How To Start A Business in Malawi

How to Start a Business in Malawi - Step by Step Guidelines

Starting a business in Malawi requires following legal and regulatory steps. Below is a detailed guide for both local and foreign investors to successfully establish their businesses.

Step-by-Step Guide for Malawian Nationals

1. Business Idea and Feasibility Study: Identify your business idea, conduct market research, and evaluate the potential profitability and demand for your product or service.
2. Choose a Business Structure: Select a suitable business structure such as a Sole Proprietorship, Partnership, or Limited Liability Company (LLC).
3. Register the Business Name: Apply for registration of your business name with the Malawi Business Registration Bureau (BRB).
   Malawi Business Registration Bureau
4. Register with the Malawi Revenue Authority (MRA): Obtain a Tax Identification Number (TIN) from the MRA.
   Estimated Fee: Free of charge
   Malawi Revenue Authority (MRA)
5. Obtain Business Licenses: Depending on the type of business, apply for the necessary licenses or permits from relevant government agencies or the local council.
   Estimated Fee: Varies based on business type
6. Open a Business Bank Account: Open a business bank account to facilitate transactions and manage finances for the company.

Step-by-Step Guide for Foreign Investors

1. Obtain Investment Approval: Foreign investors must submit an application for investment approval to the Malawi Investment and Trade Centre (MITC).
   Malawi Investment and Trade Centre (MITC)
2. Choose a Business Structure: Foreign investors must choose from Limited Liability Company (LLC), Private Limited Company (PLC), or Joint Stock Company (JSC).
3. Obtain Investment License: Apply for an investment license with MITC to obtain approval to start a business in Malawi.
   Estimated Fee: Varies depending on the investment amount
4. Register the Business: Submit the relevant documents (investment license, identification documents, proof of address) to the Malawi Business Registration Bureau (BRB) for official registration.
5. Register for Taxation: Register with the Malawi Revenue Authority (MRA) for a Tax Identification Number (TIN) to ensure compliance with tax regulations.
6. Work and Residence Permits: Foreign investors and their employees need to apply for work and residence permits at the Ministry of Home Affairs.
   Estimated Fee: Varies

Estimated Duration

• For Locals: 1–2 weeks
• For Foreigners: 4–6 weeks (including investment approval and permits)

Useful Resources

• Malawi Business Registration Bureau (BRB)
• Malawi Revenue Authority (MRA)
• Malawi Investment and Trade Centre (MITC)
• Ministry of Home Affairs – Work and Residence Permits