A limited liability company may be registered by the shareholders or their authorised agent.

The length of time to incorporate a company depends on the type of company being incorporated and on whether all information and documentation is available and in order. Once all the documentation and information is in order and passed on to the Registrar of Companies, the process may take from as little as 24 hours. 

Every company registered in Malta must have a registered office in Malta. Any changes to the company's registered office must be notified to the Registrar of Companies.

The minimum number of shareholders is normally two; however, a ‘single member company’ may also be registered. On the other hand the maximum number of shareholders for a private company is fifty. There is no maximum number of shareholders for a public company. 

Every private company must have at least one director whilst every public company must have at least two directors. It is worth mentioning that every company must have a company secretary. Furthermore, no company may have:
a) as company secretary its sole director (unless the company is a private exempt company)
b) as sole director of the company a body corporate, the sole director of which is company secretary to the company.

All companies must prepare an annual return upon each anniversary of its registration. The Company Return must be filed with the Registrar of Companies within 42 days after the date to which it is made up, against a payment which is determined upon the authorised capital of the company.

Companies are also required to file a copy of the annual accounts, which are generally accompanied by a copy of the auditors' report and the directors' report. The annual accounts must be filed within 10 months from the end of the financial year, with a grace period of 42 days.

Any taxable person established in Malta shall apply to the Commissioner for Revenue to be registered for Value Added Tax (VAT) purposes. Registration must take place not later than thirty days from the date on which any taxable supply or exempt with credit supply is made.

Malta has different tiers of VAT, depending on the type of taxable supply. The VAT rates are as follows:

• 18% on the taxable value of every taxable supply of goods, services or importation
• 5% on the letting of or the provision of accommodation in premises licensed under the M.T.T.S. Act
• 5% on the supply of electricity
• 5% on specified confectionery items
• 5% on specified medical accessories
• 5% on specified printed matter
• 5 % on specified items for the exclusive use of the disabled
• 5% on the importation of works of arts, collectors’ items and antiques
• 5 % on minor repairing of bicycles, shoes and leather goods, clothing and household linen (including mending and alteration)
• 5% on domestic care services such as home help and care of the young, elderly, sick or disabled
• 5% on admission to museums, art exhibitions, concerts and theatres

Certain products are exempt and on which no VAT is charged.

There are two types of exempt supplies:

• Exempt with credit, where no VAT is charged on the value of the supply but the registered person is entitled to claim back input VAT incurred in the provision of that supply

• Exempt without credit, where no VAT is charged on the value of the supply but the supplier is not entitled to claim back input VAT incurred in the provision of that supply. In this case the supplier is not required to register with the Department.

A recapitulative statement is a periodical statement required to be made by suppliers in Malta who make intra-Community supplies of goods to customers identified with a valid VAT Registration number in another Member State. The new rules extend this requirement also to a supply of services made to a customer who is liable to pay the tax on that service in the Member State in which he is established, except when that service would be exempt in that Member State. The recapitulative statement must be submitted to the VAT Department.