No, you do not necessarily need a local director to set up a company in Malta. Malta allows for flexibility in directorship requirements, and there is no specific mandate that requires all directors to be local residents. However, there are some important considerations regarding the residency of directors:

1. Residency Requirement for EU/EEA Director: While it is not mandatory for all directors to be residents of Malta, at least one director must be either a resident of an EU/EEA country or hold a special residence permit issued by Maltese authorities. This requirement ensures that the company has a director who can fulfill legal obligations and liaise effectively with local authorities.
2. Corporate Entity as Director: Alternatively, a corporate entity (such as another company or a corporate service provider) can act as a director of a Maltese company. In this case, the corporate entity must designate an individual to act as its representative director, who may or may not be a resident of Malta.
3. Director's Responsibilities: Directors of Maltese companies have fiduciary duties and legal responsibilities, regardless of their residency status. These duties include acting in the best interests of the company, exercising reasonable care, skill, and diligence, and complying with Maltese laws and regulations.
4. Flexibility in Corporate Governance: Malta’s corporate governance framework is designed to provide flexibility while ensuring compliance with regulatory standards. This allows entrepreneurs and businesses to choose directors who best fit their operational and strategic needs, whether they are local residents or individuals with specific expertise from other jurisdictions.
5. Consider Professional Advice: Despite the flexibility in directorship requirements, it is advisable to seek professional advice from local accountants, lawyers, or corporate service providers when setting up a company in Malta. These professionals can provide guidance on the most suitable directorship structure based on the nature of your business, compliance requirements, and strategic considerations.

In summary, while Malta does not mandate all directors to be local residents, at least one director must have EU/EEA residency or a special permit. This requirement ensures that the company can effectively operate within the regulatory framework and fulfill its legal obligations in Malta.