Article
3 min read
Author
Anja Simic
Published
September 17, 2021
Last Update
June 24, 2024
Table of Contents
Three types of businesses in Malawi
Business registration with the authorities in Malawi
Taxes in Malawi
Malawi is located in South-East Africa, and it's one of the largest freshwater bodies in the world. Malawi is ranked high by the World Bank by the Doing Business Index. The business environment is good, and Malawi is one of the most peaceful countries in the world. There are several investment opportunities in tourism, fishing, manufacturing, mining, agro-processing, etc.
If you're interested in doing business in Malawi, we can help you understand the establishment procedure.
Disclaimer: Be aware that this article is not a substitute for legal advice. Please always check official websites or seek legal advice before you take action.
There are three main business forms in Malawi: Sole proprietorship, Limited Liability Company, and Partnership. The sole proprietorship is the most suitable for an individual operating a small business. The owner and the business are not legally separated, and the business liability is not limited. That means that the owner is liable for the business with all their assets. As only one person runs the business, it is more flexible than big companies, and the decision making is prompt.
Here is the criteria for registering a sole proprietorship in Malawi:
The sole proprietorship registration in Malawi is rather easy for both local citizens and foreigners - it only takes a few steps:
The registration fee costs MK 2,000. Your certificate should be ready in 3-10 days.
Any person who makes taxable supplies of goods or services and whose business turnover is estimated or exceeds MK 10 million annually is obliged to register for Value Added Tax (VAT). Registration for VAT can be done at any MRA Domestic Taxes office. When registering for tax, a business registration certificate and valid ID are required. MRA will issue a Taxpayer Identification Number (TPIN) on registration that should be used on any correspondence with the Authority. The standard Value Added Tax rate in Malawi is 16.5%.
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