Malta Market Entry

Malta Market Entry

Subchapters:

  • Market entry
  • Forms and conditions of operation on the market
  • Marketing and Communications
  • Issues of intellectual property protection
  • Public procurement market
  • Payment terms, payment ethics and resolution of commercial disputes
  • Visas, fees, specific conditions of travel to the territory
  • Employment of citizens from the Czech Republic
  • Fairs and events

Market entry

Maltese companies mostly belong to the category of small and medium-sized enterprises and prefer to contact sales representatives directly in Malta, because they do not have the capacity and means for acquisitions directly abroad. A very widespread form of promotion in the Maltese market is therefore sales through representatives or distributors. Their activities can be implemented in the entire territory of Malta or only in some regions. Check smber for agriculture and fishing facts of Malta.

Agents and exclusive importers:

Independent commercial representatives (agent commercial) conduct business on behalf of and for the benefit of a foreign supplier. They do not take ownership of the goods and also bear no financial risks. Invoices are normally issued by a foreign supplier. As a reward, he receives a commission based on actual trades, and sometimes his expenses are fully or partially reimbursed.

Commission representatives (commissionare) conduct business in their own name, but on behalf of an unnamed foreign supplier. They conduct their business both in goods and in services (e.g. transport). Distributors (concessionaires) buy goods from a foreign company or seller and then sell them themselves in their own name and at their own expense. The distributor thus legally accepts the goods and assumes the financial risks associated with the sale.

There are several dozen companies registered in Malta that act as sales representatives or exclusive importers. Only persons of integrity and with appropriate education can receive registration. A degree in law or economics or at least five years of experience in a sales department is usually required. Among the most suitable ways to establish the first contacts with local partners are international fairs or through chambers of commerce or with the help of PaulTrade.

From the point of view of the Czech Republic, access to the Maltese market is without trade barriers. After joining the EU in 2004, the Czech Republic and Malta became part of the single internal market. Malta is an open country that is traditionally trade-oriented and takes advantage of its strategic location in the Mediterranean Sea. Protection of the domestic market today focuses on a minimum of areas, e.g. agriculture, where the Maltese government is aware of the risks of dependence on food imports and tries to support the domestic agri-food sector and within the framework of the EU’s common agricultural policy.

Forms and conditions of operation on the market

Setting up an office, branch or joint venture in Malta is not difficult. The Maltese government supports the establishment of companies, welcomes investment and employment opportunities for Maltese citizens. One week is sometimes enough to formally establish a company in Malta. The Maltese Companies Act is based on the British model and sets out a simple procedure for setting up a company under Maltese law. EU legislation and low tax rates apply in Malta. Corporate income tax, intellectual property tax, gambling tax and value added tax rates are the lowest in Europe.

Marketing and communication

It is recommended to use promotional materials in English (a second official and widespread language in addition to Maltese). Advertising on the Internet and social networks is also used. In the initial phase of penetrating the Maltese market, Czech companies can be recommended to participate in mass events such as trade fairs, or promotional events organized by the embassy, ​​PaulTrade or one of the chambers of commerce.

The most important PR agencies in Malta include Malta PR Agency, BPC International Advertising and Public Relations Agency and Strategic Malta Strategic Communications.

Issues of intellectual property protection

In the area of ​​protection of intellectual property rights, Malta does not deviate from the common standards of the countries of the European Union. Malta is a member of the World Trade Organization (WTO) and therefore its intellectual property laws are compliant with TRIPS (Agreement on Trade-Related Aspects of Intellectual Property Rights). The TRIPS Agreement defines the minimums in the field of intellectual rights protection that each WTO member must meet. It also specifies enforcement mechanisms and is a communication platform for the resolution of international disputes related to intellectual property.

Public procurement market

Under Maltese law, the main legislative instrument in the field of public procurement is the Public Procurement Regulations. These regulations transpose the provisions of the European Union Directive 2014/24/EU, which deals with the awarding of public contracts. The main selection criteria relate to three aspects: suitability for professional activity; economic and financial situation and technical and professional competence. Public contracts, including contracts for state-owned companies such as the electricity company Enemalta, are regularly announced in the Government Gazette of Malta every Tuesday and Friday. Tenders are published on the Internet by the Information Office of Malta (Department of Information): www.doi.gov.mt (“Public Tenders” section).

Payment terms, payment ethics and resolution of commercial disputes

A documentary letter of credit is used, especially if it is the first delivery of goods. The business culture in Malta is mature and business people usually pay their invoices on time. Payment problems reduce the company’s credit in business circles, which then adversely affects business relations and the success of the company. In order to minimize the risk, it is possible to check the data on Maltese companies similar to the commercial register, the administration of which falls under the Malta Financial Services Authority). There is a link to the register of companies on the website of the office. The commercial register provides free online only the company name, registration number and address. Additional information about the company, such as the shareholder structure or the names of directors, can only be obtained by registered users on the pages of the commercial register. Registration is free, but you have to pay to download documents from this site. Commercial disputes are settled before the courts or in arbitration proceedings. Arbitration offers a faster decision in a dispute, but of course without the possibility of appeal. Due to the mandatory membership of businessmen in chambers of commerce, information about Maltese companies can be requested from the Malta Chamber of Commerce, Industry and Industry.

Visas, fees, specific conditions for traveling to the territory

In connection with the accession of the Czech Republic and Malta to the EU, citizens of the Czech Republic have the right to reside in all EU member states, including Malta (free movement of persons). Malta has been part of the Schengen area since 2007. The right of residence can only be limited in cases justified by public order, public security or health protection. Citizens of the Czech Republic can travel to Malta on a valid travel document (passport), the validity of which should exceed the planned date of departure by at least 3 months, or on an identity card with machine-readable data, if they do not have a separate part (i.e. without a cut off corner). According to the Ministry of the Interior of the Czech Republic, the identity card is a travel document only for the holder of the document. Therefore, the Ministry of the Interior of the Czech Republic does not recommend that a citizen of the Czech Republic under the age of 15, who is traveling together with a parent and is registered in his/her identity card, should travel without his/her own travel document only on the basis of this entry in the identity card.

A Czech national traveling in Malta by motor vehicle must be equipped with the following documents: certificate of technical license (if the vehicle is not driven by the holder listed in the technical license, the police in Malta may request the holder’s permission to drive the vehicle by a foreign person), international driving license, “green card” confirming valid liability insurance for damage caused by driving a motor vehicle valid for Malta. A vaccination certificate for pets traveling with a Czech citizen to Malta is not accepted, the animal must be quarantined in Malta.

Medical care in Malta is of a high standard and most of the well-known medicines are available in pharmacies in every major town. They are open on weekdays from 8:30 a.m. to 1:00 p.m. and from 3:00 p.m. to 7:00 p.m. Due to the different types of stay, it is definitely advisable to consult your health insurance company about health insurance.

Medical emergency:

– the island of Malta – phone number 196

– island of Gozo – phone number 112

Malta is relatively safe for travelers and the security situation is basically the same as in other European countries. Criminal activity is minimal and petty theft predominates. In any case, the basic principles of caution must be observed.

If a crime occurs, the incident must be reported to:

– Malta-Floriana Police Directorate tel.: +356 2122 4001

– Gozo Police Headquarters, Victoria, tel.: +356 2156 2040

It is recommended to observe the following safety measures: beware of pickpocketing, vehicle theft, burglary of apartments and hotel rooms, do not leave things unattended on beaches and in cars, pay extra attention to cameras, camcorders and valuables in general, do not buy valuable goods and electronics from street vendors sellers and in markets where you do not receive proof of payment with a tax receipt, always ask for proof of payment.

Employment of citizens from the Czech Republic

Within the EU, Malta has a free labor market, but it is relatively closed to foreigners from outside the EU. Maltese authorities require employers to prove that they cannot employ a Maltese citizen for the position before issuing work permits to foreigners. The administrative requirements associated with obtaining a work permit are handled by the future employer of the foreigner in question. Employment is governed by Maltese labor law.

Fairs and events

The largest exhibition and conference area is the Malta Fairs and Convention Center. The fair calendar can be found at: www.mfcc.com.m.

An overview of the most important trade fairs taking place in 2022-2023 can be found on the Bestrade website.

Malta Market Entry