Setting up a Sole Trader Business in Malta – Self Employed

Setting up a Sole Trader Business in Malta – Self Employed
Updated on
March 1, 2023

Malta’s process of registering a business and tax systems are the most favourable in Europe, and this is made possible by its ideal location in the Mediterranean. Its financial sector is very firm coupled with a flourishing online gaming sector. To start a business in this state, you will need a clear idea of what you want it to be as most structures adopted here are in line with sole trader business, partnership and limited liability corporations. If you are looking to start a business that doesn’t require a lot of hassle, consider the sole trader.

To start a self-employment business in this country, you are required to notify Jobsplus by filling out a self-engagement form and also make sure the National Statistics Office knows so that you can be included in the Business Register.


All applicants need to have a valid ID card or the residence permit that is usually issued by the office of Identity Management. You will also need to have a Social Security number. In case you are planning on starting an import and export business across the European Union, it is wise to get an EORI number. The good thing is that the Commercial Code doesn’t require you to be registered with the Trade Register in order to start a self-employment business.

How to Register as a Sole Trader

To start the business, the trader has to get important numbers from the state department, including:

  • VAT number- this is acquired by getting registered with the Revenue Department in case your business will found taxable
  • Jobsplus Number- every applicant gets registered with Jobsplus automatically and get issued with an employer number
  • The National Statistics Office needs to be made aware of the registration of the new business
  • PE number- this is used for registering as an employer with the department of revenue in case the business involves engaging employees in the early stages

Once you have filled the applications and submitted them, the data gets processed, and registration numbers are issued to the applicant. You will be able to commence operations within 48 hours of registration.

Taxes Required from the Sole Trader

Depending on where you reside in this state, you are required to pay both income and capital gains tax if you wish to start a self-employment business. The former might go up to 35% although the rates are dependent on your marital status and whether you have children. If you are a foreigner who wishes to start such a business, you are obligated to paying income tax on your profits, and capital gains tax too.

Advantages of Starting a Self-employment Business

This is the easiest form of business you can start in this country as it doesn’t need registration and set up costs. Taxes from this business need to be filed only once annually. Being a self-employed person also means minimal bureaucracy in this state. You will get full control and ownership of your business thus, making you the boss and an employer too.

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