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Start a Sole Trader in Malta

Start a Sole Trader in Malta

Being self-employed in Malta is quite advantageous from many points of view. The sole proprietorship in Malta is the simplest business structure available and often selected by entrepreneurs from overseas. Our company formation agents in Malta can guide both local and international entrepreneurs in starting a business in this country.

 Quick Facts  
Who can register a sole proprietorship in Malta? Both residents and non-residents who want to start a business in Malta.

Documents for starting a sole trader in Malta

– valid ID for nationals,

– specific licenses and permits,

– social security number,

– residence permit for non-residents

Authority in charge with sole trader registration in Malta

Maltese Business Registry

Business name The sole trader can use his/her own name 
Bank account for sole proprietorship in Malta 

Apart from the personal bank account

EORI for sole traders in Malta For import and export activities
VAT registration

For purchases made outside Malta, the VAT registration is required.

Time frame for sole proprietorship registration in Malta Around 10 days
It can sign contracts (YES/NO)


Possibility of hiring staff (YES/NO)


Taxation of sole traders in Malta

35% income tax rate

Deductions for sole proprietorship


– advertising,

– travel expenses,

– rent,

– training,

– internet and phone bills

Support for sole trader registration in Malta (YES/NO) Yes 
Advantages of sole proprietorships in Malta

– flexibility,

– advantageous tax system,

– less bureaucracy,

– fast incorporation

Free case evaluation for non-residents in Malta

Yes, for starting a business in Malta as a sole trader.

Is it hard to open a sole trader in Malta?

No, the formalities for opening a sole proprietorship in Malta are quite simple, respecting the conditions for registration. Here is what you need to know about starting a sole trader in Malta:

  1.  A self-engagement form needs to be filled and then submitted to JobsPlus, the governmental institution in charge of employees and employment in Malta.
  2.  A residence permit or a valid ID card is required for sole trader registration in Malta.
  3. The Social Security number is required for registration.
  4. The PE number is issued for registration with the department of revenue, in case, the sole trader will have employees.
  5. The registration for VAT is imposed for annual profits exceeding EUR 35,000.
  6. There is no need to submit the documents to the Trade Register in Malta, and no need to reserve a business name.

The formalities for registering a sole trader in Malta can be entirely handled by one of our company incorporation specialists in Malta. We can guide both local and foreign entrepreneurs to start their activities as sole traders in Malta.

Is there a minimum share capital for sole proprietorships in Malta?

No, sole traders in Malta do not require a minimum share capital like in the case of sole proprietorships. This is a great advantage from a business point of view, yet, one must observe the taxation for this kind of structure. The Malta Financial Services Authority is the institution that oversees the fiancial activities in the insular state.

Qualifications to open a sole trader in Malta

Specific diplomas that attest to the qualifications or the profession must be provided at the time the sole proprietorship is registered in Malta. We remind that foreign citizens and Maltese nationals can register sole proprietorships in the insular state, helped by our company formation agents in Malta. You can send your inquiries and let us help you with the documents and registration formalities of a sole trader in Malta.

Are there any licensing requirements in Malta?

Yes, special licenses and permits must be obtained for certain operations, like running a catering business. Otherwise, the qualifications of professionals are sufficient for establishing the activities in Malta as a sole trader.

Taxation for sole proprietorships in Malta

The income tax and the capital gains must be observed by sole traders in Malta. A maximum of 35% as income tax is imposed, but it depends on the marital status, children, and other aspects. The registration for taxation in Malta can be made with the help of our specialists, so feel free to discuss with us.

Advantages of sole traders in Malta

Sole traders in Malta are advantageous business structures because there is no need for the same registration steps as limited liability companies. Having fewer formalities is quite appealing to both local and international entrepreneurs in Malta who can concentrate on other aspects concerning the new business. The valid ID and a copy of the qualifications are sufficient for sole proprietorship registration in Malta. The ownership is full for sole traders in Malta, and this means that the responsibilities enter the attention of a single person.

 Making investments in Malta

Malta is a great financial hub that hosts a large number of international companies activating in different sectors of interest. The business environment is stable and sustained by a series of encouragements offered by the Maltese government. The insular state is quite advantageous in matters of geographic location because Malta has worldwide connections that sustain the business in a wide range of sectors. The workforce in Malta is another solid point in front of foreign entrepreneurs looking for stability, and skilled staff. Here are some facts and figures that highlight the economy and business in Malta:

  1. More than 31,000 companies with foreign capital are already established in Malta.
  2. Roughly USD 206 billion was the total FDI stock for Malta in 2019.
  3. About 97% of the total FDI stock registered in Malta was directed to the financial and insurance services in Malta.

Would you like to register as a sole trader in Malta? You can simply send your inquiries to our team of company formation specialists in Malta and let them help you and guide you. Please contact us right away and ask for our support.