Trading in Malta
Trading in MaltaUpdated on Monday 24th October 2016
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Malta’s taxation system, geographical location and its freeport offer many advantages for companies carrying out trading activities. Among the most active companies involved in trading activities in Malta, there are distributors of FMCG (fast-moving consumer goods). Malta is a very renowned trading base for the Mediterranean, South Eastern and North African regions.
Why trade in Malta?
Despite its small size, Malta is one of the best countries to do business in, and this is because trading companies carrying out import and export activities are quite numerous. Trading activities in Malta accounted for about 18 billion euros brought to the country’s economy last year, which is why it is a very important economic cluster.
Our law firm in Malta can assist foreign investors who want to open trading companies in this country.
The legislation on trading activities in Malta
According to the Trading Licenses Act in Malta, the commercial activity is defined as the exercise of any trading activity from sale of goods to providing any types of services. The only exceptions from these regulations are banking, insurance and investment services that do not fall under the Trading Services Act.
Other laws regarding trading activities in Malta are the Trading Licenses Regulations also known as the Subsidiary Legislation 441.07. In order to obtain a trading license, a Maltese company must submit an application with the Trade Licensing Unit (TLU). The procedure is quite simple and it is subject to certain fees.
Are there any special requirements for obtaining trading licenses in Malta?
Certain types of companies in the manufacturing and engineering sectors will need special permits before applying for a trading license in Malta. These types of activities are subject to certain environmental and waste control regulations before they are issued the trading license.
Maltese trading licenses are issued based on whether a company’s activity requires handling food or beverages or companies in the hairdressing, fitness and beauty area. These types of companies will firstly need to obtain a no objection declaration with the Environmental Health Directorate.
What are the required documents when applying for a trade license in Malta?
In order to obtain a license from the Trading Licensing Unit, an application or notification with the following documents must be submitted:
- · - the name and address of the applicant,
- · - a copy of the identification papers or ECT (Employment and Training Corporation) permit for foreign citizens,
- · - in case of companies, the company’s name, home country and incorporation number,
- · - the value added tax registration number, where available,
- · - the activity to be carried and all relevant permits in case they are necessary,
- · - details about where the activity will be carried.
The trading license will be issued in about 10 days.
For complete information about trading licenses or company registration, you can contact our lawyers in Malta.