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Main Laws in Malta that will affect your business!

Are you in the research stage before starting your business or perhaps just opened your doors?

Then ensure you are aware of the various laws and regulations that may either fast forward your business or slow down your advance.

Perhaps even cripple your start-up, if you’re not informed apart a particular piece of legislation!

Either way, just as any wise general would study the terrain of the battleground way before the battle itself, so should you be aware of the legalities in the battlefield where you will operate. 

What are the Main Laws in Malta that will affect your business?

The good news is that your team of advisers such as your accountant, lawyer and notary will be aware of these regulations and are able to guide you through the storm.

What’s even better news is that if:

  • You’re starting out and are tight for cash.
  • You wish to check some matter for yourself at your own convenience at am.
  • You enjoying learning and discovering things on your own.

Then I’m pleased to tell you that the legislation can all be found online and accessible to all.

Beware though, never skip good professional advice if you’re unsure on some very important matter. Don’t lose thousands in Euros and sleepless nights later on to save a few hundred in professional advice today.

Below are the main laws (with online links to legislation) defining your business environment and that could affect the way your business will operate:

 Income Tax

Goes without saying that Income tax will be one of your biggest business expenses. Think about it, although you are taxed on your profits (and income tax is not included with your business expenses), it really doesn’t make a difference. Reason being is the tax to be paid will result in you having much less profit in your hands.

Therefore you should definitely be aware of what is legally deductible and any other tax credits as per the income tax act!


Whilst any income tax will be paid the following year, VAT is a more “urgent” matter since this will apply immediately. You must properly charge VAT from day one of starting your business and all VAT collected will be passed to the VAT dept in a few months after.  With so many possible scenarios of Vat treatment even the best accountants constantly refer to the Vat legislation in the link below:

 Social Security

 As a self-employed person you also have benefits such as sick leave. It’s not only about paying your Social Security Contributions. Benefits apply to all including yourself as a business owner.

Wage Regulation Orders

Wage regulation what???!

Perhaps not as well known, is that apart from the normal employment matters, your employment obligations are further determined by the trading activity of your business.

Each activity falls under a particular sector which has its own special rules and regulations. Such as differences in the number of days available as sick leave, vacation leave and even the minimum wage amount!  Be sure to check your obligations as an employer and ensure your abiding by the laws of your sector!

Companies Act

Obviously this applies to companies only. It’s also something that your accountants or corporate service provider will handle, but it’s there should you need it!

Other Industry specific laws

“Just when I thought I was out, they pull me back in”.

Be aware of other regulatory bodies that control or affect your business. 

Certain business operations fall under further special legislation other than the above mentioned.  

Probably these is the first place you, as a start-up you must check. Why? If you need a license to begin trading than you can’t just open shop before you have the blessing of the regulatory authority responsible.

For example hostels fall under the Malta Tourism Authority (M.T.A) regulations and the Gaming industry has its own set of strict regulations.  So if you need a particular license or permit to operate for example as tour excursion organizers ensure you satisfy certain requirements before even contemplating starting your business as these could in themselves be barriers to entry.

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