Company Registration
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Company Registration

Last Updated: 30/05/2022  

Registration of Companies for Income Tax purposes

The Office of the Commission of Revenue recognises the importance of registering companies for tax purposes in Malta. Persons setting up a company must first register the company with the Registrar of Companies. Once all documents are received, the registration of companies for tax purposes in Malta is straightforward. A company is required to register for income tax purposes when:

          • A company is incorporated in Malta
          • A company’s management and control is located in Malta
          • A company carries on an activity in Malta.

Generally, once a company is incorporated or a place of business is registered with the Registrar of Companies  in Malta, the company will be registered with the Commissioner for Revenue and an income tax number (in the format of a nine-digit number) will automatically be generated.

In other instances where Maltese source income is earned without a permanent establishment in Malta, an application can be sent to the International and Corporate Tax Unit  to clarify the companies tax status. Enquiries can be sent to ictu.mfe@gov.mt​.

Registration of Companies for VAT purposes

All companies registered in Malta must also register for VAT. VAT obligations include several compliance and payment obligations and it’s important to understand these at registration stage. 

A simple way to apply for VAT is through the single e-form which can be downloaded here. Companies can be registered for VAT under any of the following Articles: 

1.   ​ Article 10: Companies that undertake the following activities are required to register under Article 10 of the VAT Act:

·         Supply of taxable or exempt with credit goods or services in Malta,

·         Export of goods from Malta to third countries, outside the EU,

·         Make intra- community supplies or provide services taking place in EU member states other than Malta

A company taxable under Article 10 is eligible to claim input tax for purchases made which are attributable to its supplies.​ 

2.    Article 11: Only companies that qualify as a small undertaking in terms of the provisions of the Part 1, of the 6th schedule, of the VAT Act 1998 can register under Article 11. These companies cannot charge VAT to their customers nor can they claim input VAT on their purchases and expenses and are therefore considered as exempt from VAT. VAT thresholds can be found on the following link. Taxpayers may opt out of Article 11 registration even if they fulfil the threshold requirements and opt to register under Article 10 instead. The requirements and obligations imposed under Article 10 registration would apply in the normal manner.

 

3.  Article 12: Companies that which are not registered under Article 10 and who make intra-community acquisitions of goods in Malta whose value exceeds €10,000 in a calendar year are required to register under Article 12 of the VAT Act. Article 12 registration is also required where a company purchases services from suppliers established outside Malta (both EU and non-EU) and the place of taxation of such service is deemed to be Malta and where the liability of payment of the tax lies with the customer.

To register for VAT and receive a Maltese VAT number, Companies may complete the prescribed form online. Click here to access the form.

Liquidation and Insolvency of a Company

The liquidation of companies in Malta is governed by the Companies Act. The later imposes several formal requirements on how the liquidation of a company in Malta is to take place. The formal process seeks to protect both creditors, employees and other stakeholders. In this regard the Companies Act requires that a liquidator be appointed to manage the liquidation process and ensure that all the requirements imposed by local legislation are meet. One important duty of a liquidator is to ensure that the company meets its tax obligations and pending tax dues. In this regard the liquidator is regulated by special obligations and responsibilities under Article 7 of the ITMA.

Where a liquidation takes place, a liquidator must ensure that:

·       An annual tax return for the last year of the company’s existence is completed and submitted in a timely manner,

·      Ensure that the company is not struck off the Registry of Companies before it obtains the necessary tax clearance from the Office of the Commission of Revenue.

Once a company has stopped trading and has abided by all the formalities imposed by the Malta Business Registry as well as the Companies Act and has settled all pending dues with the Commissioner for Revenue, the company may make a formal request for de-registration. This can be done by the company’s representative through a written request sent to the International and Corporate Tax Unit informing the latter that the company has completed the liquidation process and should be de-registered for tax purposes.