How to start a business in Malta as a foreigner
Communication Team
Communication Team

August 03, 2022

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How to start a business in Malta as a foreigner

Malta has countless opportunities to grow your business. If you're thinking of starting a business in Malta, here's a guide to open a business account in Malta as a foreigner.

Apart from the warm climate and breathtaking landscapes, Malta has a lot of business opportunities for you to thrive. The island offers a favourable business environment, with a number of benefits and opportunities for businesses. Malta has been attracting a lot of foreign investment in recent years and the policies have become more than favourable for foreigners to open a business account in Malta. Although it's one of the smallest European countries, business opportunities and a business-friendly environment are on the rise in Malta.

The further rise in digital nomads and e-residents has made it easier for young professionals, new business owners, freelancers and startup companies to open business accounts in Malta.

So if you are also among the people who love enjoying the Mediterranean lifestyle and are looking for business opportunities in Malta, then your first step is opening a business account in Malta. We'll walk you through the process of setting up a business account as a foreigner so that you can get started on your business journey in Malta!

Why is Malta a good place for setting up a business as a foreigner?

Malta has a lot to offer businesses, from its stable political environment and business-friendly policies to its ideal location and favourable tax regime.

The Maltese government is very supportive of businesses, both local and foreign. Numerous initiatives have been put in place to make it easier for businesses to set up and operate on the island. For example, the Malta Enterprise offers a one-stop-shop for business services, which makes it easier for businesses to get started.

In addition, Malta's location is ideal for businesses looking to target European markets. The island is situated at the centre of the Mediterranean Sea, making it easy to reach both East and West. And with excellent air and sea connections, businesses can easily access both European and global markets.

What are the benefits of opening a business account in Malta?

There are a number of benefits to opening a business account in Malta, including: Access to European markets: As an EU member state, Malta offers businesses easy access to European markets. Stable political environment: Malta has a stable political environment and is considered a safe place to do business. Favourable tax regime: Businesses in Malta can benefit from a favourable tax regime, with corporate income tax rates as low as 5%. Excellent infrastructure: Malta offers businesses excellent infrastructure, including a modern telecommunications network and a well-developed transport infrastructure. Business-friendly policies: The Maltese government has put in place a number of business-friendly policies to make it easier for businesses to operate on the island.

Can a foreigner start a business in Malta?

Yes, a foreigner can start a business in Malta. There are no restrictions on foreign ownership of businesses in Malta. And with the government's business-friendly policies, it's easy for businesses to set up and operate on the island.

Here are the things to consider for checking your eligibility

  1. Are you a citizen of an EU member state or a country with which Malta has a double taxation agreement?
  2. Do you have a valid passport?
  3. Do you have proof of address?
  4. Do you have proof of business registration?
  5. Do you have the required identification documents?
  6. Do you have the required business documents?
  7. Do you have a business bank account?
  8. Do you have a business insurance policy?
  9. Are you registered for VAT?
  10. Are you compliant with Maltese company law?

How to open a business account in Malta as a foreigner?

Here's a step-by-step guide on how to open a business account in Malta as a foreigner:

  1. Choose a type of business: The first step is to choose the type of business you want to set up. Are you looking to set up a sole proprietorship, a partnership or a company?

  2. Register your business: You will need to register your business with the Malta Business Registry (MBR). To do this, you will need to submit a business registration form and pay the registration fee.

  3. Choose a business bank: When choosing a business bank in Malta, it's important to compare the fees and charges of different banks. You should also consider the location of the bank and whether it has a branch in your country of residence.

  4. Open a business bank account: Once your business is registered, you can open a business bank account. To do this, you will need to provide the bank with your business registration documents and identification documents.

  5. Apply for a business licence: Depending on the type of business you're operating, you may need to apply for a business licence. You can do this by submitting a business licence application form to the Malta Business Licensing Authority.

  6. Comply with Maltese company law: All businesses operating in Malta must comply with the Maltese company law. This includes filing annual financial statements and holding annual general meetings.

  7. Obtaining a PE Number: All businesses operating in Malta must have a PE number. This can be obtained by submitting a business registration form to the Malta Business Registry.

  8. Registering for VAT: All businesses operating in Malta must register for VAT. This can be done by submitting a VAT registration form to the Maltese Inland Revenue Department.

  9. Filing annual financial statements: All businesses operating in Malta must file annual financial statements. This can be done by submitting a business tax return to the Maltese Inland Revenue Department.

Tips when you open a business account in Malta

When opening a business account in Malta, it's important to compare the fees and charges of different banks.

  1. Make sure you have all the required documents: Before you start the process of opening a business account, make sure you have all the required documents, such as your business registration documents and identification documents.

  2. Choose a bank that's convenient for you: When choosing a business bank in Malta, there are certain banks available like HSBC Malta, IIG Bank, Sparkasse Bank Malta, wamo.

  3. Consider the fees and charges: When comparing different business banks, make sure to take into account the fees and charges associated with each bank. Usually, the costs involved with wamo are less than those of the other business banks.

  4. Get expert help: If you're not sure how to open a business account in Malta, or if you're having trouble with the process, it's a good idea to get expert help. You can do this by contacting wamo services.

  5. Register with ETC: All businesses operating in Malta must be registered with the Employment Training Corporation (ETC). This can be done by submitting a business registration form to the ETC.

  6. Pay the business registration fee: The business registration fee is €100 and must be paid to the Malta Business Registry.

  7. Data Protection Rights: All businesses operating in Malta must comply with the Data Protection Act (DPA). Make sure to visit the Business First department, set up by the Maltese government, to run your business smoothly.

Now that you have an understanding of what's required to open a business account in Malta, as well as some tips to help you through the process, you're ready to get started.

Once you have a business account ready with wamo, you can make and receive payments in more than one currency, get tax advantages, and enjoy peace of mind knowing your business is up and running.

All in all, opening a business account in Malta is a relatively straightforward process. With a little bit of research and preparation, you'll be up and running in no time.

© wamo 2022, all rights reserved wamo & the wamo logo are trademarks and trade names of wamo technology Limited and may not be used or reproduced consent of the owner

wamo.io LTD incorporated and registered in the United Kingdom under the company registration number 12352849 and the operational office of which is at WeWork, 199 Bishopgate, London EC2M 3TY. wamo operates the wamo.io website and the app. wamo is not a bank, the current account is an e-money account. Issuance of Electronic Money and payment services is provided by PayrNet Limited. PayrNet holds an amount equivalent to the money in the wamo current accounts in a safeguarding account which gives the customers protection against insolvency. We are authorised by the Financial Conduct Authority under the Electronic Money Regulations 2011 (register reference 922901) for the issuing of electronic money. wamo is an EMD agent of PayrNet.

© wamo 2022, all rights reserved wamo & the wamo logo are trademarks and trade names of wamo technology Limited and may not be used or reproduced consent of the owner