Malta is a small island nation located in the Mediterranean Sea, south of Italy and north of Libya. It consists of three inhabited islands: Malta, Gozo, and Comino. The official languages are Maltese and English, with the latter being widely spoken and used in business and education. Malta has a rich history and culture, with evidence of human habitation dating back to prehistoric times.
Malta is known for its beautiful beaches, warm climate, and historic architecture, including ancient temples, medieval cities, and Baroque palaces. It also has a vibrant arts and cultural scene, with numerous festivals and events throughout the year.
In recent years, Malta has become an attractive destination for businesses and investors, with a pro-business environment and a range of incentives for foreign companies. The economy is diversified, with key sectors including tourism, financial services, gaming, and manufacturing. The country is also a member of the European Union, with a stable political system and a well-regulated financial sector.
Types of business structures in Malta
There are several legal business structures available in Malta, each with its own advantages and disadvantages. The most common types of legal business structures in Malta are discussed here.
Private Limited Liability Company (Ltd)
A Pvt. Ltd is a separate legal entity that is owned by one or more shareholders. It offers limited liability protection to its shareholders, meaning that their personal assets are not at risk if the company incurs debts or liabilities. This is the most common business structure in Malta.
Public Limited Liability Company (PLC)
A plc is similar to an Ltd, but it can issue shares to the public and is subject to more stringent regulations. It is generally used for larger companies that wish to raise capital through the stock market.
General Partnership (GP)
Two or more individuals come together to form a general partnership with a common goal to achieve commercial interests. This format is called a GP, whereby every partner must contribute a percentage of capital or skillset etc. that is essential for achieving the set objectives. Similarly, each partner is responsible in personal capacity, of the losses or debts, to the extent of his/her capital share.
Limited Partnership (LP)
An LP is similar to a GP, but it has both general partners and limited partners. The general partners are personally liable for the debts and obligations of the partnership, while the limited partners have limited liability and are only liable for the amount of capital they have invested in the business.
Sole Trader
As the name suggests, a sole proprietorship or sole trader, is a one-man-show. The owner is responsible for raising capital, establishing the product or service, managing, operating, and controlling the company. Needless to say, that the owner in such business format is personally liable for all the debts and losses in the course of business.
Branch Office
A branch office is a subsidiary of a foreign company that is registered in Malta. It is not a separate legal entity and is subject to the same regulations as the parent company.
Representative Office
A representative office is similar to a branch office, but it is not allowed to engage in any commercial activities. It is used for marketing and other non-commercial purposes.
Minimum Paid-up capital requirements
In Malta, the minimum paid-up capital required for various business structures depends on the type of company being registered. Here are the minimum paid-up capital requirements for the most common business structures:
| S# | Type of business structure | Local Name | Min.paid-up capital requirement |
| 1. | Private Limited Company (Pvt.Ltd) | Kumpanija Privata li tTond jistgħu Jiġu Responsabbli b’Limitu | €1,200 |
| 2. | Public Limited Company (PLC) | Kumpanija Pubblika li tTond jistgħu Jiġu Responsabbli b’Limitu | €47,000 |
| 3. | General Partnership | Kumpanija ta’ Partners | No capital requirement |
| 4. | Limited Partnership | Kumpanija ta’ Partners li tTond jistgħu Jiġu Responsabbli b’Limitu | No capital requirement |
| 5. | Sole Proprietorship | negozju proprju | No capital requirement |
| 6. | Branch office | Uffiċċju ta’ Filjali | No capital requirement |
Cost of incorporating company in Malta
The cost of registering and incorporating a company in Malta depends on several factors, including the type of company being registered, the amount of share capital, and any legal or professional fees associated with the registration process. Here are the approximate costs for registering and incorporating different types of companies in Malta:
Private Limited Liability Company (Ltd)
The approximate cost of registering an Ltd in Malta is €250. In addition to this, there may be legal and professional fees associated with the incorporation process, such as notary fees and legal fees for drafting the articles of association.
Public Limited Liability Company (plc)
The approximate cost of registering a plc in Malta is €1,400. This includes the registration fee, notary fees, and fees for drafting the articles of association.
General Partnership (GP)
The approximate cost of registering a GP in Malta is €100. However, there may be legal and professional fees associated with drafting the partnership agreement.
Limited Partnership (LP)
The approximate cost of registering an LP in Malta is €250. This includes the registration fee and notary fees.
Branch Office
The approximate cost of registering a branch office in Malta is €250. This includes the registration fee and notary fees.
The costs mentioned above are near approximations and can vary depending on the specific circumstances of the registration process.
Process of registering company in Malta
The process of registering a company in Malta typically involves the following steps:
Choose a company name
The first step in registering a company in Malta is to choose a name for the company. The name must be unique and not similar to any other registered companies in Malta.
Reserve the company name
Once you have chosen a name for your company, you need to reserve it with the Malta Business Registry. This can be done online or in person at the Malta Business Registry.
Draft the Memorandum and Articles of Association
The Memorandum and Articles of Association is a legal document that outlines the rules and regulations of the company. This document must be drafted and signed by the founders of the company.
Open a bank account
Once the Memorandum and Articles of Association have been drafted and signed, you need to open a bank account for the company. This account will be used to deposit the share capital and other funds related to the company.
Register the company
The final step in registering a company in Malta is to register it with the Malta Business Registry. You will need to submit the Memorandum and Articles of Association, along with other relevant documents, such as a certificate of incorporation and proof of share capital.
Obtain necessary licenses and permits
Depending on the nature of the business, you may need to obtain additional licenses and permits from government agencies or regulatory bodies in Malta.
