Malta International Business Company (Malta IBC)

Malta is an ideal location to establish low-taxed trading and/or holding companies that provide flexible solutions to fit clients’ needs. Although the standard rate of taxation in Malta currently stands at 35% of the chargeable income of the company, building the right structure allows shareholders to claim 6/7 of any tax paid by the company. A Maltese limited liability company, which is ordinarily resident and domiciled for tax purposes may be incorporated for the purpose of carrying out any activities both in Malta or internationally. The Malta IBC can be of a trading or holding nature and is as well very popular for owning aircraft or yachts.

ADVANTAGES

  • Onshore Status

  • 0% Effective Tax on dividends for IBCs

  • A trading company registered in Malta is a very tax efficient vehicle ideally suited for carrying out international trading activities

  • As with a Maltese Holding Company, tax paid by an IBC is at the rate of 35% but shareholders may claim a tax refund of 6/7 of the tax paid by the company

  • No exit taxes, wealth taxes, payroll based tax or trade tax

REQUIRED DOCUMENTS

  • Company name of your choice (ending >Sarl)

  • 2 Passport copies of directors and shareholders

  • Proof of residence (phone bill, electricity bill) not older then 3 months

  • Bank reference letter or a bank statement

  • Nature of business and business plan

  • CV of shareholder(s)

PRICE BOX

EUR 4'400  Incorporation 

EUR 5'500  Annual Fees

SHARE CAPITAL

The share capital is requested be of a minimum of €1,164.69 of which at least 20% is to be paid upfront.

SHAREHOLDERS

There must be at least one shareholder, who can be either natural or legal person, with no restriction upon their residence. Details of shareholders are publicly accessible. If the shareholder is a legal person, there must be at least two shareholders.

DIRECTORS

There must be at least one director, may either be natural or legal person, with no restriction upon their residence. Details of directors are publicly accessible.

REGISTERED OFFICE

All companies must have a registered address in Malta.

FILING REQUIREMENTS

All companies must file audited financial statements annually.

TIMESCALE

Once all the requested documents are delivered, the incorporation process usually takes around a week.

INCORPORATION PROCESS: SET UP YOUR COMPANY IN 2 EASY STEPS

STEP 1: GET YOUR DOCUMENTS IN ORDER

  • Provide us with the company name of your choice. We will check the name availability for you for free

  • Two certified copies of your passport

  • Proof of residence, for example your last phone or electricity bill (not older then 3 months)

  • Order your bank reference letter

  • Tell us about nature of planned business and expected income and expenditure

  • Let us know when you’re ready and send us a scanned copy of the documents for our review before you post them. Call us for any questions +41 (0)44 266 10 60

STEP 2: SIGN FOR REGISTRATION 

  • Sign F Trust’s mandate agreements

  • We will prepare the application for incorporation and the memorandum and articles

  • We will proceed with the company incorporation and registration with the local authorities

  • The company is from now on ready to use

  • If you wish us to assist with bank account opening, please let us know and F Trust will complete account opening application forms for you

ADVANTAGES OF A HOLDING COMPANY

  • Maltese IBCs can receive dividends from foreign subsidiaries tax free. There are also no taxes or restrictions on the exportation of dividends from a Maltese IBC.

  • No withholding taxes, stamp duties or exchange control restrictions which apply on distribution of profits or dividends to the shareholders.

  • While a Malta IBC is subject to 35 % tax on its worldwide income, shareholders can benefit from a full tax refund for ‘qualifying participating holdings.’ Therefore, taking the refunds into account, there is an effective 0% tax rate for qualified holdings as the shareholder will be refunded 100%.

  • An IBC must hold at least 10% equity in a foreign company or hold an equity holding of at least USD 1,250,000 in a foreign company to be a qualifying participating holding.

  • 0% tax on capital gains made from the disposal of a participating holding.

  • 5% tax dividends from non-participating holdings.

  • Additionally, capital investments, funding and income from various sources can be injected into the IBC to be distributed to subsidiaries by way of loan or capital finance.

  • The Malta IBC has the option to pay out salary (note that it may trigger the need to register for VAT).

  • The holding company will also serve as asset protection by owning business assets and/ or personal assets depending on the shareholders needs.

ADVANTAGES OF AN OPERATING COMPANY

  • A trading company registered in Malta is a very tax efficient vehicle ideally suited for carrying out international trading activities. By registering in Malta, huge advantages may be achieved through the imputation system of taxation when distributions are made to non-resident shareholders.

  • The definition of a company registered in Malta has been widened to include overseas branches set up in Malta.

  • As with a Maltese Holding Company, tax paid by IBC is at the rate of 35% but shareholders may claim a tax refund of 6/7 of the tax paid by the company. The tax is refunded to the shareholder within 14 days from the end of the month in which it is due.

  • An IBC, unlike an offshore company, is a normal onshore company, which makes it unlikely that foreign tax authorities will consider the IBC to be a tax avoidance structure.

  • This in turn allows the IBC and its shareholders to take advantage of the extensive Double Taxation Treaties that Malta has signed with a large number of countries.