How To Set Up An Offshore Company In Malta (2025 Guide)

When it comes to offshore company formation, most people immediately think of the British Virgin Islands, Seychelles, or Cayman Islands. But what if you could enjoy similar tax efficiencies while also gaining access to the European Union’s single market?

That’s where Malta stands out.

Located in the heart of the Mediterranean, Malta is a full EU member state with a globally respected legal system, transparent compliance framework, and a pro-business government. Unlike some “tax havens” that are often blacklisted or flagged by international bodies, Malta offers both legitimacy and flexibility — making it an ideal jurisdiction for entrepreneurs, investors, holding structures, and e-commerce businesses looking to expand globally.

Whether you’re:

  • An online business owner seeking a European base

  • A trader or holding entity optimizing global tax exposure

  • A consultant or freelancer looking for privacy and lower operational costs

  • Or a startup founder raising capital in a stable jurisdiction

…setting up an offshore company in Malta gives you a strategic edge — provided you understand how to do it right.

Table of Contents

In This Guide, You’ll Learn:In This Guide, You’ll Learn:

  • Why Malta remains a preferred offshore destination in 2025

  • Step-by-step process to register a Malta company

  • How Malta’s imputation tax system can legally reduce your tax burden

  • What documents, timelines, and compliance requirements to prepare for

  • Common mistakes to avoid when incorporating in Malta

  • How Worldwide Fellow can handle the entire process for you — so you can focus on growing your business

Why This Guide Is Different

Unlike generic blog posts, this guide is written by experts who help clients set up companies globally every day. You’ll get actionable insights, practical steps, and full transparency — not vague promises.

If you’re serious about using Malta to protect your assets, expand into Europe, or reduce your tax liability legally, this is the only guide you need.

Why Choose Malta for Your Offshore Company?

Malta isn’t your typical offshore jurisdiction — and that’s precisely what makes it so powerful.

While most offshore hubs prioritize privacy and zero taxation, Malta offers something more sustainable and credible: a legally compliant structure within the European Union, combined with smart tax incentives that benefit global entrepreneurs.

Here’s why more international businesses are choosing Malta in 2025:

1. Full Access to the European Union

Malta is an EU member state. This means:

  • Your company is fully recognized across all 27 EU countries

  • It’s easier to open EU-based bank accounts and payment gateways

  • You can operate cross-border within Europe without the restrictions that come with non-EU tax havens

👉 This makes Malta perfect for businesses targeting European customers, especially e-commerce, SaaS, fintech, and professional services.

2. Effective Tax Rate as Low as 5% (Legally)

Malta has a 35% corporate tax rate, but shareholders are eligible for a 6/7 tax refund, bringing the effective tax down to 5% in most cases.

  • The refund is applied within 2–3 weeks after tax is paid

  • No need to relocate or become a resident

  • This structure is 100% legal and fully transparent to international tax authorities

This gives you a reliable, onshore-looking company — with offshore-level tax efficiency.

3. Robust Legal System Based on British Common Law

Malta’s legal system is a hybrid of English common law and EU directives. This means:

  • Strong shareholder protections

  • Transparent dispute resolution processes

  • Confidence for foreign investors and global partners

It’s easier to attract international clients, banks, or investors when your company is based in a jurisdiction with clear, enforceable laws.

4. Reputable Banking Environment

Unlike jurisdictions where banking is a challenge, Malta gives access to both local EU banks and international financial institutions. You can also open accounts in:

  • Switzerland

  • Luxembourg

  • Singapore

  • Remote fintech platforms like Wise or Revolut Business (EU-compatible)

Note: Local banking is stricter post-2020, but using an international setup with a Malta company is a well-trodden and compliant path.

5. Ideal for Holding Companies & IP Structures

Malta is popular for:

  • Intellectual property (IP) holding

  • Investment vehicles

  • Group headquarters for multinational operations

Its tax treaties with over 70 countries, plus access to EU directives on withholding tax exemptions, make it ideal for minimizing global tax leakages.

6. High Reputation, Low Blacklist Risk

Malta has never been on the OECD blacklist and is not considered a secrecy jurisdiction.

  • It follows AML, KYC, and UBO transparency laws

  • That makes it bankable and sustainable long term

  • You can build real operations, not just a paper company

This is increasingly important in 2025 as many traditional “offshore havens” face international crackdowns.

7. Legal Asset Protection

With the right structure, a Malta company can also serve as a tool for asset protection and succession planning, especially when combined with a trust or foundation in another jurisdiction (e.g., Liechtenstein or Nevis).

8. No Exchange Controls + EUR as Base Currency

Malta uses the Euro, which:

  • Reduces forex volatility for European clients

  • Makes international business more seamless

  • Has no exchange control restrictions — funds can flow freely

Step-by-Step: How to Register an Offshore Company in Malta

Setting up an offshore company in Malta is straightforward when handled correctly, but there are important compliance requirements you must follow — especially in 2025 where global transparency rules are tighter.

Here’s a step-by-step breakdown of how to set up your Malta company through Worldwide Fellow:

Step 1: Choose the Right Company Structure

The most commonly used structure in Malta is the Private Limited Liability Company (Ltd). It allows for:

  • 100% foreign ownership

  • Only one director and one shareholder required

  • Low share capital (min. €1,165, with €240 paid-up)

Other structures (like partnerships or public companies) are possible but rarely used for offshore purposes.

🟢 Recommended: Private Ltd for international trade, holding companies, and service-based businesses.

Step 2: Reserve Your Company Name

Your company name must be:

  • Unique and not similar to existing Malta entities

  • Must end with “Ltd” to indicate limited liability

  • Can include your brand, activity, or generic trade names (with approval)

✅ Worldwide Fellow will handle this reservation as part of your package.

Step 3: Prepare the Required Documents

You’ll need to submit:

  • Passport copies of all directors and shareholders

  • Proof of address (utility bill or bank statement, last 3 months)

  • Proposed company name and business activity

  • Memorandum and Articles of Association (MOA/AOA)

  • Application form and identification documents for UBOs

  • Bank reference letter (in some cases)

We’ll help you collect and vet all documents to ensure smooth compliance approval.

Step 4: Deposit Share Capital in a Corporate Bank Account

You’ll need to deposit the minimum required share capital (€240) into a temporary bank account, issued in the company’s name.

Once incorporation is complete, the account can be converted into a full business account.

💡 Tip: Many of our clients opt to complete this step with international banking partners or EU fintech solutions (especially when time-sensitive).

Step 5: Submit the Incorporation Application to the Malta Business Registry (MBR)

The application includes:

  • MOA & AOA

  • Identification documents

  • Share capital confirmation

  • Compliance forms (including UBO declaration)

🕒 Processing time: 2 to 5 business days once documents are in order.

Worldwide Fellow will submit and follow up on your behalf.

Step 6: Obtain Your Certificate of Incorporation

Once approved, you’ll receive:

  • Certificate of Incorporation

  • Company Registration Number

  • Official company documents including your Articles, Memorandum, and company extract

At this point, your Malta company is legally operational.

Step 7: Register for Tax & VAT (if required)

Depending on your planned activity:

  • Corporate tax ID is mandatory

  • VAT registration applies if annual turnover exceeds €35,000 or if you’re trading within the EU

  • You’ll need a Malta fiscal representative in some cases — we provide this as part of our service

Step 8: Open a Full Business Bank Account

Once incorporated, you can apply for a permanent corporate account:

  • In Malta (for local presence)

  • In Switzerland, Singapore, or via digital banks (for international access)

  • Some providers offer remote onboarding

🟢 Worldwide Fellow works with several global banking partners and can facilitate introductions.

Step 9: Maintain Ongoing Compliance

Malta requires:

  • Annual return filing

  • Audited financial statements

  • Updated UBO register

  • Compliance with EU AML rules

We offer full nominee, accounting, and compliance packages to ensure your company remains in good standing year-round.

Understanding the Malta Corporate Tax System: How You Legally Pay 5%

Many offshore jurisdictions offer 0% tax — but at the cost of credibility, banking difficulty, and increasing scrutiny from global regulators.

Malta offers a smarter, EU-compliant tax structure that enables you to legally reduce your effective corporate tax rate to as low as 5%, without triggering red flags from tax authorities or banking partners.

Here’s how it works:

The Standard Corporate Tax Rate: 35%

At face value, Malta’s headline corporate income tax rate is 35% — among the highest in Europe.

Shareholder Tax Refund Mechanism

Malta’s unique system is based on full imputation and tax refunds to shareholders, which works like this:

  1. Your Malta company pays 35% corporate tax on its net profits

  2. You (the shareholder) are entitled to a refund of up to 6/7 of the tax paid, once profits are distributed as dividends

  3. The effective tax rate becomes just 5%

Example Calculation

Let’s say your company earns €100,000 net profit:

Step Calculation Result
Corporate Tax (35%) €100,000 × 35% €35,000
Shareholder Refund (6/7) €35,000 × 6/7 €30,000
Net Tax Paid €35,000 - €30,000 €5,000
Effective Tax Rate €5,000 / €100,000 5%

✅ The refund is usually processed within 2–3 weeks of dividend distribution.

Key Notes:

  • Refunds are available only when profits are distributed, not on retained earnings

  • Your Malta company must comply with bookkeeping and audit requirements

  • The system is fully transparent and OECD-compliant, which makes it safe for long-term structuring

Other Tax Benefits

Benefit Description
No Withholding Tax No WHT on dividends to non-residents, even outside the EU
Tax Treaties 70+ double tax treaties to avoid double taxation
Participation Exemption 0% tax on dividends or capital gains from qualifying subsidiaries
Group Relief Transfer of losses between group companies allowed in some cases

Tax Residency & Substance Considerations

  • Management & control of the company must be in Malta to claim full benefits

  • Appointing a resident director and having a physical office or registered address improves your tax position

  • Substance requirements are increasing globally — Malta’s structure is ideal for a hybrid offshore + operational base

Worldwide Fellow can help structure your Malta company to maximize tax efficiency while staying compliant with EU and OECD rules.

Documents & Timelines for Setting Up a Malta Offshore Company

Setting up a Malta company is not expensive or time-consuming when guided by us at Worldwide Fellow — but getting the details right is essential. Here’s what you need to know.

Required Documents

For every beneficial owner, director, and shareholder, you’ll need to prepare the following:

Document Notes
Passport Copy Must be valid and clear. Certified true copy preferred
Proof of Address Utility bill or bank statement (issued within last 3 months)
Bank Reference Letter (if applicable) Some banks or authorities may require this
CV or Business Profile (optional but helpful) Especially for complex or high-value structures
Company Name and Business Activity Description To be submitted to the Malta Business Registry
Due Diligence & KYC Forms Required by law; we provide these as part of our onboarding
Ultimate Beneficial Owner (UBO) Declaration Mandatory under EU AML laws

✅ Worldwide Fellow will assist with vetting, translating (if needed), and compiling these documents.

Timelines

Task Time Frame
Pre-approval screening 1–2 business days
Name reservation & document collection 2–3 business days
Incorporation & company registration 3–5 business days
Tax registration 2–4 business days
Bank account opening (if needed) 1–3 weeks (depends on provider)

Total Time to Operate: Around 7–10 business days (excluding banking)

Common Use Cases for a Malta Offshore Company: Who It’s For & Why

A Malta offshore company isn’t just a “tax-saving tool” — it’s a strategic vehicle used by entrepreneurs, investors, and international businesses to scale, protect assets, and operate globally with credibility.

Here are the most common and effective ways people use Malta entities:

1. Holding Company for Global Assets or Subsidiaries

Malta is a popular jurisdiction for holding structures thanks to its:

  • 0% tax on qualifying dividends and capital gains (participation exemption)

  • Access to over 70+ double tax treaties

  • EU directives for withholding tax relief when receiving income from other EU companies

🟢 Used by: High-net-worth individuals, parent companies, VC-backed startups with global subsidiaries

2. Trading or Consulting Businesses Targeting the EU

If you’re selling goods, services, or software across the EU, a Malta Ltd gives you:

  • A credible EU presence

  • An EU VAT number (for B2B transactions or dropshipping)

  • Easier onboarding with payment processors, logistics platforms, and marketplaces

🟢 Used by: E-commerce store owners, SaaS founders, consultants, and freelancers

3. IP or Licensing Structure

Malta allows you to hold intellectual property (patents, trademarks, software rights) under a corporate entity and license them to other companies — even outside Malta.

  • Royalty income can benefit from treaty protection

  • IP holding companies can enjoy reduced tax when structured properly

🟢 Used by: Creators, inventors, app developers, digital agencies

4. Investment Vehicle or SPV (Special Purpose Vehicle)

Malta companies are often used to hold:

  • Real estate abroad

  • Stocks, funds, crypto, or private equity

  • Joint ventures or co-investments

✅ Why? It keeps the assets legally separated from your personal name, improves privacy, and streamlines inheritance or sale later.

🟢 Used by: Investors, fund managers, family offices

5. Digital Nomads & Remote Entrepreneurs

If you operate a fully remote business, using a Malta Ltd gives you:

  • A home base in the EU

  • Remote bank account access

  • Legal tax optimization while staying compliant with international rules (e.g. CFC laws)

🟢 Used by: Content creators, remote consultants, coaches, agencies

6. Asset Protection & Succession Planning

Combine a Malta company with a trust or foundation (in Nevis, Liechtenstein, or Cook Islands) for:

  • Multi-layered legal protection

  • Estate planning

  • Business continuity if something happens to you

🟢 Used by: Wealthy individuals, families, or entrepreneurs with legacy concerns

Bonus: International Tendering & B2B Contracts

Malta’s reputation and EU incorporation status help you:

  • Win international contracts

  • Bid for projects with governments, NGOs, and multinational firms

  • Partner with vendors who avoid blacklisted jurisdictions

Risks, Challenges & How to Avoid Mistakes with a Malta Company

While Malta is a top-tier jurisdiction, it isn’t for everyone — and it’s not “zero-risk.” Many business owners jump in without understanding the obligations, only to face compliance issues, tax penalties, or account closures later.

Here’s what to watch out for — and how to stay protected:

1. Misunderstanding the Tax Refund System

Mistake: Many think they’ll automatically pay just 5% tax — but that’s only if profits are distributed as dividends and the refund is properly filed.

Solution:
Use an experienced service provider (like Worldwide Fellow) to manage both corporate tax returns and refund applications with Malta’s tax authorities. Structure profit distribution clearly from the start.

2. Insufficient Substance or Mismanagement

Mistake: Operating a “paper company” with no real presence or control in Malta can cause issues with:

  • Tax authorities in your home country (especially under CFC rules)

  • Banks declining to open or maintain accounts

  • EU authorities flagging non-compliance

Solution:
✅ Appoint a local resident director
✅ Use a registered office with real admin support
✅ Have board resolutions and company control exercised from Malta
(Worldwide Fellow provides nominee and substance solutions.)

3. Banking Rejections or Delays

Mistake: Post-2020, Maltese banks have tightened onboarding — especially for foreign clients with no EU substance or proper KYC.

Solution:
Use alternative banking jurisdictions (like Switzerland, Singapore, or fintech banks).
We assist with multi-jurisdictional banking tailored to your business model.

4. Neglecting Annual Compliance

Mistake: Clients assume once the company is registered, that’s it. But Malta companies must file:

  • Annual returns

  • Audited accounts

  • Updated UBO disclosures

  • Corporate tax filings, even if inactive

Non-compliance can lead to fines, company suspension, or blacklisting.

Solution:
Let Worldwide Fellow manage your annual filings, tax reporting, and audit coordination. We handle everything, even if you’re abroad.

5. Choosing the Wrong Business Activity or Licensing Path

Mistake: Some activities (like crypto, FX trading, or gaming) require special licenses in Malta. Starting without one can result in a shutdown or legal problems.

Solution:
We’ll review your business model before setup and advise if any regulated activity is involved. If licensing is needed, we’ll support your application or recommend a better-fit jurisdiction.

6. Mismatch Between Tax Residency and Business Reality

Mistake: If your company is legally in Malta but controlled from your home country, tax authorities might challenge your structure and reclassify it as locally taxable.

Solution:
Structure management and control in Malta, or complement your company with personal tax planning, especially if you’re based in a high-tax country.

How Worldwide Fellow Can Help You Set Up Your Malta Offshore Company

Setting up a Malta offshore company isn’t just about filing paperwork — it’s about making sure your structure is legally sound, tax-efficient, and future-proof.

At Worldwide Fellow, we go beyond basic incorporation. We help you set up a compliant, strategic, and scalable business entity in Malta — all while you focus on growing your company.

What We Offer

Service Description
Company Formation Complete registration with the Malta Business Registry (MBR), including MOA, AOA, and official company extract
Name Reservation We secure your company name before formation, aligned with your branding
Registered Office & Company Secretary Mandatory local presence fulfilled for one full year
Tax Registration Corporate tax and VAT registration, if required
Tax Refund Structuring Guidance and documentation to maximize your 6/7 refund entitlement
Annual Compliance Ongoing filing of returns, audited accounts, UBO updates, and tax support
Nominee Director Service (optional) Ensure local substance, privacy, and professional governance
Bank Account Assistance Help opening accounts in Malta, EU, or top-tier offshore jurisdictions (remote available)
Multi-entity Structuring Setup of holding companies, IP vehicles, or trust structures (if needed)

Why Clients Choose Worldwide Fellow

  • Expertise in EU & offshore structures — not just “paper” companies

  • Strict compliance with international AML, KYC, and substance standards

  • Transparent pricing — no hidden fees or commissions

  • One-on-one onboarding — human guidance, not just forms

  • Fast turnaround times — we incorporate most Malta companies in under 7 business days

Who We Work Best With

We specialize in assisting:

  • Solo founders, remote entrepreneurs, and digital nomads

  • Businesses seeking a real EU presence

  • Investors and holding companies

  • Companies needing EU banking or tax treaty access

  • Clients looking to move from “high-risk” offshore jurisdictions to a more reputable base

Whether this is your first company abroad or you’re an experienced operator looking to scale — we’ll guide you every step of the way.

Conclusion: Is a Malta Offshore Company Right for You?

If you’re looking for a respected, tax-efficient, and fully compliant jurisdiction within the European Union — Malta is one of the smartest offshore options available in 2025.

Unlike blacklisted tax havens, Malta offers a rare combination of:

  • ✅ Legal tax optimization (as low as 5% effective rate)

  • ✅ Access to EU markets and banks

  • ✅ Long-term legitimacy with strong international reputation

But setting up the right way is critical.

With tightening global regulations, substance, compliance, and strategic structuring matter more than ever. That’s why having a trusted partner to guide you through incorporation, tax registration, banking, and ongoing compliance isn’t just helpful — it’s essential.

Ready to Launch Your Malta Offshore Company?

Worldwide Fellow will handle everything for you — from name reservation and company formation to banking and annual reporting.

Take the first step today and get a tailored consultation from our offshore incorporation team.

👉 Contact us now to set up your Malta company the right way.

Frequently Asked Questions

Malta is an EU member state with a robust legal framework, English-speaking workforce, and reputable banking sector. It’s ideal for:

  • International trading

  • iGaming

  • Financial services

  • IP and holding companies
    It also offers attractive tax refund schemes for foreign-owned companies.

The most common offshore structure is the Malta Private Limited Liability Company (Ltd). It allows:

  • 100% foreign ownership

  • No minimum nationality requirements for directors/shareholders

  • Flexible use for holding, trading, or service operations

Malta has a 35% corporate tax rate, but foreign shareholders may claim up to a 6/7 tax refund, reducing effective tax to as low as 5%. This makes Malta highly attractive for legitimate tax planning under EU law.

To set up a Maltese company, you need:

  • A local registered office

  • At least one shareholder and one director

  • A Memorandum & Articles of Association

  • A minimum share capital of €1,165 (only 20% payable upfront)

  • A company secretary (optional but recommended)

Yes, but local banks perform rigorous due diligence. You’ll need to show:

  • Clear business plan and proof of substance

  • Identity and address verification

  • Tax and legal compliance
    Alternative banking options include EMIs and fintech platforms like Wise or Statrys.

The formation process typically takes 5–10 business days, depending on document readiness and KYC clearance.