Malta Startup Residence Programme (SRP)
The Malta Startup Residence Programme (SRP) is open to startup founders, co-founders, core employees and family members (ie spouse, de-facto partner, minor children and dependent adult children) of startup founders, co-founders and core employees.
Malta Startup Residence Programme (SRP) Benefits & Requirements
The Malta Startup Residence Programme (SRP) applies to third country nationals (ie non-Maltese/EU/EEA/Swiss nationals). However, it does not apply for nationals of (or persons with close ties to) Afghanistan, North Korea, Iran, Democratic Republic of Congo, Somalia, South Sudan, Sudan, Syria, Yemen and Venezuela. The list of ineligible countries may be revised from time to time.
Any permits issued are subject to the startup business maintaining the approved business activity and adhering to all other residence permit requirements as set out by Malta Enterprise and the Residency Malta Agency.
A startup undertaking must be engaged in one or more of the following activities in Malta:
Manufacturing
Software development
Industrial services analogous to manufacturing
Health, biotechnology, pharmaceuticals and life sciences
Eco startups involved in blue, green and sustainable industries;
Other innovative activities through knowledge and technology providing services or products currently not readily available or provided through a novel process
The startup must not be an existing business registered for more than 7 years somewhere else, and it cannot be a business that has taken over the activity of another enterprise or been formed through a merger.
An eligible business must meet at least 2 of the following criteria:
Propose products and/or services that have the potential to generate income from various geographical markets
Produce products and/or services which are new, innovative or substantially improved compared to complementary products and/or services on the market
Utilise processes which are new or substantially improved compared to those adopted in current complementary activities.
The startup must place a tangible investment and/or paid-up share capital of not less than €25,000. In case of a company with more than 4 co-founders, the minimum amount increases by €10,000 per additional co-founder. The maximum number of co-founders under one application is 6.
The company’s business plan must be approved by Malta Enterprise and must be in line with the requirements of the local National FDI Screening office.
Founders and co-founders will need to show evidence of links with the startup and must not have any direct affiliations with another company operating in the same industry as the applicant company. They must be in possession of sufficient financial resources to support themselves and any dependants and must have a physical and tangible presence in Malta (ie living and paying their taxes in Malta). The residence permit of founders and co-founders will be issued for 3 years, which upon successful completion may be extended for a further 5 years.
Core employees must be vital for the startup for its operation in Malta and need to have specialised skills. They need to have a full-time employment contract with the applicant company for an annual gross salary of more than €30,000 and be employed with the company within the timeframe during which the venture is classified as a startup. The residence permit of core employees will be issued for 3 years, which upon successful completion may be extended for a further 3 years.
Immediate family members must be included in the first application, even if they do not have an immediate intention to relocate to Malta. The residence permit for family members does not grant the holder any automatic rights to access to work in Malta. The residence permit of a family member is conditional on the residence permit of a founder, co-founder or core employee and will be issued with the same validity period.
Founders and co-founders must collaborate with Malta Enterprise throughout the validity of the permit, including timely submissions of business plans and monitoring reports indicated in the approval letter.
An application fee of €750 is payable to the authorities for each adult applicant. Residency card fees of €82.50 (for a 3 year period) or €137.50 (for a 5 year period) apply. Jobsplus fees for the employment license must be paid by founders, co-founders and core employees (€690 for 3 years and €1,150 for 5 years).
Third-country nationals who require a visa to be admitted to the Schengen Area may apply for this following the issuance of a Letter of Approval in Principle.
Founders, co-founders and core employees will be subject to the normal income tax rules in Malta.
Beneficiaries will not qualify if an application for permanent residency or residency by investment or citizenship has been rejected in Malta or elsewhere, nor will they qualify if they have a criminal record or pending criminal charges.
Beneficiaries must have a recognised health insurance in place, covering risks in the Schengen Area.
Application Process for The Malta Startup Residence Programme (SRP)
Applicants must submit a business plan on the Malta Enterprise template. The business plan needs to cover the following points:
Company/Group Overview
Structuring of the company’s memorandum and articles of association to cater to having its shares in an electronic format through the dematerialisation of its securities
The Malta Project
A thorough description of the function of the Malta company, employment needs of the Malta company, its marketing function, the Malta company structure, any linkages to the local eco-system and its plans regarding corporate social responsibility.
Financials
A thorough description of the main sources of revenue, pricing model, funding plans, financials, financial projections (minimum 3 years) and cash flow projections (minimum 3 years).
Get In Touch With Us
Malta offers a plethora of business concepts, such as establishing a company that conforms to EU laws or trading and holding businesses that provide outstanding tax efficiency and flexibility. Our seasoned experts can offer the guidance and assistance that new Startups need to fulfil the formal criteria for registering a company in Malta. According to our experience, each organisation will have unique requirements; therefore, it is vital to understand the activities required to maintain compliance, as well as to accurately define a firm’s administration and management when forming a company in Malta. Contact us and we will arrange a consultation to discuss all aspects of tax residence or company set up in Malta and any additional questions you may have.
Frequently Asked Questions (FAQ)
Are there specific requirements for foreign entrepreneurs to start a company in Malta?
Yes. Foreign entrepreneurs, including U.S. citizens, can generally start a company in Malta, but the requirements depend on whether you are simply incorporating a company, moving to Malta to run it, or seeking permission to work as a self-employed person there.
1. Incorporating a company in Malta
A foreigner can own shares in a Maltese company. The typical process for forming a Maltese limited liability company includes:
- Choosing and reserving a company name.
- Preparing the company’s Memorandum and Articles of Association.
- Providing shareholder, director, and company secretary details.
- Depositing the required share capital.
- Registering the company with the Malta Business Registry.
A Maltese company must also comply with tax and VAT registration obligations where applicable.
2. Residence and work requirements for U.S. entrepreneurs
Forming a company does not automatically give you the right to live or work in Malta. If you are a U.S. citizen and want to operate the business from Malta, you may need a residence permit and authorisation to work.
For non-EU nationals seeking self-employment, Malta generally requires an employment/self-employment authorisation and residence permit. Eligibility can involve criteria such as:
- A significant investment in Malta (requirements vary by route).
- A viable business plan.
- Evidence of business experience or qualifications where relevant.
- Approval through the appropriate Maltese authorities.
One route described for third-country nationals involves:
- Investing in qualifying fixed business assets;
- Being a highly skilled innovator with a business plan and plans to create jobs;
- Being the representative of an established overseas company opening a branch in Malta; or
- Leading an approved project.
3. Startup founders may have additional options
If your business qualifies as an innovative startup, Malta has a startup residence pathway discussed above. Requirements can include:
- Being a founder or co-founder of an eligible startup.
- The startup being relatively new (for example, registered for no more than seven years).
- Meeting innovation/business criteria.
- Making a qualifying investment or paid-up share capital contribution.
- Having health insurance and sufficient financial resources.
- Living and paying taxes in Malta under the program rules.
4. Other practical requirements
Foreign founders should usually plan for:
- A registered office address in Malta.
- A Maltese bank account (often needed for operations and capital requirements).
- Accounting and annual filing obligations.
- Tax planning, especially if the company will have U.S. owners (U.S. citizens generally remain subject to U.S. tax reporting obligations on worldwide income).
- Possible licensing requirements depending on the industry (finance, gaming, healthcare, crypto, etc.).
5. Common company structure
Many foreign entrepreneurs choose a private limited liability company (Ltd.) because it provides limited liability and is the standard structure for many businesses in Malta.
If you are a U.S. entrepreneur considering Malta, the key question is whether you want to:
- Own a Maltese company while living in the U.S., or
- Relocate to Malta and run the company there.
The requirements are significantly different between those two scenarios. In both, we can assist you.
How long does it typically take to set up a startup company in Malta?
Setting up a startup through a standard private limited liability company in Malta typically takes 1 to 2 weeks from start to finish, provided all paperwork is correctly prepared.
The timeline breaks down into several key stages:
1. Document Preparation & Name Reservation (3 to 5 Days)
- Name Approval: You must clear and reserve your company’s trade name with the Malta Business Registry (MBR). This usually takes 24 to 48 hours.
- Drafting Documents: Preparing the Memorandum and Articles of Association, along with gathering required Know Your Customer (KYC) compliance documents for shareholders and directors.
2. Capital Deposit & MBR Submission (1 to 3 Days)
- Share Capital: Opening a temporary bank account or depositing the required minimum share capital (at least 20% of the initial private equity) and securing a deposit slip.
- Official Filing: Submitting the complete documentation package to the Malta Business Registry. Once submitted electronically with all requirements met, the MBR typically issues the official Certificate of Incorporation within 24 to 48 hours.
3. Post-Registration Steps (2 to 4 Weeks)
While the actual legal incorporation can happen very quickly, getting the business fully operational takes longer due to administrative follow-ups:
- Tax & VAT Registration: Registering for local tax numbers and VAT if applicable (often handled automatically or concurrently with incorporation, taking a few days).
- Corporate Bank Account: Opening a permanent corporate bank account can take anywhere from 2 to 4 weeks, depending on the financial institution’s compliance checks.
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- Papilio Services Limited 168 St Christopher Street, Valletta, VLT 1467, Malta, Europe
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