Auditing Requirements for a Malta Limited Company

When you are planning to set up an international company, you naturally weigh up various scenarios. For our clients, transparency is everything. We want you to fully understand the incorporation process and the tax obligations that come with it. You need to know exactly what lies ahead. That is the only way a Malta setup makes sense.

This applies even if we handle the day-to-day administration of your Malta Limited (or Holding structure) and keep the red tape off your desk. It always pays to understand the legal framework and how our services fit into it.

Incorporating a Malta Limited is a relatively quick process. The real work begins with the ongoing administration and filing for tax refunds. As with any business, immaculate bookkeeping is the foundation for this. Every Malta company must undergo an audit by an external auditor. The auditor’s job is to verify that your tax declarations are accurate and compliant with the law. While auditors aren't restricted to specific documents, experience shows they tend to focus on the same key areas. Given Malta’s size, the business community is tight-knit, so auditors are rarely strangers.

We haven't encountered any issues to date. However, there is one condition: as mentioned, your documentation and bookkeeping must be flawless. Cooperating fully with the auditors is always the best strategy.

What Happens if the Audit Reveals Discrepancies?

If the audit uncovers incorrect information, we first need to identify the cause. Questions can often be resolved immediately on the spot. However, if false statements were made deliberately, the consequences can be severe—ranging from legal proceedings to the forced closure of the company.

Fortunately, we have never experienced this with our clients. In my view, this is because setting up and maintaining a Maltese structure requires significant effort. Anyone willing to invest that effort has no interest in running the company into the ground. Consequently, we approach audits with confidence and expect positive outcomes every time.