Malta has become one of the most attractive destinations in Europe for entrepreneurs, ranking 4th in the EU for innovative startups two years in a row.  With its central location in the Mediterranean, easy-to-navigate business rules, and great tax benefits, it’s an ideal place to start your company.

Whether you’re launching a new business or expanding an existing one, starting a business in Malta is a smart choice. In this article, we’ll walk you through everything you need to know to get your business up and running in this beautiful gem of the Mediterranean.

Why Starting a Business in Malta is a Smart Choice

Malta offers several advantages for business owners:

• EU membership and access to the single market

• English as an official language

• A stable economy and political environment

• Competitive tax incentives

• A digital-friendly administration, including online services through the Malta Business Registry (MBR)

Whether you’re launching a startup, opening a branch of a foreign company, or setting up a holding structure, Malta provides an efficient and attractive base.

Steps to Follow When Starting a Business in Malta

Starting a business in Malta is a straightforward process, but it does require careful planning and understanding of the legal and administrative steps involved. Below are the key steps you need to take in order to successfully set up your business in Malta:

Step 1: Choosing the Right Business Structure in Malta

When starting a business in Malta, your first step is to decide on a legal structure. The three most common types are:

Private Limited Liability Company (Ltd)

This is the most popular structure. The liability of shareholders is limited to their unpaid share capital, and the company is treated as a separate legal entity. It can be formed by just one shareholder (a single-member company).

Sole Trader

This is a simpler option where you trade under your own name. However, you are personally liable for all debts and obligations.

Partnership (Ennominate, General or Limited)

You can form a partnership with at least one other person. Responsibility and liability vary depending on the type of partnership.

Step 2: Register Your Company with the Malta Business Registry (MBR) When Starting a Business in Malta

To legally set up your business, you’ll need to register with the Malta Business Registry (MBR), the authority responsible for all company formations and filings in the country.

Required Documents

As part of the application process, you’ll need to prepare and submit the following:

• Memorandum and Articles of Association, which must include:

  • Company name and legal form

  • Registered address in Malta

  • Shareholders’ details

  • Business activity description (objects clause)

  • Share capital details

  • Rights attached to different share classes (if applicable)

  • Names of directors and company secretary

  • Legal and judicial representatives

• Lease agreement for the registered office address

• Identification documents (copy of ID or passport) for all shareholders and directors

Proof of Share Capital

You also need to provide proof that the initial share capital has been deposited into a Maltese bank account in the company’s name. The deposit slip or bank confirmation must be submitted along with your application.

Once your documents are ready, you can file everything online via the MBR Online Portal. The registration process is typically quick if your documents are complete and accurate.

Step 3: Naming Your Company in Malta

When starting a business in Malta, your company name must be unique. The MBR will reject names that are:

• Identical or too similar to existing companies

• Misleading, offensive, or inappropriate

You can reserve a company name with the MBR for up to three months during the setup phase. Name reservation can be done online through the MBR Online Portal.

Step 4: Share Capital Requirements in Malta

The minimum capital requirements are:

• Private limited company: €1,165 minimum issued share capital, with at least 20% paid up

• Public limited company (Plc): €46,588 minimum, with at least 25% paid up

The share capital must be deposited into a bank account in the name of the company being formed. The deposit slip is then submitted to the MBR.

Step 5: Appoint Directors and a Company Secretary for Starting a Business in Malta

Directors:

• A private company must have at least one director

• A public company must have at least two directors
  There is no legal maximum.

Company Secretary:

Every company must appoint a company secretary (an individual, not a company). In private exempt companies, one person may act as both director and secretary.

The company secretary ensures compliance with Maltese company law, manages board communication, and handles filings with the MBR.

Step 6: Establishing a Registered Office in Malta

When starting a business in Malta, it is a legal requirement to have a registered office with a physical address in Malta. This address will be used for all official communications from the Malta Business Registry (MBR) and other government authorities. It must be kept up to date with the MBR.

As part of our shared space membership, our clients are entitled to request registered office services to help fulfill this requirement. With this service, you can:

• Use a professional physical address in Malta for your company

• Receive mail forwarding services

• Ensure full compliance with MBR regulations

By utilising the registered office service available for our members, you can easily meet this requirement while focusing on growing your business. Contact us for more details or visit our website for more information on starting a business in Malta.

Step 7: Ensure Ongoing Compliance After Starting a Business in Malta

After starting a business in Malta, you’ll need to comply with annual reporting obligations:

• Annual Return: Submitted every year within 42 days of the company’s registration anniversary. Fees range from €100 to €1,400 depending on the company’s authorised share capital.

• Financial Statements: Companies must file annual accounts, a directors’ report, and (in most cases) an auditor’s report. These must be submitted within 10 months of the financial year-end, plus 42 days.

The format of accounts depends on the size of your company. For more, refer to the MBR guidelines on financial reporting.

Audit Exemptions for Small Companies in Malta

Some companies benefit from simplified reporting or audit exemptions.

Small company status applies if two of the following are met:

• Balance sheet total: €4 million or less

• Annual turnover: €8 million or less

• Average number of employees: 50 or fewer

Micro companies (private companies) may be exempt from audit if two of these are met:

• Balance sheet total: under €46,600

• Turnover: under €93,000

• Employees: no more than 2

Even if exempt from audit, basic financial statements must still be submitted to the MBR.

How Long Does It Take to Open a Company in Malta?

If all documents are in order and your name is approved, starting a business in Malta can take 2 to 5 working days. Delays may happen if there are issues with documentation or name approval.

Applications can be submitted online through the MBR’s online filing system.

Is Starting a Business in Malta Worth It?

Yes—starting a business in Malta is a smart move for entrepreneurs and investors. The country offers:

• Access to the EU market

• Business-friendly laws

• Attractive tax structures (see  Corporate Tax)

• A multilingual, skilled workforce

• Well-regulated financial services

Moving Forward with Starting a Business in Malta

Malta combines opportunity with simplicity. With a straightforward company formation process and efficient support from the Malta Business Registry, launching your business can be smooth and cost-effective.

Take the time to choose the right structure, prepare the proper documents, and understand your obligations. With proper planning and compliance, starting a business in Malta could be your first step toward long-term success in Europe.

CONTACT US

For more details on how CONNECTICLUB can assist with starting a business in Malta or to schedule a tour of our space, feel free to contact us via WhatsApp at +356 77600827 or email us at connect@connecticlub.com.