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Company Formation · EU Member · English-Speaking

Set up a company in Malta.

An EU member state with the bloc’s lowest effective corporate tax rate, English as an official language, and a long-established framework for trading, holding, IP and iGaming businesses.

5% Effective CIT
18% VAT
1-3 Weeks to Form
€1,165 Min. Ltd Capital
Capital
Valletta
Currency
Euro (€)
EU Status
Member (2004)
Languages
English / Maltese
Tax Treaties
76+ DTAs
Holding Regime
0% (qualifying)
Quick Answer
How do you set up a company in Malta?

To set up a company in Malta, you choose a legal structure (most commonly a Private Limited Liability Company (Ltd)), prepare the Memorandum and Articles of Association, deposit the minimum share capital, and register with the Malta Business Registry (MBR). You then obtain a Tax Identification Number from the Commissioner for Revenue (CfR), register for VAT, and register for social security with Jobsplus before hiring.

Standard formation takes 1 to 3 weeks for a private Ltd. Minimum share capital is €1,164.69 (with 20% paid up at registration). The headline corporate tax rate is 35% — but Malta’s full imputation system and 6/7ths refund brings the effective rate on trading profits down to roughly 5% for non-resident shareholders, the lowest in the EU.

Grant & Graham manages the entire process — structure advice, registration, banking introductions, tax and VAT setup, and ongoing compliance — through a single senior point of contact.

The Malta Tax System

Headline 35%. Effective 5%. How that works.

Malta operates a full imputation system. The company pays 35% corporate tax upfront. When profits are distributed as dividends, the non-resident shareholder claims a refund. The refund rate depends on the source of the income:

5%
6/7ths Refund
Trading income. The standard route for operating businesses — the lowest effective rate in the EU.
10%
5/7ths Refund
Passive interest or royalties. Used for some IP and finance structures.
6.25%
2/3 Refund
Where the company has claimed double tax relief on the underlying profits.
0%
Participation Exemption
Qualifying holdings (5%+ shareholding, meeting conditions). Dividends and capital gains fully exempt.

FITWI (from 2025): Legal Notice 188 of 2025 introduced an optional Final Income Tax Without Imputation at a flat 15%. Aimed at large multinational groups in scope of OECD Pillar Two (consolidated revenues > €750m). For SMEs and most owner-managed businesses, the traditional 35%/5% refund system remains the better choice.

Why Malta

Nine reasons businesses choose Malta.

An EU member state with the bloc’s lowest effective corporate tax rate, English as an official language, and a global lead in iGaming, fund services and financial services regulation.

01

Lowest effective EU tax rate

Roughly 5% effective on trading income for non-resident shareholders via the 6/7ths refund. The lowest rate in the European Union, fully EU-compliant.

02

English-speaking jurisdiction

English is one of two official languages alongside Maltese. Company law, court proceedings, financial regulation and tax administration all operate in English — unique among EU member states.

03

iGaming & gambling hub

Home to the Malta Gaming Authority (MGA), one of the world’s most respected gambling regulators. Hundreds of online gaming companies are licensed and operated from Malta.

04

Strong financial services

The Malta Financial Services Authority (MFSA) regulates banking, insurance, funds and securities — with EU passporting for credit institutions, EMIs, AIFMs and UCITS funds.

05

76+ double tax treaties

An extensive treaty network covering every major economy, making Malta a credible jurisdiction for cross-border holding, royalty and trading structures.

06

Common law influence

Malta’s legal system is a hybrid of civil and common law — with a British-influenced commercial and contract law tradition that aligns naturally with UK, US and Commonwealth businesses.

07

No withholding tax on dividends

Dividends paid by Malta-resident companies to non-resident shareholders carry no withholding tax — profits flow out of Malta cleanly, without an additional Maltese tax layer.

08

EU single market access

Full EU member since 2004, Eurozone member since 2008 — complete access to the single market for goods, services, capital and people.

09

Strategic Mediterranean location

Halfway between Europe, North Africa and the Middle East — with an open economy, modern infrastructure and time zones that span all three regions.

Choose a Business Structure

Seven legal structures — one usually fits.

For most international businesses entering Malta, the Private Limited Liability Company (Ltd) is the starting point — equivalent to a UK Ltd. Holding structures often use a two-tier setup to access the 6/7ths refund.

RECOMMENDED · LIMITED CO.

Private Limited Liability Company

Limited (Ltd)

The standard structure for trading and holding businesses. Separate legal entity, limited liability. Minimum €1,164.69 share capital with 20% paid up. Minimum one director and one company secretary.

PUBLIC LIMITED CO.

Public Limited Liability Company

Public Limited Company (PLC)

For larger businesses or those intending to issue publicly tradable shares. Minimum €46,587.47 share capital with 25% paid up. Requires at least two directors and a company secretary.

HOLDING / TWO-TIER

Two-Tier Holding Structure

Maltese Holding Co. + Maltese Trading Co.

A classic Malta structure: trading company pays 35%; Maltese holding company receives dividends and claims the 6/7ths refund. The shareholder of the holding company receives the net 5% effective.

PARTNERSHIP

General Partnership

Partnership en nom collectif

Two or more partners with shared, unlimited joint and several liability. Used in some professional services and family business contexts.

PARTNERSHIP

Limited Partnership

Partnership en commandite

At least one general partner with unlimited liability and one limited partner whose liability is capped at their contribution. Used for some fund and joint venture structures.

SOLE TRADER

Sole Trader

Self-Employed

Single owner, no separate legal personality, full personal liability. Simple to register but rarely the right choice for international or multi-stakeholder businesses.

FOREIGN PRESENCE

Branch

Branch of an overseas company

An operating branch of a foreign company. Not a separate legal entity — the parent retains full liability. Registered with the MBR within one month of establishing the branch.

FOREIGN PRESENCE

Representative Office

Liaison / Rep. Office

Limited to marketing, liaison and promotional activities. Cannot trade or conduct commercial transactions in Malta.

NOT SURE?

Talk to us first

Trading Ltd for operating, two-tier for tax-efficient holding, PLC for regulated or listed entities. A 25-minute call usually settles it.

Book a call →
Formation Process

From decision to live entity.

The end-to-end registration sequence for a Maltese Private Limited Liability Company — managed by Grant & Graham, with senior oversight at every step.

01

Reserve a company name

Confirm the proposed name is unique and meets Maltese naming regulations. Name reservation is filed with the Malta Business Registry (MBR).

Malta Business Registry (MBR) →
02

Prepare Memorandum & Articles of Association

Draft the company’s constitutional documents in English — including share structure, director appointments, company secretary, registered office and objects clause.

03

Open a temporary capital account & deposit share capital

Open an initial capital account at a Maltese bank. For a private Ltd, deposit at least 20% of the minimum share capital (€232.94 of the €1,164.69 minimum). The bank issues a deposit confirmation.

04

Register with the Malta Business Registry

Submit the incorporation documents and pay the registration fee. Standard turnaround is 1 to 3 days once documents are in order. The MBR issues a Certificate of Registration and the company’s registration number.

MBR Online Portal →
05

Tax registration (TIN & VAT)

Obtain a Tax Identification Number from the Commissioner for Revenue (CfR). Register for VAT if turnover is expected to exceed the threshold or you make qualifying intra-EU supplies. Malta has three VAT registration categories.

Commissioner for Revenue (CfR) →
06

Operating bank account & banking onboarding

Convert the capital account into a fully operational business bank account. Malta bank KYC is rigorous — expect detailed source of funds and ultimate beneficial owner documentation. G&G coordinates introductions across our banking and EMI network.

07

Industry licences & permits

Check sector-specific licensing — iGaming (MGA), financial services (MFSA), crypto (MDIA), insurance, payments and similar regulated activities all require additional approvals. Plan licensing in parallel with formation where possible.

Malta Enterprise →
08

Employment registrations

Register with Jobsplus before hiring. Register employees with the Department of Social Security. Observe Occupational Health and Safety Authority (OHSA) guidance for workplace conditions.

Jobsplus →
09

Accounting, reporting & ongoing compliance

Set up bookkeeping aligned to IFRS or GAPSME (for SMEs). Prepare annual audited financial statements (mandatory in Malta). File annual returns and tax returns with the MBR and CfR. Maintain ultimate beneficial owner (UBO) records.

Indicative Costs

What it costs to incorporate & run.

All figures are indicative for a standard private Ltd setup with one shareholder and one director. Malta requires statutory audit for almost all companies — budget for it in year-one and ongoing.

One-time setup

Company registration (Ltd)
€245–€1,750
Legal & documentation
€400–€800
Registered office (year 1)
€500–€900
Company secretary (year 1)
€500–€1,200
Banking onboarding
€300–€800
G&G advisory & coordination
from €2,000
All-in setup: from €3,945–€7,450

Excludes the €1,164.69 minimum share capital. MBR fee scales with authorised share capital.

Ongoing monthly / annual

Accounting & bookkeeping
from €200/mo
VAT & tax compliance
from €150/mo
Statutory audit (mandatory)
from €1,800/yr
Registered office & secretary
€1,000–€2,000/yr
Advisory hours (as needed)
€250/hr
Typical monthly run-rate: from €500–€850

Refund claims, fiscal unit elections and substance management handled separately at scoping.

Laws & Regulations

The legal framework to know.

A summary of the core legislation governing companies in Malta — we coordinate with senior Maltese counsel and authorised CSPs where specialist advice is needed.

Corporate Law

  • Companies Act Cap. 386 Laws of Malta
  • Civil Code Cap. 16 Laws of Malta
  • Commercial Code Cap. 13 Laws of Malta

Tax Law

  • Income Tax Act Cap. 123
  • Income Tax Management Act Cap. 372
  • VAT Act Cap. 406 · FITWI (LN 188 of 2025)

Employment Law

  • Employment & Industrial Relations Act Cap. 452
  • Social Security Act Cap. 318
  • Occupational Health & Safety Authority Act Cap. 424

Data Protection

  • Data Protection Act Cap. 586
  • EU GDPR (directly applicable)
  • Information & Data Protection Commissioner IDPC

Financial Services & iGaming

  • MFSA framework Malta Financial Services Authority
  • Gaming Act & MGA regulations
  • Virtual Financial Assets Act MDIA · crypto framework

Intellectual Property

  • Patents & Designs Act Cap. 417
  • Trademarks Act Cap. 597
  • Copyright Act Cap. 415
Frequently Asked Questions

Malta, answered.

How long does it take to set up a company in Malta?
A standard private Ltd is typically incorporated within 1 to 3 weeks from initial scoping. The MBR registration itself takes 1 to 3 working days once documents are in order; the longer end of the range reflects banking onboarding, which Maltese banks treat with rigorous KYC.
What is the minimum share capital for a Maltese Ltd?
The minimum authorised share capital for a private Ltd is €1,164.69, with at least 20% (€232.94) paid up at registration. The remainder remains callable. A PLC requires €46,587.47 minimum, with 25% paid up.
Is the Maltese corporate tax rate really 5%?
The headline rate is 35%, paid upfront by the company. Under Malta's full imputation system, non-resident shareholders are entitled to claim a refund of 6/7ths of the tax paid on trading profits when those profits are distributed as dividends — bringing the net effective rate to approximately 5%. This is fully EU-compliant and has been a stable feature of the Maltese tax code for decades.
What is FITWI and does it affect me?
FITWI (Final Income Tax Without Imputation) was introduced by Legal Notice 188 of 2025. It allows companies to elect a flat 15% final corporate tax rate with no refund mechanism — primarily aimed at multinational groups in scope of OECD Pillar Two (consolidated revenues over €750m). The election binds the company for at least five years. For SMEs and owner-managed businesses, the traditional 35%/5% refund system remains the better choice.
What is a Maltese fiscal unit?
Legal Notice 110 of 2019 introduced the fiscal unit, allowing eligible groups (95%+ ownership) to file a consolidated tax return and pay tax directly at the 5% effective rate — bypassing the upfront 35% / 6/7ths refund cycle. This dramatically improves cash flow for groups with material Maltese profits. Adoption requires careful planning and additional audit work.
Do I need to be a Maltese resident to set up a company?
No. There is no residency requirement for shareholders or directors of a Maltese Ltd. However, Malta banks apply rigorous KYC and many tax structures require demonstrable economic substance — directors, employees, office space and decision-making in Malta. We help clients build appropriate substance into the structure from the start.
Is Malta a good jurisdiction for iGaming?
Yes — Malta is one of the world's leading iGaming jurisdictions. The Malta Gaming Authority (MGA) is a globally respected regulator covering B2C and B2B gaming licences, with EU passporting and a clear licensing path. Combined with the 5% effective corporate tax rate, Malta remains the natural starting point for many online gaming businesses.
Do I need to register for VAT?
Malta operates three VAT registration categories under Article 10, 11 and 12 of the VAT Act. Article 10 is the standard category and is mandatory once taxable turnover exceeds the threshold (€35,000 for most goods, €30,000 for services, with some sector-specific thresholds). Voluntary earlier registration is common where the business will make intra-EU supplies.
What ongoing filings are required?
A Maltese Ltd must file audited annual financial statements with the MBR, file an annual return with the MBR, submit annual corporate tax returns to the CfR, file VAT returns (typically quarterly), file payroll and social security returns via Jobsplus, and maintain ultimate beneficial owner (UBO) records. Statutory audit is mandatory for almost all Maltese companies.
Can Grant & Graham manage the whole process?
Yes. We handle structure advice, name reservation, document drafting (with Maltese counsel and authorised CSP), capital deposit, MBR registration, tax and VAT registration, banking introductions, company secretary, registered office, and ongoing accounting and compliance — through a single senior point of contact. Indicative all-in setup from €3,945 to €7,450.
What other jurisdictions should I compare Malta to?
For low-tax EU operating: Cyprus (12.5% CIT, similar Mediterranean profile), Ireland (12.5% CIT, English-speaking). For holding structures: Luxembourg, the Netherlands. For iGaming: the only meaningful EU comparator. For e-Residency-style remote operation: Estonia (0% retained earnings). We'll help you weigh them against your specific tax, market and operational needs.
How We Work

Four steps from enquiry to live entity.

01 · CONSULT

Discovery call

30-minute conversation to understand your business, tax position, substance plans, and what you actually need from the Maltese entity.

02 · SCOPE

Recommendation

Senior advisory on the right structure (Ltd, two-tier, fiscal unit, FITWI), share split, banking partners, regulator engagement and ongoing compliance. Fixed quote.

03 · INCORPORATE

End-to-end formation

We coordinate the MBR registration, capital deposit, company secretary, registered office, tax registration, banking and any required regulatory licences.

04 · OPERATE

Ongoing support

Retained accounting, audit coordination, VAT, payroll, annual filings, refund claims and substance management. Pillar Two and UBO compliance handled.

Start the Conversation

Ready to incorporate in Malta?

Tell us in 25 minutes what you need. We’ll tell you honestly whether Malta is the right jurisdiction — and if it is, we’ll handle the setup end-to-end.