Ongoing compliance requirements for companies in Malta

Companies registered in Malta are subject to various ongoing compliance requirements to ensure they operate within the legal framework. Here are the key compliance requirements:

1. Annual Return

• Filing: An annual return must be filed with the Malta Business Registry (MBR) every year.
• Contents: It includes details of the company’s directors, shareholders, share capital, and registered office.
• Due Date: Must be filed within 42 days from the anniversary of the company's registration.

2. Financial Statements

• Preparation: Companies must prepare annual financial statements in accordance with the International Financial Reporting Standards (IFRS) or General Accounting Principles for Smaller Entities (GAPSE).
• Audit: Financial statements must be audited by a certified public accountant if the company exceeds certain size criteria.
• Filing: The audited financial statements must be filed with the MBR within 10 months from the end of the financial year.

3. Tax Compliance

• Corporate Tax Returns: Companies must file an annual corporate tax return with the Commissioner for Revenue.
• Payment: Corporate tax is generally due within nine months after the end of the financial year.
• Provisional Tax: Advance payments of tax (provisional tax) may be required.

4. VAT Compliance

• VAT Registration: Companies conducting taxable activities must register for VAT.
• VAT Returns: VAT returns are typically filed quarterly, though the frequency can vary depending on turnover.
• Payment: Any VAT due must be paid when filing the VAT return.

5. Company Secretary

• Appointment: Every company must appoint a company secretary who is responsible for maintaining statutory registers and ensuring compliance with regulatory requirements.

6. Registered Office

• Maintenance: The company must maintain a registered office in Malta where official documents can be served.

7. Beneficial Ownership Information

• Register: Companies must maintain a register of beneficial owners and submit this information to the MBR.
• Updates: Any changes to beneficial ownership must be reported within 14 days.

8. Employment Compliance

• Social Security Contributions: Companies employing staff must register as an employer and make social security contributions.
• Employment Tax: Withhold and remit income tax from employees' salaries.

9. Data Protection

• GDPR Compliance: Ensure compliance with the General Data Protection Regulation (GDPR) if handling personal data of EU citizens.

10. Annual General Meeting (AGM)

• Holding AGMs: Public companies are required to hold an AGM within 15 months of the previous AGM. Private companies may have more flexibility but must still adhere to their articles of association.

11. Economic Substance Regulations

• Compliance: Certain companies, particularly those involved in holding and intellectual property activities, must comply with economic substance requirements.
• Reporting: Submit annual returns demonstrating substantial activities in Malta.

12. Anti-Money Laundering (AML)

• Procedures: Implement and maintain AML procedures to comply with local and EU regulations.
• Reporting: Report any suspicious transactions to the Financial Intelligence Analysis Unit (FIAU).

13. Filing of Resolutions and Changes

• Board Resolutions: Certain board resolutions must be filed with the MBR.
• Changes: Report changes in directors, company secretary, registered office, and share capital to the MBR.

Failure to comply with these requirements can result in penalties, fines, or legal action against the company and its officers. It is advisable to consult with a local accountant or legal professional to ensure all compliance obligations are met.

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