Licenses

Likewise, Malta is an advantageous jurisdiction for those who want to establish forex, crypto, and gaming services.

All of these three services have their particular licenses. Forex companies follow the same licenses that investment services, and crypto and remote gaming have four-class licensing system.

Malta is a service-oriented economy. While so many countries are seeing services such as forex, e-gaming, and cryptocurrencies with dismay, Malta is offering them an opportunity to thrive with a beneficial tax system, a strong regulatory frame, and allowing them to settle in a secure jurisdiction.

Malta was the first EU member to regulate the e-gaming industry and the first in the world to regulate the cryptocurrency investment industry. It’s been a frontrunner in innovative financial services and licenses to attract new investors to the country, and it has worked.

Today, the country is home of dozens of investors in those industries and has become a hub and a safe haven for the crypto world, e-gaming, and legit forex investors.

Some EU countries look at this type of businesses as second-class businesses and try to suppress them with the excuse that they promote money laundering. This is a complete lie.

E-Gaming, FOREX, and crypto are legit businesses that are attracting reputable investors and can offer significant gains for those willing to take the chance. Malta knows this and that’s why it has become a harbor for the investors in these areas, offering them a safe jurisdiction with impressive services and possibilities for them.

Let’s begin with E-Gaming.

Malta offers a flexible and complete regulatory framework with an amazing fiscal regime for license holders. This has led to over 350 licensed gaming companies settled in the country, including some of the top players in the world. Some are using Malta as their main headquarters and others as support and call centers with hundreds of employees.

One of the main benefits of Malta’s e-gaming frame is that any person licensed by another EEA member state or any other jurisdiction approved by Maltese authorities can manage remote gaming activities in Malta and from Malta freely without further licensing.

Remote gaming has four particular licenses depending on the activities the person intends to carry out.

These are the four classes:

1)     Operators that conduct gaming risks on activities grounded on repetitive events, such as lotteries, arcade games, and bingo.

2)     Operators that conduct gaming risk based on singular events (betting), such as sports bets.

3)     Operators that promote games and get a commission in peer-to-peer transactions, such as poker rooms.

4)     Operators that run platforms to host services of any of the classes mentioned above. They are not directly involved in managing players, but other provide a host so other licensees can run their games on.

The process to get the license can be divided in five main parts:

1)      Pre-application: Here, the potential licensee should set up a meeting with the Lotteries and Gaming Authority of Malta (LGA) to discuss the project and see its feasibility.

2)      Fit and proper test: When the process begins, the LGA will evaluate the candidate to see if it’s fit and proper to carry on with the business and get a license. They will evaluate the individual’s expertise, experience, and financial record. The following documents must be delivered:

a.     Declaration form of every director and individual with at least 5 % of the shares or voting rights

b.    If at least one party of the application is a company, the ownership and incorporation entities must be submitted.

c.     Birth certificate copy

d.    Passport-sized photo

e.     Conduct certificate

f.      Statement of affairs

g.    Banking references

h.    Bookmaker license in another country (if applicable)

3)      Business planning: The interested person must submit a business plan that should contain:

a.     The objectives

b.    The company structure

c.     The nature of the games the operation will offer

d.    The technologies to be used

e.     A summary of the software to be used

f.      A three-year business plan that contains:

                                                    i.     Marketing and sales

                                                  ii.     Balance sheet

                                                iii.     Sources of finance

4)  Operational requirements: After the pre-approval part, the applicant will submit a series of documents that summarizes the details of the business and technical characteristics of the company and its operation. This part is generally the most bothersome as the memoranda should be as all-encompassing and specific as possible. This list is not extensive, but some of the documents that will be required are:

a.     Maltese company registration and articles of association;

b.    Information security policy, incident response policy, and user management policy;

c.     Financial bookkeeping, data backup, change management, and fraud supervision procedures;

5)      Audit: After the documents have been submitted, the LGA may give you a series of recommendations for your business and will require you to accept a technical and system audit before you officially start operating.

What about the fees?

Ø  Application fee: €2,330 (non-refundable);

Ø  License fee: When the fee has been approved, you have to pay a yearly €8,500. Your license will be granted for a five-year (renewable) period;

Ø  Renewal fee: When the five-year period expires, you must pay an additional €1,500 fee;

What about taxes?

Most remote gaming companies qualify for the 6/7ths refund, which means their corporate tax rate is generally 5 %. However, there’s also a gaming tax. The amount depends on the license class.

For class 1: €4660 per month for the first six months, and €7000 per month afterwards.

For class 2: 0.5 % on the gross amount of taken stakes

For class 3: 5 % of the net income of the company

For class 4: This one is a bit more complex. The company pays no taxes for the first six months, then it pays €2,3300 per month for the next six months, and €4,660 per months from then until the license expires.

The top annual amount of gaming tax payment is €466,000 for all licenses.