BRIS GROUP · Company Formation & Taxation
Malta Company Formation FAQ
Guidance on Malta limited companies, share capital, company officers, annual filings, corporate taxation and shareholder refunds.
Before you begin
Frequently asked questions about Malta
Malta is an EU jurisdiction with a standard 35% company tax rate and a shareholder refund system. Understand the incorporation and compliance requirements before planning an international structure.
Company formation in Malta
What is a Malta company?
A Malta company is a legal entity incorporated under the Companies Act (Chapter 386) and registered with the Malta Business Registry (MBR). A private limited liability company is a common form for trading and investment.
What types of companies can be formed in Malta?
Common forms include a private limited liability company (Ltd), public limited company (plc), partnerships and branches of overseas companies. A holding company is generally a company used for holding investments, not a separate incorporation category.
Who can incorporate a company in Malta?
Maltese and foreign individuals or companies can generally hold shares in a Maltese limited company, subject to identity checks, beneficial ownership disclosure and any sector-specific approvals.
How long does Malta company registration take?
MBR registration can be completed promptly once compliant documents are accepted, but document preparation, due diligence, capital arrangements and bank checks can take longer. No fixed processing time is guaranteed.
What documents are required for incorporation?
Typically a memorandum and articles of association, registered office, proposed name, shareholder and director details, company secretary information, share-capital evidence and beneficial-owner declarations. Certified identity and address documents may also be requested.
What is the minimum share capital for a private Malta company?
A private limited company requires minimum authorised share capital of €1,164.69, with at least 20% of the nominal value of each share paid up on incorporation. A public company has a higher minimum of €46,587.47.
Do I need a Maltese-resident director?
A private limited company must have at least one director. Maltese company law does not impose a blanket residency requirement on every director, but tax management, licensing and banking considerations can make local management important.
Does a Malta company need a company secretary?
Yes. A private limited company generally must appoint a company secretary. The secretary is responsible for specified corporate records and compliance duties; eligibility and restrictions depend on the circumstances.
Can a Malta company hold international assets?
Yes. Maltese companies can hold foreign shares, intellectual property and other assets, subject to their constitution, relevant licences, accounting rules and tax obligations in Malta and abroad.
Can incorporation be completed remotely?
Remote coordination may be possible through authorised professionals and appropriate signed or certified documents. Banks and regulators can require additional verification or personal attendance.
How private is company ownership in Malta?
Directors and shareholders are recorded at the MBR, and beneficial ownership must be disclosed under applicable rules. Access to beneficial-ownership information is regulated; complete anonymity should not be promised.
Can I open a corporate bank account in Malta?
A Maltese company may apply to local or foreign banks or payment institutions. Account approval is independent of incorporation and depends on ownership, activity, source of funds and risk checks.
What are the annual compliance requirements?
Companies must maintain accounting records, prepare and file annual returns and financial statements, meet applicable audit requirements, submit beneficial-owner confirmations and file tax and VAT returns where required.
When is the Malta annual return due?
The MBR annual return is made up on the anniversary of incorporation and generally filed within 42 days, alongside any applicable annual beneficial-owner confirmation. Annual accounts have a separate filing timetable.
Why choose Malta for company formation?
Malta offers EU membership, English as an official language and established corporate and tax systems. Assess the 35% company tax, refund eligibility, annual filings, substance and banking before choosing it.
Taxation and ongoing compliance
What is the corporate income tax rate in Malta?
The standard corporate income tax rate is 35% on a Maltese company's chargeable income and capital gains. The company generally pays this tax before any shareholder refund is considered.
Can shareholders obtain a corporate tax refund?
Following distribution of taxed profits, eligible shareholders may claim refunds of part or all of the Malta tax under the imputation system. The commonly cited 6/7 refund can yield an effective 5% burden on qualifying trading profits, but this is not automatic and other refund fractions and restrictions apply.
Are retained earnings taxed?
Yes. Malta generally taxes a company's annual chargeable profits at 35% whether retained or distributed. Shareholder refund claims are linked to distributions and eligibility; retained profits are not automatically untaxed.
How are dividends taxed?
Malta's full imputation system gives shareholders credit for underlying company tax. Dividend withholding and shareholder taxation depend on the recipient, distribution and relevant exemptions; foreign shareholders must consider their home-country tax rules.
Are capital gains taxable in Malta?
Capital gains are generally within Malta's income-tax framework, subject to specific exemptions and rules. Qualifying participation holdings may benefit from an exemption, but not all share or asset disposals are tax-free.
Does Malta have VAT?
Yes. The standard VAT rate is 18%. Reduced rates of 12%, 7%, 5% and 0% apply to specific supplies; exemptions and EU place-of-supply rules also matter.
Does Malta have double taxation agreements?
Yes. Malta has a broad network of tax treaties. Eligibility for relief depends on the treaty, residence, type of income and anti-abuse provisions.
How are holding companies taxed?
Holding companies are not automatically exempt from corporate income tax. A participation exemption may apply to qualifying dividends or gains, subject to the relevant statutory conditions.
Does Malta apply EU tax directives?
As an EU member state, Malta implements relevant EU directives, including measures affecting parent-subsidiary payments and anti-tax-avoidance. Benefits are conditional and anti-abuse rules apply.
Are R&D and investment incentives available?
Certain qualifying research, innovation and investment projects may receive tax credits or support under specific schemes. Eligibility, approval and state-aid conditions must be checked.
Do transfer pricing rules apply?
Yes. Malta introduced formal transfer-pricing rules for qualifying cross-border arrangements from 2024, subject to specified thresholds and exclusions. Not every related-party transaction falls within the same documentation requirements.
Can non-resident companies be taxed in Malta?
A foreign company may be liable for Maltese tax on certain Malta-source income or activities. Tax residence, permanent establishment and applicable treaties determine the position.
Are there stamp duties or transaction taxes?
Duty on documents and transfers may apply to certain share transfers, property transactions and other instruments, subject to exemptions. Ordinary company incorporation also involves MBR registration fees.
Can tax losses be carried forward?
Qualifying trading losses may generally be carried forward, subject to statutory rules and anti-avoidance limitations. Capital losses and other categories can be subject to different restrictions.
Why is Malta used for international tax planning?
Malta combines EU access, a 35% company tax rate, an imputation and refund system and participation exemptions. Actual outcomes depend on distributions, eligibility, substance, compliance and foreign shareholder taxation.
Continue your research
Further guidance
Explore our Malta service page and official company registration and tax guidance.
Official references: MBR — Annual Filings · MTCA — Corporate Tax · MTCA — VAT Rates · Malta Business Registry