We are a team of company incorporation specialists in Malta who offer a wide range of services for local and foreign investors interested in starting a business in this country.
| Quick Facts | |
|---|---|
| Types of companies which can be started by foreigners | Limited liability company Public company |
| Minimum share capital for LTD Company and paid-in requirement | 1200 shares of €1 each – 20% paid up – ie : €240 |
| Minimum number of shareholders for Limited Company | 1 |
| Time frame for the incorporation (approx.) | 1-2 weeks |
| Corporate tax rate | 35% – but refund of 30% to shareholders – net effective tax of 5% |
| Dividend tax rate | – |
| VAT rate | 18% |
| Are shelf companies available? | No |
| Do you supply a registered address? | Yes |
| Local director required | No |
| Annual meeting required | No |
| Redomiciliation permitted | Yes |
| Electronic signature | Yes, but not in all instances |
| Is accounting/annual return required? | Yes |
| Foreign-ownership allowed | Yes, no min. or max. requirement |
| Any tax exemptions available? | – net effective tax of 5% – no dividend income tax – no stamp duty upon transfer of shares – no capital gains and no transfer pricing regulations |
| Tax incentives | Upon repatriation of dividends may be able to get up to 35% tax credit in country of residence |
Types of companies you can register in Malta
The main types of entities available for company formation in Malta are:
- limited liability companies (over 90% of our clients opt for this structure);
- limited partnerships;
- general partnerships.
Each form of business is subject to certain company formation conditions for which our team of company incorporation specialists in Malta can offer complete assistance. As mentioned above most clients choose to open Limited Companies in Malta as these offer important benefits, among which limited liability in relation to the business’s debts and obligations (the liability of shareholders is limited to the amount of share capital).
Partnerships are also simple business structures. They require at least two members who can be individuals or companies and they have full or limited control over the business, depending on the type of partnerships established. From this point of view, it is possible to create general and limited partnerships.
We invite you to watch a video about the procedure of opening a company in Malta:
Steps in opening a company in Malta – 2025 Detailed Procedure
As mentioned earlier, starting a business in Malta is not a complex process, but it does require a step-by-step approach:
Step 1: Due Diligence (for us as Fiduciary and Authorities)
Due Diligence is taken very seriously in Malta therefore be ready to supply the following documents for the incorporation:
- Certified True Copy of Passport;
- Copy of other form of identification (not necessarily certified);
- Utility Bill;
- Professional Reference Letter (from an attorney for example);
- Personal Bank Statements;
- Your CV;
- Tax Return (Previous Year Tax Return);
- Ultimate Beneficiary Owner (UBO) Questionnaire (to be provided by our company and completed by UBO’s)
Step 2: Business Name Registration
The business name needs to be verified with the Maltese Companies Register (it must be unique).
Step 3: Providing to us the Company Profile Form for your Malta Company
This will contain information on:
- Main Activities of your future Maltese company;
- Company Directors;
- Company Secretary;
- Company Shareholders;
- Registered Address;
- Contact information.
Step 4: Depositing the Share Capital
The minimum share capital needs to be deposited (we will provide full assistance for this even if at this point you won’t have a bank account yet).
Step 5: Company Formation Application Finalized & Approved
This step of refers to the overall checking of your documents to make sure they are all in good standing before being sent over in original to Malta.
Step 6: Originals & Forms posted to Malta
All documents required for the formation of your Maltese company will be sent over to our office in Malta to be processed.
Step 7: Filing for incorporation with the Malta Business Registry
Once the company name is reserved and the documents are in good order we proceed with filing with the authorities the final documentation, including company formation application, Memorandum and Articles of Association etc.
Step 8: Approval and Issuance of the Certificate of Registration and VAT Registration Certificate (if applicable).
You can see some examples on how these look here:
Important Note: Depending on your type of activity, a business license/permit could be required, obtainable either before or after the steps above.
Main points in registering a Limited Company in Malta
The private limited liability company is the most employed type of business vehicle in Malta. According to the Maltese Company Act, a private limited liability company must have a minimum share capital of EUR 1,165. However, if the share capital does not exceed the minimum requirements, it must be fully subscribed upon incorporation. If it is over the minimum amount, at least 20% must be deposited at the company registration. The private company is also required to have:
- at least 2 shareholders (a Limited Company with 1 shareholder is possible but will be
named a Single Member Company); - one director,
- one company secretary
- a registered office.
The legislation does not require the company’s directors to be Maltese residents. More details about how to open a business in Malta you can get from our experienced agents. In short the limited liability company can be an excellent option for starting a business in Malta. The formalities are straightforward and our agents can help you start a small business regardless of the chosen industry. Here is some important additional info what you need to know about starting a business in Malta as an LLC:
- The Articles of Association are the main documents of a company in Malta;
- If special licenses and permits are required, our agents can help you;
- All Maltese companies will require an accountant for filings with the Tax Authorities;
- In case you are hiring you will have to have a payroll specialist (we can help with this as
well).
You should definitely consider this simple business form and discuss it with one of our specialists in company formation in Malta. As a bottom line, the incorporation of a company in Malta is a simple process, regardless of the chosen business structure.
How can I incorporate a public LLC in Malta?
Limited liability companies may also be registered as public companies. This type of company is required to have at least two shareholders who will subscribe a minimum share capital of approximately EUR 46,600 of which at least 25% must be paid upon the incorporation of the Maltese company. Compared to the private company, the public company must have at least two directors and may trade its shares on the Maltese Stock Exchange.
Taxes for LLCs in Malta (Low Tax Jurisdiction)
The tax structure for limited liability companies in Malta is appealing to most of the investors from abroad. The corporate tax is set at 35%, but it can be reduced to 5% if an offshore company is created, for example, in Cyprus and it owns shares in an LLC in Malta. One should know that there is no tax imposed for dividends, no licenses fees, and no withholding tax on royalties. The standard VAT is set at 18% and it is applicable to companies in the trading sector in the EU. We invite you to address your inquiries about the taxes for limited liability companies to our team of consultants.
The advantages of setting up a company in Malta
A Maltese limited liability company has several benefits: a fast incorporation, a low corporate tax imposed, an unlimited number of shareholders for public LLCs and an advantageous minimum share capital. Foreign entrepreneurs looking to open a company in Malta can have complete ownership in their firms, complete confidentiality, and an easy registration procedure with the Maltese authorities. Being a cost-efficient business structure in Malta, a limited liability company is the preferred entity for establishing most of the activities in this country.
The tax system in Malta is advantageous for international entrepreneurs. The “full imputation” taxation system involves the profits of companies, which are taxed at the standard rate of 35%. There are also special cases, for example when it comes to dividends distributed to individuals from taxed profits. In this situation, an imputation credit is applied on the tax that has already been paid by the company, which determines a final tax of 5% or even 0% under certain conditions. Thus, there is no double taxation.
Malta continues to be a tax haven, and this is evidenced by several tax exemptions such as: no wealth tax, no withholding tax on dividends, no inheritance tax, and even no annual property tax. Therefore, the offshore structure is often used by foreign investors in Malta. Please note that more information about Maltese company formation fees and taxes can be provided by our local agents.
Costs for forming a company in Malta
Foreign investors interested in opening a business in Malta should consider the approximate costs for starting a business in this country. Here are a few details presented by our firm:
- Registration fee: the standard registration fee is set at EUR 375, but it might vary depending on the chosen city for business.
- Minimum share capital: EUR 1,165 is necessary for opening a private limited liability company and EUR 46,600 for a public LLC.
- Virtual office cost: approximately EUR 125 per month for a virtual office package.
- Company formation fee: approximately EUR 1,350, but a tailored offer can be provided by our team.
- Accounting costs for your company: from EUR 50/month (for a package that contains bookkeeping services, tax advice and many more).
Having a registered address when opening a business in Malta
One of the most important requirements for having a Maltese local business is choosing and registering a legal address with the Trade Register. This address will be used by the authorities for official notifications, but it can also be used by clients and business partners. A Maltese company can have a registered address while also having a different location in which its activities are completed. The legal address of the company must be established before the registration of the business. It must also appear on all the official documents issued by the Maltese company.
Our law firm in Malta can assist with virtual/registered office services which are quick and efficient solutions for having a legal address for the business registration procedure. We invite you to contact us and ask about these services.
Can I receive management services for my company in Malta?
Yes, foreign investors with companies in Malta can receive secretarial services and nominee shareholders on request. Our Maltese company formation representatives can handle the management services and can cater to your needs as a foreign business investor in this state.
We also invite you to contact our team of company formation consultants in Malta for in-depth information and assistance about the services we can provide.