Types of Malta Companies

Oversea Companies and Branches

Maltese Law provides foreign companies the possibility of establishing a branch or place of business in Malta without the necessity of incorporation or re-domiciliation. In terms of the Companies Act, a foreign company which is incorporated or constituted outside of Malta is designated as an ‘oversea company’. There are no restrictions on the legal form of the corporate entity. Additionally, it is not necessary to establish a physical presence Malta, the only imposition is the appointment of a local representative for the branch.

Requisite Documentation

Oversea companies setting up a branch of Malta are required to register the branch with the Maltese Registrar of Companies within one month from establishing business in Malta and provide the following information:

1. An authentic copy of the charter, statutes or memorandum and articles of association of the oversea company or other constitutive document. Provided that if the document is not in English, a certified translation must be presented.
2. List of directors and company secretary or persons vested with the administration or representation of the oversea company, containing the following information
   1. Individuals – name, residential address, nationality, business occupation
   2. Body corporate – registered or corporate name and registered or principal office
3. Return listing the following:
   1. Name under which the branch or place of business is carrying on its activities where different from the name of the oversea company
   2. Address of the branch or place of business in Malta, together with the principal place of business in case of multiple branches
   3. Activities to be carried out by the branch or place of business in Malta
   4. Name and address of individuals resident in Malta authorized to represent the oversea company for the activities of the branch or place of business established in Malta
   5. The extent of the authority given to individuals falling within paragraph (iv), including whether such individual is authorized to act alone or jointly with others
4. A return indicating
   1. information about the legal form of the oversea company
   2. information about the identity of the register in which the oversea company is registered and
   3. the number with which it is registered

Tax Implications

• A branch in Malta of an oversea company, is taxable in Malta only on income arising in Malta and income arising outside of Malta but received in Malta
• The income of the branch is liable to the same tax rate applicable to Maltese companies
• A branch is entitled to claim all deductions provided to resident companies

Contact Rudolph Psaila to find out more.