Trading Company Formation Malta – Complete Guide

Trading Company Formation Malta – Complete Guide
Updated on
January 25, 2023

Opening a company in Malta, whether it is a Malta trading company or a different legal model, has many benefits, with one of the main one being, Malta’s taxation system that offers 6/7 refunds to foreign shareholders. Apart from that, the system offers full tax exemptions to holding companies, no stamp duties or withholding taxes, whenever profits come back to Malta. Foreign investors have plenty of reasons to open a company in Malta considering that the costs associated with company formation and maintenance are generally low.

Our team at Welcome Center Malta, can assist you with any company registration type.

What is a trading company?

Trading companies are businesses operating with different products which are then sold off for consumers, government or business purposes. Generally speaking, trading companies cover all the import and export operations, stock a shop, purchase a range of products and then resell their products to their consumers.

Malta Trading Company Formation

There are several requirements as well as legal frameworks that foreign investors should adhere to, in order to start a Malta trading company. The very first step is to identify the structure under which the trading company in Malta will operate under. The next step is to familiarise yourself with the details of Malta’s trading activities falling under the following regulations:

What are the Types of Trading Licenses in Malta?

Every trading company that undertakes trading activities listed below must have a trading license. The trading activities include:

  • Selling items in wholesale and in retail
  • Companies that manufacture and sell food and beverages
  • Any other form of manufacturing activities

In addition, import and export trading companies are required to acquire the necessary licenses from the office of the Trade activities and from the Trading departments. Trading activities licenses are issued in line with the regulations set by the Importation control regulations of 2004. It also depends on whether the trading activities revolve outside or around the European community.

Advantages of opening a Maltese Trading Company

Apart from the tax benefits, opening a trading company in Malta has the following advantages:

  • Company’s incorporation and operating costs are low
  • Zero withholding tax on profits(dividends)
  • Interest and royalties
  • No capitalization rules
  • Payroll taxes, wealth taxes and trading taxes
  • No Exit taxes
  • There are over sixty signed double taxation treaties
  • Companies from Malta that undertake international trading activities are exempted from document duty. I.e. shares transfer and share capital increase are duty-free
  • Capital gains coming from foreign individuals (non resident) on transfers of shares and share capital are tax-free if there is no immovable property located on the island.

How to open a Trading Company in Malta?

When it comes to trading activities in Malta, one of the most popular company formation models is the limited liability company which is also know as LTD or LLC. Welcome Center Malta, can assist you with all the necessary steps of the company’s formation including registration of such companies and VAT registration which is a must, for a company to be able to acquire all the necessary licenses. EORI registration is important to trading activities involving crossing borders.

Documents Required to acquire the licenses for a Malta Trading Company 

  • A duly filled application form;
  • Company Details - The name of the company, origin, and registration number
  • The applicant’s ID
  • The company’s VAT registration number.
  • Special permits may be needed depending on the specifics of the import/export trading activities. Other conditions may also apply.

Maltese Trading Companies Eligibility

Minimum share capital

To be eligible to open a Maltese trading company, the required minimum share capital is 1,250 Euros with a paid-up capital of 20% or its equivalent in the following currencies but not limited to; US dollars, SEK, and GBP.

Director and Company secretary

A director and company secretary of the company should be appointed. The director’s responsibilities involve the daily company’s management while the secretary is responsible for all the administrative duties. The secretary is also responsible for taking and keeping minutes for general meetings and ensuring proper filing of the necessary documentation.

Documents required for the Malta Trading Company formation

There are documents that are necessary when it comes to the formation of the Malta trading company. They include the Memorandum and articles of association, documents for due diligence, and bank receipts as proof of payment of the first share capital.

Appointment of an Auditor

Any holding company in Malta should appoint an auditor who is Malta registered. The first auditor is appointed by the directors of the company.

Establish Your Malta Trading Company through Welcome Center Malta

For further information regarding the Maltese trading company requirements, feel free to contact us by filling out our contact form or reaching us through the provided contact information. 

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About us
Facilitating a move to Malta is seamless when you rely on the Welcome Center Malta. Established in 2016 with the sole objective of helping people make an effortless move to the island, Welcome Center Malta aims to reduce the challenges involved in settling, moving and establishing local contacts.