Malta at a glance
Malta is one of the EU jurisdictions founders most often use today, especially while the EU-wide 28th Regime (EU Inc) is still a proposal. Below are the verified essentials: company types, tax, capital, timing and whether you can set up remotely.
Company types in Malta
- Ltd (private limited liability company) The standard Maltese company by shares: 1 to 50 shareholders, limited liability, with a company secretary and at least one director.
| Corporate tax | 35% headline rate, but Malta’s full imputation system gives shareholders a 6/7 refund on distributed trading profits, bringing the effective rate to roughly 5% for non-resident or foreign-owned trading companies (the refund is lower for passive or royalty income). |
|---|---|
| VAT rate | Standard VAT is 18%, with reduced rates of 12%, 7% and 5%. |
| Dividends & payroll taxes | Malta levies no withholding tax on dividends; the full-imputation system credits company tax to shareholders and the 6/7 refund produces the effective ~5%. Personal income tax tops at 35%, and social security adds about 10% each side of the payroll. |
| Minimum share capital | EUR 1,164.69 (about EUR 1,165) for a private company, of which at least 20% (about EUR 233) must be paid up before registration. |
| Setup time | About 3 to 7 business days; registration with the Malta Business Registry alone can be done in 1 to 2 days, with banking and tax/VAT registration adding time. |
| Remote setup | Yes. Incorporation can be completed remotely, typically within a few working days for EU citizens. |
| Director / residency | No strict residency requirement, but a local director is recommended to keep management and control in Malta. A minimum of one director, one shareholder and a company secretary is required. |
| Banking options | Local bank account opening can be slow and is the main bottleneck; EMIs are commonly used alongside or instead of traditional Maltese banks. |
| Our formation service | from around €100 to €200 (estimated). You get a fixed quote in your free plan before you commit. |
The effective ~5% tax via the shareholder refund makes Malta a popular EU holding and trading base. English is an official language and company law is common-law influenced. Annual audited accounts are mandatory.
How to register a company in Malta
Step by step, this is how a Malta formation actually runs:
- Reserve the name and draft documents. The Malta Business Registry approves the name; the memorandum and articles set the share structure.
- Deposit the initial capital. The minimum EUR 1,164.69 capital needs only 20% paid up, deposited with evidence for the registry.
- File with the Malta Business Registry. Registration usually completes within 3 to 7 working days; KYC runs remotely for foreign founders.
- Register for tax and VAT. Obtain the tax number and VAT registration; structuring matters if you plan to use the shareholder refund system.
- Open banking. Local bank accounts are the slowest step, so EMIs are the practical default alongside or instead of Maltese banks.
We handle each step with licensed local counsel, so the paperwork, registered address and filings are done correctly the first time.
What company formation in Malta costs
Registry fees start at EUR 245 and provider-led setups commonly total EUR 1,000 to 2,000. The annual return costs around EUR 100, and every Maltese company is audited, so accounting plus audit typically starts around EUR 2,000 a year. If you use the 6/7 refund structure, add advisory costs for the two-tier setup.
Form your Maltese company in days
Tell us where you live and what you are building. Our formation service starts from around €100 to €200 (estimated); we confirm the right structure for Malta, give you a fixed quote, and form the company with licensed counsel.
Get your free planWho can form a company in Malta
Founders from outside the EU can own and run a Maltese company, with the cross-border requirements handled for you. We flag any residency or local-agent rule for Malta up front, so there are no surprises.
Malta fits trading and holding companies whose shareholders will actually run the refund mechanism, iGaming and marine/aviation niches, and founders comfortable with audit costs. For a simple low-cost EU vehicle without tax structuring, the audit and advisory overhead usually outweighs the benefit.
After registration: what Malta expects each year
Expect audited financial statements and an annual return to the Malta Business Registry each year, plus the corporate tax return. The refund system only delivers the effective ~5% rate when dividends are actually distributed and claimed correctly, which keeps a Maltese accountant involved permanently. VAT returns are quarterly.
Malta and the 28th Regime (EU Inc)
EU Inc, the proposed 28th Regime, would let you register one company valid across all 27 EU member states. It is not law yet (expected around 2027-2028), so a Maltese company is one of the ready options you can use today. Forming an EU company now also positions you to adopt EU Inc later, as we cover in how to prepare an EU Inc company. To weigh Malta against other countries, see company formation in Europe.