How to start a business in Malta

1. Setting up a Business in Malta

The registration process in Malta is relatively fast (≈1–2 weeks). Here is the step-by-step procedure:

1. Choose the company type & name (≈1+ day)

• Types:
  • Private Limited Liability Company (Ltd) – most common for SMEs.
  • Public Limited Liability Company (PLC).
  • General or Limited Partnership.
  • Sole Proprietorship.
• Rules:
  • Name must be unique, non-offensive, and reflect the business activity.
  • Certain words (e.g. “bank,” “blockchain”) require authorisation.

2. Draft the Memorandum & Articles of Association (≈3 days)

• Memorandum of Association must include:
  • Company type, name, and registered address in Malta.
  • Share capital details.
  • Director(s) and shareholder(s).
• Articles of Association set out internal company rules.

3. Deposit share capital into a Maltese bank account (≈1+ day)

• Minimum capital:
  • €46,587.47 for a public company (25% paid up).
  • €1,164.69 for a private company (20% paid up).
• The bank issues a confirmation of deposit.

4. File documents with the Malta Business Registry (≈1+ day)

• Submit online to the Malta Business Registry (MBR):
  • Memorandum & Articles of Association.
  • Proof of share capital deposit.
  • Relevant forms.
• Fees: €100–€2,250 (depends on share capital & format).

5. Obtain Certificate of Registration (≈3–7 days)

• Issued by the MBR.
• Confirms the company’s legal existence.

6. Apply for required licences (≈1+ week)

• Licence requirements depend on the industry:
  • Retail (e.g. groceries) → licence required.
  • Services (e.g. repairs) → no licence needed.
• Licences must be renewed annually.

7. Obtain a PE (Permission to Employ) Number (≈1 day)

• Required before hiring employees.
• The application is online.

8. Register for VAT (≈5–7 days)

• VAT registration through the Office of the Commissioner for Revenue.
• Standard VAT rate: 18%.

After registration:

• Keep financial records up to date.
• File tax returns and pay dues (corporate tax, VAT, social contributions).
• Renew business licences on time.

Taxes in Malta:

• Corporate Tax: 35% headline rate, but refund schemes reduce effective tax (down to 5–10%).
• VAT: 18% (lowest in EU apart from Luxembourg & Switzerland).
• Social Contributions: 10% of the employee’s basic weekly wage.

2. Legal Compliance Considerations for Sustainable Businesses

Sustainability-focused companies need to account for additional compliance layers beyond regular company registration:

• Environmental regulations
  • The Environment and Resources Authority (ERA) regulates waste, emissions, water use, biodiversity, and environmental permits.
  • Eco-businesses (e.g. renewable energy, recycling, eco-tourism) often require environmental permits before operation.
• Sustainable finance & EU taxonomy
  • As an EU member, Malta applies the EU Taxonomy Regulation: businesses must disclose how their activities align with EU sustainability standards.
  • If seeking EU or government funding, projects must demonstrate alignment with Green Deal objectives (climate neutrality, circular economy).
• Energy & Building Regulations
  • New constructions and renovations must comply with the Energy Performance of Buildings Regulations.
  • Businesses providing green building or renewable energy services may need certification.
• Employment Law & Social Standards
  • Fair wages, safe working conditions, and non-discrimination policies must comply with Maltese/EU labour law.
  • Green businesses may pursue SA8000 (social accountability) or B Corp certification to demonstrate ethical practices.

3. Certifications for Sustainable Businesses in Malta

To strengthen compliance and market trust, one should consider:

• ISO Certifications
  • ISO 14001 (Environmental Management).
  • ISO 50001 (Energy Management).
  • ISO 26000 (Social Responsibility).
• EU Eco-Label – for products/services that meet high environmental standards.
• B Corp Certification – demonstrates social & environmental impact.

Malta Enterprise Incentives – companies investing in green tech may apply for grants, tax credits, or Green Start-Up schemes.