Establish a Branch in Malta

A branch is a form of business preferred by foreign entrepreneurs who want to enter the Maltese market in order to provide goods and services. A Maltese branch is not considered a legal entity, but it must be registered with the Maltese Registrar of Companies. The registration must be performed in a month, at most, after it is incorporated, but for more details and complete support, we recommend you get in touch with our experts in company formation in Malta.

Quick Facts
Applicable legislation	For foreign countries
Best used for	Financial, banking, insurance activities
Minimum share capital	No
Time frame for the incorporation (approx.)	Approx. 5 weeks
Management	Local
Legal representative required	Yes
Local bank account	Yes
Independence from the parent company	No
Liability of the parent company	Yes
Corporate tax rate	35%
Possibility of hiring local staff	Yes
Registration	The branch must be registered with the Malta Business Registry.
Name	The branch's name must match the foreign company's name.
Business activities	The branch can engage in the activities of the parent company.
Reporting	Annual financial statements and other reports are required.
Taxation	The branch is subject to corporate income tax in Malta.
Accounting standards	Prepare financial statements according to International Financial Reporting Standards (IFRS).
Shareholder approval	The parent company's approval is needed to establish a branch in Malta.
Duration	The branch continues as long as the parent company exists.
Legal compliance	Comply with local laws, regulations, and licensing requirements for establishing a branch in Malta.
Intellectual property	Ensure proper protection for trademarks, patents, etc. after setting up a branch in Malta.
Branch address	The branch needs a physical address in Malta.

What are the requirements for opening a branch in Malta in 2025?

International companies can easily establish branches in Malta in 2025, following and respecting the appropriate legal framework. Below you can find important information about branches and incorporation in Malta:

1. The actions and responsibilities of a branch in Malta are taken by the foreign parent-company, alongside the capital and assets.
2. No minimum capital is required upon registration of a branch.
3. Branches established in Malta usually pay the same income tax as the local companies, however, in most cases, tax facilities are granted.
4. The Registrar of Companies in Malta receives the necessary documents for opening a branch in Malta.

Maltese branches activate under the rules of limited liability companies, the proper business structure chosen for most of the business operations in this country. The formalities involved can be completely explained by our team of company formation representatives in Malta to overseas entrepreneurs. If you would like to benefit from complete support for opening a branch in Malta in 2025, please discuss with our specialists and also check this infographic:

Documents for opening a branch in Malta in 2025

Various articles of the Companies Act provide all the necessary regulations that a branch must follow in order to be registered with the Registrar of Companies and start its business activities. The documents and information about the parent company that must be deposited are:

• the authentic copies of the formation deeds, articles, or memorandum of association,
• the form/structure of the company,
• the name and address of the registrar where the company is incorporated,
• a list of the persons in charge of the administration of the foreign company.

The Articles of Association must comprise the name of the branch and its address, the activities which will be performed by the branch, the name and addresses of the branch’s representatives who can be a natural person with residency in Malta. If you need help, our Maltese company formation agents will offer business consulting services for those who want to open a branch in Malta in 2025. Here is a video presentation that explains more:

Branches vs. subsidiaries in Malta

Foreign corporations have two major structures available for registration in Malta: a branch or a subsidiary, depending on their business needs. In comparison, a branch is partially independent and it is an extension of the parent company. As for a subsidiary in Malta, this is an independent legal entity which can be formed under specific conditions: a minimum share capital of EUR 1,165, at least two shareholders and a representative in Malta.

We mention that one of our consultants can act on your behalf and represent your business interests and the Maltese company, with a power of attorney. In matters of taxation, a branch needs to be registered only for VAT purposes, while a subsidiary must register for all tax purposes and submit the annual financial statements. It is important to know that the incomes of branches in Malta are taxed only in Malta, while subsidiaries are taxed on global income. Specific tax exemptions are applicable to branches and subsidiaries if mentioned by the double taxation treaties signed by Malta with countries worldwide.

Overseas investors are the ones who can decide on the type of business structure that suits most to their needs, whether a branch or a subsidiary, and in most cases, the pros and cons of each structure will weigh much in making a decision. In any case, you may request our advice and support if you would like to establish a branch or a subsidiary in Malta in 2025.

Accounting requirements for branches in Malta

Just like any other type of company, branches in Malta need to be registered for VAT and other tax purposes in this country. Submitting the annual financial statements is needed for branches in Malta. We remind you that you can get in touch with our consultants and ask for complete accounting services for your branch in Malta instead of opening an accounting department. It is important to know that if a branch is not the appropriate business form for your activities, and if you want to have a high degree of independence, you can choose to open a subsidiary – a legal entity that acts separately from the parent company and can perform other business activities.

Open a branch in Malta vs. in Montenegro

Businessmen who are interested in extending their business in Europe through a branch office, may find useful this short comparison between setting up a branch in Malta vs. in Montenegro.

Set up a branch in Malta

– Time frame for the incorporation – about 5 weeks;
– Minimum share capital – No;
– Corporate tax rate – 35%.

Set up a branch in Montenegro

– Time frame for the incorporation: approx. 4 weeks;
– Minimum share capital: No;
– Corporate tax rate: 9%.

If you are thinking of choosing Montenegro for your business plans, you can rely on this local team of experts in company formation matters: CompanyFormationMontenegro.com.

Some of the advantages of a branch in Malta

The advantages of owning a branch in Malta are numerous: lower incorporation costs compared to the subsidiary, no withholding taxes on dividends or interest and royalties as well as the benefits for income tax if the foreign company’s country has signed a double tax treaty with Malta, no minimum share capital requirements, the possibility to refund the taxes, etc. Malta has entered into around 70 agreements for the avoidance of double taxation with various countries, providing a protective measure for businesses against being taxed twice.

Additionally, there is higher control for the parent company meaning that many actions of the branch must receive specific approvals from that company. The foreign investors who want to open a branch and also immigrate to Malta or other European countries, such as France, are recommended to get in touch with our local partners specialized in immigration who will help them with the legal issues.

Business updates for Malta in 2025

Malta is one of the highly appreciated business destinations in Europe, with a stable and dynamic economy. Here are some details about the economy of this country and a few updates that concern the business sector of Malta:

• About 5% was GDP growth in Malta in the first 6 months of 2024.
• The Maltese government wants to align with other countries in the world that are implementing a special Artificial Intelligence division. Promoting innovation and implementing the best technologies in all sectors of interest remain the focus of Malta’s government.
• Some changes have been made regarding personal taxation, starting with January 2025. Thus, certain tax brackets have been adjusted.

For more detailed information about the branch and subsidiary in Malta as well as advice for investors, please contact our agents specialized in company incorporation in Malta. We assist in opening a company in Malta and related registration procedures.