Keeping a Maltese Company in Good Standing
What's included in this Guide
Everything Malta business owners need to know about statutory obligations, filing deadlines, and avoiding penalties.
Incorporating a company in Malta is straightforward—but maintaining regulatory compliance and good standing requires continuous attention to detail. Non-compliance consequences extend far beyond financial penalties, impacting banking relationships, director eligibility, and operational continuity.
This comprehensive guide consolidates 50+ years of combined expertise from Borg Galea & Associates’ warranted accountants, registered auditors, and legal professionals. Whether you incorporated yesterday or years ago, this resource provides actionable insights into Malta’s regulatory framework.
Navigate Your Compliance Journey
Most Malta company compliance problems stem from misunderstanding, not negligence. Directors assume peer comparisons apply to their structure. Businesses focus on tax while missing statutory obligations. Companies fall behind until recovery feels impossible.
This guide consolidates all our experience at Borg Galea & Associates into your complete roadmap: from incorporation obligations to proper liquidation, everything you need to maintain good standing.
Before addressing tax, identify which Maltese Act governs your company and what obligations arise from registration alone—even dormant companies face mandatory compliance.
You’ll discover:- Companies Act vs Merchant Shipping Act: which applies to you
- Your regulatory authority and reporting obligations
- Annual Returns, BO Forms, and when each is required
- IFRS vs GAPSME framework selection
Critical insight: Registration triggers statutory obligations regardless of activity. Dormancy doesn’t exempt you.
When Your Obligations Actually Come Due
The “10 months and 42 days” rule isn’t universal. Your deadlines depend on incorporation date, year-end structure, and filing method.
You’ll learn:
- Annual Return and BO Form 42-day windows
- Why first-year companies miss their deadline
- Tax filing: manual vs electronic timing
- VAT schedules by Article type
- AGM requirements
The Real Cost of Missing Deadlines
€25 can become thousands within months. Penalties compound faster than most directors realize.
Penalty structure:
- Annual Return: €25 + €0.25 daily (max €2,329)
- BO Form: €500 + €5 daily (max €2,325/year)
- Tax: €50 to €1,500 based on delay
- VAT: 20% + 0.6% monthly interest
When Non-Compliance Paralyzes Your Business
Beyond penalties, non-compliance triggers consequences that can end your ability to operate in Malta.
What happens:
- Directors blocked from holding office anywhere
- Banks close your accounts
- Can’t obtain good standing certificates
- Liquidation becomes impossible
- Future incorporations rejected
When MBR Removes Your Company
Strike-off isn’t liquidation – it creates legal limbo where liabilities persist but the company can’t operate or defend itself.
What you need to know:
- How companies become defunct
- Why struck-off companies retain liabilities
- Director personal exposure
- Court revival process (5-year window)
The Only Legal Way to Close
Abandonment isn’t an option. Three liquidation types exist, each with specific requirements and timelines.
The three types:
- Members’ Voluntary (solvent companies)
- Creditors’ Voluntary (insolvent)
- Court-Ordered (investigation required)
"Is it too late to fix it?" - The most common question.
“The most common question we hear is: ‘Is it too late to fix this?’ It’s rarely too late, but waiting makes it exponentially worse. Every month adds penalties, increases strike-off risk, and limits your options. We’ve restored companies with five years of non-compliance, but the cost multiplies with each passing quarter. If you’re reading this knowing your company isn’t in good standing, the best time to act was yesterday. The second-best time is now, before the MBR sends formal notices or your bank requests documentation you can’t provide.”
Don't Wait for the MBR Notice - Act Now
Every day compounds your penalties and narrows your options. Schedule a free compliance assessment with Borg Galea & Associates. We’ll review your status, outline what’s required, and create a clear path to good standing. Confidential, complimentary, and available within 24 hours.