Establish a Subsidiary in Malta

A subsidiary is a legal entity chosen by foreign investors in Malta. The company abroad is separate from the operating company in Malta and the parent company can still control the subsidiary through the owned stock. This article presents information about this business structure, with the mention that entrepreneurs can benefit from the services of our experts in company formation in Malta and related registration procedures.

Facts about subsidiaries in Malta in 2026

The subsidiary is incorporated as a separate Maltese legal entity. This can be done in the form of a limited liability company, either public or private. The parent company abroad partially or totally owns the capital of the subsidiary. A private limited liability company formed in Malta must be incorporated by at least one founder and cannot have more than fifty shareholders. The minimum share capital must consist of at least 1,165 EUR, from which 20% must be paid up before registration. The management is assured by at least one director and at least one company secretary. Shareholders and directors can be local or foreign.

A public limited liability company is formed by at least two founders, and it can have more than 50 shareholders. The minimum share capital is larger than for the private company, at 46,700 EUR, from which at least 25 % must be paid up prior to registration. At least two directors must ensure the company’s management. Please talk to our agents specialized in company formation in Malta for more information about how to set up a subsidiary in Malta in 2026.

Here is an infographic with extra details:

Incorporating a subsidiary in Malta in 2026

In order to incorporate a subsidiary in Malta in 2026, the investor must observe the provisions of the Maltese Companies Act. Both types of limited liability companies are based on a Memorandum of Association that includes the most important information about the newly founded company:

• the name and registered office’s address;
• the type of company;
• the activities performed by the company;
• details regarding the shareholders;
• information regarding the amount of capital;
• the number of shares distributed to each shareholder and their rights;
• details regarding the company directors and secretary;
• period of availability (if any);
• the name and details of the company’s legal representative.

In addition, a bank account must be opened for a Maltese subsidiary in order to deposit the minimum share capital. The desired name must be checked online, and if it’s available, it must be reserved. The Memorandum of Association, along with the decision of opening the subsidiary in Malta, must be delivered to the Registrar of Companies, which will issue a certificate of registration and a registration number.

The last step that must be taken before starting the commercial activities of the Maltese subsidiary is registering for social security and insurance for the company’s employees. Subsidiaries in Malta must observe the same principles for annual accounting and audit as any other company incorporated in the country. The foreign investors who want to open a subsidiary and move to Malta in 2026 or other foreign country can contact our immigration lawyers who can help them. 

We have also prepared a video presentation with information about subsidiaries in Malta: 

Accounting requirements for subsidiaries in Malta

The national accountancy requirements for subsidiaries in Malta are overseen by the Maltese Institute of Accountants and by the Maltese Accountancy Board. Here is what you need to know about the accounting requirements for subsidiaries in Malta:

• first of all, the tax registration number needs to be obtained from the Inland Revenue Department;
• the registered office of the company keeps the accounting records;
• the VAT registration is mandatory for subsidiaries in Malta;
• the VAT returns for subsidiaries in Malta can be made on a quarterly basis.

A balance sheet, profits and loss account, a director’s report and an auditor’s report must reflect the true financial situation of the company. Our experts can help you with professional accounting services in Malta. If you do not want to establish an accounting department for your subsidiary in Malta, you can externalize such services and hire our accounting firm in Malta. Our team of experts is at your disposal if you are interested in accounting services for subsidiaries in Malta.

Differences between subsidiaries and branches in Malta

A subsidiary is an independent structure, it is flexible and can be 100% foreign-owned. In the case of branches in Malta, this is completely dependent on the parent company, or in other words, it is an extension of the company from abroad. In terms of taxation, subsidiaries must register for taxation including VAT, while branches will have to obtain only the Maltese VAT number. Moreover, the taxation of subsidiaries is made on the global income, while branches are levied on the profits registered in Malta. You should respect the formalities of branches and subsidiaries in Malta and align with the requirements involved. Let our team of company formation agents in Malta tell you more about how you can set up a subsidiary or a branch in Malta.

Malta’s economy in a few lines

If you want to invest in Malta and conduct your business in a stable and highly appreciated climate, it means that you have made a wise decision. The following information highlights in a few lines the economic direction of Malta, one of the most solid in Europe:

• Malta recorded an economic growth of almost 5% in 2024. According to estimates, the GDP will grow by 4.5% in 2025 in Malta.
• The inflation rate was 2.5% in 2024 and is expected to decrease to 2.2% in 2025.
• One of the engines of Malta’s economy is tourism. This sector grew by over 21% between January and August 2024, compared to the previous year.

Business updates in Malta in 2026

Do you want to open a subsidiary in Malta, or do you already have one? Here are some business updates to keep you informed:

• Companies can switch from a refund-based model to a combined, “Fiscal Unit” model, attaining a direct 5% effective tax rate.
• The Maltese authorities are set to invest around EUR 100 million for an appropriate implementation of AI tools & technology, plus cyber security measures in the financial field in 2026. Plus, companies established in Malta can access a 175% deduction on R&D operating costs.
• In 2026, subsidiaries in Malta will have to update beneficial ownership data within 14 days of any modification. This also includes share transfers or alterations in control.
• The rules for opening a bank account in Malta in 2026 have been simplified by foreign entities wishing to operate in this market.

Subsidiaries in Malta can be established rapidly in 2026 if all the requirements and conditions are respected, in compliance with the applicable laws. For more information about how you can set up a company in Malta, or this structure, you may contact our local agents for company incorporation in Malta.