Top 5 Mistakes Entrepreneurs Make When Incorporating in Malta 

Incorporating a business in Malta offers countless opportunities, access to the EU single market, a strategic location, and a competitive tax regime. But too often, entrepreneurs fall into traps that slow down their progress, create compliance headaches, or even cost them money.

Avoiding these mistakes is essential if you want your company to start strong and stay compliant. Here are the top 5 mistakes entrepreneurs make when setting up a company in Malta and how you can avoid them.

1. Choosing the Wrong Business Structure

The structure you select determines your tax obligations, liability, and long-term flexibility. Many entrepreneurs rush into incorporation without considering whether they should operate as:

• A Private Limited Liability Company (Ltd)
• A Partnership
• Or simply as a Sole Trader

The wrong choice can increase costs or expose you to unnecessary risks. Always align your structure with your business goals.

2. Submitting Incomplete or Incorrect Documentation

The Malta Business Registry (MBR) requires a set of documents, including the Memorandum & Articles of Association, proof of share capital, and beneficial ownership declarations.
Common mistakes include:

• Missing signatures
• Incorrect shareholder details
• Outdated address information

Even small errors can delay registration or result in rejection.

3. Ignoring Beneficial Ownership Requirements

Under Maltese law, companies must declare their beneficial owners (the individuals who ultimately control or own the company) within 14 days of incorporation.
Failure to comply can lead to penalties or regulatory scrutiny.

Transparency is not optional but it’s a legal requirement.

4. Missing Compliance Deadlines

Incorporation is only the first step. New entrepreneurs often overlook deadlines for:

• Annual Returns (within 42 days of company anniversary)
• Filing audited financial statements
• Tax returns and VAT submissions

Missing these deadlines not only leads to fines but can damage your company’s reputation with regulators.

5. Overlooking VAT Registration

Not every company in Malta is automatically required to register for VAT, but many do. Entrepreneurs sometimes fail to:

• Register when thresholds are met
• Charge the correct VAT rate (18%, 7%, or 5%)
• File quarterly VAT returns on time

This mistake can cause financial penalties and disrupt cash flow.

Entrepreneurs who avoid these mistakes set their businesses up for long-term success in Malta’s competitive marketplace. By carefully selecting your structure, filing complete documentation, and staying compliant, you can focus on what matters most; growing your business.

At NOUV, we help entrepreneurs eliminate these risks from day one.

NOUV: Your Business Incorporation Partner

We offer a full suite of Corporate Services to help you set up and grow your business in Malta:

• Business structure advisory (Ltd, PLC, Partnerships, Sole Trader)
• Company formation & registration with the Malta Business Registry
• Memorandum & Articles of Association drafting
• Tax & VAT registration support
• Corporate secretarial services
• Compliance management (Annual Returns, Beneficial Ownership filings)
• Ongoing advisory for scaling and restructuring

Whether you’re opening your first venture, setting up a holding company, or expanding into Europe, we’ll guide you through every step of the process.

👉 Let’s build your business future in Malta together.
🔗 Discover our Corporate Services: https://nouv.com/corporate/
🌐 Get in touch: https://nouv.com/contact-us/