Malta Company Formation: A 2026 Guide for Foreign Entrepreneurs

Malta company formation can be an attractive option for international entrepreneurs, investors, and business owners looking to expand into the EU or relocate their business operations. Malta allows foreign nationals to fully own and manage a company.  

A Malta private limited company requires a minimum share capital of €1,165, with 20% paid up, at least one director and one shareholder, and registration with the Malta Business Registry (MBR). The process takes 1 to 3 weeks and can be completed remotely. 

For those considering relocation, company formation can also form part of a wider Malta residency strategy. The Malta Permanent Residence Programme (MPRP), for example, allows eligible investors to obtain permanent residency through a qualifying property investment and government contribution, while also allowing them to own and manage a Malta company. This means business expansion and personal relocation can be considered together, although company formation and the right to work in Malta are separate processes. 

In this guide, we explain how to set up a company in Malta, the different company structures available, the costs and tax benefits, and how company formation can fit into wider relocation and residency plans.

Malta Company Formation: Key Takeaways

 Foreigners can fully own a Malta company. Non residents can own 100% of the shares, and there is no general nationality requirement for setting up a private limited company.  

A Malta Ltd requires relatively low minimum capital. The minimum authorized share capital is €1,164.69, with 20% required to be paid up at incorporation. The company also needs at least one shareholder, one director, a company secretary, and a registered office in Malta.  

The process can be completed remotely. Company registration generally takes around one to three weeks.  

You now need a licensed Corporate Service Provider (CSP). Since March 2025, companies can no longer file directly with the Malta Business Registry. A licensed CSP must handle the filing and conduct the required KYC and AML checks.  

The headline corporate tax rate is 35%, but refunds can significantly reduce the effective rate. Qualifying active trading businesses may achieve an effective rate of around 5% through the 6/7 refund system. However, the refund is not immediate and involves compliance, cash flow, and substance requirements.  

A Malta company does not automatically give you residency. Company ownership and residency are separate. The MPRP is a separate investment-based route that allows eligible investors to own and manage a Malta company, while working in the business requires a separate process. 

The Malta Business Registry (MBR) is the central authority responsible for commercial entities in Malta. The MBR operates mainly online through its BAROS (Business Automation Registry Online System) portal, which handles the filing and registration of documents for new and existing commercial partnerships and legal entities, including foundations and associations. Its main functions include reserving company names, registering entities, and issuing certified documents, such as certificates of good standing. 

The main company forms available in Malta are Private Limited Liability Company (Ltd), Public Limited Liability Company (PLC), Sole Proprietorship, Partnerships (General and Limited), and Branches of Foreign Companies. Each of these has its own requirements and purposes. 

1. Private Limited Liability Company (Ltd) 

This is the default option for most founders, whether foreign or local.  

• Requires at least one shareholder and minimum authorized share capital of €1,164.69 (Article 72(1), Companies Act), of which at least 20% must be paid up 
• Can be formed by a single individual, also known as a single-member company 
• One exception: a single-member company owned by one shareholder can only carry out one main activity  
• Requires one director, one company secretary, and a registered office in Malta  

2. Public Limited Liability Company (Plc) 

This is an option for larger businesses or those planning to list publicly. 

• Every name must end with “Plc.” And have a minimum of two directors, with no maximum, and a minimum of two shareholders, with no maximum.  
• Minimum authorized and issued share capital is €46,588, with at least 25% deposited before registration  
• A statutory auditor must be appointed and must be a Malta resident 
• Shares may be listed and traded on the Malta Stock Exchange  

3. Partnership En Nom Collectif (General Partnership) 

• Two or more partners can form a partnership. The partners can be individuals or legal entities.  
• Partners have unlimited liability, meaning they can be personally responsible for the partnership’s debts. However, the partnership’s own assets are used first before the partners’ personal assets are considered.  
• There is no minimum capital requirement to set up the partnership.  
• Tax transparent: The partnership uses a pass-through tax system, meaning profits are passed directly to the partners for tax purposes instead of being taxed under the corporate imputation system. 

4. Partnership En Commandite (Limited Partnership) 

• A Partnership En Commandite can have two types of partners. The general partners have unlimited liability, while the limited partners are only liable for the amount they have agreed to contribute. 
• There is no minimum capital requirement, but the partnership must have a partnership deed registered with the MBR. 
• This type of partnership is commonly used for investment funds and family office structures. 

5. Sole Proprietorship (Sole Trader) 

• A sole proprietorship is operated by a single individual who has unlimited liability for the business. 
• There is no legal separation between the owner’s personal and business assets, meaning the owner is personally responsible for the business’s debts and obligations. 
• The business does not have a separate legal personality, and there is no minimum capital requirement. 

6. Branch of a Foreign or Overseas Company 

• A branch acts as an extension of its foreign parent company, allowing it to carry out business in Malta without setting up a separate Maltese company. It must have a registered office in Malta. 
• A branch is subject to Malta’s standard 35% corporate tax rate. Malta’s tax refund system generally applies to Malta-incorporated companies, so branches are taxed differently. It is worth checking the exact treatment with a tax advisor. 
• A branch can be useful for a foreign company that wants to test the Maltese market without fully incorporating a new company. 

Establishing a company in Malta requires compliance with specific legal, financial, and regulatory obligations. Below are the key requirements to ensure a smooth company formation process.

1. Malta Company Incorporation – Shareholder

Every company in Malta must have at least one shareholder, who can be either an individual or a corporate entity.

• The shareholder holds ownership of the company through shares.
•  Corporate Shareholders can be Maltese or foreign nationals; there are no nationality restrictions
• The minimum share capital for a private limited company is €1,165, with at least 20% paid up at incorporation.
• The shareholder’s details must appear in the company’s Memorandum and Articles of Association, which are filed with the Malta Business Registry (MBR)

2. Malta Directorship and Company Secretary

A Maltese company must appoint at least one director and one company secretary.

Director:

• A Private Limited Company (Ltd) must have at least one director, while a Public Limited Company (plc) requires a minimum of two directors.
• Directors can be individuals or corporate entities, and they do not have to be Maltese residents.
• However, having a local director is often recommended to simplify administrative and banking processes.

Company Secretary:

• Every company must appoint a company secretary responsible for maintaining company records, preparing annual returns, and ensuring compliance with Maltese law.
• The secretary must be an individual (not a corporate entity).
• If a company has only one director, the director and secretary cannot be the same person.

3. Local registered office requirement

• A company in Malta must have a registered office address in Malta.
• The registered office address is where official correspondence is sent and must be maintained throughout the business’s operations.
• Companies can use corporate service providers for a registered office if they do not have a physical location.

1. Memorandum and Articles of Association: This sets out the company name, registered office, activities, share capital, shareholders, and directors.  
2. Certified ID documents: Certified IDs are required for all directors, shareholders, and the company secretary. Non-EU nationals may also need apostilled documents.  
3. Proof of address: A utility bill or bank statement dated within the last three months is required for each officer and shareholder.  
4. Bank or professional reference: A letter from a bank, lawyer, or accountant confirming the good standing of the shareholders and directors.  
5. Proof of share capital: You must deposit the minimum share capital and provide proof to the MBR. As Maltese corporate accounts can take 4 to 10 weeks to open, an EU account can be used initially.  
6. Beneficial ownership declaration: This identifies who ultimately owns or controls the company.  
7. Corporate shareholder documents: If a company is a shareholder, certified constitutional documents and a board resolution approving the investment are required.  

Important: Since March 2025, MBR filings must be submitted through a licensed Corporate Service Provider (CSP), which collects and checks the documents before filing them.