Malta Company

 

Malta Company Formation & Incorporation

The process of company formation and incorporation in Malta is set out by The Malta Companies Act which is modelled on its UK counterpart. Maltese business owners can therefore enjoy a simple, straightforward Malta company incorporation procedure. When a Malta business is formed, the company may be registered within a day of receiving all required Maltese company documentation, information and funds from the Registry of Companies in Malta.

There are numerous financial and operational benefits associated with registering a business in Malta. If you’re a Maltese business director, or are considering the formation of a Malta registered company, read on to find out just what to expect from your swift and smooth business incorporation process:

Requirements & Restrictions of company formation and incorporation in Malta

Malta company law does not impose any restrictions on the nationality and residence of the shareholders and directors of a Maltese business, or that of the company secretary. Furthermore, provided the business operation in question is legal, there are no restrictions on the types of activities that a company in Malta can carry out following its successful registration and incorporation. However, the activities of certain Maltese businesses may be regulated by local authorities such as the Malta Financial Services Authority (MFSA) or the Malta Lotteries and Gaming Authority (LGA).

The Maltese Companies Act states that the minimum share capital of a company registered in Malta is €1165. At least 20% of this must be paid upon subscription, and deposited in a bank account under the name of the Malta registered business.

Directors

When forming a Maltese registered business, bear the following conditions in mind:

A Malta company is required to have at least one director, who may also act as the company secretary in certain cases.

It is possible for a body corporate to act as the director of a Malta business, although the role of company secretary must be filled by an individual.

Maltese business laws also state that an individual can be both a company director and shareholder.

Shareholders

For successful Malta company formation and incorporation, Maltese law generally requires that a business has at least two shareholders; however, it is possible to successfully register a Maltese company with only one shareholder provided the company fulfils certain conditions. Shareholders in Maltese businesses can be either individuals or corporate bodies, and it is possible for the shares in a Malta company to be held by an authorised fiduciary, thereby keeping the identity of the beneficial owners fully confidential. A Maltese company is also required to hold a members’ Annual General Meeting (AGM) at least once every year.

Auditing

A registered Malta company is required by law to submit an annual return to the Registrar of Companies, and to have all annual financial statements audited.

Company Tax

Malta also offers a very attractive tax system that can be highly beneficial to companies registered in the country. to download our comprehensive fact sheet on For a Malta company formation process that is quick and straightforward, turn to EMD’s group of Maltese business experts. EMD’s Malta business experts can advise and assist you with your Malta company incorporation procedure, so you can be sure of meeting the legal requirements for successfully establishing a Maltese company and becoming a Malta business owner.

Aircraft Registration Malta

 

The Malta Aircraft Registration Act 2010

The Malta Air Operators Certificate (Malta AOC) and Aircraft Registration Malta Act 2010 consolidates the previously existing laws on aircraft registration. Through the establishment of an ambitious aircraft register and the setting up of the Malta Transportation (Regulatory) Authority, Malta is now also well positioned into one of the EU’s most topical business opportunities.

The Malta Aircraft Registration Act provides for the innovative concept of the registration of aircraft under construction. Such can be registered so long as such aircraft is uniquely identifiable. The Malta Aircraft Registration Act endeavors to limit nationality and form requirements in order to make the register accessible to as many owners and operators as possible, while ensuring that the register is not open to anyone and everyone.

To this effect the Malta Aircraft Registration Act prescribes those persons who are qualified to register an Aircraft whether used for the provision of air services or otherwise. These include:

• Citizens of Malta who have approved residence in Malta and citizens of Member States of the European Union, EEA State or Switzerland. Such individuals must have a place of residence or business in Malta, the European Union (EU), the European Economic Area (EEA) or Switzerland;

• An undertaking formed and existing in accordance with the laws in Malta, a Member State of the European Union, the EEA or Switzerland. In terms of the Malta Aircraft Registration Act, the undertaking must have its registered office, central administration and principal place of business within Malta, the EU, the EEA or Switzerland, whereof not less than 50% of the undertaking is owned and effectively controlled by the Government of Malta or by the Government of any other State of the EU, or by the persons abovementioned in paragraph (a), this requirement ought to be present indirectly or directly through one or more intermediate undertakings.

In accordance with the Malta Aircraft Registration Act, a natural person who does not qualify under paragraphs (a) and (b) above, but is a citizen of or an undertaking established in an approved jurisdiction shall be qualified to register aircraft in construction or one which is not used to provide an air service. This delineates the legislator’s intent to widen the scope of the Malta Aircraft Registration Act and consequently expand the range of those who could register under this law. This extends the possibilities for those owners of aircraft who will be using their aircraft for private use and not for hire or reward as prescribed by the pertinent legislation.

Malta VAT Treatment on Aircraft Leasing

The Maltese VAT Department has also recently launched a new aircraft leasing procedure, making Malta an attractive jurisdiction for aircraft registration for both private and commercial aircraft while ensuring full adherence to EU laws and regulations. The net result from this VAT simplification procedure is that the Malta VAT rate of 18% is only payable on that portion of the lease payment which is deemed to be for the use of the aircraft within EU airspace. The minimum percentage of time that an aircraft could be deemed to be in EU airspace, depending on maximum take off mass, maximum fuel capacity, fuel burn, optimum altitude and cruising speed) is of 30%, thereby resulting in a minimum effective VAT rate of 5.4%. For further information please click here.

The Use of Trusts and Fractional Ownership

The Malta Aircraft Registration Act ensures that when there is a trust relation and the Director General is to “look through” to the identity of the underlying beneficiaries, procedures will be implemented to safeguard the confidentiality of the trust arrangement in line with the principles governing trust law. In this manner, an obligation is imposed on the Director General to ensure that the disclosure for the purpose of Malta aircraft registration does not negatively affect the operation of the trust and its inherent confidential nature.

The new Malta Aircraft Registration Act acknowledges the benefits that will result from the employment of trusts in this field, and specific mention is made of fractional ownership and trusts which could be employed when the ownership/use interests of a plurality of persons (legal or natural) is to be regulated in relation to an asset, the aircraft, by interposing a trust relation. Thus, provision for regulation and co-ordination of the beneficiaries’ rights and interests will be made in the trust deed, which can provide for innumerable arrangements, in line with the contingencies of the case at hand.

The Maltese Aircraft Registration Act ensures that the existence of the trustee, being the registered owner of the aircraft, in favour of the determined beneficiaries (in a fixed trust scenario) or for the benefit of determinable beneficiaries (in a discretionary trust scenario) allows the arrangement to operate in a more streamlined manner whilst permitting the rights of the beneficiaries to be enforced against the trustee in case of default, thus protecting the beneficiaries who would be the stakeholders in this arrangement.