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Malta Banking License

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Malta Banking Licence Formation and MFSA Regulatory Requirements

Banking in Malta falls under the jurisdiction of the Malta Financial Services Authority (MFSA), governed by the Banking Act (Chapter 371) and European Union capital requirements regulations. As a full EU member state, banks authorised by the MFSA receive passporting rights to operate across all 27 EU member states and the European Economic Area without requiring separate licences in each territory.

The MFSA grants authorisation to credit institutions intending to accept deposits from the public or issue electronic money. Applications require a pre-application meeting with the MFSA before formal submission of the licence dossier.

Minimum Initial Capital

EUR 5 million minimum paid-up share capital is required before the MFSA will grant authorisation.

Directors and Key Function Holders

At least two executive directors with verifiable banking experience are required. All directors, qualifying shareholders, and key function holders undergo MFSA fit and proper assessment.

Business Plan

A detailed three-year business plan is required, including financial projections, capital adequacy analysis, and stress testing scenarios.

AML/CFT Compliance

Documented anti-money laundering and counter-financing of terrorism policies aligned with the EU Sixth Anti-Money Laundering Directive must be in place before authorisation.

Physical Presence

A registered office in Malta with locally resident management is required. The MFSA expects genuine operational substance, not a letterbox entity.

Tax Advantages of a Malta Banking Licence

Malta's corporate tax rate is 35%, but shareholders of Malta companies benefit from a full imputation and tax refund system that can reduce the effective tax rate to as low as 5% on trading income. There is no withholding tax on dividends paid to non-resident shareholders where the relevant refund is claimed.

Neptune Fiduciaries: Malta Banking Licence Support

Neptune Fiduciaries provides complete Malta banking licence support from company incorporation through to post-authorisation compliance, including MFSA application preparation, management vetting, AML framework design, and ongoing regulatory liaison.

Get in Touch

Contact Neptune Fiduciaries at info@neptunecorporate.com or sales@neptunecorporate.com or visit our Contact Us page.

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