Incorporate with Confidence Under Maltese Law
Corporation Malta simplifies company formation with a focus on legal compliance. Malta combines location, law, and tax efficiency—making it a strong base for international companies.
✅ Tax Efficiency Support
✅ EU Market-Ready Setup
✅ Compliance with Confidence
✅ Strategic Coordination
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Governing Laws & Regulations
Company formation in Malta is governed by the Companies Act (Chapter 386 of the Laws of Malta). Other relevant legislation includes:
- Income Tax Act: Regulates corporate tax obligations.
- Value Added Tax Act: Applies to companies providing taxable goods or services.
- Malta Business Registry (MBR): Manages company registration and compliance.
- Malta Financial Services Authority (MFSA): Oversees compliance for regulated activities (e.g., financial services).
Note: Sector-specific laws, such as the Malta Gaming Act or Virtual Financial Assets Act, may apply for industries like gaming or blockchain.
Company Types Available
Malta offers several business structures, including:
- Private Limited Company (Ltd): Minimum 1 shareholder, limited liability, ideal for small to medium businesses.
- Public Limited Company (PLC): Minimum 2 shareholders, suitable for public offerings or larger enterprises.
- Holding Company: Used for asset protection, investment management, and tax efficiency via Malta’s participation exemption.
Other Structures: Partnerships (en nom collectif, en commandite) and Trusts are available but less common for foreign investors. All companies require a registered office in Malta and must meet substance requirements (e.g., local presence, employees, or directors) to comply with EU/OECD regulations.
Core Requirements
To incorporate a company in Malta, you need:
- Memorandum and Articles of Association: Outlining company objectives, share structure, and governance.
- Minimum Stakeholders:At least 1 director (no residency requirement, but local directors enhance substance).
- At least 1 shareholder (can be the same as the director; individuals or entities allowed).
- Company Secretary: Mandatory, must be an individual (typically a local professional).
- Registered Office: A physical address in Malta (not a P.O. box).
- Minimum Share Capital:
- Private Ltd: €1,165, with 20% (€233) paid up at incorporation.
- PLC: €46,588, with 25% (€11,647) paid up.
- Share capital can be in any currency (Euro is standard); non-cash contributions require valuation.
Formation Timeline
Incorporation typically takes 2–5 working days after submitting documents to the MBR, assuming no issues (e.g., incomplete forms or name conflicts). Pre-incorporation steps (e.g., document drafting, bank account setup) may extend the total timeline to 1–2 weeks. Expedited services are available for a fee.
Annual Obligations
Companies must:
- File Annual Returns: Submitted to the MBR, detailing shareholders, directors, and share capital (filing fee: ~€100–€600, based on share capital).
- Submit Audited Financial Statements: Required for most companies, except small ones qualifying for abridged accounts (under IFRS or GAPSME).
- Maintain Accounting Records: Kept for 10 years, either in Malta or accessible there.
- Pay Corporate Tax: Flat rate of 35%, with refund mechanisms (e.g., 6/7ths for trading income, 5/7ths for passive income) reducing the effective tax rate to 5%–10% for non-resident shareholders upon dividend distribution.
Additional Notes:
- VAT registration (18% standard rate) is required for taxable supplies in Malta, with thresholds for small businesses.
- Compliance with transfer pricing and country-by-country reporting applies for multinational groups.
- Substance requirements (e.g., local staff, board meetings) are critical to access tax benefits and avoid anti-avoidance scrutiny.
Additional Considerations
- Substance Rules: Malta enforces EU/OECD requirements (e.g., BEPS, ATAD) for economic presence, especially for tax-advantaged structures.
- Tax Developments: The tax regime remains attractive, but large enterprises (turnover >€750M) may face Pillar Two global minimum tax rules. SMEs are typically unaffected.
- Incentives: Schemes like the Nomad Residence Permit or Startup Residence Programme support entrepreneurs relocating to Malta.
For tailored guidance, consult a local corporate service provider or legal expert, as requirements vary by business model.