Subsidiary vs. Branch Office in Malta

A presentation brought to youby Bridgewest.eu

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Why Invest in Malta? >>

• Malta provides a large number of incentives for foreign investors.

• This is the reason why the numbers of foreigners investing in this country have increased significantly in the last years.

• Malta is also a gateway to the European Union for foreign companies from non-EU countries.

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>> Why Invest in Malta?

• Malta is one of the countries that have maintained a stable A or A+ credit rating since its accession to the European Union which gives enterprisers a high sense of security in opening companies.

• The Maltese business legislation and taxation of companies are among the most advantageous in Europe.

• Furthermore, Malta has one of the lowest corporate tax rates and personal income taxes in Europe 

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Expanding your Business in Malta

• In order to have a presence in Malta, foreign enterprises may set up branch offices or subsidiaries in this country.

• Our lawyers in Malta can help you establish the most suited business form for your objectives.

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Differences between Maltese Branches and Subsidiaries >>

• The most important difference between the two types of Maltese business forms is:

the branch office is an extension of the foreign company;

the subsidiary is an independent company.

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>> Differences between Maltese Branches and Subsidiaries

• From a financial point of view, Maltese subsidiaries are required to register for taxation purposes and for VAT and keep their own financial records, while branch offices must only register for VAT in Malta.

• The parent company of a branch office is required to file annual audited financial records with the Maltese Trade Register.

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Registering a Subsidiary in Malta >>

• In order to register a subsidiary in Malta, at least two shareholders are required to deposit a minimum share capital of 1,165 euros.

• If the company has an authorized share capital exceeding the minimum requirement, only 20% of the capital must be deposited.

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>> Registering a Subsidiary in Malta

• The company must also appoint a director and secretary.

• The subsidiary must also have a registered office in Malta.

• It is also advisable to find a local agent or request the services of a law firm in Malta in order to have the Memorandum and Articles of Association of the company drafted.

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Registering a Branch Office in Malta >>

• Both subsidiaries and branch offices must be registered with the Maltese Companies Registry.

• There are several documents that must be submitted in order to open a branch in Malta.

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>> Registering a Branch Office in Malta

• The following documents are required for the registration of a branch office in Malta: a copy of the parent company’s

certificate of registration;

copies of the parent company’s Memorandum and Articles of Association;

a copy of the parent company’s certificate of good standing.

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Legal Assistance in Malta

• Whether you want to set up a branch office or a subsidiary in Malta, our team of Maltese lawyers is at your disposal.

• For further information about the process of opening branch offices and subsidiaries, please contact our lawyers in Malta.

• For more information please contact us at:

  (+44)203-287 0408

office@bridgewest.eu

http://www.lawyersmalta.eu/

Thank you for yourattention!

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