Answer
If you have permanent residency, there is no investment amount requirement, and you can serve as the director with no ownership percentage restrictions. You can own 1% or 100%.
Companies from other countries can establish subsidiaries in Malta, and the sales revenue generated in Malta will be refunded based on the parent company’s shareholding ratio. For example:
If the parent company holds 90% of the shares, with taxable revenue of €1,000,000, €900,000 will be taxed at 35%, and the company can apply for a 30% tax refund, meaning the effective tax is only 5%. The remaining €100,000 (10%) will be taxed at 35%.
If taxable income is less than €60,000, an individual license is more suitable, as different tax rates of 0%, 15%, and 25% apply depending on income and marital status.
If taxable income exceeds €60,000, both individual and company licenses are subject to a 35% tax rate. In this case, a company license is more suitable, as the company can deduct various operating expenses like employee salaries, rent, utilities, phone bills, and accounting fees before taxation. An individual license taxes the entire taxable income.
When establishing a company in Malta, it’s important to choose the appropriate company type and name, provide valid documents, comply with local laws and regulations, pay taxes on time, and conduct annual audits. It’s also essential to understand the local market and cultural environment for better business operations.
A Maltese company can choose between a board of directors or a shareholders’ meeting as the management body. Board members are elected by shareholders, while the shareholders’ meeting is composed of all shareholders.
The Maltese government places great emphasis on employee rights protection, offering high levels of social security and welfare benefits. Additionally, the government encourages companies to hire local employees and offers various policies for talent recruitment.