Most common business entity in Malta
The Private Limited Company (Ltd) is the standard choice for most small- to mid-size businesses in Malta. Like a US LLC, it provides limited liability protection separated from the owners' personal assets. Refund: 6/7 for trading income → 5%; 5/7 for passive → 10%; 2/3 for treaty relief.
The full menu of Malta business structures
| Structure | Liability | Tax | Best for |
|---|---|---|---|
| Private Limited Company (Ltd) | Limited | 35% corporate | Most operating businesses |
| Sole proprietor / self-employed | Unlimited personal | Personal income tax rates | Freelancers, one-person services |
| Partnership | Joint and several | Pass-through to partners | Professional services (law, accounting) |
| Branch of foreign company | Parent company liability | 35% on Malta-source profits | Foreign companies entering Malta market |
| Public limited company | Limited | Same as Private Limited Company (Ltd) but stricter | Companies preparing for listing |
Which one should you pick?
- Freelance or one-person service in Malta? Self-employed structure if simple, Private Limited Company (Ltd) if you want liability protection.
- Software / e-commerce / agency? Private Limited Company (Ltd) — standard, scalable.
- Operating an existing foreign company in Malta? Branch (simpler) or subsidiary Private Limited Company (Ltd) (more substance).
- Planning to raise venture capital? Confirm investors accept Malta entities. Many require a US Delaware C-Corp flip — see US company formation.
- Holding company for IP or other companies? Private Limited Company (Ltd) with minimal substance requirements.
The Private Limited Company (Ltd) in one paragraph
Private Limited Company (Ltd) is Malta's primary limited liability vehicle. Minimum paid-up capital: $1,300. Headline corporate tax: 35%. Headline 35%, but 6/7 tax refund to non-resident shareholders makes effective rate ~5%.. Banking accessibility: 6/10. Privacy: 5/10 (UBO public). Remote formation: yes. Processing time: 10 business days.
For US comparison, see Malta vs USA. For non-resident formation specifics, see forming a Malta company as a non-resident.