MALTA BUSINESS STATISTICS

• In 2018, Malta had 113,256 registered business units, which represented an increase of 8.1%, or 8,458 registered units from 2017.
• The total number of sole proprietorships in Malta was 53,395 in 2018.
• 2018 welcomed the birth of 12,482 new businesses in Malta.
•  110,149 businesses in Malta had less than ten employees.
• The total number of businesses with 250 or more employees in Malta was 131 in 2018.
• Based on Hoovers' business directory of companies and enterprises in Malta, only 45 businesses have annual revenues greater than €50 million ($55.53 million). The remaining 647 out of 692 businesses listed in the business directory have less than €50 million in annual turnover.

ADDITIONAL INFORMATION

• There were 4,514 business deaths in Malta in 2018.

RESEARCH STRATEGY

CO-WORKING SPACE PROVIDERS IN MALTA

•  SOHO Malta and Regus are the only co-working space providers that operate at least three locations in Malta.
• SOHO Malta operates co-working spaces in three locations (link to website). They are located in towns/districts such as Gzira, Paceville, and Ta' Xbiex.
• Regus operates co-working spaces in three locations (link to website). They are located in towns/districts such as Swatar and St Julian's.
• The remaining known co-working space providers in Malta such as Glashaus Startup Space, SC Cowork, Grand Central, 230 Works, The Penthouse, Marco Polo Malta Co-working (Marco Polo Hostel), The Hub Malta, BusinessLabs Malta, Your Urban Office, and Chiliz Blockchain Campus operate only one location.
• SOHO Malta may be considered the most popular co-working space provider in Malta as it is the only company that has been named one of the best co-working spaces in Malta and Europe.
• According to a recent article on digital nomad destinations, “the culture of co-working did not hit Malta until very recently.”
• The 2019 European Co-working Hotspot Index did not include any Maltese cities.

RESEARCH STRATEGY

OVERVIEW OF THE PROCESS OF STARTING A NEW COMPANY IN MALTA

• When opening a business in Malta, foreign enterprises will consider the amount of money, also called a share capital they will have to invest in the company. From this point of view, the Commercial Code only requires private and public companies to deposit a specific amount of money.
• There are no differences in the process of setting up a brick-and-mortar business vs. an online company. All companies would follow the same procedure.
• Most companies in Malta are limited liability companies (LLC) or Maltese holding companies. Although there are other types of companies, these two structures attract many foreign investors since they have low maintenance costs and an efficient taxation system allowing tax exemptions for foreign businesses.
• In the case of a Maltese private company, the minimum amount accepted is 1,165 euros, while for the public company the minimum share capital is approximately 46,600 euros of which only 25% must be deposited prior to registration.
•  Private limited companies with authorized share capital above the minimum threshold must deposit 20% of the amount of money.
• Both types of companies must have at least two shareholders, even if the Company Law also allows a single shareholder to establish a company in Malta.
• Each private limited liability company requires documentation about the fundamental conditions under how the company will be operating.
• The required documents are from the Memorandum of Association and must be drafted according to Maltese law.

TIME AND COST REQUIRED TO OPEN A COMPANY IN MALTA

• Depending on the type of company you’re setting up, the registration process can be quite efficient. It can be completed within a two-day window. A good first step is to register the company’s name online, with the Maltese Registry of Companies.
• You must then submit the required documentation to the Registry of Companies.

REQUIRED DOCUMENTS

• The Memorandum and Articles of Association (M&A), which state details about the company, such as whether it is private or public, what the business intends to do, who the subscribers are, and where the registered office is located. These documents must either be signed by subscribers or by their legal representation. That means that you do not have to be physically present to register your company in Malta.
• Proof that initial share capital has been deposited (in the case of an LLC).
• Proof of identification for the subscribers.
• After the documents are submitted to the Registry of Companies, your registration will be completed within 24 hours. In some cases, registration fees are required; the fee will depend on the amount of authorized share capital.
• For up to 1,500 euros of share capital, the registration fee is 245 euros.
• The registration fee ranges from between 245 and 2,250 euros, depending on the amount of share capital. You can partially complete the company registration online, but either you or your legal representatives must be physically present to sign off on certain documents.
• Applying for a VAT or employer number can be done online.

OPENING A BANK ACCOUNT IN MALTA

• A company bank account is needed to complete the company incorporation.
• Once the share capital is deposited, the bank will provide a certification which is required by the Malta Financial Authority before issuing the registration certificate.
• Once you have your Certificate of Incorporation that confirms details like the name of your company you can open a bank account. 
• Such banks offer different services including checking books, debit/credit cards, internet, telephone and phone banking, bank accounts in a wide choice of currencies and other traditional banking services.

EXCHANGE CONTROL

• No exchange control rules and regulations exist in Malta since they have been abolished in view of Malta’s EU membership. Thus, funds can be transferred in and out of Malta without any restrictions.
• Banks may require supporting evidence for payments and receipts.
• Business can be conducted in any currency.

CONFIDENTIALITY

• All company documents are public. However, confidentiality can be maintained through the services of a fiduciary in which the name of the shareholders will not be disclosed in the public registry.
• Details of the ultimate beneficial owner must be submitted to the Maltese Registry of Companies.

TAXATION OF MALTESE COMPANIES

• The tax structure for limited liability companies in Malta is appealing to most of the investors from abroad.
•   The corporate tax is set at 35% but it can be reduced to 5% if an offshore company is created in Cyprus owning the shares in an LLC in Malta.
• There is no tax imposed for dividends and interests of a bank account.
• There are no licenses fees, withheld tax on royalties, or dividends.
• The standard VAT is set at 18% and it is applicable to companies in the trading sector in the EU.

MALTA'S FRIENDLINESS TO FINTECH COMPANIES

•   The government is looking for ways it will get a new niche in the finance sector.
• They see fintech as a driver for growth in the industry.
• In its 2018 budget the government announced that it intends to set up a new blockchain lab at the Malta Information Technology Agency.
• They also launched a web portal that focuses on distributed ledger technology and cryptocurrencies.
• The government will also be launching a blockchain hub, to support startups in working with the technology.
•   The government said they will be setting up a blockchain taskforce.
• Financial software entrepreneurs are given the opportunity to set up in one of Europe’s fastest-growing financial centers.

MALTA'S POSITION AS LEADER IN FINTECH

•  Fintech start-ups coming to set up in Malta will be given access to a technology business incubator based at the University of Malta.
• There is also an innovation hub run by the Malta Information Technology Agency for Fintech start-ups.
• A state-of-the-art technology park is already in building.
•  These initiatives will further enhance the supportive environment and infrastructure for fintech companies.
• Over the past few years Malta had already become an attractive jurisdiction for fintech start-ups.
• The promulgation of the EU First Payment Services Directive, has resulted in Malta experiencing an influx of fintech start-ups.
•   Fintech companies are also using Malta as a springboard to nearby markets, in particular those of Africa.
•   eCommerce is one of the first companies to take advantage of what Malta has to offer, such as fiscal benefits, a strategic location in the center of the Mediterranean and cultural proximity to Europe.
•   Malta’s finance sector has recently seen new operators entering the market.
• Changing market dynamics driven by technology-savvy consumers have created a fertile environment for fintech.
• There are already fintech companies based. They have been drawn to Malta because it provides a wealth of talent, both tech and finance.

SINGULAR

• Singular has raised a total of $5.7 million in one Series A funding round, on December 18, 2018.
•   Singular is an international game development company with four offices and two development bases around the world.
• More than 100 developers continuously strive to make the world’s most "innovative" and "outstanding" gaming solutions.
• The company website may be viewed here.

BINANCE

•   Binance is a cryptocurrency exchange platform that combines digital technology and finance.
• The company provides access to exchange digital currency pairs on the market, while enabling a safe and efficient deal with anyone, anytime and anywhere.
• Binance has raised a total of $10 million in funding over 3 rounds. Their latest funding was raised on Oct 23, 2018 from a Venture- Series Unknown round.
• Their website can be viewed here.

OTHER COMPANIES

•   Thrive is a blockchain-based trading platform to buy and sell advertising at very low fees.
• People get paid for data sharing and for reviewing the quality of each website in the ecosystem.
• Thrive Labs has raised a total of $25 million in funding over 1 round. This was an Initial Coin Offering round on September 1, 2017.
• Their website can be viewed here.

•   Yovo was founded in 2017 and is working on building the world’s first Tokenised Mobile Network.
• Yovo, which operates SIM and virtual SIM-based networks, is using the Stellar blockchain to create the world’s first global tokenised mobile phone network.
• The Malta-based company has raised €20 million in venture funding.
• Their global headquarters has thirty employees.
• Their Facebook page can be viewed here.

•   Bundle Network is an online platform connected to various exchanges.
• They are enabling users to trade multiple coins & tokens within seconds of execution.
• This is through one account and one click, at the best price possible, either in bundles or individually.
• The firm was started in 2017.
• In August 2018, the company raised a total of $100,000 in funding from Coinsilium Group through a seed round.
• Their website can be viewed here.

RESEARCH STRATEGY

DIGITAL SERVICES TRENDS: MALTA

TREND #1: BLOCKCHAIN APPLICATIONS

• Introduction of PSD-2 (Second Payment Service Directive) will help to increase the number of operators in the payment services space and establish themselves in Malta.
• The blockchain applications will help to advise and assist the institutions by ensuring good corporate governance, risk management, and internal controls infrastructure, and reviews of financial instrument tests, among others.
• Malta offers various blockchain-related incentives backed by government entities. The Blockchain Committee is supported by the Malta Stock Exchange; it assists in the formulation of a strategy geared towards addressing these emerging technologies.
• In July 2018, the Maltese Parliament passed three bills into new laws as 'Malta Digital Innovation Authority Act (MDIA Act),' the 'Innovative Technology Arrangements and Services Act (ITAS Act),' and the 'Virtual Financial Assets Act (VFAA).'
•  Blockchain applications are actively being used by the forward-thinking firms to investigate the technology better and ascertain its implementation for smart legal solutions.

• According to KPMG, Malta is gradually progressing towards becoming the “Blockchain Island,” and the country has recently established the Malta Digital Innovation Authority.
• The newly established blockchain bank will enable all cryptocurrency-related firms to get credit for blockchain firms and serve high-net-worth individuals.

• Malta is planning to launch a bank that will allow cryptocurrency startups to get access to banking services that were only available for companies outside the crypto industry.
•   OK Blockchain Capital Limited is an investment arm of OK Group which has invested in the Maltese company RnF Finance Limited; additionally, it has applied with the Malta Financial Services Authority for a license to work as a credit institution to commence operations in 2019.

TREND #2: ELECTRONIC MONEY INSTITUTIONS (EMI)

• Fintech businesses in Malta are dominated by the Electronic Money Institutions (EMI) and Payment Institutions (PI/ PSPs), both of which are classified as the financial institutions in Malta.
• EMIs can issue electronic money, subject to the prior authorization of the Malta Financial Services Authority (MSFA).
• Additionally, the EMIs can freely transfer electronic money to third parties.

• There are 28 credit institutions and 35 financial institutions, including 22 payment institutions, and 7 electronic money institutions licensed by the Malta authority under the Financial Institutions Act.
• Malta continues to be positively ranked for its performance in the financial sector. The development of Malta as an international financial center is reflected in the range of financial services available.

•   CSB Group provides clients with professional assistance for the Licensing of Electronic Money Institutions (EMI), throughout the application procedure, company establishment, and post-licensing support.
•   Integritas Group provides assistance with the Licensing of Electronic Money Institutions (EMI) in Malta.

TREND #3: CHATBOTS AND CONVERSATIONAL BANKING

• Start-ups are creating a stir in the financial service's industry in Malta by integrating chatbots. They enable companies to deliver immediate and insightful information to their customers.
• Some national banks like Central Bank of Malta are planning to integrate chatbots that can add value services for their customers, i.e., to personal and corporate accounts.

• According to eMarketer, nearly 90% of bank-related interactions will be automated by 2022.
• Alternatively, the banks are likely to save an estimated $0.60 on average per chatbot interaction and can resolve a number of customer queries.
• Chatbots can handle a high volume of requests with an accuracy of nearly 97%.

•   Central Bank of Malta is using a chatbot help desk to provide information about the customers' lei code, ID verification, and searching for the entity code, among others.
• The service helps the Central Bank of Malta to automate the simple questions and take action in less time and fewer resources.

TREND #4: REVOLUT

• Revolut is a digital banking alternative that offers services like currency exchange, cryptocurrency exchange, peer-to-peer payments, and debit/credit cards (MasterCard or VISA).
• Revolut has secured a European banking license with Lithuania’s central bank.
• Revolut does not charge fees for most of its services but includes a usage cap for its services. It also uses inter-bank exchange rates for its currency exchange on weekdays and a markup ranging from 0.5% to 1.5% on weekends.
• Revolut has an open API, which helps companies to integrate their software to its business platform.
• The Revolut App provides instant access to Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and XRP by exchanging to/from 25 fiat currencies.

• Revolut serves more than 80,000 clients in Malta and expects to add about 60,000 customers by the end of 2018. Additionally, Revolut Business serves nearly 70,000 corporate accounts in Europe.
• The Revolut customers increased by nearly 40% each month as a number of customers try to rely on the system.

•  Buddy is a payroll software available internationally; it has integrated with Revolut to optimize the payroll transactions by making them faster and easier to operate.
• The benefits of using Revolut, together with Buddy, reduces processing and transaction costs and allows for commission-free multi-currency payments.

TREND #5: DIGITAL BANKING PLATFORMS

• Financial institutions, instead of providing competitive bank-owned options for services like payments and money movement (e.g., bill pay, P2P, A2A), allow the use of third-parties for optimizing transactions.
• In 2019, savvy banks and credit unions adapted to the scenario and went for modernizing their digital banking platforms in Malta.
• As per Vipond, more banks and credit unions are working to offer an optimal digital experience and incorporate personalization in their digital banking platforms.
• Digital banking assistants for prominent banks support and advise its users, signifying an evolution of customer-bank relationships.

• Increased number of consumers are performing cross-border transactions; additionally, the digital banking platforms streamline the process of fund transfer.
• Digital banking platform offers the customers with access to a range of services like fund control, managing cards, loans, among others.
• According to a recent survey by Bank News, about 42% of customers preferred using banking services from a community or regional banking institution over a national one, because they offer a better banking experience.

•  FIMBank launched a secure digital banking platform, FIMBank Direct to target the needs of both personal and corporate customers.
• FIMBank Direct provides high-level security protection through its authentication app, FIMBank CAM.
•   Medirect Bank also plans a significant digital transformation to become compliant with the Payment Services Directive 2 (PSD2) in Malta over coming 18 months.
• According to the Head of Business Development, at Medirect Bank, the bank is undertaking one of the biggest projects to transform its online banking and wealth management platform in Malta.

RESEARCH STRATEGY

USEFUL FINDINGS

• Google Pay was in 28 countries as of 2018 excluding Malta. The name "Google Pay" came after Google and Android merged. By implication, Google Pay was not in Malta. This provides insight into why finding Google Pay statistics specific to Malta is difficult, given that Malta was not on the list of countries that Google Pay had any presence in as of 2018.
• According to Albert Herd, "Apple Pay is now supported in Malta, through Revolut. But little did Android users know that Google Pay has been supported by Revolut for more than a year now!"
• Google Pay had a total of $102 billion in transaction volume in the European region, including Malta, since Malta is in the European Region.
• Online bank payments are available in Malta through various methods, including Google Pay.
• Revolut began Google Pay operations in July 2018 in Malta and was projected to have 60,000 users by the end of 2018. This provides an estimate of how many Google Pay users there could be, but there is no update available for this projection.

• The Global Mobile Wallets 2019 report included a prediction that the number of e-wallet users worldwide is expected to reach a ten-digit figure in 2019.
• The number of non-cash transaction per inhabitant in Malta saw a CAGR of 10.4% from 2012 to 2015. The CAGR in 2015-2016 for mobile payments overall in Malta was 3.3%.
• "According to reports from April 2018, Google Pay has reached 100 million installs in just a few months, and throughout 2018 and 2019 it expanded its global presence as well, rolling out in many countries, including Japan, Croatia, the Nordics, UAE, Chile, France, Switzerland, Israel, and Germany," as reported by the 2019 report.

RESEARCH STRATEGY

USEFUL FINDINGS

APPLE PAY IN MALTA

• Apple Pay was officially launched in Malta and 12 other countries on June 16, 2019. Apple Pay is relatively new to Malta, therefore, statistics about Apple Pay are currently difficult to come across.
• Apple Pay has expanded to multiple European countries such as Bulgaria, Croatia, Cyprus, Estonia, Greece, Latvia, Liechtenstein, Lithuania, Malta, Portugal, Romania, Slovakia, and Slovenia in 2019. In May 2019 Apple Pay had not yet launched in Croatia, Portugal, Greece, Malta, and other EU countries.
• Apple’s mobile payment system is, however, now available to millions of users across Europe including Malta.
• According to Malta Today, a publication in Malta, Revolut launched Apple Pay in Malta in June 2019.
•  Revolut customers in Malta can add their card to Apple Pay with the Revolut app or the Wallet app and pay for online purchases.
• Revolut, an online banking platform, is available on the App Store in Malta. Its users can add their card details to Apple Pay and utilize their Apple devices to pay for purchases in local shops in Malta.
• Furthermore, Apple Pay has support for Malta on its support page.

RESEARCH STRATEGY

USE OF DIGITAL BANKING SERVICES IN MALTA

• Digital banking in Malta is made possible under the Electronic Money Institution license, which is issued by the Government.
• Maltese are gaining confidence in digital banking platforms, and they are relying on it more.
• As of 2018, about 51% of Maltese used one digital banking platform or another.
• The average age of a Maltese digital banking services user is 32 years.
• More than 35,000 Maltese signed up to the digital banking platform Revolut, within a month of its launch.
• Malta is the largest market for Revolut; 10% of Maltese already use the digital banking platform.
• FIMBank launched FIMBank Direct, a digital banking platform targeting both personal and corporate customers.
• There is an increase in adoption of Digital Banking by Maltese and the number is expected to grow.

HOW MALTESE ACCESS DIGITAL BANKING SERVICES

• More than 51% of Maltese access their banks over the internet.
• More than 10% of Maltese access digital banking services through mobile apps.
• Customers access the Revolut platform through its mobile application.
• Maltese also access digital banking services through work platforms such as Slack, Xero and Zapier.
• In Malta, digital banking platforms such as MoneyPlusCard and PayMix offer their services only through the web.
•  LeuPay, a digital banking platform, is offered through its mobile application.
• The FIMBank Direct platform provides an integrated solution through which customers can manage their finances and banking requirements.

BROAD TRENDS

• The digital banking penetration in Malta has progressed at a slow pace over the past 5 years growing from 43% in 2013 to 51% in 2018. However, over the last 10-year period, digital banking penetration in Malta has more than doubled from 25% in 2008 to around 51% in 2018.
• Among the 26 banks for business operating in Malta, some leading banks providing both traditional and digital services to business customers include Bank of Valletta, HSBC Bank Malta, FIMBank, Sparkasse Bank, IIG Bank, Akbank TAS, Credoarax, Agri Bank, Banif Bank, and FCM Bank.
• The various financial products offered through digital business banking by banks in Malta include credit cards, retirement products, life insurance packages, wealth management, fixed-term deposits, savings accounts, and other services for small- to medium-sized organizations.
•  FIMBank, which is one of the top banks in Malta, launched 'FIMBank Direct', a secure digital banking platform targeting the needs of both personal and corporate customers.
• The same provides a comprehensive service suite which includes savings accounts, fixed-term deposits, and local and crosses border payments with a selection of available currencies.
•   Revolut is one of the latest digital-only banking platforms to be launched in Malta and has achieved the biggest market penetration level yet in the country, with nearly 10% of the entire population signing up within a short period.
• The various suite of services offered by the platform include a prepaid corporate debit card (MasterCard or VISA), currency exchange, cryptocurrency exchange, and peer-to-peer payments.
• As per the 2018 Annual Report of MeDirect Bank, which is the third-largest bank in Malta, 'Financial & Insurance sector'; 'Manufacturing' industry and 'Information & Communication' industry was the top ones with the highest uptake of banking business credit services as corroborated by the bank's credit exposure to these sectors.
•   Blockchain technology is one of the major trends in the Malta digital banking space and as per an announcement in late 2018, Malta is about to get a bank in form of RnF Finance Limited that will finally begin servicing crypto and blockchain companies as well as high net worth individuals who, until recently, have been shunned by traditional banks.

RESEARCH STRATEGY:

META LUMINOR

• Meta Luminor offers advisory services to source IBANs in 27 FIAT currencies, merchant-managed e-payment gateways and processing solutions for New Tech Industries in jurisdictions like blockchain and DLT, gaming, medical pharma, and even Crypto Exchanges.
• In 2018, the company grew their market from 17,000 users to 85,000+ users representing 20% population market penetration of Malta’s population.
•  Website   
•  Headquarters   

REVOLUT

• Revolut is a UK-based digital banking alternative that offers prepaid debit card (MasterCard or VISA), currency exchange, cryptocurrency exchange, and peer-to-peer payments.
• The company joined the Malta digital banking because the Maltese travel a lot and thus it provides free travel insurance, currency exchange, point of sale payments, and ATM withdrawals in Malta.
• More than 35,000 people have signed up to the digital banking platform.
•  Website   
•  Headquarters: UK
•  Registration ID: No. 08804411

PAYMIX

• Paymix now Prospero offers corporate Debit Cards (MasterCard), instant SEPA transfers, payment options in 60+ currencies and multiple user access.
• Paymix offers business solutions for both corporate and personal customers.
•  Headquarters: San Gwann, SGN3000, Malta
•  Website   

MONEY PLUS CARD

• According to their website, "Money Plus Card, written as Money+Card, represents a new era of branchless financial services available through the internet."
• Money Plus Card is regulated by the Malta Financial Services Authority and is a Mastercard Principal Member.
• They offer services to Private Clients through a secure website. 
• Corporate Clients can also open accounts.
•  Headquarters: Vlaetta, Malta
•  Website   

RESEARCH STRATEGY

ENGLISH AS A FIRST OR SECOND LANGUAGE IN MALTA AND DENMARK

• Maltese is the first and primary language in Malta with 97.25% of the population speaking it while English has a 62.39% usage in the country.
• Danish is the first and primary language in Denmark with 98.39% of people speaking it while English has a 52.95% usage in the country.
• Denmark has a population of 5,777,812 people as of Friday, August 16, 2019, according to the latest United Nations estimates.
• According to the most recent United Nations estimates, Malta has a population of 433,389 people as of Friday, August 16, 2019.

USE OF ENGLISH FOR BUSINESS IN MALTA AND DENMARK

• Malta is a bilingual country, and the constitution recognizes both Maltese and English as official languages.
• For citizens of Malta, both Maltese and English can be considered to be native languages, and since English is recognized worldwide as one of the main business languages, this gives Malta a leading edge over several other countries.
• Also, "all road signs are in English, driving is on the left, and international and national driving licenses are acceptable," which indicates that business transactions are done in English, as proven by the car rental sector in Malta.
• Danish people are considered the best in the world in speaking English as a second language. They are the world's best non-native English speakers.
• "There are strong correlations between English proficiency and income, quality of life, ease of doing business," and the Danish people are good at speaking English. Hence, English is used widely in Denmark for business.

USE OF ENGLISH IN MALTA AND DENMARK IN ADVERTISING OR MEDIA

• The use of foreign Languages in advertising in Denmark is allowed, and English is often used in ads to reach the Danish consumer.
• The use of English is official in Malta; hence, by implication, the adverts in the English language will be high as well.

CALCULATION

• Population of Denmark that speaks English = 5,777,812 * 52.95% = 3,059,351
• Population of Malta that speaks English = 433,389 * 62.39% = 270,391