The cost of setting up a company in Malta depends on its share capital, ownership structure, business activities and administrative requirements.

The main expenses normally include share capital, the official registration fee, preparation of incorporation documents, a registered office and ongoing accounting and compliance.

What Is the Minimum Share Capital?

A private limited company must have minimum authorised share capital of approximately €1,165.

At least 20% of the value of each issued share must normally be paid when the company is incorporated. Where only the minimum capital is issued, the initial paid-up amount is approximately €233.

Share capital is not a fee. It is money contributed by the shareholders and becomes part of the company’s funds after incorporation.

Public companies and regulated businesses may be subject to significantly higher capital requirements.

What Is the Company Registration Fee?

An official registration fee must be paid when the incorporation documents are submitted.

The amount generally depends on:

  • The authorised share capital
  • Whether the application is submitted electronically
  • The company’s legal structure
  • Any additional documents or services required

Official fees can change, so the current fee schedule should be checked before submitting the application.

What Other Setup Costs Should Be Expected?

Incorporation documents

The company needs a Memorandum and Articles of Association. The cost of preparing these documents depends on whether the company uses standard provisions or requires customised rules.

A business with several shareholders, different share classes or special voting rights may require more detailed documents.

Registered office

Every company must have a registered office address in Malta. A cost may arise if the company does not own or control a suitable local address.

The registered office is used for legal notices and official correspondence.

Identification and document certification

Foreign shareholders, directors or beneficial owners may need to provide certified or authenticated documents.

Possible expenses include:

  • Passport certification
  • Proof-of-address certification
  • Document authentication
  • Official translations
  • Courier or administrative charges

These costs vary according to the country where the documents are issued.

Licences and permits

Company registration does not automatically authorise regulated activities.

Additional fees may apply where the business requires:

  • A trading licence
  • An import or customs registration
  • Industry-specific approval
  • A regulated-activity licence
  • Product-related authorisation

The cost can vary considerably depending on the type of business.

Professional assistance

Some founders prepare a simple company application themselves, while others obtain legal, tax, accounting or administrative assistance.

The cost depends on the complexity of the company, the number of people involved and the level of support required. Foreign ownership and complex corporate structures usually require more documentation.

What Are the Ongoing Annual Costs?

The cost of a Malta company does not end after incorporation. Owners should budget for continuing legal and administrative obligations.

Common annual expenses include:

  • Annual return filing fees
  • Bookkeeping
  • Preparation of financial statements
  • Audit services where required
  • Tax-return preparation
  • Registered-office expenses
  • Company-secretarial administration
  • Payroll administration where applicable
  • Licence renewals
  • VAT and regulatory compliance

An inactive company may still have accounting and filing obligations. It should not be assumed that a company has no costs simply because it has not started trading.

Does Opening a Business Account Cost Extra?

Company registration and account opening are separate processes.

The company may face:

  • Application or onboarding charges
  • Monthly account fees
  • Payment fees
  • Currency-conversion costs
  • Charges for receiving or sending funds
  • Minimum-balance requirements

The company may also need to prepare invoices, contracts, forecasts or a business plan to support its application.

Account approval is not guaranteed simply because the company has been registered.

What Factors Increase the Cost?

The total cost may be higher when:

  • There are several shareholders
  • A corporate shareholder is involved
  • The ownership structure has multiple levels
  • Foreign documents need certification or translation
  • Custom articles are required
  • The company needs a licence
  • Several directors or share classes are involved
  • The business will employ staff
  • The company will trade internationally
  • Additional tax advice is required

A simple company owned by one individual will usually cost less to establish and maintain than a regulated company with an international ownership structure.

How Can You Keep Costs Under Control?

To avoid unnecessary expenses:

  • Keep the ownership structure as simple as practical.
  • Define the business activities clearly.
  • Prepare valid identification documents in advance.
  • Check whether documents require certification.
  • Confirm licensing requirements before incorporation.
  • Avoid creating unnecessary share classes.
  • Compare the initial cost with the annual compliance cost.
  • Keep proper records from the first day.
  • Separate personal and company transactions.
  • Request a clear breakdown of any professional or administrative charges.

The cheapest setup is not always the most suitable. Incorrect documents or an unsuitable structure can cost more to correct later.

Common Costing Mistakes

Founders frequently make the mistake of budgeting only for the registration fee.

Other common mistakes include:

  • Treating share capital as a lost expense
  • Ignoring annual accounting costs
  • Forgetting document certification expenses
  • Assuming account opening is included
  • Overlooking licence and permit fees
  • Failing to budget for tax and VAT administration
  • Assuming an inactive company has no filing costs
  • Choosing a complicated ownership structure unnecessarily

A proper budget should cover incorporation, the first year of operations and ongoing annual compliance.

Frequently Asked Questions

Is share capital a government fee?

No. Share capital is money invested in the company by its shareholders. It is separate from the official registration fee.

Must all the authorised share capital be paid immediately?

Not necessarily. A private company must normally pay at least the required portion of its issued shares at incorporation.

Is it cheaper to register online?

Electronic registration fees may differ from paper-based filing fees. The current official fee schedule should be checked before applying.

Does the setup cost include VAT registration?

Not necessarily. VAT registration and related tax administration may be handled separately.

Is a registered office included?

No. The company must arrange a Malta registered office. A separate cost may apply if the company does not already have a suitable address.

Does a dormant company have annual costs?

Yes. A dormant or inactive company may still have annual return, accounting, financial-statement and tax-filing obligations.

Is a business account included in the incorporation cost?

No. Account opening is a separate process and may involve additional fees and due-diligence requirements.

Are foreign-owned companies more expensive to establish?

Not automatically. Costs can be higher if foreign documents require certification, translation or additional ownership checks.

Conclusion

The cost of setting up a company in Malta includes more than the registration fee. Founders must consider the required share capital, incorporation documents, registered office, identification requirements and any necessary licences.

They should also budget for annual accounting, filings, tax administration and other compliance obligations.

Calculating both the initial and ongoing costs before registering can help founders choose an appropriate structure and avoid unexpected expenses later.

Figures and administrative fees may change. This article provides general information and does not constitute legal, tax or financial advice.


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