Not every company in Malta needs an audit. Public companies, MFSA-licensed firms, and larger businesses must have one. Small and micro companies meeting specific turnover, asset, and employee limits can often claim a full or partial exemption instead.
Did you know? According to EGMAssurance, Malta rewrote its audit rules in December 2025, through Legal Notice 139.
So, which companies need an audit in Malta right now? Under the Companies Act, almost every limited liability company still has to get its accounts checked by a warranted auditor. That said, the new exemption rules give smaller firms a genuine way out. This blog walks through who still needs an audit, who’s exempt, and what the whole process looks like in practice.
Key Takeaways
- Most Maltese companies need an audit, but small and micro-entities can often claim exemption now.
- Legal Notice 139 (2025) aligned company law and tax law, ending years of conflicting audit requirements.
- Small companies need two of three criteria met: €5m turnover, €2.5m assets, or 50 employees.
- Micro-entities qualify for exemption at much lower thresholds: €93,000 turnover, €46,600 assets, two employees.
- New startups with qualified shareholders can skip audits for two years if turnover stays under €80,000.
Who Falls Under Malta’s Audit Rules?
Malta’s audit obligation comes from two laws, not one. Article 185 of the Companies Act lays the groundwork. The Income Tax Management Act then adds a second layer, mainly for tax filings.
Put together, these two pieces of legislation decide when is an audit required. Public companies can’t claim exemption. Neither can MFSA-regulated entities, listed firms, or parent companies of larger groups.
Everyone else has to work out whether they count as small under the law. And that’s honestly where things get interesting.
Statutory Audit Explained: The Basics
With a statutory audit explained, Malta businesses can better understand why this is a legal obligation rather than a choice. The licensed audit services in Malta offer a formal review of your financial statements.
That professional needs a warrant from the Accountancy Board of Malta before they can sign anything off. Their job is to confirm your accounts show a true and fair view of the business. It sounds bureaucratic, but it protects shareholders, lenders, and tax authorities all at once.
Why the Law Bothers With This
Company accounts don’t just matter to the owners. Banks, suppliers, and investors lean on those figures too. An independent audit gives everyone a bit more confidence in the numbers.
Small Company Audit Exemption Malta: Do You Qualify?
The small company audit exemption Malta framework changed quite a bit in 2025. Legal Notice 139 finally brought company law and tax law into line. Before that, the two acts pulled in slightly different directions, which caused real confusion.
Now there’s one set of thresholds to check. Your company needs to meet at least two of three criteria, for two years running.
| Criterion | Threshold |
| Annual net turnover | Not exceeding €5,000,000 |
| Balance sheet total | Not exceeding €2,500,000 |
| Average employees | Not exceeding 50 |
Hit all three, and you might be fully exempt. Hit just two, and a lighter review report usually takes the place of a full audit.
Micro-Entity Relief Explained
Very small companies get even more room to breathe. Micro-entities meeting two of these three criteria can often skip the auditor’s report altogether when filing with the Malta Business Registry:
- Turnover not exceeding €93,000
- Balance sheet total not exceeding €46,600
- No more than two employees
This relief tends to help freelancers and single-director companies the most, since their overheads stay so low.
Startup Relief for New Businesses
New companies get a bit of extra leeway too. If every shareholder is an individual with an MQF Level 3 qualification or above, and turnover stays under €80,000, the company can usually skip audits for its first two accounting periods. It’s a deliberate nudge, aimed at helping young, qualified founders get going without drowning in compliance work straight away.
What Does an Audit Involve?
So, what does an audit involve once a company actually falls within scope? The process follows a fairly familiar pattern each year.
- Planning: The auditor gets to know your business and flags risk areas.
- Fieldwork: They dig through invoices, bank statements, and ledgers.
- Testing: A sample of transactions gets checked against the paperwork behind them.
- Reporting: The auditor issues a formal opinion on your financial statements.
- Filing: You then submit the audited accounts to the Malta Business Registry.
This cycle repeats every year, unless you qualify for an exemption. Keeping tidy records throughout the year makes the whole thing quicker and far less stressful.
Shipping and Group Company Considerations
Companies registered under the Merchant Shipping Act play by slightly different rules. If they stay under two of three limits (assets, turnover, employees), they’re treated as having already met their audit obligation.
Parent companies preparing consolidated accounts face their own separate test. The entire group has to qualify as small under Article 185(5) before any relief kicks in.
Malta Companies Act Audit Rules: What Changes Annually
The Malta Companies Act audit rules don’t stay still for long. Thresholds and exemption categories get revisited as the economy shifts around them. A company that’s exempt this year isn’t guaranteed the same status next year.
Losing exemption can happen quickly, too. Change your shareholding structure, or let turnover creep past the limit, and the relief disappears immediately. Directors really should keep an eye on these figures all year, not just scramble at year-end.
Getting this right matters more than people assume. The Malta Business Registry checks filings closely these days, and gaps in your audit history tend to stand out fast.
Protect Your Company from Unforeseen MBR Penalties & Tax Reviews!
Getting your audit status wrong has real consequences attached. Late or missing statutory documents can trigger penalties from the Malta Business Registry. Worse still, an incorrect exemption claim can unravel years later, usually during a tax review nobody saw coming.
When considering which companies need an audit in Malta, the safest route is having someone check your specific numbers properly. A qualified adviser can tell you whether you genuinely qualify for exemption, or whether a full statutory audit is still your legal duty.
Precision Point Malta works with companies at every stage, from micro-entities just starting to established groups. If you’re not sure where you stand, their team can talk you through the thresholds and handle your audit services in Malta from start to finish. It’s worth reaching out before your filing deadline gets any closer.
Frequently Asked Questions
Q1. Do all companies in Malta need an audit?
No. Most of them do, but small and micro-entities which fall below set turnover, asset and employee thresholds can, under the existing rules, achieve either exemption on some or even all of the costs.
Q2. What is the small company threshold for audit exemption in Malta?
During two years in a row, a company shall qualify for three out of these four criteria: turnover below 5 000 000, balance sheet below 2 500 000, or an average number of employees below 50.
Q3. Can a new startup avoid an audit in Malta?
Yes, where existing shareholders (including new shareholders) possess an MQF Level 3 qualification or above, and the turnover remains below 80 000 the company can avoid having its accounts audited for the first two accounting periods.
Q4. What happens if a company loses its audit exemption?
The company must conduct the full statutory audit forthwith. As well as losing any associated tax deduction benefits which would have occurred for the exemption from that date onwards.
Q5. How long does a typical statutory audit take in Malta?
Timelines vary by company size, but most small to mid-sized audits take several weeks, depending on how organised the financial records are beforehand
