Setting Up a Company in Malta: Administrative Procedures

Published on October 1, 2025 and written by Cyril Jarnias

Malta, a small Mediterranean archipelago at the crossroads of Europe and Africa, is increasingly attracting international entrepreneurs thanks to its favorable tax environment and business-friendly regulatory framework. If you are considering setting up a company in Malta, it is crucial to understand the administrative procedures to follow. This article will guide you through the key steps of the process, highlighting local specifics and the required documents based on the chosen legal structure.

Malta’s Strengths for Entrepreneurs

Before diving into the administrative aspects, it is important to understand why Malta has become a sought-after destination for business creation. The island offers an attractive tax system, with an effective tax rate that can go as low as 5% for international companies. Furthermore, Malta benefits from political and economic stability, a skilled and English-speaking workforce, and a strategic position in the heart of the Mediterranean.

The country has also established a modern and flexible regulatory framework, aligned with European directives, which facilitates cross-border operations. According to data from the Malta Financial Services Authority (MFSA), the number of companies registered in Malta increased by 7% in 2024, demonstrating the country’s growing appeal to foreign investors.

Main Legal Structures in Malta

Before starting the administrative procedures, it is essential to choose the legal structure best suited to your project. Malta offers several company forms, each with its own advantages and constraints:

• The Limited Liability Company (Ltd): Equivalent to the French SARL, it is the most common form for SMEs.
• The Public Limited Company (PLC): Similar to the SA, it is suitable for large companies and allows for stock exchange listing.
• The Single Member Company: Ideal for individual entrepreneurs, it requires only one shareholder.
• The Partnership: Can be a General Partnership or a Limited Partnership.

The Ltd is particularly appreciated by foreign investors for its flexibility and management simplicity. It requires a minimum share capital of €1,165, of which 20% must be paid up upon formation. The PLC, on the other hand, requires a minimum capital of €46,600, making it more suitable for large-scale projects.

The Administrative Process: From Name Reservation to Registration

Setting up a company in Malta follows a well-defined process, supervised by the Malta Business Registry (MBR). Here are the main steps to follow:

1. Company Name Reservation

The first step is to reserve your future company’s name with the MBR. This name must be unique and not cause confusion with existing trademarks. The MBR performs a check and, if the name is available, reserves it for a period of 3 months. This step can be completed online via the MBR portal, which greatly facilitates the process for foreign entrepreneurs.

2. Preparation and Submission of Formation Documents

Once the name is reserved, you must prepare the company’s formation documents. For an Ltd, this mainly includes:

• The Memorandum of Association
• The Articles of Association

These documents must be drafted in English or Maltese and contain precise information about the company’s structure, its business purpose, capital, shareholders, and directors. It is highly recommended to enlist a local lawyer or a specialized firm to ensure these documents comply with Maltese legislation.

3. Deposit of Share Capital

The share capital must be deposited into a Maltese bank account opened in the name of the company in formation. For an Ltd, the minimum required is €1,165, of which 20% (i.e., €233) must be actually paid up. The remainder can be called up later.

4. Registration with the Malta Business Registry

Once all documents are prepared and the capital is deposited, the complete file must be submitted to the MBR. The processing time is generally 2 to 3 business days, making Malta one of the fastest European countries for company formation. If the file is complete and compliant, the MBR issues the certificate of incorporation, marking the official birth of your Maltese company.

Required Documents: A Complete File for Proper Formation

The list of documents required to set up a company in Malta may vary slightly depending on the chosen legal structure, but here are the essential elements for an Ltd:

For Shareholders and Directors

• Certified copies of passports or ID cards
• Recent proof of address (less than 3 months old)
• Criminal record extract or sworn statement of non-conviction
• Detailed CV for each director

For the Company

• Memorandum and Articles of Association
• Registration application form (Form BO1)
• Proof of share capital deposit
• Declaration of Compliance signed by a lawyer or a warranted company secretary
• Beneficial Owner declaration form

It is important to note that all documents in a foreign language must be accompanied by a certified translation into English or Maltese. Additionally, some documents, such as passports or proof of address, must be certified as true copies by a competent authority (notary, lawyer, etc.).

For more complex structures like PLCs, additional documents may be required, including a detailed business plan and proof of the shareholders’ financial capacity.

Post-Formation Steps: Taxation and Legal Obligations

Once your company is registered, several administrative steps remain to become fully operational:

1. Tax Registration

You must register your company with the Maltese tax department to obtain a VAT number and a tax identification number. This step is mandatory, even if your activity is exempt from VAT. The average time to obtain these numbers is about 5 business days.

2. Social Security Registration

If you plan to hire employees, you must register with Jobsplus (the national employment agency) and the social security department. These steps can be completed online and are essential for compliance with Maltese labor legislation.

3. Opening a Business Bank Account

Although you have already opened an account for the capital deposit, it is recommended to open an operational bank account for your company. Maltese banks have become stricter in recent years regarding KYC (Know Your Customer) and anti-money laundering measures. Be prepared to provide detailed documentation about your company’s activity and the source of funds.

4. Appointment of an Auditor

All Maltese companies, regardless of size, are required to appoint a warranted auditor. This auditor must certify the company’s annual accounts, which must be filed with the MBR.

Pitfalls to Avoid and Expert Advice

Setting up a company in Malta may seem simple, but some pitfalls await unprepared entrepreneurs. Here are some points of caution and expert advice to maximize your chances of success:

Underestimating Substance Requirements

Malta has strengthened its rules on economic substance to combat “letterbox” companies. Ensure you have a real presence on the island, with employees, premises, and actual activity. Maltese and European tax authorities closely monitor these aspects.

Neglecting Reporting Obligations

Maltese companies are subject to regular reporting obligations, including the annual filing of accounts and updating beneficial owner information. Failure to comply with these obligations can result in substantial fines and even the striking off of the company.

Poor Understanding of the Tax System

Although Malta offers tax benefits, the system is complex. For example, the corporate tax rate is 35%, but a refund system can bring the effective rate down to 5% for non-resident shareholders. Careful tax planning with the help of local experts is essential to optimize your structure.

Inappropriate Choice of Legal Structure

Do not rush into the Ltd without examining all options. Depending on your activity and objectives, another legal form might be more advantageous. Consult a specialized lawyer to determine the structure best suited to your project.

Conclusion: Malta, an Opportunity to Seize with Caution

Setting up a company in Malta offers numerous advantages for international entrepreneurs, including an attractive tax environment, a stable regulatory framework, and a strategic position in the heart of the Mediterranean. However, the administrative process, although relatively simple, requires careful attention to detail and a good understanding of local specifics.

By meticulously following the steps described in this article and surrounding yourself with competent professionals, you will maximize your chances of success in your Maltese entrepreneurial adventure. Remember that the key to success lies in meticulous preparation and rigorous management of your legal and tax obligations.

Malta continues to attract investors from around the world, with a steady growth in the number of companies registered each year. In 2024, the Malta Business Registry reported a 7% increase in new registrations compared to the previous year, highlighting the island’s persistent appeal to international entrepreneurs.