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Valetta Branch Officially Joined FChain Corporation

Valetta Branch Officially Joined FChain Corporation

Financial Chain Corporation continues the process of opening to other countries. One more branch of FChain is launched in Valetta (Malta). The branch was registered on February 17, 2022.

What is a branch company? It is a representative office located in the other country not being a separate legal body. It represents a parent company carrying out the same activity under the name of the principal company.

Opening a branch of the company in Malta requires some procedures and documents. First, foreign companies expanding their business need to appoint an authorized representative in the country. Having a registered office is one of the requirements for registration. Companies in Malta choose either traditional or virtual offices. Virtual offices have become more popular in the country, as they are much cheaper than traditional ones.

Companies located abroad have to register the branch with the Malta Registry of Companies delivering the statutory Form M within a month submitting documents about the address the business to be carried out and the activities to be realized, the name and address of the local representative, the scope of representative’s authority, copy of the Memorandum and articles of association, a certificate of good standing by a parent company, branch Charter, the statute of the company, the list of Directors and company secretary.

Upon submission of Form M and all these documents, which can be either original or a certified copy from a notary, the registry fee is paid.

Having registered the branch with the Malta Registry of Companies a balance sheet, profit and loss statements, i.e. audited financial accounts are to be submitted. Besides branches have to be registered for VAT, income tax and social contributions. To carry out financial activities branches should open a business bank account which can be done simultaneously with the registration process or separately.

Branches functioning in Malta usually pay the same income tax as the local companies, but local companies are granted tax facilities in most cases. There are some more advantages opening a branch in Malta: lower incorporation costs in comparison with subsidiaries, no withholding taxes on dividends or interest and royalties, no minimum share capital requirements, the possibility to refund taxes. The best advantage is exemption from income payment if the foreign company’s country has signed a Double Tax Treaty with Malta.

Passing through all these procedures and been registered in the country FChain Valetta gained practice in registration of a branch and will soon start providing a wide range of services, including registration of branches and companies in Malta very soon.