Maltese companies are required to nominate independent auditors in Malta registered with the local Accountancy Board. Maltese auditors must comply with the International Standards of Auditing (ISA). Auditors may also attend the company’s general meetings and are required to report to the shareholders. The auditor must declare whether the accounts comply with the Companies Act and the IFR standards and whether the accounting statements provide a true image of the company’s results. Companies are required to submit a copy of their annual financial statements with the Maltese Companies Register within 42 days from the submission of the statements with the annual general meeting. Depending on the type of company, the period is ten months after the end of the accounting period for private companies and seven months for public companies in Malta.
With an extensive background, our auditors in Malta have the necessary experience and skills to offer professional services to all types of companies, from small to large ones. You can rely on us for various accounting services, including audits in Malta.
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Audit services in various cities in Malta
Company owners with activities in more than once city should note that our audit services are available in various cities in Malta, among which Valetta and Birkirkara. In order to meet the needs and requests of our clients, we are present in these cities with various audit and accounting services that cover all the requirements imposed by the Maltese legislation, but we also offer audits that simply indicate the financial situation of a company for business owners who want to know how they stand and what they can do in order to improve their companies’ activities. In case you need an accountant in Malta, you can rely on our team of experts. If you need accounting services in another country, for example in Cyprus, we can put you in contact with our partners – Opencompanycyprus.com.
Our auditors in Malta offer a wide range of services by respecting all the rigors of the law. On request, they can explain to business owners the requirements they need to comply with based on the size of their companies.
It is useful to note that our auditors in Malta offer the same services in all cities they are requested. Furthermore, in case you need these services in another EU country, such as Finland, we recommend our reliable partners who have a team of dedicated accountants in Finland.
You can also rely on our tax advisors in Malta for guidance in optimizing the financial situation of your company. Moreover, we can propose personalized tax minimization solutions, so that you benefit from the advantageous taxation system available in this country.
| Quick Facts | |
|---|---|
| Audit legislation | Companies Act, Audit Oversight Arrangement, Accountancy Profession Law |
|
Professional auditors’ body |
National Audit Office, Accountancy Board |
|
Requirement to appoint auditors for Maltese companies (YES/NO) |
YES, independent auditors must be appointed |
| Audited financial statement filing required (YES/NO) |
YES |
| Applicable accounting/audit standards | International Public Sector Accounting Standards, International Financial Reporting Standards (IFRS) |
| Documents to be verified by auditors |
Financial statements, accounting records, bookkeeping records |
| Internal audit services (YES/NO) |
YES |
| External audit services (YES/NO) | YES |
| Audit requirements for foreign enterprises | Foreign companies must respect the same audit regulations as local enterprises |
| Filing requirements for Maltese companies | 6 months from the end of the financial year |
| Audit exemption availability (YES/NO) | YES, for small businesses and startups |
| Audit services availability (YES/NO) | YES |
| Types of audits offered | Independent audits, statutory audits, compliance audits |
| Other accounting services provided | VAT registration and filings, payroll and HR, bookkeeping and accounting |
| Corporate tax rate | Standard rate is 35% |
| Accounting records for companies |
The accounting records must contain: – profits and expenses; – assets and liabilities; – tax returns; – financial statements |
|
Forensic audit services available (YES/NO) |
Yes, we offer forensic audits in Malta |
|
Annual general meeting of the shareholders required (YES/NO) |
The shareholders must convene annually in order to validate audited financial statements before being filed |
| Special regulations for SMEs (YES/NO) | SMEs must comply with the General Accounting Principles for Smaller Entities (GAPSE) in Malta |
| Audited accounts filing requirements with the Maltese Trade Register |
Audited accounts and statements must be filed 42 days from their submission with the tax authorities |
| Audit requirements for sole traders (YES/NO) |
Sole traders are not subject to audits in Malta |
| Audit requirements for self-employed people/freelancers (YES/NO) |
Self-employed people and freelancers are exempt from audits in Malta |
| Special audit services for large companies (YES/NO) |
Yes, our specialists can offer dedicated audit services for large companies |
| Financial statement certification services in Malta (YES/NO) |
Our Maltese accountants are accredited to provide financial statement certification which is required for audit purposes |
| Service available for foreign companies in Malta (YES/NO) | Yes, our services are also available for foreign businesses operating in Malta |
| Operational audits available (YES/NO) |
We also offer operational audits in Malta |
| Tax advisory services for companies (YES/NO) |
Yes, we provide tax advisory solutions |
| Accounting and audit services provided by accredited specialists (YES/NO) |
Yes, we work with CPA accountants and accredited auditors in Malta |
| Service available in Valletta (YES/NO) |
Yes, our services are available in the capital city of Malta |
| Service available in other cities (YES/NO) | Our audit solutions are also available in other cities, among which Birkirkara |
Audit legislation in Malta
The accounting legislation in Malta is very extensive and includes various chapters, among which related to audits are quite complex. This is why, when running a business in this country it is best to appoint specialized auditors in Malta to conduct the specific actions related to this part of managing a company.
There are several rules to comply with when it comes to offering audit services in Malta, some of them referring to the accounting and audit standards, while others covering the accountant and auditor profession. This is because such services must be provided by specialists in the accounting field.
The main laws governing accounting and audits in Malta are:
- the Companies Law which contains specific provisions related to the accounting and audit requirements imposed on businesses in Malta;
- the Audit Oversight Arrangements which refers to the control of Maltese auditors performing such activities;
- the Accountancy Profession Law which is one of the oldest legal frameworks enabled by the Accountancy Board in Malta;
- the Quality Assurance Act which refers to the standards imposed by the Accountancy Board when conducting an audit;
- the International Public Sector Accounting Standards which was adopted by the Maltese government in 2013;
- the International Financial Reporting Standards (IFRS) which stand at the base of completing audits and accounting tasks;
- the International Standards on Accounting and the International Education Standards which must be respected by accountants and auditors in Malta.
It is safe to say that all accountants and auditors in Malta must comply with both national and international regulations in order to ensure a high quality of their services.
Our Malta tax advisors offer such services in accordance with all the international norms imposed by their profession.
The audit profession in Malta
Auditors, just like accountants in Malta, fall under the supervision of the Accountancy Board. Also, they may voluntarily be subject to the regulations imposed by the Malta Institute of Accountants through membership. However, they must comply with the requirements of the National Audit Office (NAO) when performing their duties.
When it comes to the certifications of Maltese auditors, the Accountancy Board is in charge of issuing their practice certificate. In order to perform audits, accountants must register their accounting firms in Malta with the Accountancy Board.
With a vast experience in various accounting matters, our professionals can offer a wide range of accounting and audit services in Malta.
The appointment of auditors in Maltese companies
All companies in Malta are required to appoint auditors for each general meeting of the shareholders. While in the case of trading companies, the auditors must be certified by the Accountancy Board, in the case of companies in the financial field, such as banks and insurance companies, these must also be authorized by the Regulatory Authority.
Considering the different audit requirements imposed on companies based on their object of activity, we invite you to discuss with our Maltese auditors about your business’ situation.
You can also rely on our accounting firm in Malta for other services, such as payroll and bookkeeping.
Our auditors in Malta support the coordination of statutory audits of businesses as mandated by the Companies Act, as well as other assurance engagements, and the preparation of audited financial statements for submission to the Malta Business Register.
The accounting records of Maltese companies
Under the Company Law, all companies in Malta are required to maintain proper accounting records which must provide the following information:
- all the amounts of money registered as profits and expenses by companies and detailed information about the expenditure receipts;
- the assets and the liabilities of companies;
- for companies in the trading sector, statements and records indicating the stocks must be reported at the end of every accounting period;
- the accounting records must be at the disposal of directors for verification all the time;
- the records must be kept at the registered office of a Maltese company;
- for companies with management places outside Malta, the financial statements and returns must be sent to an office in Malta;
- these financial statements must indicate the financial situation of a company every 6 months and they must be drafted in a manner that enables the preparation of the accounting records in accordance with the Maltese legislation.
Our auditors in Malta can help foreign companies and Maltese companies with offices outside the country to comply with the audit requirements imposed here. We also offer audit services in other Maltese cities, such as Valetta and Birkirkara.
Our audit services in Malta are also presented in the scheme below:
Financial statement audits – what you need to know
Independent financial statement audits can be conducted by our team of consultants for any kind of company in Malta, tailored to the needs of international investors. The guidance and the support of our professional team of accountants in Malta will help a business stay away from financial risks and complex cases as much as possible, regardless of the sector of activity and if the company is small, medium or large. The latest audit methodology is used for leading independent financial statements for enterprises in Malta with the purpose of delivering excellent results. International companies with establishments in Malta can benefit from complete guidance and a correct approach with the purpose of delivering updated financial reports.
The accounting records of a Maltese company must contain:
- all the sums of money entering and exiting the company during a financial year;
- all the expenses receipts of a company;
- the sheets with detailed information on the assets and liabilities of the business;
- statements of stocks or other goods belonging to a company at the end of each financial year or period, as established by its management.
It is the auditors’ duty to verify the integrity of these accounts.
Local companies can request the services of audit firms in Malta when running audits. As a matter of fact, when an independent audit, outside the requirements of the law, is desired by a business owner, an independent auditor will be able to provide a clear picture of a company’s performance at a certain point.
Financial statements and director’s reports in Malta
Some of the most important documents which need to be verified by an auditor in Malta are a company’s financial statements based on which the company director will prepare the report to be submitted with the tax authorities and the Trade Register. The director will be required to present the report to the shareholders during the annual general meeting. The report must contain a set of audited financial statements, the balance sheet, an income statement and other accounting documents as required under the International Financial and Reporting Standards or General Accounting Principles for Smaller Entities, depending on the size of the business.
It is important to note that in the case of new companies, the first annual general meeting of the shareholders must be held within a maximum of 18 months from the establishment of the business. Also, the shareholders must approve the report to be submitted with the Maltese authorities.
It should be noted that the submission of audited financial statements has different rules, depending on the regulations to be followed. While under the IFRS, the documentation is more extensive, under the GAPSME, these are less stringent. You can request the assistance of our accountant in Malta in order to establish the accounting standards to follow.
If you need more information on the audit requirements for companies, our auditors in Malta can help you. Our tax advisors in Malta can also guide you in various financial matters which help you increase your company’s profits.
What is a statutory audit?
The complexity of financial reporting enters the jurisdiction of our experienced accountants in Malta where a statutory audit plays a leading role for companies. Here is what you need to know about statutory audits for Maltese companies:
- The bookkeeping records, the financial transactions, and the bank balances are verified through a statutory audit.
- The purpose is to see if the company presents accurate financial information.
- Several financial records are examined by experts through statutory audits.
- Specific measures can be implemented if the audit report shows certain errors.
Foreign entrepreneurs can decide on opening accounting departments in the firm or better yet, they can choose the services of our accounting firm in Malta. Statutory audits are mandatory for companies in Malta, and if you need guidance and support in this case, you may address your inquiries to our team of accountants.
Maintaining accounting records in Malta
Maltese companies are required to maintain accounting records, according to the Companies Act. Accounting records are meant to explain a company’s transactions and facilitate the preparation of the Maltese company’s financial statements. All records of accounts will usually be kept at the company’s registered office. For companies with certain total revenue, the preparation of financial statements can follow the regulations established by the General Accounting Principles for Smaller Entities (GAPSE) in Malta. The Maltese Companies Act also states that company directors are required to present to the shareholders of the business’ financial records annually.
Financial statements must contain a balance sheet and the profits and losses for a certain period of time. In Malta, companies usually request the accounting services of specialists. You can also talk to our accountants in Malta who can help you prepare the financial statements and can also offer you other accounting services.
Filing financial annual reports and statements in a Maltese company
All audited accounts and financial statements must be handed to the company’s director in charge of filing the annual financial statements and reports. Specific standards must be complied with at the moment of filing such accounting documents.
The following aspects must be considered when filing the annual financial statements and reports, according to our auditors in Malta:
- private companies must file their accounting documents no later than 10 months after the end of the financial year;
- public companies must file their accounting documents no later than 7 months after the end of the financial year;
- all financial statements must be accompanied by the director, shareholders and auditor’s reports;
- companies must also file a copy of the financial statements with the Companies House within 42 days from the end of the filing date of the statements;
- companies are also required to submit annual returns with the Companies Register no later than 42 days after the anniversary of the company.
Our accountants in Malta can explain all the accounting and audit requirements imposed on companies based on their size, while our auditors can handle all the aspects related to the audits in your business.
New audit exemptions in Malta
In 2019, the Companies Law in Malta was amended with new provisions under the Audit Exemption Regulations. Under these rules, companies meeting certain criteria will benefit from audit exemptions of their annual accounts for the first 2 financial years.
These new regulations come to the aid of small businesses and startups which have started to become quite popular in Malta. The following conditions must be met in order for a business to obtain such an audit exemption:
- the maximum annual turnover of the company must not exceed 80,000 euros;
- all the shareholders in the company must meet the “qualifying shareholder” criteria.
In order to be a qualified shareholder, one must be an individual who has completed his or her educational studies for more than 3 years before registering the business.
According to our auditors in Malta, it is important to note that these new exemptions are not available for companies entering the SME category, but for startups and even self-employed persons. In order to obtain the audit exemption, the company’s representative must file an application with the Maltese Trade Register within a maximum of 6 months from the end of the accounting period for which the exemption will apply.
The main advantages of these new regulations are a reduction in the costs related to the administration of the business. It is also meant as an incentive for sole traders who will have the possibility of changing their legal status and registering limited liability companies.
If you need more information about the new regulations, our accounting firm in Malta is at your disposition with details. We can also help you prepare the documents required to prove that your company meets the new audit exemption requirements.
Accounting rules in Malta
Accounting principles in Malta are based on the International Financial Reporting Standards (IFRS) and the Accounting Regulation no. 1606/2002. Maltese companies falling under the regulations of GAPSE must meet the following criteria for a consecutive period of two years:
- a company’s revenue must not exceed 35 million euros,
- must hold total assets amounting up to 17.5 million euros,
- must have a maximum number of 250 employees.
According to the Commercial Law, every company in Malta must maintain a waste book, a journal, an inventory book, a cash book, and a ledger. The bookkeeping must contain records of receipts and expenditures, sales and purchases, assets and liabilities. Also, every company will issue tax invoices whenever selling a good or service.
If you need payroll services in Malta, contact us. We will handle your local payroll and any other required paperwork so you can concentrate on running your company on a daily basis. We can also handle any other employment-related matter, as long as it falls under our area of expertise.
Audit services for all types of companies in Malta
Most companies operating in Malta enter the category of small and medium-sized enterprises (SMEs). For these companies, the audit requirements are different and are imposed based on their balance sheet and the annual revenue. However, it is important to note that in order to be categorized as an SME, a business must meet a set of criteria. Among these, it needs to have an average number of 50 employees in the case of small companies and 250 workers in the case of medium-sized ones.
From a financial point of view, the balance sheet of a small enterprise will not surpass 4 million euros per year, while that of a medium-sized company will go up to 20 million euros. The annual revenue of a small entity is set at a maximum 8 million euros, and if this revenue grows to a maximum of 40 million euros, the company will be deemed as a medium-sized one. Exceeding this annual revenue will lead to the categorization of a company as a large enterprise, a case in which the audit requirements are different.
Our auditors in Malta can explain the requirements imposed on large companies operating in this country.
Bookkeeping services in Malta
All the financial transactions of a company are recorded with the help of bookkeeping. Our team of accountants in Malta are at your service at any time and can provide you with bookkeeping services in a diligently and efficient manner, serving the best interest of the company. It is important to know that the International Financial Reporting Standards plus the local regulations are respected and imposed for companies registered in Malta. Correct bookkeeping will lead to proper audits in the firm and a smooth process for registering all the financial information in the company. Let us remind you that our local team of accountants in Malta has ample experience in helping companies by providing complete bookkeeping services, regardless of the type of company and activities involved.
What is auditing evidence for Maltese companies?
The certification of the financial statements of a firm is made by a qualified accountant if the auditing evidence is provided. This represents the information of all the financial transactions in the firm reported in compliance with the international and domestic laws governing this area. The auditing evidence is extremely important for companies registered in Malta because it provides complete and accurate transparency for further audit reports and statements. In other words, the audit evidence contains both details that sustain and validates the management’s declarations concerning the financial statements or internal control of the financial reporting and information that denies such statements. Being cumulative in nature, the audit evidence contains the type of proof which is gained from varied audit measures made during the course of an audit, it might include audit evidence obtained from other sources, like former audits or quality control procedures in the company.
Even if accounting and audit services might seem complex for large companies in Malta, our team of accountants is at your disposal if you decide on such services. You can also watch our video on the audit services we can provide you with:
Audit services in Malta
All the services provided by our auditors in Malta comply with the local and international regulations. Our team of CPA Malta accountants has the necessary knowledge and experience to offer a wide range of services, auditing being one of them.
You can rely on our auditors in Malta for running audits under the confinement of the law, but also for completing independent audits every time you consider your company needs one. We can propose tailored solutions that benefit your business based on thorough analyses of all financial documents.
Among the accounting services you can count on us, we also mention:
- tax and VAT registration when setting up a new company;
- payroll setup;
- personalized tax advice and planning;
- forensic accounting services.
All our services are tailored to the needs of the business, so do not hesitate to discuss with our accountants in Malta and ask for a quote.
Our auditors in Malta are certified and have many years of experience in conducting various types of audits for all types of companies, including tax advice for your company. Also, you can rely on us for other accounting services in Malta.
For accounting and auditing services, please contact our accountant in Malta.