Malta, the Mediterranean island nation, has become an increasingly attractive destination for American companies seeking a strategic European base. In this comprehensive guide, we'll walk you through the process of relocating your business from the US to Malta, highlighting key benefits, necessary steps, legal requirements, and essential considerations for American entrepreneurs.
Why Choose Malta for Your US Business Relocation?
Malta offers a wide range of advantages for businesses seeking to establish a presence in the region. Some of the key benefits include:
- Access to the EU market
By setting up your business in Malta, you gain access to the EU single market, which consists of more than 450 million consumers. Malta’s connection to the EU regulatory framework also opens doors to opportunities like grants, funding, and subsidies..
- Business-friendly environment
Malta offers a stable political and economic climate, a strong digital infrastructure, and a government that supports businesses. American companies can benefit from Malta’s EU-compliant regulations, which make it easier to operate in Europe. Plus, English is one of the official languages in Malta, which makes communication simple.
- Industry-specific opportunities
Malta has become a hub for industries like blockchain, cryptocurrency, iGaming, and insurance. Its advanced legal framework, especially in the technology and financial sectors, makes it an attractive place for businesses in these fields. Other growing industries, such as ship and aircraft registration and software development, also offer profitable opportunities for US companies.
- Tax benefits
Malta’s corporate tax system is highly efficient. Although the standard tax rate is 35%, American companies can lower this to as little as 5% after claiming refunds through the Office of the Commissioner for Revenue (CFR).
Visa Requirements
US citizens do not need a visa for short trips to Malta, thanks to the US Visa Waiver Program, which allows visits of up to three months. However, if you plan to stay longer or work in Malta, you will need a work visa.
For those interested in long-term residency or EU benefits, Malta offers programs like the Citizenship through Investment Program, which provides a faster route to citizenship and all the benefits of being an EU citizen.
Step-by-Step Relocation Process
1. Pre-Relocation Planning
Before starting the relocation process, US businesses should:
- Assess their current business structure and any contractual obligations.
- Consider how the relocation will impact US operations, including moving staff.
- Conduct a market assessment of the EU to develop a better strategy.
You can also choose to re-domicile your company to Malta. This allows your business to keep its legal identity while moving to Malta. The process is straightforward but does require several documents.
2. Setting Up a Private Limited Company in Malta
To set up a private limited company in Malta, you will need:
- A physical address in Malta (this could be an office or registered address with accountants/lawyers).
- A minimum share capital of €1,164.69. of which at least 20% must be paid up at the time of incorporation.
- One director and one company secretary (these can be the same person for single-member companies).
- A Maltese bank account certified by the local financial authorities.
3. Legal Requirements and Documentation
Depending on how you choose to relocate, you may need:
- A Certificate of Good Standing from the state where your company is incorporated in the US.
- Board resolutions approving the relocation.
- Details of the beneficial ownership of the company.
For companies choosing re-domiciliation, additional documents include:
- A company resolution approving the move to Malta.
- Compliance with Malta’s rules for incorporation documents.
- A provisional certificate of incorporation, with a final certificate issued after six months.
4. Regulatory Compliance
Once your company is registered in Malta, it must follow local regulations, including:
- EU regulatory requirements, such as FATCA compliance.
- VAT registration, if applicable.
- Employer and Employee Registration through Jobsplus (Malta’s employment agency) and Social Security Department. Complying with Maltese employment laws, Anti-Money Laundering (AML) Regulations and Data Protection Regulation (GDPR).
Your relocation application could be denied if there are any unresolved legal or financial issues, or if the company is blacklisted by the Financial Action Task Force (FATF).
5. Banking and Financial Considerations
Important banking and financial steps include:
- Opening a corporate bank account in Malta.
- Managing multi-currency operations.
- Setting up an international banking strategy that works for both US and Maltese requirements.
6. Employment and HR Considerations
For US companies moving staff to Malta, make sure to:
- Review employee contracts and apply for Maltese work permits if needed.
- Set up payroll systems that meet Maltese legal standards.
- Ensure social security contributions are made for both local hires and relocated employees.
How DZ Advisory Can Assist
DZ Advisory specializes in guiding US businesses through their Malta relocation journey. Our services include:
● Initial consultation and feasibility assessment
● Complete relocation strategy development
● Legal and regulatory compliance management
● Banking relationship establishment
● Tax planning and optimization
● Staff relocation support
● Property and office space sourcing
● Ongoing business support services
With our experienced team of professionals and deep understanding of both US and Maltese business environments, we ensure a smooth transition for your business operations.
Next Steps
- Initial consultation: Contact DZ Advisory for a full assessment of your relocation needs.
- Strategy development: Work with our experts to create a tailored relocation plan.
- Implementation: Execute your move with our full support and guidance.
In a nutshell, forming a company in Malta offers a wealth of opportunities for businesses seeking a stable and business-friendly environment in the heart of the Mediterranean. By understanding the legal requirements, tax implications, and regulatory framework, entrepreneurs can navigate the process with confidence and unlock the full potential of this dynamic jurisdiction.
For a brief brainstorming on how to set up a business in Malta read here to understand what it entails before actually setting up the business in Malta.