A Short Guide to Company Formation in Malta


Malta is one of the EU countries with dynamic and fast-growing economies. From the findings recently made, the country’s labour force has become more competitive, catching up to some of the advanced member states of the EU. 

If you’re interested in starting a business in Malta, there are fewer places more convenient than Malta. Read below to learn how you can get started.

Steps of Malta’s Company Formation Process

Like every other project, starting a new business requires careful planning and making preparations. Here are the steps you can follow to open your business in Malta.

Choose your Business Structure

You should know whether you want to run a sole trader or a limited liability company. If you’re considering a sole proprietorship, reflect on whether a self-employed status may be good for the business. 

A sole proprietorship may provide benefits such as not having to name shareholders or conduct annual audits. Considering a limited liability company; your personal assets may be separated from your business. This means you may enjoy minimum liability for the company’s debts and lawsuits.

A limited liability business also confers that your business operations are serious. This provides a good impression on potential employees, banks, clients, and other business contacts. 

To understand and compare the tax systems for both business types, you need professional advice. By examining them carefully, you may learn which one is more convenient for you.

Make all Necessary Documents to be Drafted

The fundamental rules for your company are established in the articles of association and memorandum of incorporation. You will find information describing the control and distribution of shares, commodities, and assets, and also, details of the roles played by the directors of the company. You need lawyers to prepare and review these special documents.

NB: You can decide not to draft a unique memorandum of association and use a default document provided by the Maltese Company Act.

If you have chosen the limited liability company, follow the steps below:

  • Submit your prepared documents to the Registry of Companies at the Malta Business Registry
  • Make arrangements and deposit the Minimum Share Capital for your company (an LLC in Malta should start with a share capital of €1,164.69.)

Submit Your Registration

You should submit the following documents at this stage:

  • Articles of association & memorandum of association;
  • Receipts that reveal your deposit of the share capital at the bank;
  • The registration form of the company;
  • Application fee, depending on the size of your company. Usually, a Pvt. Ltd. Company pays €245. This fee can however go up by €15 for every €500 in the initial share capital. If you register electronically, you may pay a reduced fee.

Open a Bank Account

In Malta, you’re not strictly required to have a Maltese bank account for your company. While you can use any bank of your choice, it may, however, be convenient to open an account with a local bank. 

Obtain a Trading License

Since the year 2017, only a few businesses need to have a trading license in Malta. To know more information on trading licenses you need to visit the Maltese government website. The department of commerce publishes a list of activities and the corresponding regulatory authorities. If your business is related to food services, selling commodities in open spaces, or door-to-door in homes you definitely require a permit. 

Know your register and VAT status

Some thresholds are provided to determine if your company should charge VAT or not. The thresholds depend on the nature of your business; whether you provide low-value-added services, supply goods, etc.

Here are the thresholds to the VAT question. 

If your annual turnover is:

  • Below €10,000 – you may not charge VAT;
  • Above €35,000 – you have to charge VAT;
  • Between €10,000 & €35,000 – depends on several factors.

Please note: VAT registration is compulsory, whether your annual revenues meet the declared threshold or not.

Register your Business with the Maltese Income Tax Authorities

By law, all businesses in Malta should register with the country’s tax authorities. After registering, you may obtain your Tax Identification Number. The Tax Identification Number is required when filling the first tax return of your business.

Application for a PE Number (if you have employees)

You have to apply for a PE Number, which is the identifier that’s tied to your payroll contributions in support of the country’s healthcare system. 

Overall Details Required for Company Formation in Malta

The following should be provided as part of the memorandum of association:

  • Original and non-offensive company name;
  • Company status (privately or publicly traded);
  • A registered business address;
  • The business’s object and trading activities;
  • List of all shareholders and their details (e.g., full names, passport numbers, and addresses);
  • The authorized share capital and the amount that has been issued;
  • The list of directors and their details;
  • Name of the secretary of the company.

The information provided in this short guide can help you to get started with company registration in Malta. However, for more information, contact Maltese lawyers.