The Audit Exemption Rules (L.N. 139 of 2025) (the
"Audit Exemption Rules" or
"Rules"), published on the
15th of July 2025, introduce a regulatory framework that
eases compliance costs for certain categories of companies in Malta
by reducing or eliminating statutory audit requirements. These
exemptions apply differently depending on the type of company, with
the Regulations distinguishing between: (i) newly incorporated
start-ups owned by recently qualified individuals; (ii) exemptions
for certain small companies as defined under the Companies Act,
Chapter 386 of the Laws of Malta ("Companies Act") and
(iii) private shipping organisations regulated under the Merchant
Shipping (Shipping Organisations – Private Companies)
Regulations, S.L/234.42 ("Merchant Shipping
Regulations"). Each set of rules sets out specific financial
thresholds and conditions that determine whether a company may
substitute a full audit with a limited review or dispense with the
audit entirely,
