Corporate tax 35% with shareholder refunds (6/7, 5/7, 2/3) that can reduce the effective rate on distributed trading income to about 5%. The participation exemption may reduce tax on qualifying dividends and capital gains to 0%.
Typical incorporation in 1 to 5 business days once documents are correct.
MBR registration fees start at €245 and scale with authorised share capital; annual return fees are €100 to €1,400. Annual return due within 42 days of the made-up date.
Malta is a popular EU base for holding and operating companies.
Malta company registration is straightforward and affordable under the Companies Act (Cap. 386) and MBR rules.
Why Register a Company in Malta?
1. Favourable Tax Framework
Malta’s 35% corporate rate is offset by refunds to shareholders on distributed profits, which often reduces the effective tax on trading income to approximately 5%.
The participation exemption eliminates tax on qualifying dividends and capital gains from a “participating holding,” provided substance and anti-abuse tests are met.
2. Low Setup and Maintenance Costs
- MBR registration fee: €100 – €2,250 (depending on capital).
- Annual return: €100 – €1,400 (based on authorised capital).
- Annual deadline: File within 42 days after the made-up date.
3. Access to the European Union and Treaty Relief
As an EU Member State, Malta offers passporting within the Single Market and a comprehensive DTA network (70 + agreements – see Ministry for Finance list).
To benefit from treaty and exemption reliefs, businesses must show real substance – local governance, office, or staff where appropriate.
Capital Gains and Withholding: What Actually Applies
| Category | Treatment |
|---|---|
| Immovable property in Malta | Final property-transfer tax generally 8% of value (5%, 10%, 12% in special cases). |
| Shares & securities | Capital gains taxed under the Income Tax Act, but non-resident disposals of shares in companies not mainly holding Maltese property are exempt. |
| Outbound payments | No domestic WHT on dividends, interest, or royalties paid to non-residents, subject to conditions. |
| Participation exemption | 100% exemption on qualifying dividends/capital gains from participating holdings. |
What Types of Companies Can You Register in Malta?
| Type | Core Points |
|---|---|
| Private Limited Company (Ltd) | Between one and fifty shareholders. Transfer of shares can be restricted. Minimum authorised share capital is €1,164.69, with at least 20% paid upon subscription. |
| Public Limited Company (PLC) | May offer shares to the public. Minimum authorised share capital is €46,587.47, with at least 25% paid. Must have at least two directors. |
| Single-Member Company | A private limited company owned by one shareholder. Must specify its principal activity. The same capital rules as for a private limited company apply. |
| Partnership en nom collectif / en commandite | In a general partnership, partners have unlimited liability. In a limited partnership, limited partners are liable only up to the amount of their contribution. |
| Branch of a Foreign Company | Operates in Malta as an extension of the parent company and registers with the Malta Business Registry but is not a separate legal entity. |
| Societas Europaea (SE) / European Economic Interest Grouping (EEIG) | European cross-border structures available for specific business purposes within the EU. |
How to Register a Company in Malta
Step 1: Reserve Your Name
Apply to the MBR to reserve a unique name. A reservation is valid for 3 months.
Step 2: Draft the Memorandum and Articles of Association
The MOA sets the company’s name, registered office, objects, share capital, shareholders, directors, and company secretary. Tailor the Articles for governance.
Step 3: Appoint Directors, Secretary, and Shareholders
A private company needs at least one director and one company secretary. The secretary is generally a natural person (with limited exceptions in practice for licensed providers and special vehicles). No residency or nationality requirement for directors/shareholders under Maltese law.
Step 4: Provide a Registered Office in Malta
This address appears in the MOA and is used for legal notices.
Step 5: Evidence Paid-up Share Capital
Prepare proof of paid-up capital per the MOA (for a private Ltd, 20% of €1,164.69 minimum; for a Plc, 25% of €46,587.47 minimum).
Step 6: File With the MBR
Submit incorporation documents and pay the registration fee (from €245, scaling with capital). Electronic filing via the MBR portal is standard.
Step 7: Receive the Certificate of Incorporation
The MBR issues the certificate once filings are approved.
Step 8: Register for Tax (and VAT, If Applicable)
A company incorporated in Malta is resident and domiciled in Malta for tax purposes from incorporation and must register for income tax; VAT registration depends on activities and thresholds.
If you are comparing international tax systems, see how Hong Kong’s territorial tax regime — with 0 percent on offshore profits and no VAT — differs in our Hong Kong Profits Tax Guide.
Malta Company Registration Costs and Timelines
Understanding the current Malta Business Registry (MBR) fees and processing times helps you plan your setup more efficiently. Company formation costs in Malta remain relatively low compared with other EU jurisdictions, and digital filings make the process fast.
| Item | Details (2025) |
|---|---|
| MBR Registration Fee | Ranges from €100 to €2,250, depending on the authorised share capital and whether the application is filed electronically or on paper. |
| Annual Return Fee | Between €100 and €1,400, based on the authorised share capital declared in the company’s annual return. |
| Incorporation Timeline | On average, one to five business days once all documentation and due-diligence checks are complete. In straightforward cases, the MBR can issue a Certificate of Incorporation within 24 hours. |
Filing electronically with the MBR and preparing documents in advance can help you incorporate in a single business day.
After Incorporation: Ongoing Compliance
- Annual return: File within 42 days each year, pay the MBR fee based on authorised share capital.
- Financial statements: Approve within 10 months after year-end for private companies (7 months for public companies) and file with the MBR within 42 days of approval. Audit is generally required for limited liability companies.
- Beneficial ownership: Keep the Register of Beneficial Owners up to date per Subsidiary Legislation 386.19.
- Tax/VAT: Maintain accounting records, file income tax and VAT returns on time; apply treaty relief where available.
If you plan Asia expansion, Air Corporate can set up your Hong Kong entity alongside Malta. HK offers 0% on offshore profits, no VAT, and fast e-registration.
Common Challenges When Registering a Company in Malta
- Bank account opening: Expect in-depth AML/KYC checks and proof of activity (per FIAU Implementing Procedures).
- Substance: Board control and decision-making should match your tax profile to access refunds and treaty relief.
- Document accuracy: Ensure M&A matches capital, officers, and activities.
- Regulated activities: Obtain licences before trading (financial services, gaming, insurance, etc.).
If you're also considering expanding into Asia, Air Corporate can help you establish your business presence in Hong Kong — one of the world’s top business hubs with 0% tax on offshore profits, no VAT, and a fast online registration process.
Get in touch with our team today and start building your global business with confidence.
FAQs
€245 to €2,250 in MBR registration fees depending on authorised share capital, plus professional fees. Annual return fees are €100 to €1,400.
Usually 1 to 5 business days once the MBR accepts the filing.
Maltese law imposes no residency or nationality requirement for shareholders or directors of private companies.
