Registering a Business in Malta: Guide for UK Entrepreneurs (2026 Update)

For UK entrepreneurs looking to regain access to the EU market post Brexit, Malta has become one of the most attractive jurisdictions for company formation. As an English-speaking EU Member State with a competitive tax system and strong professional services sector, Malta offers a practical gateway into Europe.

This guide provides a detailed, step-by-step explanation of how to register a company in Malta, including legal requirements, tax considerations, timelines, costs, and ongoing compliance obligations.

Why UK Entrepreneurs Choose Malta

Malta offers several structural advantages:

• Full EU Single Market access
• EU-compliant legal framework
• English is one of the official languages
• Competitive, effective corporate tax system
• Extensive double taxation treaty network
• Strong ecosystem of accountants, CSPs, and legal professionals

For UK founders operating in ecommerce, consultancy, fintech, holding structures, SaaS, digital services, or trading businesses, Malta can provide both credibility and tax efficiency when structured correctly.

Choosing the Right Legal Structure

The most common structures available in Malta include:

1. Private Limited Liability Company (Ltd)

The Private Limited Liability Company (Ltd) is the most popular option for SMEs and foreign entrepreneurs.

Key Requirements:

• Minimum share capital: €1,165
• At least 20% (€233) must be paid up
• Minimum 1 director
• Mandatory company secretary
• Registered office in Malta

2. Public Limited Company (PLC)

PLC is used for larger enterprises or listed companies.

• Minimum share capital: €46,588
• More extensive governance and reporting requirements

3. Branch of a Foreign Company

A UK company may register a Maltese branch rather than incorporating a new legal entity.

4. Partnership or Sole Trader

Less common for international entrepreneurs due to liability exposure.

Step-by-Step Company Registration Process

Company registration is handled through the Malta Business Registry (MBR). Below is the typical process:

Step 1: Company Name Reservation

You must propose a unique company name. The MBR checks availability and reserves the name.

Timeline: 1 – 2 business days

Step 2: Draft Memorandum & Articles of Association (M&A)

This document outlines:

• Company objectives
• Share capital structure
• Shareholders
• Directors
• Registered office address

This must be signed by shareholders.

Step 3: Deposit Share Capital

The minimum paid-up capital (20% of €1,165) must be deposited into a bank account, and proof provided to the Registry.

Step 4: Submission to the Malta Business Registry

Documents submitted include:

• Memorandum & Articles
• Identification documents (certified passport copies)
• Proof of address
• Bank confirmation of share capital deposit
• Beneficial ownership information (AML compliance)

Timeline:

Incorporation can take 2 – 5 working days once documentation is complete. Upon approval, a Certificate of Registration is issued.

Step 5: Tax Registration

After incorporation, the company must register with the Commissioner for Revenue for:

• Tax Identification Number (TIN)
• VAT number (if applicable)
• Employer registration (if hiring staff)

Step 6: Sector-Specific Licensing (If Applicable)

If operating in regulated industries such as:

• Financial services
• Investment services
• Insurance
• Gaming
• Virtual financial assets (crypto)

Licensing may be required from the Malta Financial Services Authority (MFSA) or other relevant authorities. Licensing timelines can range from 3 to 12 months, depending on the activity. Malta Business Registry (MBR) registration fee: €100 (electronic submission via BAROS portal) or €245 (paper format). Most corporations now use electronic filing for the lower fee.

Corporate Tax in Malta 2026

Headline Rate

• 35% corporate tax on company profits

The Refund System

Malta operates a full imputation system, allowing shareholders to claim a 5/7ths or 6/7ths refund on distributed profits. In many trading structures, this reduces the effective tax rate to approximately 5%, subject to proper structuring, substance requirements, and compliance.

Important considerations:

• Refunds are only available upon distribution of dividends
• Substance and anti-avoidance rules must be respected
• Proper accounting and audit compliance are essential

Professional tax planning is strongly recommended.

VAT in Malta

VAT registration is required if the company makes taxable supplies in Malta (no turnover threshold for non-resident companies) or exceeds local thresholds if established in Malta (€30,000–€35,000). The standard VAT rate is 18%. Reduced rates apply to specific goods and services. VAT filings are typically quarterly. Companies providing digital services or trading across EU borders should also review OSS rules.

Opening a Business Bank Account

Bank account opening is often the most time-consuming step for non-resident shareholders. Some entrepreneurs initially use EU fintech institutions while completing traditional bank onboarding (if required).

Ongoing Compliance Requirements

Once incorporated, companies must comply with:

Annual Obligations

• Filing of annual return
• Filing of audited financial statements (most companies require an audit)
• Maintenance of the beneficial ownership register

Corporate Governance

• Maintain statutory registers
• Hold an annual general meeting (AGM)
• Keep board meeting minutes

Failure to comply can result in penalties or being struck off.

Hiring Employees in Malta

If employing staff:

• Register as an employer with the tax authorities
• Deduct PAYE (income tax)
• Pay social security contributions
• Provide employment contracts compliant with Maltese law

Malta has a skilled, multilingual workforce, particularly in finance, IT, gaming, and professional services.

Typical Timeline Overview

• Name approval: 1 – 2 days
• Company incorporation: 2 – 5 days
• Tax registration: 1 – 2 weeks
• Regulated licence (if applicable): 3 – 12 months

How Can We Help?

Establishing a business entity in Malta presents UK entrepreneurs with numerous advantages, notably its attractive tax framework and EU membership benefits. Although the procedural landscape can be intricate, adherence to the outlined steps can facilitate an effective navigation of the process. Engaging with legal and tax professionals who have expertise in Maltese corporate legislation is essential to ensure compliance with regulatory requirements and to leverage the full spectrum of opportunities available. With strategic planning and execution, Malta serves as a robust platform for business growth and access to European and international markets.

Papilio Services brings extensive experience in assisting a diverse array of businesses with Malta company formation and registration processes. We ensure that all documentation is meticulously prepared for registration and provide comprehensive services related to Malta trusts and foundations. Our support extends throughout the registration phase and throughout the lifespan of the business.

If this aligns with your interests, please reach out for a complimentary consultation today!