How to Start a Business in Malta: 6 Steps, One Firm, Zero Gaps

From company registration through to your first annual audit — every step, timeline and cost explained by the firm that handles it all.

Effective corporate tax rate of 5% through Malta’s refund system
Company formation in 5–10 business days with minimum EUR 1,165 share capital
Full EU membership — sell goods and services across the entire single market
English-speaking jurisdiction with 70+ double taxation agreements

Borg Galea & Associates has guided 500+ companies through every stage of the Malta business lifecycle over the past 20 years.

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Andrew Fenech

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Wilfred Sammut

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Why Malta Ranks Among Europe’s Most Practical Jurisdictions

Malta combines a low effective tax rate with full EU membership, making it one of the most practical jurisdictions in Europe for company formation. The headline corporate tax rate is 35%, but through the imputation system shareholders can claim a 6/7 refund on tax paid — bringing the effective rate down to roughly 5%.

Beyond the tax advantage, Malta is an English-speaking country with a legal framework rooted in British commercial law. Company formation typically takes 5 to 10 business days, minimum share capital stands at just EUR 1,165 (of which only 20% needs to be paid up on incorporation), and the country maintains over 70 double taxation agreements covering all major trading partners.

For international entrepreneurs, Malta also offers a stable political environment, a skilled multilingual workforce, and a Mediterranean quality of life that helps with attracting and retaining talent. It is a genuine base for operations, not just a brass-plate jurisdiction.

Ready to explore whether Malta is the right fit? Get a free initial assessment of your setup.

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Six Steps to a Fully Operational Malta Company

This is the complete lifecycle — from choosing a structure through to ongoing annual compliance. Each step links to a dedicated service page with more detail.

Step 1: Choose Your Company Structure

Most international entrepreneurs opt for a Private Limited Company (Ltd). It offers limited liability, straightforward governance and the lowest minimum capital requirement. Alternatives exist for specific situations.

Private Limited Company (Ltd) — EUR 1,165 minimum capital, most common choice
Public Limited Company (PLC) — for companies intending to raise capital publicly
Partnership or branch office — for specific operational needs
Maltese-resident directors recommended for substance and tax purposes

Company Formation Services

Step 2: Register and Incorporate Your Company

Company registration runs through the Malta Business Registry (MBR). The process involves name reservation, preparation of the Memorandum and Articles of Association, document submission and payment of registration fees.

Name reservation — typically within 1 business day via the MBR portal
Memorandum and Articles of Association drafted and signed by shareholders
Registration fee based on authorised share capital (from EUR 85 electronically)
Certificate of Registration issued within 1–3 business days of submission

Company Formation Services

Step 3: Tax Registration and Bank Account

Once your company is incorporated with the MBR, a Tax Identification Number is generated automatically. VAT registration follows if you are making taxable supplies. Opening a business bank account takes longer and requires planning — especially for non-residents.

TIN issued automatically upon incorporation — no separate application needed
VAT registration required when making taxable supplies in Malta
Business bank accounts available at BOV, HSBC Malta and APS Bank (allow 2–4 weeks)
Non-EU citizens typically need a Maltese residence permit to open a traditional bank account

VAT Registration Services Corporate Tax Advisory

Step 4: Set Up Your Books and Payroll

Malta companies must maintain proper financial records from day one. If you hire employees, you also need to register for the Final Settlement System (FSS) and deduct social security contributions monthly.

Monthly bookkeeping to record all income, expenses and transactions
Employer registration (PE number) required before hiring — fully automated online
FS5 monthly payroll returns due within 15 days of each month end
Records must be retained for a minimum of 6 years

Bookkeeping Services Payroll Services

Step 5: Annual Financial Statements and Audit

Every Malta company must prepare annual financial statements. The reporting standard and audit requirement depend on your income level. Companies with income above EUR 250,000 require a full statutory audit under International Standards on Auditing.

Below EUR 50,000 income — basic income and expenditure accounts (due within 3 months)
EUR 50,000–250,000 — GAPSME accounts signed by a warranted accountant (6 months)
Above EUR 250,000 — IFRS financial statements with statutory audit (8 months)
Annual Return filed with MBR within 42 days of your incorporation anniversary

Audit Services Statutory Audit Services

Step 6: Tax Compliance and Optimisation

Malta’s imputation system allows shareholders to claim a 6/7 refund of corporate tax paid when dividends are distributed, reducing the effective rate to around 5%. Proper structuring and timely filing are essential to benefit fully.

Corporate tax return due within 9 months of financial year end
6/7 refund available on distributed dividends — EUR 30,000 back on EUR 35,000 tax paid
70+ double taxation agreements to reduce withholding taxes on cross-border income
New 2025 option: elective 15% final tax rate without imputation for simpler structures

Tax Advisory Services Malta Tax Refund System

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One Firm from Day One Through Every Annual Filing

Starting a business in Malta means dealing with company law, tax authorities, banks and regulators. We handle all of it, so you can focus on building your business.

One Firm for the Entire Journey

From incorporation paperwork through to annual audits and tax filings, you deal with one team who knows your business. No handoffs between separate providers.

Qualified CPAs and Warranted Auditors

Our team holds the professional warrants required under Maltese law. Your accounts, audits and tax returns are prepared by qualified practitioners, not junior staff.

Two Decades of Malta Experience

We have been guiding businesses through the Malta regulatory landscape since the early 2000s. We know the process, the people at the registries and the common pitfalls.

Boutique Attention, Not a Number

As a mid-sized firm, we are large enough to handle complex group structures but small enough to know every client by name. You get direct access to senior professionals.

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Common Questions About Starting a Business in Malta

The standard timeline from application to receiving your Certificate of Registration is 5 to 10 business days, assuming all documents are complete. Name reservation is typically same-day, and the MBR issues the certificate within 1 to 3 business days after submission.

For a Private Limited Company, the minimum subscribed share capital is EUR 1,165. Only 20% (EUR 233) needs to be paid up at the time of incorporation. The remainder can be called up by the directors later.

Yes. There is no requirement for shareholders or directors to be Maltese residents. However, having at least some Maltese-resident directors is strongly recommended to establish substance and ensure the company is considered managed and controlled from Malta for tax purposes.

Malta companies pay corporate tax at 35% on profits. When those profits are distributed as dividends, shareholders can claim a refund of 6/7 of the tax paid. On EUR 100,000 of profit, the company pays EUR 35,000 in tax. After dividend distribution, the shareholder receives a EUR 30,000 refund — resulting in an effective tax rate of approximately 5%.

Traditional Maltese banks (Bank of Valletta, HSBC Malta, APS Bank) generally require physical presence and extensive documentation. Non-EU citizens also need a Maltese residence permit. Allow 2 to 4 weeks for the process. Electronic Money Institutions (EMIs) may offer faster remote onboarding as an interim solution.

It depends on your income level. Companies with income above EUR 250,000 require a statutory audit by a warranted auditor under IFRS. Those between EUR 50,000 and EUR 250,000 need financial statements signed by a warranted accountant under GAPSME. Below EUR 50,000, basic accounts are sufficient.

The main ongoing obligations are monthly bookkeeping, payroll filings if you have employees (FS5 due by the 15th of each following month), annual financial statements, a corporate tax return (due within 9 months of year end), and an Annual Return to the MBR (due within 42 days of your incorporation anniversary). Late filing penalties can reach EUR 2,329 per Annual Return.

Not for company formation itself — this can be handled by a corporate service provider on your behalf. However, opening a traditional bank account typically requires physical presence. For tax purposes, the company should have genuine management and control in Malta, which usually means Maltese-resident directors and a functional registered office.

The standard system charges 35% corporate tax, then refunds 6/7 to shareholders on dividend distribution — yielding an effective 5% rate. The new 2025 elective option allows entities to pay a flat 15% final tax with no refund and no imputation. The 15% option suits businesses that prefer a simpler structure without the need to distribute dividends and claim refunds.

Formation costs (including registration fees and professional assistance) typically run under EUR 2,000. Annual compliance costs depend on your structure and income level: basic bookkeeping and accounting starts from EUR 1,500 per year, while a statutory audit adds further cost depending on complexity. Annual return fees range from EUR 85 to EUR 1,400 depending on your authorised share capital.

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