How to open a business account in malta

Opening a Business Account in Malta Made Easy

Did you know Malta is home to over 30,000 registered companies, thanks to its business-friendly environment and access to the 500 million-strong EU market? Whether managing a local startup or expanding an international business, having a business account in Malta is essential for smooth financial operations. But with so many banking options and specific requirements, where do you begin? In this blog post, we will learn how to open a business account in Malta, covering the steps, benefits, and top banking solutions available.

Benefits of Opening a Business Account in Malta

Enhanced Financial Management

A dedicated business account helps businesses separate their personal and business finances, ensuring better organisation and clarity in financial operations. This separation is also critical for accurate bookkeeping and tax compliance.

Access to Multi-Currency Accounts

Many banks and digital platforms in Malta offer multi-currency accounts, allowing businesses to hold, send, and receive payments in currencies such as EUR, GBP, and USD. This is particularly beneficial for companies with international transactions.

Digital Banking Convenience

Business accounts in Malta often include online and mobile banking tools. These platforms allow businesses to manage accounts, initiate payments, and monitor transactions 24/7, providing flexibility and ease of use.

Secure Transactions

Security is a top priority in Malta’s banking sector. Many platforms employ Two-Factor Authentication (2FA) and 3D Secure to protect accounts and transactions, ensuring that business funds remain safe.

Understanding Business Banking in Malta

The banking system in Malta is diverse, with a mix of traditional banks and modern digital platforms. Traditional banks such as HSBC Malta and Bank of Valletta dominate the landscape, providing established business services. However, digital platforms like Revolut, Wamo, MultiPass, and Satchel have emerged as alternatives offering faster, paperless account setups.

Malta’s business banking is integrated into crucial payment networks, including SEPA for Eurozone transfers and SWIFT for international payments. These networks ensure secure and efficient financial transactions, crucial for businesses operating locally and globally.

Top Options for Business Accounts in Malta

Traditional Banks

HSBC Malta

HSBC Malta offers comprehensive business banking services, including a free international debit card, online banking tools, and access to ATMs across Malta and globally. Its business current accounts are ideal for companies requiring extensive financial management tools.

Bank of Valletta (BOV)

Bank of Valletta is particularly popular among companies needing accounts for compliance with the Malta Business Registry. BOV provides personalised customer service and robust business account features, including support for international payments.

Digital Platforms

Revolut Business

Revolut Business is a versatile option for companies that operate internationally. It offers multi-currency IBANs, competitive exchange rates, and user-friendly mobile apps. Although it provides a Lithuanian IBAN, it is widely accepted for most business needs.

Satchel

Satchel provides businesses with SEPA and SWIFT capabilities, multi-currency support, and various digital banking features. Its accounts are accessible to EU and non-EU residents, making it an excellent choice for international businesses.

MultiPass

MultiPass specialises in global business banking solutions. It offers batch payment options, payroll programs, and multi-currency accounts. It supports over 70 currencies, making it ideal for businesses with a global reach.

Alternative Solutions

Wamo

Wamo simplifies the process of opening a business account with minimal documentation. It is an excellent solution for startups and small businesses looking for straightforward banking services.

Finductive

Finductive caters to startups and SMEs, providing tailored banking solutions that focus on reducing bureaucratic hurdles.

Comparison of Banks Providing Business Account Options in Malta

Documents Required to Open a Business Account in Malta

When opening a business account in Malta, you must provide documents that comply with the bank’s regulations and legal requirements. These documents ensure transparency, verify your business’s legitimacy, and facilitate approval. Below is a detailed list of the commonly required documents:

Proof of Identity

You’ll need to present a valid form of identification for all company directors and shareholders. Accepted documents include:

• Passports
• Driver’s licences

These documents must be valid and include clear photographs and signatures.

Proof of Address

Banks require proof of address for all directors and major shareholders. Commonly accepted documents include:

• Recent utility bills (dated within the last three months)
• Rental agreements or tenancy contracts
• Bank statements showing the residential address

Certificate of Incorporation or Business Registration

This certificate confirms that your company is officially registered with the Malta Business Registry. It outlines your business’s legal identity and confirms its existence.

Proof of Ownership

If your business involves property, you may need to provide ownership documents such as:

• Land registry deeds
• Title deeds

These documents validate the ownership of any property or assets linked to your business operations.

Document Listing Directors and Major Shareholders

This document details your company’s structure, listing all directors and shareholders along with their respective ownership percentages. It ensures transparency in ownership and control.

Proof of Business Activity

Banks may request evidence of your operational business activity. Examples include:

• A website URL showcasing your business operations
• Copies of contracts or agreements with clients
• Recent sales invoices or purchase orders

Bank References

A reference letter from your existing bank can strengthen your application. It should confirm your account’s good standing and provide insights into your financial reliability.

Completed Forms

You’ll need to fill out application forms provided by the bank or digital platform. Ensure these forms are completed accurately to avoid delays in the process.

CV of Business Owners or Directors

Some banks may request CVs of business owners or directors highlighting their professional backgrounds and experience. This helps the bank understand the expertise behind the company.

Wealth or Funds Declarations

In some cases, you may need to declare your wealth or funds, particularly if the bank needs to confirm the source of the deposited capital. This ensures compliance with anti-money laundering (AML) regulations.

Steps to Open a Business Account in Malta

Research and Select the Right Bank

Start by researching both traditional banks and digital banking platforms.

• Consider factors such as monthly fees, currency support, international payment capabilities, and the quality of customer service.
• Align the account features with your business needs. If your company operates internationally, choose an account with multi-currency support.
• Assess the user experience of online and mobile banking platforms to ensure a seamless and efficient interface.
• Review the pricing structure carefully to avoid hidden fees and ensure transparency, focusing on setup charges, monthly payments, and transaction costs.

Prepare the Required Documents

As the second step, gather and organise all necessary documents the chosen bank requires. Ensure all documents are up-to-date and accurately filled out to avoid delays. Having everything prepared will streamline the application process and make compliance checks smoother.

Verify Directors and Shareholders

Banks in Malta are required to comply with anti-money laundering regulations. This means they will conduct thorough checks to verify the identities of company directors and shareholders. You must provide valid identification and proof of residence for all key stakeholders.

Submit Your Application

Once you have gathered the necessary documents, submit your application to the selected bank or digital platform. Many digital banking solutions allow you to complete this process online, reducing paperwork and saving time. Be prepared to pay any setup or application fees during this stage.

Activate Your Account

After your application is approved, you will receive your account details, including your IBAN. You can then link your account to online banking platforms or mobile apps to manage transactions efficiently.

Time Taken to Open a Business Account in Malta

The timeline can vary based on the bank’s internal processes, the completeness of your application, and your residency status.

Legal and Tax Implications After Opening a Business Account

Opening a business account in Malta comes with specific legal and tax responsibilities that companies must adhere to. These obligations ensure compliance with local laws and contribute to the smooth operation of your business.

Registering for VAT

Once your business account is active, you must register for a VAT number with the Maltese VAT Department if your annual turnover exceeds €30,000 (or lower thresholds for specific activities). This number is essential for issuing VAT-compliant invoices and reclaiming VAT on eligible expenses.

Corporate Tax Compliance

Malta operates on a complete imputation tax system, which means shareholders can claim refunds on taxes paid at the corporate level. Companies are required to submit annual tax returns, usually accompanied by audited financial statements. The corporate tax rate is 35%, but certain businesses may qualify for tax refunds that reduce the effective rate to as low as 5%.

Maintaining Statutory Registers

Businesses must maintain updated statutory registers, including details of directors, shareholders, and beneficial owners. These records must be accessible for inspection by regulatory authorities when requested.

Payroll Taxes and Social Contributions

If your business employs staff, you must comply with payroll tax obligations. This includes withholding income tax and National Insurance contributions from employee salaries and remitting these amounts to the Maltese Revenue Department.

Annual Reporting Requirements

Businesses must submit annual returns to the Malta Business Registry and updated information about the company’s structure and activities. Failure to comply can result in penalties or even suspension of your business account.

Double Taxation Treaties

Malta has an extensive network of double taxation treaties, which can reduce or eliminate tax on income earned from international sources. This benefit is beneficial for businesses engaged in cross-border trade or services.

Common Challenges and Solutions

Lengthy Application Processes

Some traditional banks in Malta have longer application processes due to compliance and regulatory checks. To avoid delays, ensure all required documents are complete and accurate before submission.

Non-Resident Business Owners

Opening an account can be more challenging for non-resident business owners. However, digital platforms like Revolut and Satchel provide online account opening services without requiring a physical presence in Malta.

Rejections from Traditional Banks

Consider digital platforms or alternative solutions if a traditional bank rejects your application. These options often have more flexible criteria and faster approval processes.

FAQs

Can I open a business in Malta as a foreigner?

Yes, Malta allows foreigners to open businesses. You’ll need to register your company with the Malta Business Registry, meet local requirements, and secure a registered office address in Malta.

How can a non-resident open a bank account in Malta?

Non-residents can open a bank account in Malta by providing the required documents, such as proof of identity, proof of address, and business registration certificates. Many digital banking platforms like Revolut or Satchel simplify this process by offering remote account opening options.

How much does it cost to open a company in Malta?

The cost of opening a company in Malta varies depending on the type of business and registration fees. Typically, you’ll need to pay between €210 and €1,750 for registration and additional fees for compliance, VAT registration, and professional assistance.

What is the cheapest country to start a business?

According to research by BusinessFinancing.co.uk and the World Bank’s Doing Business report, Rwanda, Venezuela, and Slovenia are among the cheapest countries to start a business, as they have no company registration fees.

How long does it take to open a business account in Malta?

Opening a business account in Malta typically takes 2 to 5 weeks, depending on the bank’s internal processes and the completeness of your application. Non-residents and international businesses may face slightly longer timelines due to compliance checks.