30 Jul Representative offices in Malta
Representative offices cannot carry out commercial activities or generate revenues in Malta, nor register for VAT purposes, but can only carry out study and market research activities. A representative office is a mere administrative organisation and not an independent legal entity.
The authorisation to open a representative office has a limited temporal validity and can be renewed.
Various documents are required so as to open a representative office, these include: notary certified copies of the company registration report, the deed of incorporation, the statute of the foreign company and a letter stating the purposes for the opening of the office and the name of the relevant representative.
The representative offices are required to deposit the annual financial statement of the foreign company with the competent Maltese authorities.
Since a representative office cannot carry out commercial activities, it does not, as a rule, constitute a permanent establishment and, therefore, is not subject to any income tax in the Maltese territory.