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A Malta company is almost always a private limited liability company registered with the Malta Business Registry (MBR) under the Companies Act (Cap. 386), its name ending in “private limited company”, “limited” or “ltd.”. Malta is an EU member state, so the company can register for VAT and falls within the Parent-Subsidiary and Interest and Royalties Directives as well as more than 70 double taxation agreements in force. Owners use it as a trading company, a holding company under the participation exemption, and the licensed entity for activities supervised by the Malta Gaming Authority or the Malta Financial Services Authority (MFSA).
There is no Maltese offshore company. Under article 2 of the Income Tax Act, a company incorporated in Malta from 1 July 1994 onwards is resident there wherever its board sits, and it is taxed on its worldwide income and gains.
| Form | Key rules | Typical use |
|---|---|---|
| Private limited liability company (Ltd) | Authorised share capital of at least EUR 1,164.69 with a fifth of each share paid on signing; one director and a company secretary; no more than fifty members; share transfers restricted by the articles | Trading, holding and service companies; the form sold ready-made |
| Single member company | A private company with exempt company status whose objects name its main activity; its sole director may also be the secretary | One owner holding every share |
| Public limited company (p.l.c.) | Authorised share capital of at least EUR 46,587.47 with a quarter of each share paid; two directors or more | Companies offering shares or debentures to the public |
Filing through BAROS, the capital deposit and the founder’s documents are explained on our page on Malta company formation.
| Item | Rule |
|---|---|
| Corporate income tax | 35 cents in every euro of chargeable income, on worldwide income and capital gains |
| Refund on distributed trading profits | Six-sevenths of the tax, claimed by a shareholder registered for refunds, which leaves an effective 5% |
| Refund on passive interest and royalties | Five-sevenths of the tax |
| Refund to a non-resident on foreign income where the company claimed double taxation relief | Two-thirds of the tax |
| Participating holdings | Income and gains exempt in the company, or the whole tax refunded on distribution, subject to conditions |
| Final tax option | 15% on chargeable income by election, binding for at least five years and never refunded (Legal Notice 188 of 2025) |
| VAT | 18% standard rate; small enterprise registration available up to the EUR 35,000 domestic threshold |
| Duty on a share transfer | 2% of the consideration or the real value of the shares, whichever is higher, or 5% for a property company, unless an article 47 determination applies |
| Double taxation agreements | More than 70 in force, plus the EU directives |
The refunds are why Malta’s effective rate sits far below 35%; they are not paid for a year until the tax returns for it are filed. Because incorporation alone fixes residence, board meetings held abroad do not take the company out of Maltese tax, although substance still matters to a treaty partner asked to give relief.
Maltese law sets no residence, nationality or work permit condition for shareholders, directors or the company secretary. A private company needs one director and a company secretary; a sole director can be secretary only in an exempt company, and a company can be secretary only if it is a registered company service provider. The registered office must be in Malta, and a shareholder from outside the EU supplies a character reference from a lawyer, auditor, accountant or notary. Forming companies for others, or providing their officers or registered office, needs MFSA authorisation under the Company Service Providers Act.
Beneficial owners, meaning every individual owning or controlling more than 25%, are declared to the Register of Beneficial Owners kept by the MBR. It is not public: national competent authorities, subject persons carrying out due diligence and people who show a legitimate interest may consult it under Legal Notice 127 of 2025. Since Legal Notice 184 of 2026, a company whose shareholders are all individuals holding in their own name, with nobody else in control, treats its register of members as its beneficial owners register.
Where you want local officers, we arrange a company secretary or a director only through a company service provider authorised or registered by the MFSA, and a nominee shareholder only through an MFSA-authorised trustee; a director appointed this way owes the duties in article 136A of the Companies Act, which no agreement can exclude, and both the nominee and you as beneficial owner are declared to the Registrar.
A Maltese company meets a bank before it exists, because at least 20% of each share is paid into an account in the name of the company in formation. Banks in Malta are licensed by the MFSA, and three of them, Bank of Valletta, HSBC Bank Malta and MeDirect, are supervised directly by the European Central Bank. Published requirements lean towards a Maltese footprint: the Fusion route at HSBC Bank Malta expects every connected party to hold a Maltese identity document, APS Bank’s corporate application questions the company’s substance in Malta, and Bank of Valletta begins with a branch appointment. See bank accounts for Maltese companies.
A new company is the default: the MBR says a complete incorporation may take as little as 24 hours, and a founder chooses the name, objects and articles. A ready-made company in Malta answers two narrower needs: a registration date already in the past, and capital paid in when the company was formed, so no deposit for a company in formation is needed. Against that, the share transfer normally bears duty unless the company holds an article 47 determination, and any existing bank account stays with the company while the bank re-checks the new owners and may keep it, ask for more or close it. Malta and Cyprus are set side by side in our comparison of Cyprus and Malta.
We can register a new Maltese Ltd or supply one that already exists, prepare the memorandum and articles or the share transfer, the director and beneficial owner forms and the notices to the Registrar, and help you prepare the bank application. Where we have a working contact at a suitable bank we can introduce you; the bank alone decides.
The company pays 35% and allocates its profits to tax accounts. When it pays a dividend out of profits in the Maltese taxed account or the foreign income account, a shareholder registered for refunds may claim six-sevenths of the tax on those profits, leaving 5% overall. The fraction is five-sevenths for passive interest and royalties, and the whole tax for profits from a participating holding, subject to conditions. No refund exceeds the tax paid.
Yes. A ready-made company has never traded: you take over its registration, paid-in capital and filing record, but no customers, contracts or trading liabilities. A Maltese business for sale is a company with a history, which needs full due diligence on its accounts, tax position, licences and staff. Either way the shares pass by a written transfer, duty is due unless an article 47 determination applies, and the Registrar is told within 14 days.
Yes. More than 70 comprehensive double taxation agreements are in force, most built on the OECD model, and a Maltese tax-resident company also falls within the EU Parent-Subsidiary and Interest and Royalties Directives. Treaty relief is not automatic: the principal purpose test added through the OECD Multilateral Instrument and each treaty’s own anti-abuse rules apply, so a company claiming relief abroad should be able to show a commercial purpose and real activity.
No. The Companies Act says registration is without prejudice to any licence the company’s activity needs under another law. A gaming business applies to the Malta Gaming Authority and a financial services firm to the MFSA, and banks ask to see the result: Bank of Valletta’s document list for gaming companies includes the authority’s letter of intent or licence and the business plan submitted to it.
Comparing Malta with other EU options? Tell us what the company will do and who will own and run it, and we will set out what forming a new Maltese Ltd or buying an existing one would involve. You can also write to us on Telegram or WhatsApp at +48 663 247 166.