A New Corporate Vehicle for Agri-Business
Introduction
On the 26th of December 2025, Malta introduced a brand-new corporate structure tailored specifically to the agricultural sector through the Companies Act (Agricultural Companies) Regulations, 2025 (L.N. 307 of 2025).
This development represents an important step in modernising the legal framework for farming and agri-business, offering farmers and agricultural operators a more suitable company structure.
What is an Agricultural Company?
The Regulations define an Agricultural Company as a private limited liability company which carries out an agricultural activity.
Agricultural activities are then defined as “the production, rearing or growing of agricultural products including harvesting, milking, breeding animals and keeping animals for farming purposes, or maintaining the land in goof agricultural and environmental condition.”
Eligibility
To qualify as an Agricultural Company, the following conditions must satisfied:
(i) Revenue Threshold: at least fifty-one percent (51%) of the company’s revenue must be derived from agricultural activity, with the remaining generated from ancillary agricultural activity;
(ii) Limited Objects: the company’s objects must be limited to one or more agricultural activities [but may also include ancillary agricultural activities];
(iii) Prior Authorisation: the company must receive prior authorisation from the Agricultural Directorate [see below];
(iv) Shareholding Requirement: at least fifty-one percent (51%) of the issued shares carrying voting rights shall be held by individuals registered as farmers with the Agricultural Directorate;
(v) Board Composition: at least one director shall be an individual registered as a farmer with the Agricultural Directorate.
Agricultural Directorate Approval
Prior to incorporation, the proposed shareholders must submit a written request for authorisation to the Agricultural Directorate.
The request shall be accompanied by a five-year business plan, detailing:
(a) the agricultural activities that are proposed to be carried out by the company;
(b) the parcels of land and the list of the identification number of the livestock, as may be applicable, that the company shall be using for the agricultural activity;
(c) the premises from which such agricultural activities shall be carried out;
(d) financial forecasts for the first two (2) years of operation, ensuring that the turnover classifies the company in accordance with regulation 3(3)(b) of the Categorisation of Farmers Regulations;
(e) the number of employees, if any, proposed to be employed by the company.
The Directorate shall then review the request and issue its approval or otherwise within two months from receipt of the application.
Key Benefit: Lower Initial Paid-Up Capital
One of the most attractive features of this new structure is the reduced minimum paid-up share capital, set at just 15%, making incorporation more accessible for agricultural operators.
Additional Ongoing Compliance Obligation: Income Declaration
Agricultural Companies must submit, together with their annual accounts, a declaration confirming that at least 51% of the company’s income is generated from agricultural activity and the remaining income arises from ancillary agricultural activities..
Conversion of Existing Companies
Companies in existence which meet the eligibility requirements may elect to be registered as Agricultural Companies and governed by the regulations by filing the relevant notice by the 26th of March 2026.
Contact Us Today
If you are considering setting up an Agricultural Company, or converting an existing structure, Zeta can guide you through every step of the process — from eligibility assessment to regulatory approval and incorporation.
Contact us today to explore how we can support your agricultural venture.