Start a Prop Firm in Malta: Company, Licence, Tax

Malta is an EU member with English as an official language, a fast online company registry and a long record in financial services and online gaming, which is why prop firm founders look at it. A prop firm sells evaluations on simulated accounts and pays rewards from simulated results; a broker executes real trades for clients. Malta treats those differently, and so should your plan.

This guide covers what is specific to Malta: the regulator's position, when an investment services licence applies, company formation costs and timelines, tax, banking, and what your website must show. Every figure was checked in October 2026 against the source cited.

Does a prop firm need a licence in Malta?

We found no statement from the Malta Financial Services Authority (MFSA) about prop trading firms, funded accounts or simulated evaluations as of 12 October 2026. We searched for MFSA together with "prop trading", "proprietary trading firms" and "funded accounts", and found only general warnings about unlicensed entities. Absence of a statement is not permission; ask a Maltese lawyer to review your product.

If your firm executes real client trades, holds client money or deals on its own account against clients, it needs an MFSA licence under the Investment Services Act. Under the EU Investment Firms Directive, initial capital is €75,000, €150,000 or €750,000 depending on the services; the €750,000 tier covers dealing on own account.

Prop firms do operate from Malta. FunderPro announced a two-step funded challenge in a 2023 press release datelined St. Julian's, and DailyForex describes FundedFast as a Malta-based proprietary trading firm established in 2024.

How do you form a company in Malta?

You form a Maltese private limited company through the Malta Business Registry (MBR), usually through a local corporate services provider who drafts the memorandum and articles.

• Reserve the company name; a reservation lasts 3 months (KPMG Malta).
• Set authorised share capital of at least €1,164.69, with at least 20% of issued capital paid up when the memorandum is signed (KPMG Malta).
• File electronically with the MBR and pay the registration fee, which depends on authorised capital: €100 up to €1,500 (MBR fee schedule).
• Receive the certificate of incorporation within 24 hours of a complete electronic submission (KPMG Malta).
• Record beneficial owners; since July 2025 anyone with a legitimate anti-money-laundering interest can request access to the register (Ganado Advocates).
• Pay the annual MBR fee, between €85 and €1,200 depending on capital (KPMG Malta).

What does it cost and how long does it take?

The registry side of a Maltese company is cheap and fast; the cost is in corporate services, accounting, audit and banking. The table lists official and Big 4 figures only.

What about banking and payments in Malta?

Opening a corporate bank account has been the hard part in Malta for higher-risk sectors. In 2021 the then economy minister named financial services, gaming and blockchain as sectors that struggled to bank, and said: "Going forward, the solution is to have more banks operating in Malta, especially when it comes to corporate banks." That statement is from 2021, so treat it as background, not current data; plan for an EU electronic money institution and a high-risk card processor alongside, or instead of, a local bank.

What are the tax points to raise with an adviser?

Malta's corporate tax rate is a flat 35%, according to PwC, but shareholders can claim refunds: a 6/7 refund on trading income brings the effective rate down to about 5% after profits are distributed, according to CSB Group. Since September 2025 companies can instead elect a final 15% rate with no refund, locked in for at least 5 years (Legal Notice 188 of 2025, per BDO Malta). Which route suits a prop firm depends on your shareholders and where they live, so ask a Maltese tax adviser.

What must a Malta prop firm's website show?

A Maltese prop firm's website falls under the GDPR and Malta's Data Protection Act 2018 (Cap. 586), supervised by the Information and Data Protection Commissioner (IDPC). Cookies fall under S.L. 586.01, and the IDPC has published guidance on cookie consent, according to DLA Piper.

• Entity disclosure: the Maltese company name, registration number (C-number) and registered office in the footer and terms.
• A simulated-trading notice and a plain statement that the firm is not an MFSA-licensed investment firm (unless it is).
• A restricted-countries list that matches your terms and is enforced at checkout and KYC.
• A consent-first cookie banner and a GDPR privacy policy naming the controller.
• Languages: Maltese and English are both official under Article 5 of the Constitution, so English-only is workable locally; add languages for the markets you sell to.

Questions

Sources

1. Malta Business Registry: Registration and fee structure
2. KPMG Malta: Company formation in Malta
3. EUR-Lex: Directive (EU) 2019/2034 on the prudential supervision of investment firms
4. PwC Worldwide Tax Summaries: Malta corporate taxes on income
5. BDO Malta: Final income tax without imputation regulations 2025
6. CSB Group: Malta corporate taxation
7. Ganado Advocates: Register of beneficial owners amendment regulations 2025
8. DLA Piper: Data protection laws of the world, Malta
9. Information and Data Protection Commissioner (Malta)
10. EU Fundamental Rights Agency: Constitution of Malta, Article 5
11. BusinessNow.mt: Government aiming to attract more corporate banks (2021)
12. Newswire: FunderPro launches a funded account challenge (2023)
13. DailyForex: FundedFast review