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While Malta is known for its low, 5% effective corporate tax rate for foreign shareholders, setting up a company can involve "hidden" or overlooked costs, ranging from mandatory annual audits to high professional fees and bank compliance checks or even penalties.

Key hidden and, often overlooked, costs for setting up a company in Malta include:

1. High Professional & Administrative Fees

Incorporation Services: While the government registration fee can be as low as €100–€245, hiring a Corporate Service Provider (CSP) to handle the paperwork, drafted Memorandum & Articles of Association, and UBO registration typically costs between €1,000 and €2,500+. Please note, that a company can be registered remotely even if you are a non-EU resident or you do not live in Malta. Still you would need assist. Navigation through the incorporation process might sounds easy, but the legal requirements are changing and depending on the activities of the company.

Company Secretary: It is legally mandatory to have a company secretary, with annual fees ranging from €500 to €1,500. On the other hand, as director of your company you will be able to serve as secretary as well.

Registered Office Address: A mandatory local address is required. While virtual offices can be cheap, a proper registered office service can cost €700–€2,500+ annually depending on the location and service needed.

2. Mandatory Ongoing Compliance Costs

Annual Audits: All Maltese companies must have their annual financial statements audited by a licensed auditor, regardless of their size or activity level. This is a significant annual cost, typically starting at €1,000, but can be easily €3,000+ depending on the business.

Accounting & Bookkeeping: Beyond the audit, monthly accounting and bookkeeping services can add substantial costs, often ranging from €100–€500+ per month, depending on transaction volume.

Annual Return Fees: Payable to the Malta Business Registry (MBR), these range from €100 to over €1,000 depending on authorized share capital.

3. Banking and Setup Hurdles

Bank Account Opening: Due to strict Anti-Money Laundering (AML) regulations, opening a corporate bank account in Malta can be difficult and time-consuming. Compliance and due diligence fees charged by banks or intermediaries can cost €300–€1,000+.

Do i need a bank account to register company in Malta?

No, you do not need a bank account to register your company. The initial share capital need to be paid up to register your company in Malta. After incorporation you can decide on the bank to open a corporate account.

4. Operational and Hidden Costs

Office Rent and Utilities: If a physical office is sometimes required, rent in popular areas can be high. Additionally, electricity rates for businesses in Malta are among the highest in Europe.

Initial Capital Deposit: While the minimum share capital is low (€1,165), 20% must be paid up, along with associated bank transfer fees.

VAT Registration & Returns: While often included in, or separate from, initial fees, managing VAT, especially for non-resident owners, requires professional local support. The costs for a quaterly VAT return depending on the work to be carried out and the turn over. The fees for a VAT return to be filed zero (which is often common until the newly registered company will start his business or if you have a dormant company) is usually around €80 + VAT.

Penalties: Late submission of annual returns or financial statements to the MBR can result in penalties ranging from €50 to over €500. Typical penalties are €25 per year + €0,25 per day of late filing.

As some provider cover "hidden" or overlooked costs in a package deal or charge "onboarding fees", we are committed to provide clear pre- and post-incorporation costs depending on the clients needs at no extra costs. If you're considering to register your company in Malta, the process is relatively straightforward. If you have any questions or need personalized assistance, feel free to contact us for a detailed proposal tailored to your business requirements.
 

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