Malta is preparing changes to its Companies Act that could affect both existing companies and businesses planning to incorporate in Malta.
Under Companies (Amendment) Bill No. 7 of 2026, Malta companies would be required to maintain a recognised connection, known as a corporate nexus, with Malta.
The good news is that a physical office, local employees or a Malta-resident director would not necessarily be required.
What Would Qualify as a Corporate Nexus?
The proposed legislation offers nine alternative ways to demonstrate a connection with Malta. A company would need to meet just one of them.
Some of the most practical options include:
- Having at least one director resident in an EU Member State.
- Appointing an MFSA-licensed Corporate Service Provider (CSP) as company secretary.
- Being incorporated and serviced by an MFSA-licensed CSP.
- Appointing a Maltese warranted auditor.
- Maintaining an account with a local bank or local payment institution licensed by the MFSA.
Other qualifying arrangements include authorised fiduciary shareholding of at least 25%, having at least half of the beneficial owners resident in Malta, holding certain Maltese regulatory licences, or being part of a corporate group where another company meets the requirements.
Importantly, companies would need to maintain at least one qualifying connection throughout their existence, not just at incorporation.
What About Existing Companies?
If the Bill becomes law, existing companies that do not meet any of the proposed criteria would have six months from the relevant provisions coming into force to regularise their position.
Companies that fail to comply could face compulsory removal from the Malta Business Registry.
The new requirements are still at the proposal stage, so the six-month deadline has not yet started.
What Does This Mean for 1st Step Clients?
For businesses already using appropriately licensed Maltese corporate service providers, complying with the proposed rules may be relatively straightforward.
As an MFSA-authorised Class C Corporate Service Provider, 1st Step Solution can help companies review their existing arrangements and identify suitable options for meeting the proposed requirements.
Whether you already operate a Maltese company or are considering incorporation, we can help you build a compliant, practical corporate structure without unnecessary administrative complications.
Contact 1st Step Solution to discuss your Malta company setup.