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Malta
Company Formation

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Overview

Malta’s most popular entity is the Private Limited Liability Company (Ltd) featuring low paid‑up capital and strong limited liability protections.

Companies often use holding company structures for fiscal efficiency, benefiting from Malta’s generous tax refund and participation exemption regimes. Alternatively, foreign businesses can establish a branch office, which operates as an extension of the parent company.

Highlights

Generous tax refund and participation exemption regimes.

No minimum share capital is required for a branch.

Meeting in the office.

Companies, Holding Structures & Branches

Private Ltd (Ltd) in Malta requires minimum authorized share capital of €1,165, with at least 20% paid-up at incorporation.
A minimum of one director and one company secretary (individual) is required; shareholders can be non‑EU and non-resident.
Standard corporate tax is 35%, but refundable tax credits reduce effective rates to around 5–10% for trading income.
Participation exemption applies for qualifying holdings, with no withholding tax on outbound dividends.
Holding structures (Double‑Malta or holding + trading company) offer net effective tax rates as low as ~5% on distributed profits.
Accounting and audit: full accounts and audits are required annually under Maltese Companies Act and IFRS.
Branch office (sucursal) is not a separate legal entity, requires no capital, but must register within one month and file parent company accounts.
The parent company is fully liable for all branch obligations in Malta.
Holding entity tax benefits include tax‑free dividends and capital gains, no Malta withholding tax, and exemptions from capital gains on share disposals.

Requirements and Procedures

For an Ltd:
  • Ltd formation: Reserve name and prepare Memorandum & Articles.
  • Deposit 20% of €1,165 share capital in a Maltese bank.
  • Obtain director/secretary due diligence and file online via BAROS system.
  • Notarize and submit incorporation documents; receive Certificate of Registration within a few days.
  • Apply for VAT registration (18%), tax, Social Security, and other local registrations as applicable.
  • Holding structure: set up separate holding and trading companies, ensure substance and qualify under participation exemption.
  • Branch setup: board resolution, apostille and translate parent docs, appoint local representative, register branch in Malta Registry within 1 month.
  • Open bank account in Maltese name.
  • Annual obligations: prepare and audit accounts; Ltds refund tax on dividends; branches file parent accounts.
  • Maintain ongoing substance: local directors, registered office, accounting and compliance.

How Charfort can help you?

Advise whether a Ltd, holding‑structure, or branch best suits your strategy.
Reserve company name and prepare required founding documents.
Coordinate Diligence checks and online BAROS submissions.
Manage share capital deposit and bank account setup.
Assist in setting up holding‑trading company structures and substance planning.
Process branch documentation: apostilles, translations, notarial deeds.
Handle VAT, tax, SS registrations, and EORI if required.
Administer accounting, audits, and annual filings per IFRS/Companies Act.
Facilitate refundable tax claim process and participation exemption compliance.
Provide full bilingual support (EN/MT) and ongoing corporate secretarial services.
Business people outside the office.

Frequently asked questions

Everything you need to know about the process.

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