How to Register Company in Malta: Essential Steps in 2025

Key Takeaways

• Malta is an attractive destination for company formation due to its strategic location, low corporate tax rates, and a highly educated workforce proficient in English.

• The company registration process in Malta involves selecting the appropriate business structure, preparing necessary documentation, and submitting applications to the Malta Financial Services Authority, typically taking 1-2 weeks.

• Post-registration obligations include acquiring a Tax Identification Number, VAT registration, and adherence to compliance and reporting requirements, which are essential for maintaining legal status and operational integrity.

Why Choose Malta for Company Formation?

Malta’s strategic location in the Mediterranean provides businesses with easy access to European, North African, and Middle Eastern markets, making it an ideal hub for international trade. Additionally, Malta offers a competitive tax system with one of the lowest effective corporate tax rates in Europe, along with extensive Double Taxation Agreements, which significantly reduce the tax burden for businesses. The workforce in Malta is highly educated and fluent in English, making it an attractive option for international businesses.

Malta offers strategic advantages, a favorable tax environment, and a skilled workforce, enhancing business opportunities. The Malta Financial Services Authority (MFSA) plays a crucial role in regulating and overseeing the financial services sector, ensuring a stable and reliable business environment.

The Malta Business Registry (MBR) simplifies the company registration process, allowing businesses to establish themselves easily in the Maltese market. With the support of Malta company formation agents and other corporate service providers, setting up a company in Malta becomes a seamless experience.

EU Membership Advantages

Malta’s membership in the European Union provides businesses with access to a larger market and enhances regulatory compliance. Being part of the EU allows Maltese businesses to operate across member states with reduced barriers, facilitating smoother trade and investment flows.

Furthermore, EU regulations ensure that businesses in Malta benefit from consistent legal standards, making it easier to navigate the regulatory landscape.

Tax Incentives

One of Malta’s most appealing features for businesses is its tax system. The corporate tax rate for companies registered in Malta is 35%. However, shareholders can achieve effective tax rates of approximately 10%, 5%, or even 0% through refund mechanisms, allowing for substantial reductions in the tax burden. Companies in Malta may also benefit from exemptions that can reduce the effective tax rate to 0% on certain income types, such as capital gains or dividend income with a participating holding.

These low effective corporate tax rates, along with favorable refund systems and exemptions, position Malta as an attractive investment destination for foreign investors. The presence of double tax treaties further enhances the appeal, ensuring that tax paid in Malta can be credited against tax liabilities in other jurisdictions, thereby minimizing the risk of double taxation.

Business Environment

Malta offers a robust business environment with excellent IT infrastructure, including satellite technology and fibre-optic cables, which support seamless business operations. The common use of English and Italian in Malta facilitates business communication, making it easier for international companies to establish and run their operations smoothly. Additionally, Malta’s workforce is considered lower-cost and highly qualified compared to the rest of Europe, providing businesses with a competitive edge.

The multilingual workforce in Malta significantly streamlines international business communication, allowing companies to operate and communicate effectively in various languages. This advantageous language environment, combined with a pro-business government and supportive regulatory framework, makes Malta a compelling choice for business formation.

Types of Companies You Can Register in Malta

When considering company registration in Malta, it’s essential to understand the different types of companies that can be established. The most frequently established types of companies in Malta include:

• Private Limited Companies (Ltd)

• Public Limited Companies (PLC)

• General partnerships

• Limited partnerships

• Branches

Each type of company caters to different needs and business objectives, making it crucial to choose the right structure for your specific requirements.

Private Limited Companies are typically chosen for their limited liability protection, while a public company is suited for larger businesses with more shareholders. Partnerships offer flexibility in terms of liability and management structure, making them suitable for various business activities. A private company can also provide similar benefits in terms of liability protection.

Choosing the right type of company is crucial for ensuring compliance and optimizing operational efficiency in Malta’s business environment.

Private Limited Liability Company (Ltd)

A Private Limited Company in Malta is typically restricted to a maximum of 50 shareholders and is not allowed to trade shares publicly, providing limited liability for its shareholders. It requires at least one shareholder and one director for the formation, and a company secretary must also be appointed. Non-EU citizens can serve as company directors in Malta, but it is recommended to have at least 50% local directors for tax benefits. Once established, a private limited liability company must adhere to annual audit and compliance checks to ensure ongoing regulatory adherence.

The registered office can be different from the actual business address, and it’s beneficial to choose a location that is accessible for clients and authorities. This flexibility allows businesses to optimize their operations while maintaining compliance with local regulations.

Public Limited Liability Company (PLC)

Public Limited Companies must maintain a minimum share capital of €46,587.47, and at least 25% of this must be paid up at the time of incorporation. A PLC must have at least two directors and a minimum of two shareholders, with no maximum limit on the number of shareholders. A Public Limited Liability Company (PLC) in Malta is designed for business ventures that intend to raise capital from the public and can have an unlimited number of shareholders.

This structure is ideal for larger businesses looking to expand their operations and attract public investment. The regulatory framework ensures that PLCs operate transparently and comply with stringent reporting requirements, enhancing investor confidence and business credibility.

Partnerships

There are two main types of partnerships in Malta: general partnerships, where partners share unlimited liability, and limited partnerships, where only one partner bears unlimited liability. In a general partnership, all partners share equal responsibility and liability, whereas in a limited partnership, there is at least one partner with unlimited liability and others who have limited liability.

Partnerships in Malta have a distinct legal identity, which allows them to own property and enter into legal agreements independently of their partners. This legal standing means that partnerships can be sued, highlighting their accountability in potential disputes.

Choosing the right type of partnership depends on the specific business activities and the desired level of liability protection for the partners.

Step-by-Step Guide to Company Registration in Malta

Registering a company in Malta involves several crucial steps, starting with selecting a suitable business structure. The process typically includes initial consultation, sending a proposal, calling with a local expert, completing KYC documentation, followed by company formation and registration. A business license and a registered office are required for a company registered in Malta, and every business must have a registered office address. The typical timeframe for company formation in Malta can be as little as 2 days after documents are submitted, depending on the type of company and the timely submission of documents.

After the company formation process is finished, you will obtain a Certificate of Incorporation. Additionally, you will receive a Malta Company Registration number. Utilizing corporate service providers can significantly reduce the workload for businesses, allowing them to focus on core activities.

Here is a detailed step-by-step guide to help you navigate the Malta company registration process in Malta.

Choose Your Company Type

Selecting the right company type is crucial for aligning with business needs and future objectives. Malta boasts a multilingual workforce which can enhance communication and business operations. Having a local director provides management support and valuable government contacts, which can influence the choice of company structure.

The registration of a company by the Registrar provides proof of the company’s existence and authorization to commence business.

Prepare Required Documentation

Essential documents for company registration in Malta are the Memorandum and Articles of Association, and the Certificate of Incorporation. The Memorandum specifies the organization’s name and objectives, while the Articles outline the company’s internal rules and regulations.

The first step in the company registration process is to fill in the company application form and gather due diligence documents.

Minimum Share Capital Requirements

A minimum of €1,164.69 in share capital is required to establish a Private Limited Company in Malta. This amount must be deposited in a bank account under the company’s name, or alternatively, through a company service provider (CSP). The deposit slip submitted to the Registry of Companies serves as evidence of the capital deposit. This occurs during the incorporation process. Limited Liability Companies also require the same minimum share capital, highlighting the need for an initial financial commitment.

Public Limited Liability Companies in Malta require a minimum share capital of €46,587.46, with at least 25% paid up at incorporation to ensure sufficient financial backing for larger operations and public investments.

Submit Application to Malta Financial Services Authority

The submission process to the Malta Financial Services Authority (MFSA) is essential for company registration. Original documents are necessary to register a company online in Malta, and the process usually takes around 2-5 working days. Registration with the MFSA includes paying a fee that varies based on the method of filing, either electronically or in paper format. The disbursement fee for registering a company in Malta is €320.

Accurately completing and submitting all documents promptly can expedite the registration process. Once the application is submitted and approved, the company receives its Certificate of Incorporation, officially recognizing its legal status in Malta.

Obtain Necessary Licenses and Permits

Obtaining the necessary licenses and permits is a critical step for companies engaged in regulated activities. Licenses need to be applied for based on the specific business activities of the company. Companies in specific sectors must obtain relevant licenses or permits to operate legally within Malta. This ensures that the company complies with all local regulations and industry standards.

Companies must apply for the relevant license based on their activities, which may involve additional documentation and adherence to specific regulatory requirements.

Post-Registration Obligations

Once your company is registered in Malta, there are several post-registration obligations to fulfill. A company secretary ensures proper communication between the board, management, and service providers, acting as a corporate governance expert. An individual can serve as a company secretary. However, they cannot hold the position of sole director unless the company is a private exempt entity.

Form BO1 must be filed when a corporate shareholder owns more than 25% of the company, detailing the beneficial owner’s information, including name, date of birth, nationality, country of residence, identification number, and country of issue.

Malta-registered companies must maintain proper accounting records and have audited financial statements. Corporate service providers help companies navigate complex regulations to ensure compliance. Certain appointments as directors in a company can be restricted based on local laws, further emphasizing the need to understand and adhere to regulatory requirements.

Tax Identification Number

Every registered company must acquire a Tax Identification Number (TIN) for tax purposes. The TIN ensures compliance with tax regulations, serving as the company’s unique identifier for tax reporting, corporate tax returns, and claiming tax refunds.

VAT Registration

Companies in Malta must register for VAT within 30 days of making their first supply of goods and services. The requirement to register for VAT is triggered when a company performs an economic activity. There are three types of VAT registration available in Malta, and the appropriate type depends on the nature of the business activities.

To remain compliant, companies must register for taxation and potentially for VAT depending on their business activities. Certain goods and services may qualify for reduced VAT rates, depending on the nature of the supply. Companies are mandated to register for VAT if they engage in taxable activities or exceed specific sales thresholds.

Employment Regulations

Registering with Jobsplus is required for employing people in Malta. It takes three days to obtain a PE number for employees in Malta. A PE number is a unique identification number essential for the employment of staff in Malta. This registration ensures compliance with employment regulations and facilitates the proper management of employee-related obligations.

Setting Up a Registered Office in Malta

Every registered company in Malta must maintain an official office within the country. A registered office must be able to securely receive legal notices and hold statutory documents. Before registration, proof of the registered office address in Malta must be submitted along with identification documents of shareholders and directors. Papilio Services provides registered office spaces for compliance, ensuring that companies meet this legal requirement.

Selecting the right location for your registered office is crucial. Malta’s strategic Mediterranean location offers easy access to European, North African, and Middle Eastern markets, making it an attractive choice for expansion.

The robust business environment in Malta includes a skilled workforce, strong IT infrastructure, and a pro-business government, which enhances the prospects for successful company operations.

Legal Requirements

Companies in Malta can have a registered address or a physical personalized address. If there are changes to the company’s registered office, it is necessary to notify the Registrar of Companies.

A registered office in Malta is legally required for companies operating there.

Choosing a Location

Consider Malta’s excellent transport links, including a well-connected airport and port facilities, which facilitate efficient logistics and accessibility for businesses.

The strategic location and robust business environment make Malta an attractive choice for companies looking to establish a strong presence in the region.

Service Providers

Local firms, such as law or accounting firms, can provide registered office services authorized by the MFSA. Utilizing local corporate service providers is essential for efficiently setting up and maintaining a registered office in Malta.

These providers can assist in establishing and managing registered offices, ensuring compliance with local regulations.

Opening a Bank Account in Malta

While it is not mandatory to open a bank account in Malta when setting up a company, having a local bank account is beneficial for managing transactions smoothly. The length of the bank account opening process can be affected by the completeness of the documentation provided. Properly preparing all necessary documents can expedite the process and facilitate efficient financial management.

Choosing the right bank is crucial for your business needs, impacting financial management and banking services. A careful evaluation of factors such as client acceptance policies, bank structure, and services offered ensures that you select a bank that effectively supports your business operations.

Required Documents

To open a bank account, banks typically require identification, proof of address, and possibly a character reference. Specific identification documents are crucial for verifying your identity and residency. Identification documents confirm the identity of the account holder, proof of address validates the residency, and a character reference can assure the bank of the trustworthiness of the applicant.

Selecting a Bank

Consider key factors like client acceptance, bank structure, and its activities before making your choice. Evaluate the bank’s client acceptance policies, as they can affect your ability to open an account.

A careful evaluation of these factors ensures that you select a bank that effectively supports your business operations.

Alternative Payment Solutions

Alternatives to a local bank account in Malta include various financial services. Payment Service Providers (PSP) serve as a digital alternative to traditional banking methods. Electronic money institutions offer another viable alternative to conventional banks.

Utilizing Payment Service Providers and electronic money institutions can streamline financial operations for businesses in Malta.

Compliance and Reporting Requirements

Compliance and reporting requirements are crucial for maintaining the legal standing of your company in Malta. Companies must register employees with the Department of Social Security to ensure compliance with social security contributions. Companies must also ensure compliance with social security contributions by timely registration.

Maintaining accurate records as per the Maltese Companies Act, including annual returns and financial statements, is essential for legal compliance. Annual reporting obligations include submitting accurate financial statements and maintaining comprehensive record-keeping for compliance.

Adhering to these requirements ensures transparency and accountability in business operations, helping to build trust with stakeholders and regulatory authorities.

Annual Returns

The annual return must be filed within 42 days after registration. Annual returns must also be filed within 42 days after the company’s anniversary date. Annual accounts need to be approved within 10 months following the end of the financial year. They must then be filed 42 days after the approval.

The annual return must be signed by at least one director or the company secretary before submission.

Audited Financial Statements

Financial statements must be verified by a third-party auditor to comply with the legal requirements. Third-party auditors ensure that financial statements accurately reflect the company’s financial position and comply with applicable regulations.

Audited financial statements are essential for maintaining transparency and accountability in business operations. Failure to obtain audited financial statements can lead to legal penalties and damage to the company’s reputation.

Data Protection Compliance

Registered companies must adhere to GDPR regulations for data protection. GDPR, the General Data Protection Regulation, is a critical framework that governs data protection and privacy in the European Union. Compliance with GDPR ensures that companies handle personal data responsibly, protecting the privacy of individuals and building trust with customers.

Redomiciliation and Branch Establishment

Redomiciliation allows non-Maltese companies to maintain their legal identity while moving to Malta. This strategic decision enables a company to keep all its existing assets and liabilities intact. The process involves making a request to the Registrar of Companies in the required manner and form. The laws of the company’s original jurisdiction must allow for continuation of registration for it to be eligible for redomiciliation to Malta.

Establishing a branch in Malta is another option for foreign companies. A branch in Malta is not a legal entity and operates as an extension of the parent company. To operate legally, a branch must register with the Malta Registrar of Companies. This is a necessary step for compliance. Once registered, a branch must notify the Registrar within one month of commencing operations in Malta.

Understanding different rules and regulations is crucial before establishing a branch in Malta.

Benefits of Redomiciliation

Redomiciliation to Malta enables a company to keep all its existing assets and liabilities intact. This strategic decision is beneficial for companies looking to relocate their jurisdiction while maintaining their legal identity and operational continuity.

Process of Redomiciliation

A corporate body must be incorporated under the laws of an approved country with similar regulations to Malta to redomicile. The company must submit a request to the Registrar of Companies following specific guidelines to redomicile to Malta.

The laws of the company’s original jurisdiction must allow for continuation of registration for it to be eligible for redomiciliation to Malta.

Establishing a Branch

A branch in Malta is not a legal entity and operates as an extension of the parent company. It must be registered with the Malta Registrar of Companies to operate legally. After commencing operations in Malta, a branch must notify the Registrar within one month.

If a branch ceases business activities in Malta, it can de-register without needing liquidation. A Malta branch can apply for tax refunds on local tax leakage.

Cost and Timeline for Company Registration

Malta’s business registration process is streamlined, taking approximately 1 to 2 weeks to complete. Typically, setting up a company in Malta takes about 3-5 business days if all documentation is complete. The registration costs for companies in Malta vary based on the authorized share capital, ranging from EUR 245 to EUR 1,750. There is a disbursement fee payable to the authorities during company registration in Malta of €320.

Understanding the cost and timeline for company registration helps in planning and budgeting for the process. Utilizing corporate service providers can help expedite the process and ensure compliance with all regulatory requirements.

Registration Fees

In Malta, the registration fees for companies vary significantly depending on their authorized share capital, ranging from €245.00 to €1,750.00. When registering a company with a share capital up to €1,500, a disbursement fee totaling €320 is required.

The minimum annual government fee for a Malta company with authorized share capital not exceeding €1,500 is €100. Filing the annual return in Malta incurs a fee ranging from €100 to €1,400, depending on the company’s circumstances.

Corporate service providers charge a minimum fee of at least €2,500 for company registration services in Malta.

Timeframe for Incorporation

The time taken to incorporate a company in Malta can be as brief as a few working days after all original documents are submitted. The incorporation duration is affected by the type of company and the promptness of document provision.

Accurately preparing and submitting all necessary documentation can expedite the incorporation process.

Engaging Corporate Service Providers

Engaging corporate services providers helps businesses comply with regulations and minimize overhead costs. These corporate services maximize efficiency and profitability while cutting down on costs.

Corporate service providers offer a range of services, including:

• Company registration

• Bookkeeping

• VAT returns

• Audit coordination

• Business support

• Company service providers

They also provide support for ongoing corporate structuring requirements like bank account applications and international tax planning.

Corporate service providers can save time and minimize errors during the registration process. When selecting a corporate service provider, consider their reputation, experience, and the range of services they offer. A reputable provider ensures your company meets all regulatory requirements and operates efficiently.

Services Offered

Corporate service providers in Malta offer a range of services including bookkeeping, VAT returns, and legal advice. Legal advice is a crucial service offered by corporate service providers, ensuring compliance and regulatory adherence.

CSB Group provides accounting and payroll services to companies in Malta. Coordination of auditing by third-party auditors is a service available for companies to ensure financial transparency.

Choosing a Provider

Engaging corporate service providers can streamline the company registration process and ensure compliance with local regulations. Corporate service providers can save time and minimize errors during the companies register process.

Corporate service providers offer various services, including bookkeeping, VAT returns, and legal advice. When selecting a corporate service provider, consider their reputation, experience, and the range of services they offer.

Summary

In summary, Malta presents a compelling case for business formation with its strategic location, favorable tax incentives, and robust business environment. Understanding the types of companies you can register, the step-by-step process for registration, and post-registration obligations are crucial for a successful setup. Engaging corporate service providers can further ease this journey, ensuring compliance and operational efficiency. Whether you’re a startup or an established business, Malta offers a promising landscape for growth and success. Take the first step towards establishing your presence in Malta and tap into the myriad opportunities this dynamic market has to offer.

Frequently Asked Questions

What are the main types of companies that can be registered in Malta?

Malta primarily recognizes Private Limited Companies (Ltd), Public Limited Companies (PLC), general partnerships, and limited partnerships for registration. Each type serves different business needs and structures.

How long does it take to register a company in Malta?

Registering a company in Malta generally takes about 3-5 business days, provided all documentation is complete and submitted promptly. Delays may occur depending on the type of company being registered.

What are the minimum share capital requirements for a Private Limited Company in Malta?

The minimum share capital requirement for a Private Limited Company in Malta is €1,164.69, which must be deposited in a bank account in the company's name. This ensures compliance with Maltese regulations.

Is it mandatory to have a local bank account when setting up a company in Malta?

It is not mandatory to have a local bank account when setting up a company in Malta; however, possessing one is advantageous for efficient transaction management.

What are the post-registration obligations for companies in Malta?

Companies in Malta must obtain a Tax Identification Number, register for VAT, maintain proper accounting records, file annual returns, and adhere to employment and data protection regulations. Compliance with these obligations is essential for legal operational continuity.