Maltese companies must have a corporate bank account before getting involved in any business. The account is set up during the registration process of the company, where the shareholders deposit the company’s share capital.
The Requirements of Opening a Maltese Corporate Account
To set up a corporate bank account in Malta, you will be required to submit the following;
- Shareholders’ and company’s bank references
- Utility bills with the directors’ and shareholders’ current Maltese addresses.
- Copies of passports or identification documents of the shareholders and managers.
- Certificate of good standing of the company
- Company’s statutory documents
Current accounts are the most popular accounts in Malta. They are used for practical purposes and regular activities such as making payments and receiving salaries.
Banks in Malta also avail these accounts to EU and non-EU residents where they can bank their finances in foreign currencies.
The Requirements of Opening a Current Bank Account in Malta
Since current accounts are the most popular in Malta, most of them will come with a credit or debit card upon activation. To open and have a current account activated for you in Malta, you will be required to present the following documents;
- A utility bill with your current address
- Identification documents or a passport
- Bank reference
- Application form given by the bank.
Summary of Opening a Company with a Malta Bank Account
Opening a company with a bank account in Malta has many advantages. Apart from that, it is required by law to do so. Luckily, Malta’s modern banking system is open and straightforward. However, in-depth research of banking here is fundamental before opening a Malta Bank Account. Here are some crucial points to note:
- For the best banking experience as a foreigner, get to know which banks suit your business the most. Some banks for your consideration are, Banif Bank, IIG Bank, FCM Bank, Bank of Valletta and HSBC Malta. Visit our guide for the best Banks for Business in Malta.
- It would be best if you were prepared to present numerous documents to open a company with a bank account in Malta. The process to open a company in Malta could be lengthy and quite challenging. In most cases, it is recommended that you hire a professional to assist you.
Open your Company in Malta with a Bank Account through Welcome Center Malta
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