Online casino licensed in Malta (MGA)

Obtaining a Maltese license for online casinos is one of the most attractive and status options for solving the problem of legalization for companies operating in the online gaming business. More about the license: Malta was originally one of the first states in Europe to create favorable conditions for the international gaming business.

With the country's accession to the European Union, the prestige of the country in this area has increased significantly (with the active support of the state). Today, Malta is one of the most accessible jurisdictions for opening a company and doing business, and the Maltese license has become the most authoritative permit document for the online gaming community around the world. It is not easy to obtain a gaming license in Malta, as this process requires significant material and time costs.

More recently, the leadership of the Republic of Malta has created a consolidated organization to control the gaming business - Malta Gaming Authority. This organization is a single licensing authority and issues licenses according to regulated rules within 4-6 months from the date of sending the application to the company.

Benefits of obtaining a Malta license for an online casino:

1. Stable financial and political status of the state as a member of the EU;
2. Good reputation and high level of trust on the part of online casino users;
3. Provision of additional guarantees and protection measures in the gaming business ;
4. The prestige and full legitimacy of such a license (Malta is not an offshore zone in the classical sense);
5. The possibility of obtaining a residence permit in Malta;
6. Attractive tax rates ;
7. A small license fee.

Organizational and legal forms of opening a company:

To obtain a license in Malta, a mandatory requirement is the opening of a Maltese legal entity. The most popular legal form for registering a company in Malta is a private or public limited liability company (LLC), as such a form provides for the establishment of a limit on the liability of its founders.

Interest Rates: Taxes and License Fees

Since the entry of Malta into the European Union, this state can not boast of low tax rates, however, there are some tax loopholes and advantages for foreign investors in the gaming business. Most of the rules and restrictions of this jurisdiction are aimed at protecting the rights of players, which forms the prestige and reputation of this jurisdiction.

Corporate law provides for the placement of the authorized capital of an online gaming company exclusively in Maltese banks on accounts specially created for this.

Corporate tax

Corporate tax in Malta is paid in a fairly large amount - 35% of the company's income. This is the maximum value compared to other states that provide similar licenses.

At the same time, the taxation regime is not rigid and foreign founders who strictly comply with all the requirements for running an online casino business can count on significant discounts and privileges (up to a tax reduction of up to 5%).

In addition to corporate tax, the legislation of the country also provides for the payment of income tax in the amount of 0.5% of the proceeds from the players' bets. A license for online gaming business is issued for a fairly long period of time - 5 years, which is great for long-term investments.

Additional Interest Rate: This is the annual fee charged for the right to host an online gaming business. The amount of the fee depends on the class of the company's license.

To date, the legislation of Malta distinguishes 4 classes of licenses:

• Class 1 - license for online casinos, lotteries, slot machines). Tax: 4,660 euros per month for the first six months, then 7,000 euros per month;
• Class 2 - license for betting (bookmakers, sweepstakes, etc.). Tax: 0.5% of the amount of bets;
• Class 3 - a license for companies that charge a percentage for organizing games of participants against each other (bingo, poker rooms, etc.). Tax: 5% of profit;
• Class 4 - license for hosting and software development for gambling. Tax: No fee for the first six months, €2,330 per month for the next 6 months, €4,660 per month from the second year.

Minimum authorized capital

For the 1st and 2nd class of licenses, the minimum amount of the authorized capital of the company is 100,000 euros.

For the 3rd and 4th class, the lower limit of capital formation is 40,000 euros.

A feature of the Maltese legislation is the following requirement: the authorized capital of a legal entity must be fully formed before applying for a license in the field of online gaming business.

License fees:

• The cost of an application for a license is 2330 euros (non-refundable in case of refusal);
• The annual fee for the license is 8500 euros per year;
• The cost of renewing the license is 1500 euros ( one-time).

Other requirements for obtaining a license:

• Compulsory submission of a detailed business plan, marketing plan, etc.;
• Annual audit of the company's activities;
• Submission of personal data to all founders of a legal entity;
• Mandatory provision of all technical documentation (software licenses, data protection systems, etc.) for audit;
• Mandatory certification according to local standards when using RNG (random number generator).

Notified body (MGA) contacts:

• Responsible Department: Marketing Research and PR
• Address: CCM Building 02-03, Floor 4, Smart City Malta, Ricasoli SCM1001, Republic of Malta.
• Contact number: +356 25469000.
• Reception days: Monday-Friday from 9:00 to 17:00.
• Official website: www.mga.org.mt.

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