Are you thinking about setting up a company in a European country? Malta is an excellent option because it can provide a number of perks that you cannot get elsewhere. First and foremost, you cannot ignore the taxation benefits because the country has a full-imputation system of corporate taxation. Under these rules, the income tax that’s paid by a Maltese firm is fully credited to the shareholder who gets dividends from them. Hence, they are able to benefit from complete relief from double taxation of corporate profits.
Secondly, you don’t need a huge amount of capital when you are contemplating Malta company formations. A minimum share capital of Euro 1165 is needed and only 20% of it needs to be paid up. This means that the minimum capital that you have to deposit for incorporating a company in Malta is Euro 245. The Registry fee that you have to pay is Euro 240 and the annual payments are set at Euro 100. It is certainly a small price to pay for incorporating a company in a reputable jurisdiction, considering that Malta is also a member of the European Union.
Another major perk that forming a company in Malta can offer you is exemption from duty imposed on documents. This means that increase of share capital and transfer of shares by the company are all exempt from duty. It should also be noted that double taxation treaties have been signed by Malta, which can certainly be advantageous in terms of tax savings. There is no withholding tax on payment of interests, dividends or royalties. No thin capitalization rules exist in the country and there are no wealth taxes, exit taxes, trade tax or payroll based tax. Hence, incorporating a company in Malta can be quite lucrative for investors and can pay off in the long run.