Guide · setting up a company

Malta vs UAE: setting up a company

Costs, registration time, destination taxes and yearly duties side by side, from the same official data as the setup cost calculator.

Malta and the UAE take different routes for a founder who sets up a company abroad. A Malta private limited company is formed under EU rules and priced in euros, with registry fees paid on top of a firm’s fee. A UAE free zone company is priced in dirhams, and firms usually sell it as a package that already includes the licence. The two also differ on capital, on the people a company needs, on tax inside the company and on the yearly filings.

Here the official facts for both are set out together, with no ranking. What suits you depends on your residence, the place the company is managed from, its customers and the type of income it earns. The state where you are resident may also tax you on dividends, and in some cases on the company’s own profits under its controlled foreign company rules.

At a glance

MaltaUnited Arab Emirates
Company typePrivate limited liability company (Ltd)Free zone company (FZE, FZCO or FZ-LLC)
Official fees at setupEUR 100Included in firms' packages
Official fees every yearEUR 85Included in firms' packages
Company formation by a firmPrice on requestAED 5,500 to AED 11,000 one-off
Accounting and annual accountsPrice on requestAED 5,990 to AED 11,990 per year
Registration timeAbout 1 dayAbout 1 day
Minimum share capitalAt least EUR 1,164.69 authorised, 20% of each share taken up paid up at signingRAKEZ: minimum share capital of an FZ-LLC AED 10,000, higher for some activities; Meydan Free Zone requires no paid-up share capital
Corporate tax35%, with refunds to shareholders depending on the income and structure; or a final 15% by election0% up to AED 375,000 of taxable income, 9% above; 0% on qualifying income of a Qualifying Free Zone Person, with conditions
Tax on dividends to a non-resident individualNone on dividends from taxed profits paid to a non-resident individual not controlled by Malta residents0% withholding on payments to non-residents
VAT18%; registration within 30 days of the first taxable supply5%; registration above AED 375,000 of taxable supplies (the threshold does not apply to foreign businesses)

Firms' figures are starting prices published by firms on Accountanty (the lower to the upper quartile with at least 8 firms; "from" with 5 to 7; on request below 5). Tax lines are summaries: the full rules and sources are further down.

Cost to set up and run the company

The calculator's estimate for each company type with its default services: company formation, accounting and the services the law requires.

Malta

Official fees only, at setup EUR 100 + firms' fees (on request)
Official fees only, every year EUR 85 + firms' fees (on request)
Open the calculator for Malta

United Arab Emirates

Setup cost AED 5,500 to 11,000 about EUR 1,340 to 2,670
Every year AED 5,990 to 11,990 about EUR 1,460 to 2,910
Open the calculator for United Arab Emirates

Taxes on the destination side

Your country of residence may tax the dividends you receive, and it may also tax the company's profits under its rules on foreign companies controlled by its residents. A company managed from your country may be treated as resident there. This is general information, not tax advice.

Malta

Corporate tax

  • Companies are taxed at a flat rate of 35% on chargeable income. mtca.gov.mt
  • When dividends are distributed, shareholders may claim a refund of part or all of the tax paid by the company. mtca.gov.mt
  • Refunds are set by article 48(4) and (4A) of the Income Tax Management Act; the fraction depends on the kind of income and on the structure. legislation.mt
  • From year of assessment 2025 a company may elect a final 15% tax instead of 35%: no refunds, at least five years, and never less than the 35% tax net of shareholder refunds. legislation.mt

Tax on dividends paid abroad

  • 15% is deducted only from dividends paid out of untaxed profits to Malta residents other than companies, or to non-residents controlled by persons resident and domiciled in Malta. legislation.mt
  • A dividend paid from taxed profits to a non-resident individual not controlled by Malta residents has no withholding. legislation.mt

VAT

  • VAT standard rate 18%. legislation.mt
  • A taxable person established in Malta applies for VAT registration within 30 days of its first taxable supply; small undertakings can register under article 11 up to EUR 35,000 of domestic turnover. legislation.mt

Example: profit of EUR 100,000, all paid out

35% rate (refunds not computed)
Corporate taxEUR 35,000 (35%)
Tax withheld on the dividendEUR 0
Dividend received, before any tax in your countryEUR 65,000
15% final tax election
Corporate taxEUR 15,000 (15%)
Tax withheld on the dividendEUR 0
Dividend received, before any tax in your countryEUR 85,000

Shareholders may be entitled to refunds that reduce the effective tax, depending on the structure of the company and its income. Ask firms in Malta to assess your case.

United Arab Emirates

Corporate tax

  • Corporate tax 0% on the part of taxable income up to AED 375,000. mof.gov.ae
  • Corporate tax 9% on taxable income above AED 375,000. mof.gov.ae
  • A Qualifying Free Zone Person pays 0% on qualifying income and 9% on other taxable income; it must keep adequate substance in the UAE, earn qualifying income and meet the transfer pricing and audited accounts rules. mof.gov.ae
  • Small Business Relief: a resident company with revenue of AED 3,000,000 or less in the current and each previous tax period may elect to be treated as having no taxable income. mof.gov.ae
  • Small Business Relief applies to tax periods ending on or before 31 December 2029. mof.gov.ae

Tax on dividends paid abroad

  • Withholding tax on UAE-sourced income of non-residents without a permanent establishment is 0%. mof.gov.ae

VAT

  • VAT standard rate 5%. mof.gov.ae
  • VAT registration is mandatory above AED 375,000 and voluntary from AED 187,500 of taxable supplies, imports or expenses in 12 months; the mandatory threshold does not apply to foreign businesses. tax.gov.ae

Example: profit of AED 411,500, all paid out

Standard rates (0% up to AED 375,000, 9% above)
Corporate taxAED 3,285 (0.8%)
Tax withheld on the dividendAED 0
Dividend received, before any tax in your countryAED 408,215

Destination taxes only, before tax treaties and before any tax in your country of residence. Assumption: one shareholder, an individual not resident in the destination, holding 100% of the company; EUR 100,000 converted at the ECB rate. Try your own figure in the calculator.

Registration: steps and time

Malta

About 1 day. Within 24 hours of a complete online application, including due diligence documents.

  1. Draw up the memorandum and articles, naming the objects, the registered office in Malta, the first directors and the company secretary legislation.mt
  2. Subscribers sign the memorandum and pay up at least 20% of each share taken up legislation.mt
  3. Prepare the beneficial owner declaration (Form BO1) where needed mbr.mt
  4. Submit the incorporation online to the Malta Business Registry with the due diligence documents mbr.mt
  5. Receive the certificate of registration; the company exists and may start business from that date legislation.mt
  6. An income tax number is generated automatically once the company is registered mtca.gov.mt
  7. Register for VAT, which all companies registered in Malta must do mtca.gov.mt

United Arab Emirates

About 1 day. Meydan Free Zone: standard applications typically completed within 24 hours, depending on the activity and documents.

  1. Determine the nature of the business activity moet.gov.ae
  2. Determine the company's legal structure moet.gov.ae
  3. Register the trade name moet.gov.ae
  4. Select the business space and location moet.gov.ae
  5. Obtain the initial approval moet.gov.ae
  6. Register and pay the fees moet.gov.ae
  7. Register for corporate tax within three months of incorporation tax.gov.ae

Every year after registration

Malta

  • Annual return within 42 days of the anniversary of registration legislation.mt
  • Annual accounts with the auditors' report and directors' report delivered to the Registrar within 42 days of the period for laying them legislation.mt
  • Tax return and self-assessment within nine months of the financial year end, submitted by a registered tax practitioner mtca.gov.mt
  • Late annual return or accounts: maximum penalty EUR 2,329 plus EUR 46 a day legislation.mt
  • Companies Act audit exemption for small private companies under 2 of: balance sheet EUR 46,600, turnover EUR 93,000, 2 employees legislation.mt

United Arab Emirates

  • Corporate tax return within 9 months from the end of the tax period mof.gov.ae
  • Late corporate tax registration carries an administrative penalty of AED 10,000 mof.gov.ae
  • Records and documents kept for 7 years after the end of the tax period mof.gov.ae
  • Audited financial statements required for a Qualifying Free Zone Person and for revenue over AED 50,000,000 tax.gov.ae
  • Mainland LLC: accounts audited every year by one or more auditors elected by the partners moet.gov.ae
  • RAKEZ: audited financial statements by a RAKEZ approved auditor within six months of the financial year end; late filing fine AED 2,500 rakez.com
  • DMCC: accounts approved by the directors and reported on by a DMCCA approved auditor within six months of the financial year end dmcc.ae
  • RAKEZ: licences are generally valid for one year; late renewal penalty AED 50 per day rakez.com

Documents and requirements

Malta

  • Memorandum of association subscribed by at least two persons, or by the single member legislation.mt
  • Articles of association legislation.mt
  • Each director's signed consent to act, on the memorandum or in a separate written consent legislation.mt
  • Beneficial owner declaration (Form BO1), unless all shareholders are natural persons disclosed in the memorandum mbr.mt
  • At least one director legislation.mt
  • Every company must have a company secretary, who cannot be its sole director (except in an exempt company) legislation.mt
  • The memorandum must state a registered office in Malta and an email address legislation.mt
  • Anyone providing company formation, directors, secretaries or a registered office as a service must be authorised by the MFSA legislation.mt
  • The objects may not be stated simply as any lawful purpose or trade in general legislation.mt

United Arab Emirates

  • Mainland: a memorandum of association (MOA) or a local service agent agreement (LSA) moet.gov.ae
  • DMCC: articles of association, prepared as part of the registration dmcc.ae
  • Beneficial owner records and the register of partners or shareholders, filed with the registrar within 60 days of licensing dda.gov.ae
  • Foreign investors can fully own mainland companies; activities of strategic impact may face restrictions on foreign ownership u.ae
  • One person may incorporate and own a mainland limited liability company moet.gov.ae
  • In a free zone, an FZE allows a single shareholder and an FZCO allows several shareholders jafza.ae
  • A beneficial owner is a natural person holding 25% or more of the capital or voting rights, directly or indirectly dda.gov.ae
  • Meydan Free Zone: no mandatory requirement to lease a physical office meydanfz.ae

What to weigh between Malta and UAE

Formation. Malta charges EUR 100 to register a company with authorised capital up to EUR 1,500, and a complete online application is registered within 24 hours. The legal minimum is EUR 1,164.69 of authorised capital, with 20% of each share taken up paid when the memorandum is signed. In the UAE the official free zone packages are RAKEZ Basic AED 6,000, Meydan AED 12,500 and DMCC AED 35,484. They are shown for reference and not added to firms’ packages, which usually include the licence. Meydan typically completes standard applications within 24 hours and needs no paid-up share capital.

People. Malta asks for at least one director and a company secretary who cannot be the sole director, plus a registered office in Malta. In a UAE free zone, an FZE can have one shareholder and an FZCO several, and Meydan does not require you to lease a physical office.

Firms’ prices. For the UAE, 94 firms on Accountanty publish a formation price, from AED 5,500 to AED 11,000. For Malta only three firms list formation, all on request, so the Malta figures show official fees only. In the UAE, visas, medical tests and the Emirates ID cost extra unless the package covers them.

Taxes inside the company. Malta taxes chargeable income at 35%, and shareholders may claim a refund of part or all of it after a dividend; the calculator does not compute the refunds. From 2025 a company may instead elect a final 15% with no refunds, for at least five years. The UAE charges 0% up to AED 375,000 of taxable income and 9% above. The 0% for a Qualifying Free Zone Person depends on conditions and is not computed, and Small Business Relief runs to tax periods ending by 31 December 2029.

Every year. A Malta company files an annual return within 42 days of its registration anniversary and a tax return within nine months of the year end, through a registered tax practitioner. Small private companies under two of three size limits are exempt from the Companies Act audit. A Qualifying Free Zone Person must have audited accounts, and every UAE company files its corporate tax return within 9 months of the end of the tax period.

Next steps

Malta

Get quotes from firms in Malta

United Arab Emirates

Get quotes from firms in the United Arab Emirates

Malta vs UAE: questions and answers

How long does registration take in Malta and in the UAE?

Malta registers a complete online application, with the due diligence documents, within 24 hours. In the UAE, Meydan Free Zone says standard applications are typically completed within 24 hours, depending on the activity and the documents. Preparing the papers beforehand takes its own time in both places.

Who must be involved in a Malta or UAE free zone company?

Malta needs at least one director and a company secretary who cannot be the sole director, so a founder alone needs a second person. In a UAE free zone an FZE allows a single shareholder and an FZCO allows several. Company formation, director and secretary services in Malta must be authorised by the MFSA.

What corporate tax applies in Malta and in the UAE?

Malta charges 35%, with shareholder refunds after a dividend that the calculator does not compute, or a final 15% by election with no refunds. The UAE charges 0% on taxable income up to AED 375,000 and 9% above. The Qualifying Free Zone Person rate depends on conditions. Your country of residence may tax dividends and, in some cases, the company's profits.

Why are firms' fees for Malta shown on request?

Only three firms on Accountanty list company formation in Malta, and all on request, which is too few for a range. The Malta figures therefore show the official registry fees, EUR 100 to register and EUR 85 a year for the annual return. Ask firms in Malta for a quote to see the full cost for your company.

Which is better for my company, Malta or the UAE?

No ranking is given here. The answer turns on where you live, where the company is managed, where its customers are and what income it earns. Compare the facts on this page, test your own figures in the calculator for each country, and ask firms in both for a quote and an assessment.

Sources and notes

  1. mbr.mt read 2026-10-23
  2. legislation.mt read 2026-10-13
  3. mbr.mt read 2026-10-23
  4. legislation.mt read 2026-10-23
  5. mbr.mt read 2026-10-13
  6. mtca.gov.mt read 2026-10-23
  7. mtca.gov.mt read 2026-10-13
  8. legislation.mt read 2026-10-13
  9. legislation.mt read 2026-10-23
  10. mtca.gov.mt read 2026-10-23
  11. legislation.mt read 2026-10-23
  12. legislation.mt read 2026-10-23
  13. legislation.mt read 2026-10-23
  14. legislation.mt read 2026-10-23
  15. meydanfz.ae read 2026-10-23
  16. rakez.com read 2026-10-23
  17. rakez.com read 2026-10-23
  18. meydanfz.ae read 2026-10-23
  19. dmcc.ae read 2026-10-23
  20. u.ae read 2026-10-23
  21. moet.gov.ae read 2026-10-23
  22. dlp.dubai.gov.ae read 2026-10-23
  23. moet.gov.ae read 2026-10-13
  24. tax.gov.ae read 2026-10-23
  25. dda.gov.ae read 2026-10-13
  26. u.ae read 2026-10-13
  27. jafza.ae read 2026-10-13
  28. mof.gov.ae read 2026-10-13
  29. mof.gov.ae read 2026-10-23
  30. mof.gov.ae read 2026-10-13
  31. tax.gov.ae read 2026-10-23
  32. dmcc.ae read 2026-10-23
  33. mof.gov.ae read 2026-10-23
  34. mof.gov.ae read 2026-10-23
  35. mof.gov.ae read 2026-10-23
  36. mof.gov.ae read 2026-10-23
  37. tax.gov.ae read 2026-10-23

Official figures checked up to 2026-10-23. General information, not legal or tax advice: check the official sources and confirm costs with a firm before you act.