Malta Company Formation: Set Up a Private Limited Company in 7 Days for €1,500 – Express Service Including Banking and Compliance

Malta company formation in 7 days for €1,500? That almost sounds too good to be true.

But let me assure you: It actually works. And often better than youd think.

Having guided dozens of entrepreneurs through setting up in Malta, I know all the potential pitfalls. I also know what really matters.

Malta isnt just a sun-soaked holiday destination. As an EU country, it offers one of Europes most pragmatic company structures. The advantages? Low taxes, full EU market access, and a surprisingly efficient administration.

But lets be honest:

Not everyone should set up a Malta company. And not every express service delivers on its promises.

Thats why Im taking you behind the scenes today. Youll learn how the 7-day service actually works, what the €1,500 covers, and what you absolutely need to watch out for.

Ready for the truth about forming a company in Malta?

Then let’s get started.

Malta Company Formation: Why the Mediterranean Location Is Compelling

Before we dive into the details of company formation, let’s clarify: Why Malta at all?

I get this question all the time. After all, there are dozens of other places with low tax rates.

EU Membership Makes All the Difference

Malta has been an EU member since 2004. That means your Malta company can do business throughout all 27 EU countries—no special registration, no extra permits, no red tape.

You’ll also enjoy these advantages:

• Free movement of capital: Money transfers within the EU are hassle-free
• Freedom to provide services: Offer your services EU-wide
• Legal certainty: EU law protects against arbitrary changes
• Banking acceptance: EU banks have no issues with Malta companies

The Malta Tax System: Complex, but Rewarding

Malta works with what’s called an imputation system. It sounds complicated, but it’s cleverly designed.

Here’s how it works:

Your company pays 35% corporate tax up front. However, as a shareholder, you can reclaim up to 6/7 of that tax, lowering your effective tax rate to 5%.

An example:

English as an Official Language Makes Everything Easier

Malta has two official languages: Maltese and English. In practice, everything happens in English.

That means:

• All government business in a language you understand
• Articles of incorporation and documents in English
• International business correspondence without translation
• Straightforward communication with lawyers and advisors

The Reality: Malta Also Has Its Drawbacks

I wouldn’t be giving honest tax advice if I didn’t point out the downsides.

You should be aware of these challenges:

• Substance requirements: Malta requires real business activity on the ground
• Compliance workload: Accounting must meet Maltese standards
• Costs: Higher than at typical offshore locations
• CRS reporting: Malta exchanges tax data with other countries

Even so, Malta remains an excellent choice for most of my clients. Why? The advantages clearly outweigh the disadvantages.

Private Limited Company Malta: The 7-Day Formation Step by Step

Time to get specific. How does the 7-day setup really work?

First, a key clarification: The Private Limited Company is Malta’s equivalent to a German GmbH. Its official name is Private Limited Liability Company, abbreviated Ltd.

Days 1–2: Preparation and Gathering Documents

Before you can get started, you’ll need these documents:

• Passport copies: For all shareholders and directors
• Proof of address: Dated within the last 3 months (utility bill, bank statement)
• CVs: Professional résumés for all involved
• Bank references: Confirmation from your home bank regarding your business relationship
• Clean criminal record: Police certificate (if requested)

First insider tip: Have all your documents apostilled in advance. That’ll save you time and nerves later on.

Days 3–4: Company Name Reservation and Incorporation Documents

While you’re gathering paperwork, your lawyer will reserve your company name. Malta has clear rules:

• The name must be unique
• It must not be misleading or offensive
• Certain terms (Bank, Insurance, Trust) require special licenses
• The name is reserved for 30 days

Meanwhile, the incorporation documents are drafted:

• Memorandum of Association: Basic company information
• Articles of Association: Internal rules and management
• Form A: Application for company registration
• Declaration of Compliance: Confirmation of legal conformity

Days 5–6: Filing with Registry and Government Submission

Now it gets exciting. The documents go to the Malta Business Registry.

The Registrar checks:

• Completeness of all paperwork
• Compliance with minimum legal requirements
• Availability of your chosen company name
• Accuracy of information

With a reputable service provider, this usually takes only 1–2 days. Why? Experienced lawyers know exactly what the authorities need.

Day 7: Certificate of Incorporation and Final Steps

If all goes well, you’ll get your Certificate of Incorporation on day 7—your company’s birth certificate in Malta.

You’ll also receive:

• Company registration number: Your unique company ID
• VAT certificate: If you registered for VAT
• Corporate seal: Company stamp for official documents
• Share certificates: For all shareholders

What If It Takes Longer?

Let’s be honest: Not everything always goes to plan in 7 days.

Possible delays:

• Incomplete documents: +2–3 days
• Name conflicts: +1–2 days for a new reservation
• Regulatory requests: +1–3 days
• Public holidays in Malta: +1–2 days

A serious provider will factor in these risks. Always ask for a guarantee.

Minimum Requirements for Malta at a Glance

To ensure a smooth incorporation, you must meet the following minimum requirements:

Important: The company secretary and registered office are usually provided by your service provider.

Costs in Detail: What the €1,500 Include (and What’s Extra)

Let’s talk money. What exactly does the advertised €1,500 cover?

You need to pay attention here—not every provider charges honestly.

What the €1,500 Standard Package Typically Includes

A reputable express package should come with the following services:

• Company name reservation: Search and reservation (30 days)
• Founding documents: Memorandum and Articles of Association
• Registry fees: Official application fees
• Company secretary (1 year): Mandatory Maltese secretary
• Registered office (1 year): Business address in Malta
• Corporate kit: Company seal, share certificates, minute book
• Legal support: Lawyer handling the formation

The Hidden Extras: What to Look Out For

This is where it often gets expensive. Frequently, the following costs are added:

The Real Setup Costs: A Practical Example

Here’s a realistic cost breakdown:

That’s still a fair price. But you should be prepared for these extras.

Recurring Costs: Your Annual Expenses

A Malta company also incurs annual costs. The most important items:

• Company secretary: €400–800/year
• Registered office: €300–600/year
• Annual return filing: €200–400/year
• Accounting: €1,500–3,000/year (depending on complexity)
• Nominee director (optional): €800–1,200/year

That puts minimum operating costs at around €2,400–4,800 per year.

When Malta Pays Off Financially

All these numbers beg the big question: From what profit level does Malta make sense?

My rule of thumb:

Malta is worthwhile from annual profits of at least €50,000. Only then do the tax savings clearly outweigh the extra admin costs.

An example calculation based on €100,000 annual profit:

The €33,000 savings more than justify the effort.

How to Avoid Cost Traps: My Key Tips

So you don’t fall into expensive traps, here are my most important pointers:

• Ask for all-in prices: Request a detailed cost list in advance
• Spot hidden fees: Ask specifically about banking, VAT, apostille
• Calculate annual costs: Think in the long term
• Get multiple quotes: Prices vary greatly across providers
• Check references: The cheapest is not always the best

Malta Company Banking: How to Get a Business Account Fast

A Malta company without a bank account is useless. That’s why banking is often the make-or-break factor for success.

The good news: Malta banks are far more cooperative than in many other EU countries. The bad? The process can still be an uphill battle.

The Best Malta Banks for Your Business Account

Not all Malta banks are created equal. Here are my recommendations based on years of experience:

Step-By-Step Guide to Opening an Account

Here’s how the account opening process typically unfolds:

Phase 1: Preparation (1–2 days)

Gather these documents:

• Certificate of Incorporation: Your Malta company’s founding document
• Memorandum & Articles: Articles of association
• Board resolution: Decision to open the account
• UBO declaration: List of all beneficial owners
• Business plan: 2–3 pages about your business model
• Personal documents: Passport, proof of address, CV

Phase 2: Application Submission (1 day)

Most banks now accept online applications. But beware: An in-person appointment often speeds things up significantly.

Pro tip: Have your service provider accompany you to the bank. This opens doors.

Phase 3: Due Diligence (1–3 weeks)

The bank will now scrutinize your documents. They focus on:

• Business model: Is it clear and legal?
• Money flows: Where is the money coming from, where is it going?
• Compliance risks: Any AML (anti-money laundering) concerns?
• Economic substance: Are you running real operations in Malta?

Phase 4: Account Opening (1–2 days)

If everything checks out, you’ll receive your account details—usually by secure post or email.

The Most Common Reasons for Rejection (and How to Avoid Them)

Not every account opening is successful. These errors often lead to rejection:

• Unclear business model: Make your business as comprehensible as possible
• Lack of substance: Demonstrate genuine Malta activities
• Complicated ownership structures: Keep it simple
• High-risk industries: Crypto, forex, casino are tricky
• Poor documentation: Complete paperwork is a must

Alternative Banking Solutions: If Malta Banks Don’t Work Out

Sometimes Maltese banks just don’t work. In that case, there are alternatives:

EU Banks Accepting Malta Companies

These banks often open accounts for Malta companies:

• Revolut Business: Online bank, fast setup
• Wise Business: Multi-currency accounts, low transfer fees
• N26 Business: German online bank with EU license
• Bunq Business: Dutch bank with modern app

Swiss Private Banking

For larger assets, Swiss banks are an option:

• Higher minimums (typically €250,000+)
• Excellent service and discretion
• Stability and reputation
• Personal support

Banking Costs: What to Expect

Malta business accounts aren’t cheap. Typical costs:

Insider Tips for Successful Account Openings

These practical tips have worked again and again:

• Approach multiple banks at once: Boosts your chances
• Arrange in-person appointments: Face-to-face works wonders
• Leverage local introductions: Your Malta lawyer can open doors
• Declare realistic revenues: Don’t exaggerate—overstatements hurt
• Be patient: Pressure rarely speeds up success

Banking is often the main bottleneck in setting up in Malta. But if you prepare thoroughly, you’ll get it done.

Tax Benefits Malta: These Savings Are Realistic

Now for the core issue: What can you actually save in taxes?

This is often exaggerated or sugar-coated. That’s why I’m giving you the real numbers.

Understanding the Malta Tax System: It’s More Than Just 5%

Malta likes to advertise 5% taxes. That’s not wrong—but it’s not the whole truth either.

Here’s how Malta’s tax refund system works:

1. Corporate tax: Your company pays 35% on profits
2. Distribution: You as a shareholder receive a dividend
3. Refund: You can reclaim 6/7 of the tax paid
4. Net tax burden: 5% of original profit

A concrete example based on €100,000 profit:

When Does the 5% Apply? The Requirements

The famous 5% doesn’t apply automatically. You need to fulfill these conditions:

• Distribution required: Money must be paid as a dividend
• Shareholder residency: You must not be taxable in Malta
• Substantive activity: The company must conduct real business in Malta
• Proper accounting: Full compliance with Maltese standards
• Timely applications: The refund must be formally applied for

Germany vs. Malta: The Honest Tax Comparison

Let’s run through various scenarios:

Scenario 1: Sole Proprietor with €80,000 Profit

Scenario 2: GmbH Director with €150,000 Profit

The Hidden Costs of a Malta Structure

For all the upsides, Malta brings added costs that reduce your savings:

• Annual admin costs: €2,500–4,000
• Building substance: Office, staff, travel
• Double bookkeeping: Malta + home country
• Tax advisory: Specialized advice is pricier
• Compliance workload: Filings, applications, documentation

Malta Holding Structures: For Larger Wealth

Once your wealth reaches a certain size, more complex structures make sense. Malta offers attractive holding models:

The Malta Participation Exemption

Profits from shareholdings are tax-free in Malta under certain conditions:

• Minimum stake: 5% or acquisition cost > €1,164,690
• Minimum holding period: 183 days
• No tax on dividends and capital gains

EU Parent-Subsidiary Directive

Malta smartly leverages EU directives:

• Tax-free dividends between EU companies
• No withholding tax on outgoing dividends
• Optimized holding structures

Realistic Assessment: Who Is Malta Suitable For?

After years of advising on this matter, I can honestly say:

Malta is only worthwhile once you hit €60,000–80,000 annual profit. Below that, costs and effort typically outweigh the tax benefit.

Malta is especially attractive for:

• E-commerce entrepreneurs: Seamless cross-EU distribution
• Software developers: Digital services, minimal physical presence
• Consultants/coaches: Location-independent services
• Investors/traders: Efficient handling of capital gains
• Holding shareholders: Tax-efficient management of holdings

Avoiding the Biggest Tax Pitfalls

To avoid costly traps, be mindful of these points:

• Create real substance: Malta requires actual business activity
• Watch your residence: Your personal tax residence remains key
• CRS reporting: Malta reports to German authorities
• CFC rules: May be problematic for German tax residents
• Abuse of law: Structures for tax benefit only are risky

Malta does offer real tax advantages—but only with professional advice and proper execution.

Compliance and Accounting: Your Ongoing Duties

Setting up a Malta company is one thing. Running it properly is another.

This is where it’s decided whether your structure will last—or become a costly headache.

Malta Accounting Standards: What You Need to Know

Malta follows International Financial Reporting Standards (IFRS). That means your bookkeeping must meet professional standards.

To be specific:

• Complete bookkeeping: Record all business transactions
• Document retention: Keep all records for 6 years
• Annual accounts: Balance sheet and profit & loss account
• Audit requirement: Above €700,000 turnover or €350,000 balance sheet
• Electronic filing: Reports submitted to Maltese authorities

Your Annual Filing Duties in Detail

These deadlines are critical:

These penalties are no joke. Malta takes compliance seriously.

Economic Substance Requirements: The Substance Challenge

Since 2019, Malta’s substance requirements have been tightened. Your company must prove real economic activity.

Specifically, you need to show:

• Core Income Generating Activities (CIGA): Core business performed in Malta
• Appropriate number of employees: Qualified staff on site
• Reasonable local expenses: Real operating costs in Malta
• Adequate physical presence: Office, equipment, infrastructure
• Malta management: Key decisions made locally

Practical Compliance: How to Satisfy the Requirements

Theory is one thing. Here’s how it works in practice:

Option 1: Minimal Substance (for Small Businesses)

This solution works for many of my clients:

• Co-working space in Malta: €200–400/month
• Part-time employees: €800–1,200/month
• Regular local presence: 4–6 trips to Malta per year
• Malta director: Local director for coverage
• Board meetings: Hold quarterly in Malta

Total costs: €2,000–3,000 per month

Option 2: Real Substance (for Larger Companies)

If you turn over €500,000+, consider real substance:

• Own office in Malta: €1,000–2,500/month
• Full-time staff: €2,500–4,000/month
• IT infrastructure: Servers, software, equipment
• Frequent presence: 50+ days/year in Malta
• Operational functions: Actual business on site

Total costs: €5,000–10,000 per month

Outsourcing vs. Doing Your Own Bookkeeping

You have three options for your Malta accounting:

Option 1: Local Maltese Accountant

Advantages:

• Fully versed in Maltese rules
• Direct contact with authorities
• Usually cheaper than German firms

Disadvantages:

• Possible language barriers
• Quality varies
• Limited knowledge of German tax law

Cost: €1,500–3,000/year

Option 2: German Firm with Malta Expertise

Advantages:

• Communicate in German
• Understands German tax issues
• Holistic advice

Disadvantages:

• Much more expensive
• Possibly less Malta-specific detail
• Longer communication paths

Cost: €3,000–6,000/year

Option 3: DIY Bookkeeping

Recommended only if:

• You have accounting experience
• Your business is very simple
• You can devote time to compliance

Risks:

• Mistakes can be costly
• Risk of compliance violations
• Time commitment is often underestimated

Common Compliance Pitfalls to Avoid

I see these mistakes regularly:

• Missing deadlines: Maltese penalties are severe
• Ignoring substance: Pure mailbox companies are risky
• Forgetting German duties: CRS reporting to German tax office
• Unprofessional bookkeeping: Not meeting IFRS standards
• Overlooking audit requirement: Mandatory over certain thresholds

Compliance Calendar: Your Annual Overview

To help you stay organized, here’s your Malta compliance calendar:

With the right organization, Malta compliance is absolutely manageable. Just don’t underestimate the effort involved.

Malta vs. Other EU Locations: The Honest Comparison

Malta is not alone. Other EU countries also promote tax benefits and easy incorporations.

So let’s take an honest look at the main alternatives.

Malta vs. Cyprus: The Classic Comparison

Cyprus is often seen as Malta’s main competitor. Is that justified?

My verdict: Malta is the more solid option. Cyprus’s reputation has taken a hit due to various scandals.

Malta vs. Ireland: The Software Hub

Ireland has positioned itself as Europe’s tech center. How does it compare with Malta?

My verdict: For tech startups, Ireland often comes out ahead. For solo entrepreneurs and smaller companies, Malta is better.

Malta vs. Estonia: Digital Europe

Estonia promotes digital administration and e-residency. Where does it stand?

My verdict: Estonia is innovative, but the banking issue is a deal-breaker for many.

Malta vs. Netherlands: The Holding Jurisdiction

The Netherlands is renowned as a holding company paradise. How do they compare?

My verdict: For large holding companies, the Netherlands wins hands down. For operating businesses, Malta is more affordable.

The Truth About “Tax Havens” in the EU

Let’s be clear: Classic tax havens no longer exist in the EU.

All EU countries are now subject to:

• Anti-Tax Avoidance Directive (ATAD): EU-wide minimum standards
• Common Reporting Standard (CRS): Automatic exchange of information
• Economic substance requirements: Substance is mandatory
• BEPS implementation: OECD rules against base erosion

What does this mean?

Modern tax optimization only works with real economic substance and full compliance with all requirements.

When Each Jurisdiction Is Best

After years of consulting, here are my rules of thumb:

Malta is optimal for:

• EU-focused e-commerce: Single internal market
• Consultancy services: Low substance requirements
• Software-as-a-Service: Digital business models
• Investment holding: Tax-free dividends and capital gains
• Sole entrepreneurs: The 5% rule is unbeatable

Other countries are better for:

• Tech startups needing funding: Ireland or Netherlands
• Large international holdings: Netherlands or Luxembourg
• Pure online businesses with no EU focus: Estonia (banking aside)
• Manufacturing companies: Real substance in target market

The Future of EU Tax Optimization

Where is the EU heading on taxes? These are the trends I see:

• Further harmonization: Differences are narrowing
• Tougher substance rules: Mailbox companies are doomed
• Digital taxation: New rules for online businesses
• Transparency requirements: More reporting, less secrecy

But don’t worry: Legal tax planning remains possible. It’s just becoming more complex and requires real substance.

Malta is positioning itself well for the future—in digitalization, legal certainty, and global reputation.

That makes Malta a sustainable choice for your international tax structure.

Frequently Asked Questions About Malta Company Formation

Can I really set up a Malta company in 7 days?

Yes, it’s possible. Prerequisites are complete documents and an experienced service provider. If there are complications or missing documents, it can take 2–3 weeks. Express services are available but cost an extra €300–500.

What does it really cost to set up a Malta company?

The realistic price is around €2,000–2,500. The standard package (€1,500) usually doesn’t include VAT registration (€200), banking introduction (€500), and apostille service (€150). You should budget about €2,350 total for a full setup.

Do I really need substance in Malta?

Yes, absolutely. Since 2019, Malta requires genuine business activity. Minimal substance costs €2,000–3,000 per month (co-working, part-time staff, regular local presence). Pure mailbox companies are risky and can jeopardize tax benefits.

How difficult is it to open a bank account in Malta?

Malta banks are more cooperative than many other EU countries, but still selective. With complete paperwork and a clear business model, it typically takes 2–4 weeks. Alternative EU banks (Revolut, Wise, N26) often accept Malta companies even faster.

Do I really only pay 5% tax in Malta?

The 5% applies only to distributions to non-Maltese shareholders. You pay 35% corporate tax up front, and can reclaim 6/7 of that. This only works with proper accounting and timely applications. With German residence, German taxes also apply.

Do I have to live in Malta as a German?

No, you don’t have to live in Malta. But you must have genuine on-the-ground operations (substance). If you remain a German tax resident, German rules still apply—Malta reduces your burden, but doesn’t wipe it out entirely.

What ongoing annual costs should I expect?

Budget €2,500–4,000 a year for: company secretary (€400–800), registered office (€300–600), bookkeeping (€1,500–3,000), annual return (€200–400), and possibly nominee director (€800–1,200). Add substance costs of €24,000–36,000 per year.

From what profit level does Malta make sense?

Malta is worthwhile from about €60,000–80,000 annual profit. Below that, the extra costs typically outweigh tax savings. At €100,000 profit, you’ll typically save €25,000–35,000 per year compared to Germany—after Malta costs.

Is Malta EU-compliant and future-proof?

Yes, Malta’s been an EU member since 2004 and meets all EU standards. The tax regime is OECD-compliant and regularly reviewed. Malta invests in compliance and transparency, making it more sustainable than many offshore alternatives.

What happens if there are issues with German authorities?

Malta structures are legal when implemented correctly. Key: observe all CRS reporting, fulfill German obligations, and ensure real substance in Malta. Mistakes lead to back taxes and penalties. Professional advice is a must.