Options for registering companies in Malta
Malta is an island state in the European Union with a well-established corporate and tax framework. Business entities are governed by the Companies Act and administered by national corporate and tax authorities.
Both local and foreign investors may establish operations in Malta, subject to registration and ongoing compliance with corporate and tax legislation.
Malta offers international investors the following legal structures for establishing a local presence:
Limited liability company
- A limited liability company is an incorporated entity with a separate legal personality, where shareholder liability is limited to the value of the subscribed capital.
- This structure supports full commercial and revenue-generating activities across trading, holding, and service operations.
- A minimum share capital of €1,165 is required at incorporation.
- The company is subject to corporate income tax at a standard rate of 35% and must maintain a registered office in Malta.
- This structure is commonly used for international business and long-term operations.
Branch office
- A branch operates as an extension of a foreign parent company and does not have separate legal personality.
- This structure allows a foreign company to conduct business activities directly in Malta.
- No minimum share capital is required to register a branch.
- Profits attributable to the branch are subject to corporate income tax at a rate of 35%.
- All liabilities arising from branch operations attach directly to the foreign parent company.
Representative office
- A representative office is not a taxable or incorporated entity and operates as a non-commercial presence.
- This structure supports liaison, marketing, and preparatory activities only.
- No minimum share capital is required to establish a representative office.
- Corporate income tax does not apply, as the representative office is not permitted to trade or generate income.
- Any revenue-generating activity requires conversion to a branch or incorporated company.
To help you choose the right structure, we have created an 'at a glance' summary table for the common company types that outlines key differences in formation processes, requirements and timelines. It serves as a valuable resource for foreign companies looking to set up or expand a business in Malta.
Comparison of the common types of companies in Malta
Information verified against Malta Business Registry
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