Business in Malta

Malta had 60,856 active businesses in 2024. Sole proprietors and partnerships accounted for 73.2% of them, limited liability companies and public limited companies for 26.4%, and other legal forms for 0.4%. Wholesale and retail, professional, scientific and technical services, and construction were the largest sectors by share. The formal system is established and nationally relevant, especially for micro and small businesses. A business can operate as a self-employed sole trader, partnership, limited liability company or cooperative. A sole trader controls the business directly, but personal assets are generally exposed to business debts. A partnership requires separate consideration of its agreement, management and liability rules. A cooperative is owned and democratically controlled by its members to meet shared economic needs. A limited liability company, usually called an Ltd, has a separate legal personality. Shareholder liability is generally limited to the unpaid amount on the shares, but that protection does not remove liability for fraud, statutory breaches, director misconduct or improper conduct during insolvency. Malta Business Registry (MBR) handles company registration, name reservations, company-life-cycle filings, beneficial-owner records, fees, sanctions, insolvency and receivership services. Companies use the Business Automation Registry Online System (BAROS). A company name can be reserved for three months. A private company generally needs authorised share capital of at least €1,164.69, with at least 20% of the nominal value of each subscribed share paid up. A one-member company is possible; other companies generally need at least two subscribers. The memorandum must state the registered office in Malta, email address, business objects, authorised and issued share capital, shareholder, directors, company secretary and representation arrangements. A compliant online incorporation can be completed in up to 24 hours according to the MBR service target. Business 1st acts as a central access point for registration, permits and incentives. After company registration, the Business Startup Companies e-form can connect VAT, PE, National Statistics Office and Jobsplus registrations where applicable. A PE number is relevant when the business plans to employ people. Malta Tax and Customs Administration (MTCA) issues tax and VAT arrangements, while Jobsplus handles self-employment and employer registration. Company registration automatically leads to a tax identification number, but it does not itself grant a residence or work right. Nationality and residence status affect access. Maltese citizens with a valid identity card, excluding an identity card ending in A, can use the Business Startup Sole-Traders e-form. The bundled process may cover a VAT number, a PE number when employment is planned, a Jobsplus Employer Number and an NSO notification; the indicative service target is about 48 hours. Other EU nationals generally complete a Jobsplus engagement and the relevant social-security, income-tax and VAT steps. An EU self-employed person staying in Malta for more than three months normally needs an EU residence document and evidence of Jobsplus, VAT, tax and social-security arrangements; the indicative processing time is about 30 working days. Third-country nationals need a Jobsplus Self-Employment Licence before applying for residence through Identità. Access is limited to applicants meeting at least one qualifying condition, such as at least €500,000 in fixed business assets excluding rent; being a Highly Skilled Innovator with a viable business plan and at least three new Maltese, EU or EEA or Swiss employees within 18 months; being a Malta Enterprise-approved project leader; or being the sole representative of a foreign company with a Malta branch. A company director or shareholder does not automatically qualify for the self-employed status and may instead need a company-director or Single Permit arrangement. The Startup Residence Programme can cover third-country-national founders, co-founders and core employees of a Malta-incorporated and locally registered startup for three years, with a possible extension of five years, subject to sector, fit-and-proper, insurance and due-diligence conditions. Registration does not create a general permission to trade. Check the activity's NACE code and the Business 1st Licence and Permit Directory before opening. The Commerce Department's Trade Licensing Unit covers selected activities such as street and market hawking, door-to-door sales, auctioneering, credit reference agencies, commercial fairs and exhibitions, car boot sales, and dealing in precious metals and stones. Food and public-health activities may require an Environmental Health no-objection, healthcare activities may require Health Care Standards licensing, and tourism, plant-health, import and export, premises and planning rules may add further approvals. Sector regulators can require inspections or documents before operations begin. VAT treatment depends on the activity and registration status. Article 10 registration covers taxable supplies, exports and intra-EU supplies, with VAT charging and input-VAT deduction. Article 11 provides a small-undertaking exemption with no output VAT and no input-VAT deduction. The entry threshold is €35,000 for goods and €30,000 for other activities; the exit threshold is €28,000 for goods and €24,000 for other activities. Article 12 can apply to certain intra-Community acquisitions from €10,000 per year and to certain foreign services whose place of taxation is Malta. A company must assess its VAT obligations separately; company registration does not automatically mean that every expense permits VAT recovery. A company generally files its corporate tax return and self-assessment within nine months after the financial year-end through a registered tax practitioner and plans for provisional tax and social-security contributions. A sole trader declares taxable income and allowable deductions through self-assessment and may owe Class 2 social-security contributions when economic income exceeds €910. Provisional-tax instalments typically fall on 30 April, 31 August and 21 December. The business should reserve cash for tax, social security, VAT, annual returns, accounting, audit and permits rather than treating all receipts as available profit. A company files an annual return on each registration anniversary within 42 days. The electronic fee is about €85 to €1,200 depending on authorised capital. Beneficial-owner data must remain current, and the company generally needs accounts and an audit or reporting package. A private company's general meeting usually approves accounts within ten months after the financial year-end, followed by online filing within 42 days. A company qualifies as small when it stays within at least two of three limits: a €4,000,000 balance sheet total, €8,000,000 turnover and an average of 50 employees. A smaller private company may qualify for an audit exemption when at least two of these limits are not exceeded: €46,600 balance sheet total, €93,000 turnover and an average of two employees. MBR can impose penalties or strike off a non-compliant company. Malta Enterprise provides targeted support rather than guaranteed funding. Business Start or B.Start supports eligible innovative, knowledge-based or technology-enabled startups, manufacturing, industrial services, software, health, biotechnology, pharmaceuticals and life sciences with a grant of up to €10,000; the stated deadline is 30 October 2026. The Business Development Scheme can cover startup, expansion, modernisation, innovative business, digital transformation and market-access projects through a cash grant or tax credit of up to €300,000 per single undertaking over three years and up to 75% of eligible costs; the stated deadline is 30 September 2030. Micro Invest 2026–2030 is available to an undertaking with at least one and no more than 50 employees and can provide a tax credit of up to 65% of eligible expenditure, or up to 85% in Gozo. Its standard cap is €65,000 over three years, with an additional €20,000 for each qualifying feature such as Gozo, family-business, female-owned or social-enterprise status. Applications, de minimis limits, VAT treatment and Jobsplus conditions must match the current Malta Enterprise guideline; the application portal is scheduled to open on 1 January 2027. Expansion and transfer require fresh checks. Business Development and Micro Invest may support growth, digital transformation and operational development. The Family Business Office and Malta Enterprise support family-business ownership transfers until 31 December 2030 through succession governance, advice, mediation and fiscal or duty measures. Buying or transferring a business requires separate verification of liabilities, permits, VAT and tax status, MBR records, beneficial ownership and the actual transferability of licences. Closing a business also depends on its legal form. A sole trader should orderly deactivate the business, VAT and PE or Jobsplus statuses; VAT reactivation may be possible, and one individual cannot hold more than one VAT number. A solvent company normally uses a Members' Voluntary Winding Up, requiring an extraordinary resolution and the majority of directors' Declaration of Solvency Form B2. The liquidator must settle liabilities within a maximum of 12 months. An insolvent company may require a Creditors' Voluntary Winding Up or Court Winding Up through the MBR Insolvency and Receivership Service or Official Receiver. Court grounds can include inability to pay debts or uninterrupted suspension of business for 24 months. A simplified dissolution under Article 214A uses Forms B3 and B4 and generally requires no trading, no assets, no government obligations, no outstanding MBR documents or penalties, and at least six months of relevant inactivity. Dissolution and incorporation filings have required BAROS since 1 March 2025. A strike-off caused by non-compliance is not the same as a properly completed closure, and creditors can challenge a strike-off during the relevant three-month period.