Registration of Branches in Malta

Registration of Branches in Malta – No Withholding Tax on the Malta Taxed Income

During March 2017, new company formations in Malta totaled 471, with 10 new partnerships also registered during the same month. A small number of these new company incorporations relate to branches of foreign companies registered in Malta.

Shareholders who already own a company that is incorporated or constituted in a foreign jurisdiction may not necessarily need to form a full Malta company but may seek to set-up a Maltese branch. A Malta branch does not constitute a separate legal personality but is considered to be an extension of the foreign company, which is usually referred to as an oversea company. The Malta branch must thus necessarily carry the name of the oversea company. The oversea company is required to register the branch within 1 month from its establishment and it is obliged to present evidence of the existence of the oversea company through certified copies of the its Memorandum and Articles, the names of the directors, its capital structure, its registered office, and the names of the Malta appointed representatives.

To Read More about Malta Company Uses Follow This Link

From a tax perspective a branch may offer significant advantages in that such a legal arrangement is considered to be a permanent establishment of a non-resident company and is taxed in Malta only on income that is generated in Malta and income that is physically remitted to Malta. This income may then benefit from Malta’s fully imputative tax system, whereby such income is charged at 35%, and subject to certain conditions may qualify to benefit from Malta’s tax refund mechanism. It is also worth mentioning that no withholding tax is charged on the Malta taxed income, which can also benefit from the numerous double tax treaties that Malta has in place with numerous countries.

If You Wish to Take Advantage of Malta Branch Registration, Contact Us Now to Start the Process