Important: This guide provides general business, tax and regulatory information. The appropriate structure and outcome depend on the complete facts and every connected jurisdiction.
The direct answer
Malta companies must maintain proper accounting records and prepare annual financial statements under the applicable framework. Whether a particular audit exemption or reduced requirement applies must be checked against current law and the company’s complete facts.
Do not budget on the assumption that a small or dormant company has no work. Annual returns, beneficial-ownership records, tax filings, accounts and other obligations may remain.
Determine scope early
Give the accountant the incorporation date, year end, group structure, activity, employees, assets, revenue, funding and transaction volume. Eligibility can depend on more than one threshold or condition.
Groups, regulated activity, public-interest status and changes during the period can alter the answer.
Make the file audit-ready
Reconcile bank accounts, invoices, contracts, payroll, tax, VAT, intercompany balances and board approvals throughout the year.
Late reconstruction is expensive and weakens evidence supporting tax, substance and related-party positions.
Annual reporting workstreams
| Workstream | Typical output | Owner |
|---|---|---|
| Bookkeeping | Complete ledger and reconciliations | Company and accountant |
| Financial statements | Annual statutory accounts | Directors and preparer |
| Audit or exemption assessment | Audit report or documented basis | Directors, accountant and auditor |
| Registry and tax filings | Returns submitted by deadlines | Assigned service provider |
Practical scenario
A low-activity first accounting period
A newly formed company has few transactions. The directors still preserve invoices, funding documents, contracts, bank evidence and board decisions and ask whether any exemption applies.
The annual quote lists accounts, tax, annual return and audit work separately so a light first year is not confused with no compliance.
Evidence and implementation checklist
- Applicable reporting framework
- Year end and filing deadlines
- Audit or exemption assessment
- Complete ledger and bank reconciliations
- Intercompany and related-party evidence
- Tax and VAT reconciliations
- Director approval process
Common questions
Does every Malta company require the same audit?
No. Current eligibility and scope should be confirmed for the specific company and period.
Does dormancy remove every filing?
No. Dormant companies can retain registry, accounting and tax responsibilities.
Who is responsible for the accounts?
Directors retain responsibilities even where preparation and audit are outsourced.
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Official and primary sources
Editorial status: Original VisitMalta.co.uk guidance checked against the sources above on 5 September 2026.