We provide full business support—from company formation to obtaining licenses and opening bank accounts.
Effective corporate tax rate can be reduced to 5%
Flexible regulations in finance and technology sectors
Hub for IT, FinTech, and crypto startups
Possibility of remote registration
Who We Are
LFT Advisors is a team of international business experts helping entrepreneurs optimize operations and establish a strong foundation. Our lawyers, auditors, accountants, and tax consultants provide comprehensive assistance at every stage, ensuring compliance and efficiency.
Our Services
We consolidate all essential business services in one place, reducing costs and eliminating unnecessary complexities. Our one-stop approach simplifies legal and financial processes, allowing businesses to quickly handle company registration, licensing, and banking without bureaucratic delays.
Why Choose Us
We offer customized solutions tailored to your business needs. Our goal is to improve efficiency, protect your reputation, and create a stable foundation for long-term success.
How We Work
- Needs Assessment – We analyze your business objectives and develop a personalized strategy.
- Process Optimization – Our team evaluates your business processes and finds the best way to achieve your goals.
- Company Setup & Compliance – We handle company registration, banking solutions, licensing, and tax advisory.
- Legal & Ongoing Support – We provide continuous guidance and legal protection at every stage.
- Growth & Scaling – We review performance, adjust strategies, and assist in business expansion.
Why Malta is a Great Place for Business
Malta attracts entrepreneurs with its stable economy, business-friendly tax system, and strategic European location. As an EU member state, Malta offers easy access to the European market without excessive bureaucracy.
The country’s financial system follows international compliance standards, ensuring a transparent and secure business environment. Additionally, Malta is a hub for innovation, technology, and investment-friendly policies, making it a top choice for global businesses.
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Key Advantages of Registering a Company in Malta
1. Low Tax Rates
- The effective corporate tax rate can be as low as 5% due to Malta’s tax refund system for non-resident shareholders.
- No withholding tax on dividends, interest, or royalties.
- Over 70 double tax treaties to prevent double taxation and reduce tax burdens.
2. Fast & Simple Company Registration
- A company can be registered in just a few days, with minimal paperwork.
- Online registration and digital filing reduce bureaucratic delays.
3. Flexible Capital Requirements
- No strict minimum share capital requirements—companies can start with as little as €1,200, depending on the structure.
- A company can be established with just one shareholder and one director, allowing for full ownership control.
4. Investor Protection & Legal Stability
- A well-regulated financial sector ensures business security and investor protection.
- Malta follows EU financial regulations, making it a trusted jurisdiction for international investments.
5. Easy Access to the European Market
- As an EU member, Malta provides unrestricted trade opportunities within the European Economic Area (EEA).
- No customs duties or trade barriers for businesses operating within the EU.
6. Business Incentives & Government Support
- Grants, subsidies, and startup funding are available for new businesses.
- Special incentives for tech, finance, gaming, and blockchain companies.
7. Advanced Banking & Financial Services
- Malta hosts top-tier banks offering multi-currency accounts and modern digital banking solutions.
- A crypto-friendly regulatory environment makes it an attractive hub for fintech startups.
Malta combines low taxes, strong legal protection, and easy EU market access, making it one of the best destinations for international entrepreneurs and investors.
Step-by-Step Guide to Registering a Company in Malta
Setting up a company in Malta is an excellent choice for entrepreneurs looking to enter the European market while benefiting from favorable tax policies. The registration process involves several key steps to establish a legally compliant business.
1. Choose the Right Business Structure
Before registering a company, it’s essential to select the appropriate legal entity:
- Private Limited Company (Ltd) – The most common structure with limited liability for shareholders.
- Public Limited Company (PLC) – Ideal for larger businesses planning to raise public investment.
- Holding Company – Used for managing assets and investments in other businesses.
- Branch Office – A subsidiary of a foreign company operating in Malta.
- Partnerships – Business partnerships with shared responsibilities.
Choosing the right structure depends on the company’s size, liability preferences, and operational goals.
2. Selecting and Reserving a Company Name
The name must be unique and not already registered in the Malta Business Registry (MBR). You can check name availability through the official MBR database. Once approved, the name can be reserved for three months before registration.
Choosing a name that reflects business activities while being easy to remember is recommended. Avoid generic words that might lead to rejection.
3. Appointing Directors and a Company Secretary
Every Maltese company must have at least one director, which can be an individual or a corporate entity. A company secretary is mandatory to handle administrative duties. Directors and secretaries must be identified in the registration documents.
Many foreign companies appoint professional corporate service providers as directors to ensure compliance with Maltese regulations.
4. Establishing a Registered Office Address
A physical business address in Malta is required for official correspondence. This can be a rented office or a virtual office service. The address must be maintained throughout the company’s existence.
Using a business service provider can save costs while ensuring compliance with legal requirements.
5. Determining Share Capital Requirements
The minimum share capital for a Private Limited Company is €1,165, with at least 20% paid-up upon registration. For Public Limited Companies (PLC), the minimum is €46,600, with 25% paid upfront.
There are no strict capital requirements for branches or partnerships, making them attractive options for smaller businesses.
6. Preparing Legal Documents
To register a company, the following documents must be submitted:
Memorandum & Articles of Association – Defines the company’s purpose, structure, and governance.
Shareholder Resolution – Confirms the appointment of directors and the company secretary.
Identification Documents – Copies of passports and proof of address for shareholders and directors.
7. Submitting Registration to Malta Business Registry (MBR)
The completed application is filed with the Malta Business Registry (MBR). The registration process typically takes two to five business days. Once approved, the company receives a Certificate of Incorporation, officially recognizing its legal status. Companies in regulated sectors such as finance, gaming, or investment may require additional approvals before starting operations.
8. Obtaining a Tax Identification Number (TIN) & VAT Registration
Companies must apply for a Tax Identification Number (TIN) from the Maltese tax authority. Businesses operating within the EU market must also register for a VAT number. VAT registration depends on annual revenue and the nature of business activities.
Companies with revenues below €35,000 may qualify for VAT exemption, reducing administrative costs.
9. Opening a Corporate Bank Account
Businesses need a corporate bank account to handle financial transactions. Maltese banks require company registration documents, a Tax Identification Number (TIN), and details of company directors and shareholders. The bank account setup process can take up to four weeks due to compliance checks.
Some international banks in Malta offer multi-currency accounts, making them ideal for global businesses.
10. Securing Business Licenses (If Required)
Certain industries require special licenses from regulatory authorities. Examples include:
- Financial services (Malta Financial Services Authority – MFSA)
- Gaming and betting (Malta Gaming Authority – MGA)
- Investment firms (MFSA and the European Securities and Markets Authority – ESMA)
License processing times vary based on the industry. Malta’s blockchain-friendly regulations make it a leading destination for cryptocurrency and fintech businesses.
Registering a company in Malta is a fast, cost-effective, and strategic choice for businesses seeking access to the European market. With low taxes, a stable business climate, and EU membership, Malta continues to attract global investors and entrepreneurs.
Potential Risks and How to Mitigate Them When Starting a Business in Malta
Choosing the Wrong Business Model
Selecting the appropriate business structure is crucial for long-term success. Entrepreneurs must analyze Malta’s legal framework, tax policies, and regulatory requirements before choosing a company type. A wrong decision could lead to higher taxes, legal complications, and operational inefficiencies. Consulting with business advisors can help identify the best structure based on your industry and objectives.
Tax Risks and Compliance
Malta’s tax system is attractive, but it comes with strict regulations. Entrepreneurs must understand residency rules, VAT obligations, and tax treaties. Non-compliance with tax laws can result in penalties, audits, or loss of tax benefits. To mitigate risks, businesses should maintain accurate financial records and work with professional tax consultants to ensure proper tax planning and compliance.
Banking Challenges
Opening a corporate bank account in Malta can be challenging due to stringent due diligence procedures. Banks require detailed documentation, including proof of business legitimacy, source of funds, and shareholder backgrounds. To improve approval chances, businesses should prepare all necessary documents in advance, maintain transparency, and choose banks with experience in handling international clients.
Regulatory and Licensing Issues
Certain industries in Malta require licenses, which can be time-consuming and complex to obtain. Businesses involved in financial services, gaming, and investment sectors must comply with strict regulatory standards. Early research into licensing requirements and working with legal experts can help streamline the process and avoid delays.
Market Competition and Business Environment
Malta offers an attractive business climate, but competition in key industries can be intense. Without proper market research, new businesses may struggle to establish themselves. Entrepreneurs should conduct detailed competitor analysis, identify unique selling points, and create a solid marketing strategy to stand out in the market.
Legal Complexities and Compliance
Lack of knowledge about Malta’s corporate laws can lead to legal disputes or fines. Entrepreneurs must stay updated on changes in employment laws, contract regulations, and compliance requirements. Hiring legal professionals with expertise in Maltese business law can help navigate these complexities and avoid legal pitfalls.
Reputation and International Scrutiny
While Malta is a well-regarded business hub, it has faced scrutiny from international regulatory bodies due to past financial irregularities. Businesses must ensure full transparency, ethical business practices, and compliance with anti-money laundering (AML) regulations. Establishing strong corporate governance and working with compliance experts can protect a company’s reputation and credibility.
Malta’s Taxation System
Malta offers an advantageous tax system that combines low corporate tax rates with a refund mechanism for shareholders. This makes the country an attractive jurisdiction for international business.
Corporate Tax
This system ensures that Malta remains a competitive location for international businesses looking to optimize tax liabilities. It is important to work with experienced tax advisors to structure tax returns correctly and comply with legal requirements.
The standard corporate tax rate in Malta is 35% on company profits. However, thanks to Malta’s unique tax refund system, foreign shareholders can receive up to 6/7 of the tax paid, reducing the effective tax rate to just 5% in many cases.
Tax on Dividends
Dividends paid to shareholders are not subject to withholding tax if they are distributed to residents of countries with which Malta has double taxation agreements. This means that foreign investors can benefit from tax-efficient profit distribution while maintaining compliance with international tax regulations.
Value Added Tax (VAT)
The standard VAT rate in Malta is 18%. However, certain goods and services, such as pharmaceuticals, medical services, and public transportation, benefit from reduced rates or complete exemptions. Businesses must register for VAT if their annual turnover exceeds the threshold set by Maltese authorities. Keeping accurate VAT records and filing returns on time helps companies avoid penalties and ensures smooth operations.
Personal Income Tax
Personal income tax rates in Malta range from 0% to 35%, depending on the income level. Malta also offers special tax programs for expatriates, retirees, and highly skilled professionals, allowing eligible individuals to benefit from reduced tax rates. Understanding available tax incentives can help individuals and businesses maximize savings while ensuring full compliance.
International Tax Agreements
Malta has over 70 double taxation treaties with various countries, allowing businesses to minimize tax burdens on international operations. These agreements prevent double taxation on income and capital gains, making Malta a strategic hub for companies involved in cross-border trade and investment. Companies should review applicable treaties to take full advantage of available tax benefits.
Special Tax Regimes
Certain industries, such as gaming, investment funds, and maritime businesses, benefit from specialized tax regimes that offer additional incentives. For example, the Malta Gaming Authority provides tax benefits for licensed operators, while shipping companies under the tonnage tax system can significantly reduce their tax obligations. Businesses operating in these sectors should explore specific regulations to leverage tax savings effectively.
Financial Reporting and Compliance
All companies in Malta must comply with financial reporting requirements and submit tax returns annually. Non-compliance can result in penalties, increased scrutiny from tax authorities, or even legal consequences. Hiring qualified tax professionals can ensure accurate reporting and full compliance with Malta’s tax laws.
Malta’s tax system is flexible and business-friendly, but to optimize tax efficiency and remain compliant, working with experienced tax consultants is highly recommended.
Companies registered in Malta must adhere to strict financial reporting regulations to ensure transparency and compliance with local and international standards. Proper financial record-keeping is crucial to avoid penalties and maintain a good standing with regulatory authorities.
Financial Reporting
All companies in Malta are required to maintain proper accounting records and prepare financial statements in accordance with International Financial Reporting Standards (IFRS) or General Accounting Principles for Smaller Entities (GAPSE). These reports must accurately reflect the company’s financial position and performance.
Larger companies must submit full audited financial statements, while small and medium-sized enterprises (SMEs) may be eligible to file abridged accounts. However, even SMEs must maintain detailed internal records to comply with tax and regulatory requirements.
Audit Requirements
Companies that exceed specific thresholds are subject to mandatory audits. The criteria for requiring an audit include:
- Total revenue exceeding €50,000 per year.
- Total assets exceeding €46,600.
- Number of employees surpassing 10.
Failure to meet audit obligations can result in regulatory scrutiny and potential penalties. Even if a company does not meet the thresholds, undergoing an independent audit can enhance credibility with investors and financial institutions.
Tax Returns and Filing Deadlines
Companies operating in Malta must file an annual tax return with the Malta Tax Authority within nine months after the end of the financial year. The return must include:
- Detailed financial statements.
- A report on corporate tax calculations.
- Any applicable claims for tax refunds or deductions.
Late filing of tax returns can result in penalties ranging from €10 to €500 per month, depending on the delay period. Additionally, failure to submit returns for multiple years can lead to enforcement actions, including business closure.
VAT Reporting
Companies registered for Value Added Tax (VAT) must file VAT returns either monthly, quarterly, or annually, depending on turnover and registration type. Standard VAT compliance requirements include:
- Issuing proper VAT invoices for transactions.
- Keeping VAT records for at least six years.
- Ensuring accurate VAT calculations to avoid overpayment or underpayment.
Failure to comply with VAT obligations can result in fines, legal action, and suspension of business operations.
Ultimate Beneficial Ownership (UBO) Reporting
As part of anti-money laundering (AML) compliance, companies in Malta must disclose their Ultimate Beneficial Owners (UBOs) to the Malta Business Registry (MBR). This includes:
- Full names and identification details of individuals holding 25% or more ownership.
- Details of shareholding structures for transparency.
- Regular updates in case of changes in ownership.
Companies that fail to declare UBO information face penalties of up to €5,000 and potential suspension from the business registry.
Consequences of Non-Compliance
Failure to meet financial reporting obligations in Malta can lead to:
- Hefty fines and penalties imposed by regulatory authorities.
- Disqualification of directors and legal action against company executives.
- Business deregistration or forced liquidation by the Malta Business Registry (MBR).
To ensure compliance, businesses are strongly advised to work with professional accountants, auditors, and legal advisors specializing in Maltese corporate law. Maintaining accurate and timely financial records not only avoids regulatory issues but also enhances business credibility and financial stability.
