Re-domiciliation to Malta

The Continuation of Companies Regulations 2004 allow for a company registered outside Malta in an approved jurisdiction to be “continued” in Malta. What this means is that the said company shifts its seat of registration of its original country of incorporation to Malta, and by doing so, it would be changing its fiscal domicile. Maltese legislation allows for companies from any jurisdictions to be redomiciled to Malta (except from jurisdictions blacklisted by the FATF).

The change of seat of such a company to Malta would in effect mean that all the assets, liabilities, rights and obligations of the original company would remain unaltered since the legal entity per se would remain unchanged.

The advantages that relate to re-domiciling to Malta are various:

  1. The company can be re-domiciled as an International Trading Company and benefit
    from the low effective tax rate of 5%

  2. The company can be re-domiciled as an International Holding Company and benefit
    from a possible Nil effective tax rate under the new participating exemption regime.

  3. The re-domiciled company can benefit from Malta’s extensive treaty network since
    upon the issuance of a Certificate of Continuation it will be deemed to be resident and
    domiciled in Malta.

  4. The re-domiciled company can obtain a valid VAT number in Malta that is recognised
    within the EC for possible intra-community supplies and/or acquisitions, or to apply the
    reverse charge mechanism to the provision of specific services.

  5. The re-domiciled company can benefit from the merger and acquisitions regulations
    contained in the Companies Act 1995, and may be part of a reorganisation exercise with
    other Maltese registered/re-domiciled companies.

 

Prepared By
Peter Griffiths
Partner - Griffiths & Associates

 

DISCLAIMER:

This document contains information for general purposes and does not establish a professional services relationship.

Whilst any reasonable care has been in providing information in it, no responsibility or liability is accepted by Griffiths & Associates for any omissions or actions by any person relying upon information in it. You should always take professional advice before making business or personal financial decisions.