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Setting Up a Business in Malta

How to register a company or become self-employed in Malta

Malta is a popular business destination with a competitive tax system and EU membership. Here is the complete process for setting up a limited liability co

1. Choose your business structure

   Most businesses choose a private limited liability company (Ltd). Advantages: limited liability (personal assets protected), credibility, tax efficiency. Alternatives: self-employed (sole trader — simpler but unlimited personal liability), partnership (en nom collectif — unlimited liability), or branch of a foreign company. For most businesses starting in Malta, a private Ltd company is the right choice.

2. Choose and check your company name

   Check name availability at registry.mbr.mt. The name must be unique and cannot be misleading. Names must end in 'Limited' or 'Ltd'. Avoid names that could imply government connection or regulated activities without the relevant licence. Reserve your preferred name to hold it while you prepare documents.

3. Prepare and register the company

   Register online at registry.mbr.mt. You need: Memorandum and Articles of Association (a notary or lawyer can prepare these), identity documents for all directors and shareholders, a registered office address in Malta, and the minimum share capital (€1,164.69 for a private company, at least 20% paid up on registration). Registration fee: approximately €245. Processing time: 1-3 business days.

4. Open a bank account (allow 4-8 weeks)

   This is the most time-consuming step. Maltese banks conduct thorough Know Your Customer (KYC) and Anti-Money Laundering (AML) checks. You will need: a detailed business plan, source of funds documentation, certified copies of company documents, identity and proof of address for all directors and beneficial owners. Banks include Bank of Valletta, HSBC Malta, APS Bank, MeDirect and BNF Bank. Some businesses use payment service providers like Wise or Revolut for Business as a faster alternative.

5. Register for tax and get your Tax Identification Number

   Register with the Malta Tax and Customs Administration (MTCA) at cfr.gov.mt. You will receive a Tax Identification Number (TIN) for your company. Corporate tax rate is 35% but the shareholder refund system reduces the effective rate to approximately 5% on trading income. Annual tax return required by June 30 each year.

6. Register for VAT if required

   VAT registration is mandatory if your annual turnover exceeds €35,000. You can also register voluntarily below this threshold (useful if you have business-to-business clients who can reclaim VAT). Register online at cfr.gov.mt. Malta's standard VAT rate is 18%. Quarterly VAT returns required. First return is due after your first full quarter of trading.

7. Register with Jobsplus if employing staff

   If you plan to hire employees, register as an employer with Jobsplus (jobsplus.gov.mt). You must deduct income tax and social security contributions from employee salaries and pay them to MTCA monthly. Non-EU employees need a Single Permit. All employment contracts must comply with the Employment and Industrial Relations Act (Ch. 452).