Moving a business to Malta from the United States

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Malta is one of the best countries for people who want to do business in the Mediterranean region. It has a unilateral tax relief system and double tax treaties with almost every country in the world. This is one of the main reasons why Malta is a favorite for companies involved in international trade.

Malta has a strong telecommunications and financial services infrastructure. Although it is not the largest country, it offers skilled labor at competitive costs. It is politically stable, modern and has a fair legal system.

Here we will go over the various market opportunities available in Malta, visa requirements for citizenship, opening a business and moving your business there:

Market opportunities

The country has excellent information and communications technology connections with the rest of Europe through fiber optic cables and satellite technology. This makes it an ideal location for any cryptocurrency, blockchain, initial coin offering, or iGaming business. These industries are also supported by Malta’s legislative framework which is among the most advanced in the world.

The largest industries in Malta are insurance, communications, banking and software development. Ship registration and repair as well as aircraft maintenance industries have also seen a significant increase. Registration and certification of the drug industry also accelerated after Brexit.

Visa requirement

Any US citizen traveling to Malta does not need to obtain a visa through the US Visa Waiver Program. But if they plan to stay longer than three months, they will need one.

If you plan to work in Malta, you will need to obtain a work visa. It is readily available at the Malta Police Department Immigration Service upon presentation of some basic documents.

There are also programs you might consider, such as the Citizenship Through Investments program. These programs are a shortcut to Maltese citizenship that brings all the benefits of being a citizen of an EU member country.

Open a business

There is a simple process for set up a company in Malta thanks to its business-friendly approach. There are many ways to incorporate your company in Malta including partnerships, limited liability, holding companies or cooperatives. The most common type of company is the limited liability company.

  • To open a business in Malta, you must have a physical address in the country. This could be an office space or the office of your accountants or lawyers.
  • The authorized share capital for opening a limited liability company in Malta is around $1,325. This low capital requirement is another reason why Malta is a great place to open a business.
  • You will not be able to have more than 50 shareholders in your Malta incorporated limited liability company. You will also need to have at least one director and a corporate secretary. It usually cannot be the same person, but there are some exclusions for sole proprietorships.
  • The company will also need to open a bank account in Malta to finalize the incorporation. The bank will have to grant a certification required by the financial authority of Malta before the incorporation formalities are completed.

Moving your business to Malta

Malta also supports the transfer of your business, also known as redomiciliation, as long as your current jurisdiction allows it. Some of the supporting documents required to complete this process include:

  • The company must pass a shareholders’ and directors’ resolution approving the decision to migrate to Malta.
  • All incorporation documents must comply with Maltese law. This can also be done by amendment.
  • The company will need to obtain a certificate of good standing that proves that the company has complied with all requirements of incorporation in its current jurisdiction.
  • A statement from the directors of the company confirming: the current name of the company; its main competence; the decision to move to Malta; that there are no ongoing legal proceedings against the company; and that he has no solvency problems.
  • A complete list of directors and company secretaries.

Once all these documents have been gathered, an application must be submitted to the Companies register in Malta. Once it is approved, you will get a provisional certificate. At that time, the company will remain registered in its home jurisdiction and will be subject to all legal proceedings and obligations in its home jurisdiction. After six months, the final registration certificate will be issued.

There are a number of reasons why requests may be refused, including pending criminal or civil proceedings or creditors limiting the company’s rights. Companies blacklisted by the Financial Action Task Force will also not be approved.

If you are looking for a way to avoid high taxation, Malta can be an ideal place to relocate your business from the United States. It’s an easy-to-understand process, and most companies should have no trouble completing all the formalities within a few weeks.

You now have more than enough reasons why moving your business to Malta would be a good decision and you also have enough clarity on what will be required of your business to complete the process. All you have to do is complete your application and start enjoying the benefits of your new jurisdiction.

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