What are the main benefits of company formation in Malta?

In practice, a company in Malta pays the official 35% corporate tax. However, if the owners of a company registered in Malta are not tax residents in Malta, i.e. they are foreigners or not domiciled in Malta, they can recover 6/7 of this tax. This means that the actual tax rate is only five percent. The shareholders of companies registered in Malta do not need to wait long for the tax refund. The law states that the refund is to be made within 14 days of the end of the month when the tax was paid.

The dividend received from a company registered in Malta and the entire profit coming from the sales of its subsidiary are fully exempt from corporate tax provided that it is paid out to the shareholders as dividend. Under certain circumstances, there is no tax liability for income generated thus, i.e. tax reimbursement is not necessary either.

 

Malta double taxation treaties:

In order to encourage the growth of international trade including that of financial services, successive Maltese governments have sought to conclude double taxation treaties with important trading partners as well as with emerging countries. Malta double taxation treaty is expected to continue in the future. There are 73 countries that have active double taxation treaty with Malta. Find out more on Double Taxation Treaties

 

Beware of cheap agencies!

There are numerous start-up agencies that provide their clients incorrect guidance such as relying on concealment of ownership. At times, such a design may remain inscrutable for a few years and the taxpayer remains undetected. In the event of a discovery, however, sensitive back payments on all un-taxed profits are threatened.
Therefore, we recommend a trustworthy provider that allows you to withdraw money from Malta Limited, and will not make you lose your sleep over it. The way to a recognized establishment and the local business management is unfortunately associated with higher costs. However, this is precisely what distinguishes between a legal and illegal structure. Working with over 500 companies, we have found the ideal price which is cost friendly and is suitable for any potential clients.

 

Which taxes can I save?

There are promises of advertising with a reduction of the tax burden to 0%. We do not promise that precisely because it maybe harmful in the long run for our clients. The combination of a Malta Limited and private residency in the UK results in huge tax savings as there are no taxes on foreign income in the UK.
However, not every entrepreneur is worth starting a business in Malta. There are annual fixed costs and a certain profit margin should be taken into consideration in order to manage these costs.

 

The biggest mistakes when starting a company abroad

Not all topics related to founding a company abroad are always free of prejudices and false information that have prevailed over the years. We give you an overview of the most important questions about founding a company abroad.

Founding a company abroad as a citizen of another country is legal?

Founding a company abroad as a citizen of another country is legal?

Yes, in most countries foreigners can be sole shareholder of a local entity.

Do you have to live in the country where you start a company?

Do you have to live in the country where you start a company?

No you can set up a company anywhere in the world, as long as the country in question allows you, as a foreigner, to acquire shares in local companies. If this is not the case, trustees can be used. Freedom of establishment applies within the European Union. However, it is important that the management takes place locally, in the country in which the company is registered. In addition, a permanent establishment must be set up. Without this, a German tax office will not recognize the company and, in the worst case, would demand back payment of corporate and trade taxes plus late payment penalties. We rent you a real office and set up a permanent establishment that meets all requirements without a doubt. In addition, we have real managing directors who run companies in the home country and are resident there.

Problematic law firms: closure is made more difficult

Problematic law firms: closure is made more difficult

Some law firms tie clients with gag contracts and apply pressure when the client wants to close their business. If you are a client of a law firm that has set up a legally unsound company for you, you make yourself vulnerable to blackmail. Because in the event of a tax problem, law firms without a license are not bound by a duty of confidentiality.

Changing offices is made more difficult

Changing offices is made more difficult

We receive many inquiries from customers who already own a foreign company and are looking for a new law firm. Switching to us is then often made more difficult. So horrendous final bills are made, which have to be paid before a change is possible. Therefore we have developed a trust principle. If you are not satisfied with us and want to switch, you can do so at any time. You will receive the necessary documents (resignation letter) from us in a standardized form after the foundation. This protects you from unexpected costs and you are free to go to another law firm at any time. So far we have not lost a client to another law firm.

Privacy Policy/Office Location

Privacy Policy/Office Location

Your accounting documents are safe with us. In addition, all electronic data is only stored in encrypted form and apart from us, who are bound by professional secrecy, no one has access. All accounting documents are also only stored locally. Neither authorities nor hackers can access this data.

No taxes?

No taxes?

There are certainly locations in the world that do not charge any taxes to companies and private individuals or only charge a very low flat-rate tax. However, this can rarely be used without a corresponding change of residence. If you are resident in Germany, the relevant double taxation agreement is decisive. Providers who promise otherwise will tempt you into tax evasion, which is usually severely punished if discovered. We advise you not to set up companies in countries that have already been blacklisted by the OECD. The foundation is usually very cheap, but the tax consequences in Germany can be devastating. Since the introduction of the automatic exchange of information between almost all major countries, an anonymous account or company no longer exists.