Deciding to relocate your business to Malta can be one of the smartest business decisions you’ll make. Malta offers not only attractive tax advantages but also an excellent environment for growth and expansion. However, the success of your venture largely depends on the partner you work with.
The market in Malta is flooded with company service providers – unfortunately, not all are reputable and competent. Without the right support, you risk not only legal and financial problems but also significant delays and complications in your business operations.
More and more clients come to me who have been poorly advised. Some providers aim to make quick profits and recommend setting up a company in Malta without actually establishing any real substance there. Worse still, the value creation often continues in Germany German tax authorities do not recognize such structures, which means you remain taxable in Germany. This can lead to high back taxes and even criminal consequences.
Clients also report problems when the transfer pricing documentation between their Maltese company and their German parent company does not meet German requirements.
You are probably wondering how to avoid this. And this time it’s really simple, unlike the other tax topics I write about: Choose a licensed CSP – Company Service Provider.
Company Service Providers licensed by the Malta Revenue Authority are subject to very strict requirements and guidelines, which of course include measures to protect clients like you. Failure to comply with the guidelines can cost the CSP over 25,000 EUR. So, you can understand that a CSP has both intrinsic and extrinsic interest in setting up and recommending a tax-compliant structure for you.
Unfortunately, unlicensed CSP providers are often not interested in advising you correctly but are chasing quick money. Of course, some of our potential clients would also like to hear from me: “Sure, set up a company in Malta, save taxes, even if you live in Germany.” Unfortunately, we often have to disappoint – it just doesn’t work that way. But you will find providers who will go this route with you.
CSP as a Quality Feature
In Malta, the CSP license is a quality feature, much like a GmbH in Germany is seen as an indicator that your company has a certain turnover – which means your company has enough clients.
The Solution: Choose a Licensed CSP in Malta
In this context, I would like to recommend Dr. Werner & Partners (DW&P) to you. As a licensed CSP with years of experience, they offer comprehensive services to ensure that your company formation and management in Malta run smoothly and successfully. DW&P supports you efficiently and on time with all regulatory and compliance-related requirements.
What is a CSP?
Under the company Service Providers Act (CSP Act), anyone offering business services such as company formation, provision of directors or secretaries, and providing registered office addresses must register with the MFSA (Malta Financial Services Authority). The MFSA reviews submitted documents and conducts suitability checks to ensure the applicant has the required competence, integrity, and solvency.
Malta Business Service Provider Regulations
On March 16, 2021, the amended Company Services Provider Act (CSP Amendment Act 2020) came into force, which comprehensively revised the Company Services Provider Rulebook. Company service providers already listed with the MFSA must fully comply with the new rules by September 16, 2021. These changes aim to improve the benchmarks of the financial services industry, regulate CSP behavior, and maintain Malta’s reputation as a reliable financial services center.
New Classification of Company Service Providers
The new classification system divides CSPs into different categories based on the services offered:
- Class A: Authorized to form companies and provide registered office addresses
- Class B: Authorized to provide directors and secretaries
- Class C: Authorized to provide all services of Classes A and B
Subcategories define further specific requirements and restrictions.
Important Changes and Requirements in Malta
The new regulations require CSPs to implement comprehensive risk management processes, appoint an independent risk manager, and maintain a risk register. Additionally, key positions such as Compliance Officer and Money Laundering Reporting Officer must be filled.
How DW&P Supports You
If you are already licensed or recognized by the MFSA, the suitability check is waived, but registration is still required. DW&P assists you with the application process and offers the following services:
- Structuring, legal and regulatory advice
- Support throughout the entire licensing process
- Creation of internal guidelines and procedures
- Ongoing communication with the Maltese authorities
- • Assistance with company formation
- Advice on anti-money laundering (AML) compliance and implementation of effective KYC procedures
Regulatory Consulting
If you are already operating as a company service provider or need support in this area, DW&P offers comprehensive advice on the applicable regulatory requirements.
Compliance Services
Compliance with applicable laws is crucial for every company service provider. Therefore, DW&P’s services include:
- Acting as a compliance officer for your regulated company
- Creation of an annual compliance program
- Assisting with the implementation of policies to identify and mitigate violations
- Ensuring that corporate activities comply with applicable laws and MFSA rules
- Implementing reporting procedures for violations
- Supporting communication with authorities and management in case of serious violations
- Monitoring the feedback provided to the MFSA
- Training your staff on the applicable laws and their relevance to their tasks
- Provision of training for company officers on compliance topics
Conclusion
The decision to relocate your business to Malta is a smart choice that can bring significant benefits. But like any important business decision, it is crucial to have the right partners by your side. The market for corporate services in Malta is large and confusing, and not all providers have your best interests at heart. Lack of substance and inadequate compliance can lead to significant legal and financial problems.
A licensed Company Service Provider (CSP) such as Dr. Werner & Partners (DW&P) ensures that your company formation and management in Malta is legally secure and efficient. DW&P offers not only comprehensive support with all regulatory and compliance-related requirements but also tailor-made services that are precisely tailored to your needs.
By working with a licensed CSP, you ensure that your business structure is tax-compliant and meets all legal requirements. This protects you from high back taxes and criminal consequences, allowing you to focus on the growth and success of your business.
