Company Formation in Malta

Company registration in Malta is carried out through the Malta Business Registry (MBR) in accordance with the Companies Act (Cap. 386). Since March 2025, registration has been fully available in electronic format through the BAROS system — original documents are not required, and scanned copies are accepted.

The main stages of registration include: choosing a company name and reserving it with the MBR; preparing the Memorandum of Association and Articles of Association; depositing the minimum share capital into a bank account in Malta; submitting the full set of documents to the MBR through the BAROS system; receiving the Certificate of Registration; registering with the tax authorities and obtaining a VAT number.

Each company is required to appoint at least one director and one company secretary. The secretary must be a natural person. If the company has only one director, that director cannot simultaneously serve as the secretary. Both natural and legal persons may serve as directors and shareholders, with no restrictions on the citizenship or tax residency of founders and officers. The company must also have a registered office in Malta — this address is used for official correspondence and legal notifications.

Malta applies a standard corporate income tax rate of 35%. However, thanks to the full imputation system, the effective tax rate on distributed profits can be reduced to 5%. Upon distribution of dividends, shareholders are entitled to a refund of part or all of the tax paid by the company.

Since September 2025, Malta has introduced an alternative tax regime — a 15% Final Income Tax. Under this regime, the company pays a fixed 15% without the possibility of a refund. The regime applies for a minimum of five consecutive years.

The standard value-added tax (VAT) rate in Malta is 18%, which is one of the lowest rates in the European Union. Mandatory VAT registration is required when annual turnover exceeds EUR 35,000. Additionally, Malta provides reduced VAT rates for certain categories of goods and services: 7% for hotel accommodation and 5% for a range of essential goods, including electricity, printed publications, and medical equipment.

Malta is a party to an extensive network of double taxation avoidance agreements (DTA) — with more than 70 countries. This allows companies registered in Malta to minimise their tax burden when conducting cross-border activities and receiving income from abroad.

The process of registering a new company in Malta typically takes 3 to 5 business days, provided that a complete set of correctly prepared documents is available. After registration, the company is required to file an Annual Return with the MBR within 42 days of the registration anniversary date. The company must also maintain accounting records in accordance with International Financial Reporting Standards (IFRS) and undergo an annual audit if it exceeds the established thresholds for revenue, assets, or number of employees.

Certain types of activities — in particular, gambling, insurance, investment, and financial services — require obtaining a special licence from the relevant regulator (MFSA or Malta Gaming Authority) before commencing operations.