Malta is a small island nation in the Mediterranean, known for its rich history, pleasant climate, and strategic location between Europe and North Africa. With a population of just over half a million, it may not offer a vast domestic market, but it does provide a stable, English-speaking environment and excellent access to EU markets.
If you’re looking to start a business in Malta, you’ll find a mix of opportunity and simplicity. The country has a relatively low barrier to entry, a strong legal framework, and efficient online systems for registrations and licensing. Whether you’re setting up as a sole trader or forming a limited liability company, the process is manageable, especially if you understand each step before you begin.
In this updated guide, we’ll walk you through everything you need to know to register and launch your business in Malta. From choosing the right legal structure to getting your tax number and hiring staff, we’ll cover each step clearly and practically.
1. Choose Your Business Structure: Sole Trader, Partnership, or Limited Liability Company
Before you start a business in Malta, decide on the structure that fits your needs. The following are the three main options, though others, including a co-operative, also exist.
- Sole Trader: Quick and simple to set up and best for freelancers and solo entrepreneurs. With this structure, however, you’ll be personally responsible for any debts.
- Partnership: Ideal for two or more people working together. You can choose between a general partnership with shared liability or a limited partnership, where liability is limited to your contribution.
- Limited Liability Company (LTD): Offers the most protection, as your personal assets are separate from the business. It also lends more credibility, but involves higher costs and more paperwork.
If you’re testing a business idea alone, starting as a sole trader might be the best first step. If you’re going into business with others, consider a partnership agreement to clearly define roles and responsibilities. You can always register as an LTD later as the business grows.
2. Prepare the Necessary Registration Documents
If you choose to form a limited liability company, also called an LTD, you’ll need to prepare two key documents:
- Memorandum of Association: Outlines basic company information, such as name, address, objectives, and share structure.
- Articles of Association: Sets the internal rules governing the company’s management and decision-making.
These documents form the legal foundation of your business. While it’s possible to draft them yourself using templates, it’s strongly advised to work with a local accountant or corporate service provider, especially if you’re new to Malta’s company law or plan to include multiple shareholders.
If you’re setting up as a sole trader or in a partnership, you won’t need these documents. Instead, you’ll complete a simplified online registration form via Business First or the Malta Business Registry, depending on your setup.
3. Deposit the Minimum Share Capital
If you’re registering a limited liability company, you’re required to deposit a minimum share capital. To start a business in Malta, the statutory minimum is €1,165, of which at least 20% must be paid upfront – that’s just over €230.
You’ll need to open a temporary holding account at a local bank to deposit this amount. Inform the bank that this is for company formation, and they will provide a confirmation slip or receipt. This receipt must be included when submitting your application to the Malta Business Registry (MBR).
Keep the receipt safe – it’s essential for the registration process.
If your business operates in a regulated sector, such as financial services, gaming, or insurance, you may be required to deposit a significantly higher share capital depending on licensing requirements.
The minimum share capital applies to LTDs. Sole traders and partnerships are not required to deposit share capital.
4. Register Your Business in Malta
Once you’ve gathered your documents and deposited share capital, if required, it’s time to register your business with the Malta Business Registry (MBR). This is the official authority for all business registrations in Malta.
For Limited Liability Companies:
Submit the following:
- Completed company registration form
- Memorandum and Articles of Association
- Bank deposit receipt for share capital
You can register online through the MBR’s portal, or via a corporate service provider. Processing usually takes a few working days. You’ll also need to pay a registration fee, which depends on the company’s authorised share capital. Fees start around €245 for the lowest tier.
For partnerships, registration also takes place via the MBR, using a similar process to company formation but with partnership-specific forms.
For Sole Traders:
If you’re a Maltese resident, you can register as self-employed online using your e-ID using a simple online form. Business First.
If you’re an EU national living in Malta, you must first apply for a social security number and then a tax number. Once issued, you can complete the sole trader registration online.
5. Check if You Need a Licence or an Operating Permit
Not every business in Malta needs a licence, but many sectors do, especially those involving food, education, finance, health, construction, gaming, and tourism.
The best place to start is the Commerce Department’s online licensing portal, where you can browse licences by industry, download relevant application forms, and check regulatory requirements. If in doubt, contact the department directly for guidance.
Common examples of trading licences include:
- Catering or food-related businesses: These need food safety and environmental permits
- Education providers: These require authorisation from the Ministry for Education
- Real estate, financial services, or insurance: These require approval from sector-specific regulators
It’s your responsibility to check the requirements before you start a business in Malta and begin trading. Operating without a required licence can lead to fines or closure. Moreover, even simple services like beauty salons or childcare may need permits, so don’t assume your business is exempt.
6. Get Your Tax and VAT Numbers
Every business operating in Malta needs a Tax Identification Number (TIN). The process differs depending on your legal structure.
For Sole Traders:
Your Maltese ID number also serves as your tax number. Once registered with JobsPlus and Social Security, your details should be automatically shared with the tax department.
If you’re not a Maltese citizen but an EU resident, you’ll first need to register for:
For Partnerships:
Partnerships must register for their own Tax Identification Number and, if applicable, a VAT number. This is done through the Commissioner for Revenue. The TIN is separate from that of the individual partners, as it applies to the business entity.
The partnership may also need to register for VAT under one of the standard articles, depending on expected revenue and the nature of the business.
For Limited Liability Companies:
When registering with the MBR, your business will be assigned:
- A TIN (Tax Identification Number)
- A VAT number, if you requested itduring registration
If not issued at that stage, you can apply for a VAT number separately through the Commissioner for Revenue web portal.
VAT Registration:
When registering for VAT in Malta, you’ll need to choose the article that best fits your business activity and projected turnover. Each option has different obligations and benefits.
- Article 10: For businesses exceeding €35,000 in annual turnover of goods, or €30,000 worth of services, with the ability to charge and reclaim VAT
- Article 11: For any small businesses below the thresholds above, enabling you to not charge VAT, but also not reclaim it
- Article 12: Reserved for exempt sectors like healthcare and education
Most businesses should register under Article 10 unless you’re sure your turnover will stay under the threshold for the foreseeable future.
Once your tax and VAT obligations are sorted, it’s worth knowing which finance KPIs to monitor from day one.
7. Obtain a PE Number
If you plan to start a business in Malta, whether it’s a sole trader, partnership, or limited liability company, and you intend to hire staff, you must apply for a PE (Permission to Employ) Number from the Commissioner for Revenue.
The PE number allows you to:
- Register employees for tax and national insurance
- Withhold income tax and social security contributions
- Comply with employment laws
You can apply for a PE number online or by visiting a regional tax office. The application is usually straightforward, but you’ll need your business details, ID, and tax registration already in place.
You only need a PE number if you’re hiring other people. If you’re self-employed and not employing anyone else, this step doesn’t apply.
8. Register with Jobsplus
If you’re employing staff or are becoming self-employed, you must register your business and each employee with Jobsplus, Malta’s national employment agency. This step ensures you’re compliant with labour laws and allows your employees to access benefits and national insurance coverage.
- Visit JobsPlus.gov.mt and create an employer profile.
- Submit the Engagement Form before your employee’s first working day.
- Submit a Termination Form when someone leaves your business.
Your own employment, as a self-employed person or company director, should already be registered automatically during your initial setup via Business First or Social Security. Still, it’s a good idea to log into Jobsplus and verify your personal and business records.
Keeping this information up to date is essential as, apart from being a legal requirement, it also helps avoid issues with tax, social security, and compliance checks.
9. Register with the Information and Data Protection Commissioner (IDPC)
If your business collects, stores, or processes personal data, such as names, contact details, or payment information, you are legally required to register with Malta’s Information and Data Protection Commissioner (IDPC).
This applies to most modern businesses, including online stores, service providers handling client records, HR or recruitment firms, and health and education providers.
Start by registering as a data controller or data processor. Once registered, it’s important to comply with GDPR and Maltese data protection laws. Remember to also create a simple privacy policy outlining what data you collect and how you use it.
Registration can be completed online, where you’ll also find detailed guidance and resources.
Even if you’re a small business, it’s your responsibility to ensure compliance. Failing to register or protect customer data can lead to serious fines or reputational damage.
10. Get Help When You Need It
Even though Malta offers a relatively streamlined setup process, navigating the full journey, from legal structure and tax to employment and data protection, can be challenging. Many new business owners quickly realise that trying to manage everything alone isn’t always the most efficient path.
When uncertainty arises, it’s worth turning to reliable business mentors in Malta who understand the local landscape. Moreover, services like Business First offer free guidance and support for entrepreneurs, helping you avoid common pitfalls and make informed decisions.
Whether you need advice on licensing, regulatory compliance, or accessing funding schemes, having the right support can save you time, stress, and money.
FAQs
EU nationals can start a business in Malta by first obtaining a social security number and tax number. Once registered, they can operate as a sole trader or form a limited company. Non-EU nationals may need additional permits, depending on their residency status and business type.
The most common structures are sole trader, partnership, and limited liability company. Many startups begin as sole traders due to low costs and simpler administration, while Malta company formation is better suited for businesses needing legal protection or multiple stakeholders.
Costs vary by structure. A sole trader can register for free using an e-ID. For limited companies, registration fees start at around €245, plus the required minimum share capital of €1,165 (20% payable upfront). Additional fees may apply depending on industry and setup.
Not all businesses need a licence, but many sectors do, including catering, education, finance, tourism, and healthcare. You should always check the Commerce Department’s portal to confirm whether your business activity requires approval or permits.
VAT registration in Malta is required for all businesses carrying out an economic activity. Most register under Article 10 to charge and reclaim VAT. If your turnover is below the threshold, you must still register under Article 11, even if you don’t charge VAT to customers.