03.09.2025
Malta Company Formation
Company formation in Malta isn’t riding the same hype wave it did 10 to 15 years ago, but it remains a solid and strategic choice, especially if done with a clear purpose and proper setup.
The hype may have cooled down due to global compliance pressure from OECD, EU, and FATF who have increased scrutiny on jurisdictions perceived as tax havens. Malta was grey-listed in 2021 and removed in 2022, but reputational recovery is still ongoing. Substance requirements have increased, one can no longer set up a ‘letterbox’ company. Real presence, offices, employees, local activity is needed to justify tax treatment. Banking is tougher, opening a business bank account in Malta takes longer and requires significant documentation.
However, Malta is still a good jurisdiction for many reasons, such as:
Tax Efficiency: The full imputation system still applies, and the 5% effective corporate tax rate (via the 6/7 refund mechanism) remains attractive, if the structure is managed well and substance requirements are met.
EU Membership: Malta gives access to the European single market, making it a gateway for businesses targeting Europe.
Legal System: English-speaking, based on a hybrid of common and civil law which is predictable and transparent.
There are many growing business sectors in Malta such as iGaming, financial services and fintech, technology such as blockchain, AI, data centers, and more, whilst yachting, shipping, and maritime remain a strong sector. The ease of setup is also a bonus; company registration is relatively quick and affordable, and the country has a strong professional services ecosystem.
Having a clear business purpose and commercial activity is necessary if one wants to operate in or through the EU. Investments in real operations and compliance is necessary, as well as working with good legal and accounting advisors. Malta is no tax haven or offshore setup. So as much as the hype is gone, what’s left is a maturing, well-regulated jurisdiction that still offers real advantages for serious businesses.
If you’re considering forming a company in Malta, we can help you assess whether it’s the right fit based on your specific sector or goals. Contact our incorporation team today: info@fairwindsmanagement.net
Fairwinds Management Limited is a MFSA licensed firm offering Business Solutions in Malta. As part of our services, we offer Accounting, Administration, Corporate and Legal solutions. Fairwinds Management also manages the brand Accounting Services. More information about us and our key services please visit our website. You may reach Fairwinds Management on +356 2704 0903 or info@fairwindsmanagement.net.
Article written by Ms Charlene Sciberras, B.A. (Hons), guest writer, a marketing and business administration specialist with a special focus on corporate, accounting, and legal matters.