Establishing a Branch in Malta

Expanding your business globally can open new avenues for growth and opportunities. Establishing a branch in Malta provides businesses with an excellent gateway to the European market, thanks to its strategic location, business-friendly environment, and strong legal framework. If you’re considering setting up a branch in Malta, this guide will help you understand the process and benefits. You will see how E&S Group has the experience and expertise to help you simplify the process. 

Key Points at a Glance: Establishing a Branch in Malta

  • Strategic Location: Malta is a hub between Europe and North Africa, offering easy access to both markets.
  • Favourable Tax System: Competitive corporate tax rates, including 5% on Trading Profits. There are also various tax incentives attract businesses.
  • English-Speaking Workforce: Malta has a highly educated, multilingual workforce for smooth operations.
  • EU and Schengen Zone Membership: Easy access to the European market without trade barriers.

Why Choose Malta for Your Branch?

Malta offers several compelling advantages for businesses looking to establish a presence in Europe:

  1. Strategic Location: Positioned between Europe and North Africa, Malta is an ideal base for companies targeting both regions.
  2. Stable Economy: With a resilient and diversified economy, Malta is a secure choice for business expansion.
  3. Favourable Tax Environment: Malta offers one of the most attractive tax systems in Europe. 5% on trading income and 0% on qualifying holdings. There are also no tax on dividends or any other withholding taxes. .
  4. English-Speaking Workforce: Malta’s educated, multilingual workforce facilitates smooth communication and business operations.
  5. EU and Schengen Zone Member: Access to the European market without trade barriers makes Malta a prime choice for companies looking to expand.

Key Steps to Establishing a Branch in Malta

Establishing a branch in Malta involves several legal and administrative steps. Our team at E&S Group is equipped to guide you through every phase of this process:

  1. Company Name Registration: Ensure that your branch operates under a legally recognized name.
  2. Legal Representation: Appoint a local representative to handle legal and administrative matters on behalf of your branch.
  3. Bank Account Setup: Open a Maltese bank account to facilitate transactions.
  4. Tax and VAT Registration: Register for a Maltese Tax Identification Number (TIN) and VAT number to ensure compliance with local tax laws.
  5. Office Space: Secure a physical office address, which is required for registration purposes.
  6. Compliance with Maltese Regulations: Ensure that your branch adheres to local laws, including annual reporting and auditing requirements.

How E&S Group Can Assist You

Establishing a branch in a foreign jurisdiction can be complex and time-consuming. however, with the right support, it can be a smooth and efficient process. E&S Group, has over 15 years of experience Opening Branches in Malta for our clients. Our qualified Corporate lawyers will offer tailored solutions to ensure that your branch is set up quickly and in full compliance with Maltese law.

Our services include:

  • Company Formation Assistance: Our experienced Lawyers will guide you through every step of forming your branch in Malta. Learn more about our company formation services.
  • Legal Advice: Our team provides expert legal advice on regulatory matters, ensuring your branch is fully compliant.
  • Tax Planning: Benefit from our tax advisory services, designed to optimize your tax position and take advantage of Malta’s favourable tax environment.
  • Ongoing Compliance Support: Once your branch is established, we offer ongoing compliance services to ensure that your branch continues to meet Maltese regulatory requirements.

Benefits of Working with E&S Group

  1. Expertise: With nearly 15 years of experience, our team has in-depth knowledge of Maltese corporate law and business regulations.
  2. End-to-End Solutions: From company formation to ongoing compliance, we handle every aspect of setting up your branch.
  3. Tailored Services: Our approach is client-centric, offering bespoke solutions based on your business’s specific needs.
  4. Cost-Effective: We leverage economies of scale and advanced technology to provide highly competitive fees, ensuring maximum value.

Ready to Establish Your Branch in Malta?

Let E&S Group help you navigate the complexities of setting up your branch in Malta with ease and efficiency. Contact us today to get started.

Looking to set up a full company in Malta instead of a branch? Explore our comprehensive company formation services.

Learn More

Frequently Asked Questions: Establishing a Branch in Malta

1. What is the difference between a branch and a subsidiary in Malta?

A branch is an extension of a foreign company, not a separate legal entity, whereas a subsidiary is a legally independent company incorporated in Malta but owned by the foreign parent company. A branch shares liabilities with the parent, while a subsidiary limits liability to the Maltese entity.

2. What are the tax implications for branches in Malta?

Branches of foreign companies in Malta are subject to Maltese corporate tax on profits generated in Malta. The standard corporate tax rate is 35%, but various tax incentives and refund schemes can reduce the effective tax rate to 5%.

3. Do I need to appoint a local representative for my branch in Malta?

Yes, appointing a legal representative in Malta is required. This person will act on behalf of your branch for legal and administrative matters in compliance with Maltese law. We can assist you with this requirement.

4. What are the minimum capital requirements for establishing a branch in Malta?

Unlike subsidiaries, branches do not have minimum capital requirements. However, they must demonstrate that the parent company is solvent and financially stable.

5. How long does it take to set up a branch in Malta?

The process typically takes 2 weeks, depending on the complexity of your business structure and compliance with regulatory requirements. E&S Group can assist in streamlining the process to minimize delays.

6. Are branches required to file annual reports and audits in Malta?

Yes, branches must file annual financial reports and comply with local auditing requirements. This ensures that the branch adheres to Maltese accounting and reporting standards.

7. Can a branch in Malta employ staff locally?

Yes, a Maltese branch can hire employees locally. You will need to comply with Maltese employment laws, including social security contributions and payroll taxes.

8. How does VAT registration work for a branch in Malta?

Branches must register for a VAT number if they are supplying goods or services in Malta. VAT is set at 18%, but certain exemptions and reduced rates may apply.

9. What documents are needed to establish a branch in Malta?

To register a branch, you’ll need:

  • A certified copy of the parent company’s Memorandum and Articles of Association
  • Proof of registration of the foreign company
  • A resolution from the parent company’s board to establish the branch
  • The branch’s legal representative details

10. How can E&S Group assist with the process?

E&S Group offers end-to-end services to establish your branch, including company registration, legal representation, tax advisory, and compliance support. Our team of experts ensures a smooth and efficient setup process, tailored to your business needs.

Still Have Questions?

Feel free to reach out to us for more information:

Testimonials

“Having E&S as a reliable and trusted firm in Malta handling all the complexities of our corporate operations has been a real pleasure. I would recommend E&S Consultancy to anyone who is seeking the right partner when setting up in Malta”

Eric Benz, CEO of Changelly

“Applying for the MPRP is a complex project but with E&S team, the whole process didn’t seem to be as complex. The team first explained the process and then created a very detailed work activity tracker explaining each activity clearly. The team was very quick to respond to any clarifications and gave us confidence, helping in every step to make the process doable. One of the key areas for E&S’ success in guiding us was the painstaking detailed documentation and steps to be followed. Moreover, the process moved fast, and we got our approval the first time, in one shot. I would strongly recommend E&S for MPRP process as with them, you will get it done successfully and faster than others.  For me, I see the full form of E&S as Efficiency and Success for its clients.”

Rangin Lahiri – CEO & Founder of YVC Europe Ltd

“E&S provides comprehensive, holistic and dedicated professional services related to company incorporation, Advisory, Risk & Compliance, Tax & Legal, Accounting and others. In the past 6 years, I have used most of these services and the company has very competent employees and professionals who understand the scope of the work and seek to deliver excellence in all the tasks they adhere to.

E&S can be considered as a one-stop shop services provider especially for start-ups. I will not hesitate to recommend E&S to others who want to use the professional services they offer due to their service oriented, and high level of professionalism.”

Michael Gatt – Global Gaming Group (CFO)

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About Establishing a Branch in Malta

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