Malta has become one of the most important IT&C (information technology and communication) centers in the European Union due to its legislation which is beneficial for foreign investors, but also due to the specialized workforce. Most foreign enterprisers coming to set up companies in Malta choose to start a business in the IT sector mostly because of the advanced infrastructure the country has. Additionally, foreign entrepreneurs can perform as sole traders in the IT sector in Malta.
Opening an IT company is hassle-free and our Maltese lawyers can help you with the registration procedure.
Legislation in the IT sector in Malta
In order to start a business in the IT field in Malta, one must take into consideration the provisions of the current legislation. The company registration procedure falls under the Maltese Commercial Law which may require a minimum share capital depending on the type of business vehicle employed. However, an IT company will also require a special license issued by the Malta Communications Authority based on the type of activity undertaken. The company must follow the rules established by the following laws:
- the Malta Communications Authority Act,
- the Electronic Communications Act,
- the Electronic Communications Network and Services Regulations,
- the Radiocommunications Act,
- the General Authorizations Regulations,
- the Electronic Commerce Regulations.
The Maltese legislation also encompasses all EU Directives on communications which enable IT companies to provide their services within the European Union.
Authorizations for IT companies in Malta
Under the General Authorizations Act, Maltese IT companies may apply for a license that grants them to operate one or more communication systems and use them on different frequencies. The company must submit its memorandum and articles of association with the Malta Communications Authority. Based on the constitutive documents, the payment of the relevant fees and a notification form, the Maltese company will receive a commercial authorization for electronic communications network and will be registered in the Register of Undertakings.
The Maltese Data Protection Act
Even if an advanced infrastructure for IT services was developed in the last few years, the right to privacy is regulated in Malta since 2001, when the Data Protection Act was enforced. It provides the main legal framework for the protection of Maltese citizens against the violation to privacy when processing of personal data. The Maltese Data Protection Act also encompasses the regulation of the European Convention Act and provides for the appointment of a Data Protection Commissioner.
The Data Protection Act also provides the circumstances personal data may be collected and processed by third parties, such as Maltese IT companies. Among these, the Maltese IT law contains the following:
- personal data may be collected for specific and legal purposes only,
- any personal data will not be processed for any other purpose than the one intended for,
- any personal data collected may be kept for a reasonable amount of time.
For more information about the content of the Data Protection Act, you may refer to our lawyers in Malta.
Privacy policies in Malta
All Maltese companies have enabled their own privacy policies based on provisions of Article 29 in the Data Protection Act. According to Article 29, all data collected by companies is submitted to the Commissioner for Data Protection and satisfies all legal requirements with respect to statistical purposes. Privacy regulations also provide for the nondisclosure of information to third parties. The IT law in Malta provides that all online platforms are accessed based on an username and a password.
If you need help with the licensing procedure, please contact our law firm in Malta.