
The Pros and Cons of Setting Up a Company in Malta
Are you an entrepreneur looking to establish your business in a European jurisdiction? Malta could be an attractive option worth considering. This Mediterranean island nation offers an array of benefits. From favourable tax policies to grants supporting new ventures, Malta has plenty of incentives to lure foreign companies. However, the limited market size and high operating costs are factors that shouldn’t be overlooked either. This comprehensive guide will examine the major pros and cons of setting up a company in Malta. It will then help you make an informed decision if it’s the right fit for your business goals!
Setting Up a Company in Malta – Quick Overview
Strategically located in the heart of the Mediterranean, Malta has emerged as a prime destination for:
- Entrepreneurs
- Foreign investors
Malta is perfect for those looking to expand into the European market. The nation offers a tried-and-tested legal framework modeled after the UK Company Law.
With a robust financial services industry, pro-business policies, and an English-speaking workforce, Malta provides an attractive environment for companies. Businesses across various sectors like gaming, fintech, blockchain, and others can take advantage of these incredible benefits!
Though relatively small in size, Malta punches well above its weight. How?
In terms of the benefits and opportunities it presents to:
- Foreign corporations
- Investors
These key perks help firms & investors seamlessly set up shop on the sun-drenched archipelago. So, what are you waiting for? Apply online Malta visa today. Set up a business that will take advantage of the incredible benefits provided by Malta!

10 Pros and Cons of Starting a Business in Malta
Like any location, establishing a company in Malta comes with its own unique set of advantages and drawbacks that entrepreneurs must carefully evaluate. Read this setting up a business in Malta: Benefits, taxes and Benefits guide. It will give you firsthand information about all the exciting benefits and drawbacks that you may face.
5 Pros of Setting Up a Company in Malta
1). An Excellent Tax Regime with a Host of Benefits
One of Malta’s biggest draws is its enticing tax system with remarkably low effective corporate tax rates. The standard corporate income tax rate is 35%. But companies can claim refunds of up to 6/7ths of the tax paid upon distributing profits. This results in an effective tax rate between 0-10% for trading profits. This is significantly lower than most other European nations. Malta also boasts an extensive double tax treaty network avoiding double taxation.
2). Grants and Funding Programs to Support Entrepreneurs and Businesses
Newly incorporated Malta companies can leverage a range of:
- Government grants
- Incentives
- Funding schemes
Malta Enterprise is the official agency that is responsible for:
- Providing the schemes & guidance to access the same
- Promote investment & economic growth
They design a wide range of such schemes & programs to support startups and SMEs. So, don’t wait! Grab the opportunity today by applying for a Malta Schengen Visa.
3). A Robust Economic & Political Environment
Malta offers political and economic stability that’s rare for its region. Malta provides a reliable business environment to conduct business activities confidently by:
- Being an EU member with a pro-business government
- Secure bi-partisan democracy
- Economic policies that attract Foreign Direct Investment (FDI)
4). Easily Open a Business Account in Malta – No Need to Visit the Country
Entrepreneurs and remote business owners have the convenience of completing all formalities of:
Registering, and,
Opening a corporate bank account in Malta
You don’t need to visit Malta at all! Pretty, convenient, right?
The entire process can be handled remotely, making Malta an accessible country for setting up your company!
5). A Strategic Location with Access to the European Market
Malta’s geographic position at the crossroads of the Mediterranean puts it right at the heart of vital shipping routes. Companies based here can easily access markets across:
- Europe
- North Africa, and
- The Middle East
Businesses can easily take advantage of the efficient logistics and transport links.
5 Cons of Setting Up a Company in Malta
1). You May Find a Limited Market Size
As a tiny island nation with just over 400,000 residents, Malta’s domestic market is tiny compared to other European countries. This restricted consumer base means companies oriented towards local consumption may struggle to achieve economies of scale.
2). Operating Costs are on the Higher Side
From cost of living & doing business, Malta has a relatively high cost of operations that must be factored in. Office spaces and housing come at a premium due to limited supply on the densely populated islands.
3). Fewer Natural Resources Compared to Other Countries
Malta is severely lacking in natural resources like:
- Arable land
- Freshwater
- Energy sources
- Mineral reserves
Its advanced economy and industries are heavily dependent on:
- Importing most raw materials
- Resources required for production and operations
4). High Cost of Living
The overall cost of living in Malta is quite steep, especially in areas like:
- Accommodation
- Groceries
- Transport
- Utilities
Expats and foreign workers can end up spending significantly more than expected to maintain their desired lifestyle.
5). Less Networking Opportunities
While steadily growing, Malta’s compact size translates to:
- Fewer networking events
- Meetups, and,
- Activities taking place across industries compared to major business hubs.
Building connections requires more personalized outreach for entrepreneurs.
This setting up a company in Malta: 10 things you should know guide will help you decide whether Malta is the right destination for your business.
The Best Way of Setting Up a Company in Malta

Malta offers several ways to register a new business entity. However, the most common and simplest path involves incorporating a limited liability company.
The procedure typically takes 4-6 weeks if all documentation is properly filed and approved by the Malta Business Registry. The key steps include:
- Choose a Company Name: Ensure the proposed name isn’t already reserved or too similar to existing entities in Malta.
- Describe the Business Activity: Be clear and specific in defining your company’s scope of operations. Certain regulated sectors require additional licensing.
- Appoint Directors and Secretary: Companies must have at least one director who can be Maltese or a foreign resident.
- Draft Memorandum and Articles: These legal documents define the company’s objectives, operations and internal management guidelines.
- Open a Bank Account: Setting up a corporate bank account in Malta is mandatory before formal registration.
- File for Company Registration: An application is submitted along with the required documents for incorporation review.
Many businesses consider engaging a Malta company formation specialist. This will help you to seamlessly handle the entire registration process from start to finish. It eliminates hassles and ensures full compliance. All you need is a Malta visa to get started on your new business in Malta!
Conclusion
With its favourable tax policies, grants for new ventures, strategic location and developed infrastructure, the pros of setting up in Malta are plentiful. However, entrepreneurs must weigh these benefits against the limited market size, high operating costs and other cons.
Ultimately, structuring your company in Malta can be an advantageous decision. It’ll be quite beneficial if Malta’s business-friendly environment aligns with your overall goals and target markets. With proper due diligence and planning, Malta offers a compelling proposition for entrepreneurial growth. So, why wait? Book your Malta visa appointment today to kickstart your new venture in Malta!
FAQs
1. Why is Malta considered a prime destination for entrepreneurs and foreign investors?
Malta is strategically located in the Mediterranean, making it an ideal gateway for expanding into the European market. It offers a pro-business environment with a legal framework modeled after UK Company Law, which is familiar to many international businesses.
2. What sectors benefit most from setting up in Malta?
Businesses in sectors like gaming, fintech, blockchain, and more benefit significantly from Malta’s robust financial services industry and supportive policies. These sectors can leverage Malta’s advanced infrastructure and skilled, English-speaking workforce.
3. What are the benefits of Malta’s tax regime for companies?
Malta offers an attractive corporate tax system with a standard rate of 35%. However, companies can benefit significantly from a refund system that allows for up to 6/7ths of the tax paid to be claimed back upon profit distribution. This is considerably lower than many other European countries. Additionally, Malta has a vast network of double tax treaties, helping to prevent double taxation.
4. How does Malta’s limited market size affect new businesses?
Due to its small population, Malta offers a restricted consumer base. This can hinder companies that primarily focus on local consumption from achieving economies of scale, as the domestic market is considerably smaller compared to other European nations.
5. Can I open a business account in Malta online without visiting the country?
Yes, entrepreneurs and remote business owners can handle all the formalities of registering a company and opening a corporate bank account in Malta remotely, without the need to visit the country. This process is streamlined and convenient, making Malta an accessible option for setting up a company.