Malta has become the go-to destination for entrepreneurs who want to establish an offshore company. Its small size, pro-business regulations, and welcoming policies have made this Mediterranean island an incredibly attractive place for investors. Setting up an offshore company in Malta comes with several benefits, such as reduced tax rates, an efficient legal system, and a stable economic and political environment. In this blog post, we will take a closer look at why Malta is a popular choice for setting up an offshore company and how you can get started on establishing your own business in this thriving European hub.
A stable and prosperous economic environment:
Malta has experienced steady growth over the past decade, with its GDP constantly increasing year after year. This stability is mainly due to the country’s diversified economy, which includes sectors such as tourism, gaming, financial services, and maritime services. Moreover, the Maltese government has positioned itself as a pro-business administration, offering a wide array of incentives and programs designed to attract foreign investors. This focus on economic growth and investment has paid off, making Malta an ideal location for an offshore company.
A business-friendly tax regime:
One of the main advantages of opening an offshore company in Malta is the attractive tax regime. The corporate tax rate in Malta is 35%, which may seem high compared to other tax havens. However, when you take into consideration the refund mechanisms available for shareholders, the effective taxation rate can be reduced to between 0 and 5% for foreign-owned companies. Additional tax benefits can include double taxation relief through its network of double tax treaties with over 70 countries, no withholding tax on dividends paid to non-residents, and no inheritance or wealth taxes.
A strong and reputable legal system:
Malta’s legal system offers a strong foundation for entrepreneurs looking to establish an offshore company. The country’s law is based on the European Union’s regulations and directives, ensuring a high level of professionalism and transparency. Moreover, Malta’s well-regulated financial services industry provides an excellent framework for businesses focused on the sector. As a member of the EU, Malta is also subject to stringent anti-money laundering (AML) regulations, providing a reputable environment for legitimate businesses.
Access to a highly educated workforce and strategic location:
In addition to its economic and legal strengths, Malta offers a highly-educated and multilingual workforce. English is an official language and is spoken fluently by the majority of the population. The country’s strategic location at the heart of the Mediterranean Sea also provides easy access to European, African, and Middle Eastern markets. These factors combined make Malta an ideal destination for businesses seeking to establish a strong international presence.
Steps to open an offshore company in Malta:
Opening an offshore company in Malta is comparatively straightforward. The first step is to engage the services of a registered formation agent, who will help you navigate the required paperwork and establish the company. You will need to choose a name for your company, decide on the share capital, and appoint directors and a company secretary. Once these details are sorted, your formation agent will submit the Memorandum and Articles of Association to the Maltese Registry of Companies. After the registration process is complete, your new offshore company in Malta will be ready for operation.
Setting up an offshore company in Malta offers significant advantages to entrepreneurs who seek a stable and prosperous environment in which to grow their business. The attractive tax regime, strong legal system, and strategic location make Malta an ideal destination for establishing an offshore company. With the right guidance from an experienced formation agent, this process can be relatively simple, allowing you to focus on building your company’s international presence and reaping the benefits of Malta’s thriving business environment.
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