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What Are the 3 Stages of Company Formation in Malta?



Malta is a tiny island country in the Mediterranean Sea. It is an excellent place for tourists for its sunny weather, beautiful beaches, and historic sites. And Malta is also home to many businesses.

It is a well-respected company formation region with a robust and diversified economy. It also offers several benefits for businesses. This may include a favorable tax regime, a strategic location, and a skilled workforce.

As an ideal place to set up a company, it has a flexible and fair legal framework. That’s why company formation in Malta is easy and quick. You can even complete the registration process online without many troubles.

Still, without the proper guide, it’s easy to get lost in the shuffle. And if you choose to set up a company in Malta, you should read this article. In this article, you will learn about Malta’s three stages of company formation.

So, let’s start as we get set on the journey for Malta company registration with three basic steps!

The 3 Stages of Company Formation in Malta

The process of company formation in Malta is regulated by the Companies Act and is divided into three stages:

1st Stage: Pre-incorporation

Setting up a firm in Malta is a straightforward process that you can complete in a few days. But, before incorporation, it is vital to take some time to plan and prepare for your new business venture. This is what is known as the pre-incorporation phase.

During this phase, you will need to define your idea and business model. You also need to conduct market research and feasibility studies. Then, finally, write a business plan, and choose a business structure that fits you.
All this may sound like a lot of work, but it is crucial for the success of your new company. This process allows you to test your idea and assess the risks and chances for success.

It also helps you identify your business’s best business structure and location. So, pre-incorporation is a critical stage in company formation in malta. This is also when you draft the articles of incorporation and file them with the Registrar of Companies.
The firm is then assigned a unique identifier, a company registration number. This stage also includes the selection of the company’s directors. Once the pre-incorporation stage is complete, the company can move to the next stage.

So, if you plan to set up a company in Malta, ensure you start from this stage. It will help increase your chances of success as it sets the base for the business and its future.

2nd Stage: Incorporation

After the company registration, the next step is incorporation. This is the process of creating the legal entity of the company. It will allow the firm to enter into contracts, own property, and perform other activities.

Incorporation is a simple process, but there are a few key things to remember. First, you must choose the type of company you want to incorporate. There are several types of business entities in Malta.

They are;

  • Private Limited Liability

Malta is a suitable place for the formation of Private Limited Liability Companies (PLLC). A PLLC is a private company with limited liability. Hence, the business’s debts are not the shareholders’ burden.

That’s why a PLLC is the most formed entity in Malta and is suitable for many businesses. But there are a few things you need to know about PLLC formation in Malta.

First, you must have at least two shareholders and a minor share capital of EUR 1,165. You must appoint a company secretary and at least one director. You will also need a registered office and provide a Memorandum of Association signed by shareholders.

Next, you must set up a bank account in the company’s name and provide evidence of paid share capital. Once you have this in place, you can submit your application for registration.

  • Public Limited Liability (PLC)

A public limited liability company (PLC) is a corporate entity for business ventures. PLCs are popular in Malta due to the benefits they offer. They include protection and the ability to raise capital by selling shares.

If you are looking to set up a PLC in Malta, there are a few things you need to know. First, a PLC must have a least two shareholders and at most 50. The company must also have a minor share capital of €120,000.

To set up a PLC, you must submit certain documents to the Malta Financial Services Authority. This may include the company’s Memorandum and Articles of Association.

Once your PLC is registered, you must follow specific ongoing requirements. For example, appoint a board of directors and hold annual general meetings. You will also need to file annual financial statements with the MFSA.


The Civil Code governs partnerships in Malta. A partnership is an association of two or more persons to carry out a business to make a profit. The partners owe the partnership’s debts and duties.


In Malta, there are two different kinds of partnerships:

  • General partnerships
  • Limited partnerships

A general partnership is one where all partners are liable for the debts and obligations of the firm. A limited partnership is one where at least one partner is not liable for the debts and obligations of the business. This may be beyond the amount of capital invested.

  • Sole Proprietorships

A sole proprietorship is the most common form of business in Malta. It is a business owned and operated by one person, and you can register it with the Malta Business Registry.
There are several advantages to operating a sole proprietorship in Malta. It is the most straightforward business structure because there is no need to set up a separate legal entity or appoint directors or shareholders.

The owner of the sole proprietorship has complete control over the business and all its assets. Finally, sole proprietorships are easy and inexpensive to set up and maintain.


Cooperative in Malta are businesses that are owned and operated by their members. They are run and exist to serve their members, not to make a profit. Malta’s cooperatives include everything from agriculture to financial institutions.

If you’re thinking of starting a cooperative in Malta, there are a few things you need to know. First, you must register your cooperation with the Malta Registrar of Companies. This process is simple and can be done online.

Once after this step, you will need to get a business license from the Malta Cooperative Development Authority.

Cooperatives in Malta are subject to the same business regulations as any other business. Also, you must follow employment, health and safety, and tax laws.

  • Personal Holding Company

Malta is an ideal place to incorporate a personal holding company (PHC). A PHC is a firm that does not conduct any trading activity but holds shares in other firms. And Malta offers many benefits to a PHC, like the attractive double taxation treaties.

As a result, a holding company incorporated in Malta can enjoy several tax advantages. These include the exemption from tax on dividends received from a foreign subsidiary. Also, the exemption from tax on capital gains arising from the disposal of shares in a foreign subsidiary.

After choosing your desired entity, you must file the proper paperwork with the Malta Business Registry. This includes the Articles of Association, which outlines the business requirements for operating in Malta. The Business Registration Form, as well as information about share capital, are also required.

3rd Stage: Post-Incorporation

Post-incorporation is the third and final stage of company formation in Malta. Once your company is incorporated, you must get a certificate of good standing from the Malta Registry of Companies. You need this certificate to open a bank account and begin business operations in Malta.

Post-incorporation is a simple process, but it is critical to know the requirements. Attention to detail will help you avoid any delays or problems.

During this phase, the company must;

  • Open a bank account
  • Announce directors
  • Registered officers
  • Notify the Malta Financial Services Authority of its formation
  • Get a trade license from the Trade License Unit of the Department of Economic Development.
  • Get a tax ID number
    Authorized signatories
    Submit its first set of annual accounts to the Registrar of Companies
  • Setting up business premises
    Hiring employees


The three stages of company formation in Malta are pre-incorporation, incorporation, and post-incorporation. The pre-incorporation stage comprises the feasibility study, business plan, and share capital.

The company is registered with the Trade Register and tax authorities during incorporation. Lastly, in post-incorporation, the company must get a business license, open a bank account, and complete other necessary procedures.