Malta is one of the most appealing countries in Europe to those who want to set up a new company. It offers attractive tax rates such as VAT 18% and an opportunity to work not only on the Maltese market but globally.
Registering a company takes 1—2 weeks and consists of nine steps. Let’s observe the types of companies and the business registration procedure in Malta.
To create a company in Malta, one doesn’t need to be the country’s citizen or live there permanently.
Obtaining residency in the country may bring additional benefits to investors and business people.
Legal entities of this type can be both public and private.
The private one:
A public LLC is a company that doesn’t qualify as private and offers its shares or debentures to people who are not members of the company.
There are two types of partnerships: general and limited.
The general partnership (en nom collectif) is a legal entity where partners are equally responsible for the business. There are also no liability shields: partners can’t protect their assets from legal claims or debts incurred by the business.
A limited partnership (en nom commandite) is a legal entity where at least one person is a general partner with full responsibility over the business, and others have limited liabilities. They only invest in the company but don’t participate in its operations. In case of losses and debts, they lose their money in the amount of the investment they’ve made.
Sole proprietorship is a type of business where one person owns 100% of the company’s shares.
| Conditions | Public LLC | Private LLC | General partnership | Limited partnership | Sole proprietorship |
| Minimum share capital | €46,587.47 | €1,164.69 | None | None | None |
| Required number of partners | 2 or more | 2 or more | 2 or more | 2 or more | 1 |
| Limited liability | Yes | Yes | No | Depends on a partner’s status | No |
| Foreigners can open a company | Yes | Yes | Yes | Yes | Yes |
The business registration process in Malta takes 1—2 weeks and is simpler than in some other European countries. In some countries, like Spain or Italy, setting up a company might take up to 30 days.
Here is a step-by-step guide on how to register your company.
The investor can choose a private or public limited liability company, a general or limited partnership, or a sole proprietorship.
The company name must be unique and free of offensive words. It should also reflect the business activity. In some cases, proof of authorisation is needed to use words like “bank” or “blockchain.”
The Memorandum includes essential details such as the company type, name, registered office address in Malta, share capital, and director information.
The Articles of Association define the company’s internal regulations.
The minimum share capital is:
A confirmation of deposit is required.
Registration is done online via the Malta Business Registry (MBR). The investor must submit:
The registration fee depends on the share capital and submission format. It ranges from €100 to €2,250.
The certificate confirms that the company is legally registered and can operate in Malta.
Some businesses need special licences, depending on the industry. For example, companies that sell groceries need licences, while those that provide repair services don’t.
Licence fees are paid annually.
The Permission to Employ (PE) number is required for hiring employees in Malta. It can be obtained online within a day.
To register for VAT, you will need to fill in an application form and submit it to the Office of the Commissioner for Revenue.
Once the company is officially registered and operations begin, ensure compliance with Maltese regulations. Maintain up-to-date financial records, meet tax obligations, and renew necessary licences on time.
Scaling a company is possible at any time. This may involve optimising operations, expanding the team, securing funding, enhancing digital presence, and exploring new markets.
Re-registration is not required to scale a business. However, significant structural changes or major expansions may require updating the business registration with the MBR.
Malta is an attractive destination for entrepreneurs thanks to its favourable tax policies, efficient company registration, and reliable financial system. With one of the lowest VAT rates in the EU, Malta creates a competitive environment for setting up and growing a company.
Corporate tax in Malta is 35%. However, it can be decreased due to tax refunds that are offered to companies and their shareholders. Business owners can return up to 100% of the paid corporate tax.
Malta has signed double taxation avoidance agreements with 81 countries, for example, with the USA, UK and other countries. It allows investors to avoid paying taxes to both states at total rates.
It takes around two weeks to register a company in Malta. It also can be done both from inside Malta and remotely.
Malta has an open and modern banking system, and it is in compliance with EU regulations.
Malta has one of the lowest value-added tax rates in Europe. It is 18%, while the average VAT rate in the EU is 21.6%. There are also countries like Sweden and Denmark where VAT reaches 25%.
How to benefit from the special tax regime and visa-free access to the Schengen Area with a Malta residence permit
Legal entities in Malta pay three main taxes: corporate tax, VAT and social contributions.
Corporate tax. It is 35%; however, it is possible to decrease it drastically. You can refund 100% of the tax if the profit was gained from a participating holding and the Maltese company owns a share in a foreign company. There is also a possibility of returning:
VAT in Malta is 18%. It is one of the lowest rates among European countries; the lower VAT rates are in Luxembourg and Switzerland only.
Social contributions. Businesses pay 10% of the basic weekly wage of an employee.
Malta has one of the fastest-growing economies in the European Union. Many entrepreneurs choose to open companies there due to many benefits, including tax refunds and short company registration time.
Several industries can be very profitable for those considering starting a business in Malta. All of them require getting a licence to start a business.
Malta is one of the most famous destinations for studying English as it is the official language of the country and 88% of the population speaks it. Thousands of internationals come to Malta to either learn English or study in this language. So, it can be a good idea to start a school to teach English to foreigners.
One of the most thriving industries in Malta is the maritime industry, moving people and goods on water. The reason why it’s successful is that Malta is located in the Mediterranean Sea and has one of the largest seaports there. Investors can start, for example, a company that offers shipping of goods, repair services or renting yachts out.
The financial sector is a fast-growing sector of the Maltese economy. As Malta is a part of the EU, it corresponds to all the standards that are applied to the financial services sector. Malta is well known as a hub for banking, insurance, investment funds, fintech, and blockchain companies.
In 2024, around 3.5 million tourists visited Malta. They usually come to towns like Valletta, St Julians, and Sliema, where there are many tourist attractions, restaurants, shopping centres, etc. Investors set up restaurants, bars, and tourist agencies that offer excursions and other activities.
Malta is one of the countries where it is legal to offer gaming services such as online casinos, lotteries, and sports betting. The country implemented The Remote Gaming Regulations in 2004, and in 2018 it was replaced by the Gaming Act.
Among the popular locations for doing business in Malta are Valletta, the country’s capital, as well as towns like Sliema, St Julians, San Gwann, Mriehel, and Gzira. St Julians and Sliema are popular among tourists, so opening a business connected to tourism there may be profitable. Also, opening a restaurant or a cafe may be worthwhile.
Gzira is a place that houses many iGaming companies. Mriehel, as an industrial area of Malta, is suitable for opening a business that needs a production area or storage facilities.
As a capital, Valletta has favourable conditions for many businesses. There you can find financial, educational, maritime and other companies.
To open a company in Malta, one needs to have a business account in a local bank. To make the process easier and faster, use the following tips.
Look through the banks working in Malta, compare their fees and choose the one that suits you the most. You may consider some of the banks in Malta, like HSBC, Bank of Valletta, Sparkasse or IIG Bank.
You will need the following:
The bank may also require additional documents; ask for the exact list before visiting its office.
Banks can be bustling. Take into account that bank offices in Malta usually work until lunchtime: for example, HSBC works from 8:30 am to 1:30 pm on Monday to Friday and until 0:30 pm on Saturdays. To avoid delays, book an appointment in advance and prepare copies of all your documents.
Investors who want to live and run a business in Malta obtain residency there. One can get a resident permit by investment or obtain citizenship for exceptional services in 1—3 years.
Investors’ close family members may also acquire residency or citizenship in Malta.
Under the Malta Global Residence Programme, MGRP, an investor can obtain a residence permit in 6—8 months. The main requirement is to pay annual taxes according to the specific tax regime.
The 15% rate applies to income that has been received outside Malta and transferred to the country; the minimum payment is €15,000. The 35% rate applies to income and capital growth that appears in Malta. Global income that is not transferred to Malta is exempt from taxation.
Another requirement for obtaining a Malta residence permit is to either buy or rent real estate. The minimum cost depends on the location.
Cost of renting a property in Malta to participate in the GRP:
Cost of a property to purchase:
Besides that, the investor needs to pay an administrative fee of €5,500—6,000.
A Malta residence permit is issued for a year; then, it may be renewed for two years.
Under the Malta Permanent Residence Programme, MPRP, one can obtain Malta permanent residence by investment. The process takes at least 6 months.
An investor needs to fulfil several investment conditions:
The PR status is life-long, and each card is issued for five years. To maintain permanent residence, an investor needs to have a registered address in Malta. However, after five years, there are no price requirements for the bought or rented property.
There is no investment-based path to Malta citizenship. Maltese nationality legislation provides for the possibility of naturalisation in cases of exceptional merit.
The statutory framework recognises exceptional contributions across various areas, such as entrepreneurship, job creation, innovation, science, education, culture, or philanthropy.
Citizenship in Malta can’t be obtained by investment. However, it is possible to get it by naturalisation for exceptional services by direct investment if you maintain residency in the country for 1 or 3 years.
There are several requirements one needs to fulfil:
Before getting citizenship, the investor must obtain a residence permit. It allows living in Malta and applying for citizenship a year or three later.
A Malta passport allows one to live there, stay in other EU states for a long time, and travel visa-free to 169 countries.
Setting up a company in Malta is quite simple. You need to pass the following steps:
The whole process takes 1—2 weeks and can be done remotely.
Yes, a foreigner can open a company in Malta. They need to:
Yes, you can register your company yourself. The whole process takes 1—2 weeks.
Many foreigners choose to register companies in Malta. This country offers attractive tax rates, tax refunds and a short and quite simple process of starting a business.
MBR, or a Malta Business Registry, is a government agency responsible for registering companies and verifying that they comply with all the regulations.
The fee for registering a company in Malta depends on its share capital and whether you register in paper or electronic form. For example, for a business with a share capital of up to €1,500, you need to pay €245 if you apply offline and €100 if you apply online.
Also, some additional costs, such as legal services or bank fees, may occur.
