Imagine driving through the capital city, Lilongwe; you are passing the local markets, the sun is warm, and the number of buildings here is rising, assuring you the country is growing. You step out of the car, ready for a new beginning. You are here for business, and within hours, you will be in a meeting with professionals for advice and guidance. With a fresh cup of locally grown coffee, you will get to know the business etiquette of Malawi step by step from the best. At the Malawi Investment and Trade Centre (MITC), you can learn everything you need to know to start your business in Malawi.

As more and more investors are now interested in Malawi as a great place for business, a one-stop center for investors to help with is becoming a necessity. This is where the Malawi Investment and Trade Centre (MITC) comes in handy, as it is the center of all information. The national agency is helping local and international investors to start and grow businesses in Malawi. This article discusses the details of the Malawi Investment and Trade Center, the Department of Immigration, and Citizenship Services. It also includes the Malawi Revenue Authority, the Ministry of Lands, Housing & Urban Development, and the Department of Registrar General.

Malawi Investment And Trade Center 

• Investment Certification Requirements 
• Investment Certification Fee
• Investment Certification Application Processing 
• Benefits of the Investment Certificate

Department Of Immigration And Citizenship Services

• Business Residence Permit
• Business Residence Permit Application prerequisites
• Business Residence Permit Application Handling within the OSSC
• Temporary Employment Permit
• Temporary Employment Permit Application prerequisites

Malawi Revenue Authority  

• Key tools and sources of information for managing tax incentives include:
• Benefits
• Sectors covered under the tax incentives regime
• Priority Industries
• Industrial Rebate Scheme

Ministry Of Lands, Housing & Urban Development

• Land Classification in Malawi
• Process of Land Acquisition

Department Of Registrar General

• Local Company Registration
• External Company Registration
• Business Name Registration

Malawi, known as “The Warm Heart of Africa,” is becoming more popular because of its natural beauty and growing business. The country is getting attention from investors for its current business trend and market status. From agriculture or energy, the country offers a diverse range of business opportunities to investors. 

Now, Malawi may be a small country, but its business sector is growing. The government of Malawi provides a variety of services and incentives through different governmental bodies. Whether starting a local farm or setting up a hotel for tourists, MITC is your best partner in business. For years, many companies have been setting up projects in several sectors, such as farming and tourism, with the help of MITC and other government agencies.

The Investors Guide – facilitates investors by issuing Investment Certificates and supporting them in acquiring necessary permits. The Ministry of Lands, Housing & Urban Development oversees land acquisition processes, while the Department of Registrar General assists with company registration. The Department of Immigration and Citizenship Services helps investors secure business residence and temporary employment permits. Together, these institutions streamline the investment process, ensuring ease of doing business in Malawi. 

Malawi Investment And Trade Center 

The Malawi Investment and Trade Centre (MITC) desk at the One Stop Service Centre (OSSC) helps connect investors with the right officials. It handles and issues Investment Certificates. The desk also supports investors in getting other permits and meeting requirements not yet covered within the OSSC.

• Investment Certification Requirements 

All investors in Malawi must get an Investment Certificate before starting a business in the country. To qualify, they must invest at least US$50,000 as minimum capital. The Malawi Investment and Trade Centre (MITC) issues the certificate within five working days. To apply, investors must submit a filled form, a detailed business plan, a memorandum and articles of association, a certificate of incorporation, and passport copies of all shareholders. 

• Investment Certification Fee

The application fee for the Investment Certificate is US$200, and the issuance fee is US$800. When submitting the application documents, the party must pay a US$200 application fee to the MITC. The US$800 issuance fee is paid after the application is approved and when collecting the certificate:

Payment is in US$ Cash at the MITC offices or can be made to MITC’s foreign currency-denominated account, and proof of payment will be emailed to MITC. The account details for payment are shared below;

Name of Bank: National Bank of Malawi

Bank Branch Name: Capital City

Bank Account Name: Malawi Investment and Trade Centre (MITC-FCDA Account) 

Account Number: 1000944617 

Swift Code : NBMAMWMW 

• Investment Certification Application Processing 

The Investment Approval Committee (IAC), based at MITC, reviews all investment projects for approval or rejection. The committee processes every application submitted to the MITC.

• Benefits of the Investment Certificate 

Once the Investment Certificate is approved, MITC helps investors secure any extra licenses and permits they may need to begin operations. These may include the following:

1. Company Registration (facilitated by MITC’s Companies Registration Specialist prior to obtaining Investment Certificate) 
2. Immigration Permits 
3. Qualifying Investment Incentives as per the sector of operation 
4. Facilitation and processing of land 
5. Utilities 
6. And any other issues faced by the investor that may come up from time to time

The Immigration Specialist at the OSSC is authorized to support the processing of Business Residence Permits and Temporary Employment Permits for investors.

• Business Residence Permit

1. Applicable charges: The processing charge is US$100, and the Issuance charge is US$2,000
2. Validity Duration: 5 years, renewable
3. Kindly note that application documents are accessible at MITC One Stop Service Centre locations and the Department of Immigration and Citizenship Services offices.
4. Kindly note that the permit outcome is shared with the investor within 5 days of submission.

• Business Residence Permit Application Prerequisites

1. Duly filled application documents in duplicate
2. 2 passport-sized photos
3. A Business Registration Certificate/ Certificate of Incorporation/ Memorandum, and Articles of Association
4. A police clearance certificate from the country of origin, a business plan/profile
5. Bank statement showing not less than US$50,000
6. A Malawian Bank must issue the bank statement
7. The US$50,000 must be deposited into this account from abroad
8. The Bank account must be a Business Account registered in the name of the business entity
9. It is advised that the Bank Account be a Foreign Currency Denominated Account (optional)
10. MITC Investment Certificate
11. A cover letter from the applicant
12. Copy of passport

• Business Residence Permit Application Handling within the OSSC

1. Once all required documents (BRP application) are handed in at the OSSC Immigration Desk, the Immigration Specialist processes the application. If everything is in order, they inform the investor to make an advance payment of US$2,100.
2. After the US$2,100 is paid, a Bank Receipt is provided, and the BRP is immediately stamped in the investor’s passport while the actual permit document continues through production.
3. The whole process, from submission of documents to passport endorsement, takes no longer than 5 days.
4. The file is then taken through additional security screening with other security agencies. The investor is asked to provide fingerprints to complete the security check process at a particular stage.
5. After this process is complete, the documents are forwarded to the Ministry of Home Affairs and Internal Security for Ministerial endorsement.
6. Once all security procedures are cleared, a ‘BRP Permit Certificate’ is granted, and the investor collects the ‘Permit Certificate’ from the MITC offices.

• Temporary Employment Permit

1. Applicable charges: The processing charge is US$100, and the Issuance charge is US$1,000
2. Validity Duration: 2 years
3. Kindly note that application documents are obtainable at MITC One Stop Service Centre
4. locations, as well as at the Department of Immigration and Citizenship Services offices.
5. Kindly note that permit approval is communicated to the investor within 5 days of submission.

• Temporary Employment Permit Application Prerequisites

1. Duly filled application forms in duplicate
2. Cover letter from the employer
3. Certified copies of academic certificates
4. Certified copies of professional credentials
5. Proof that the position was advertised in local newspapers and CVs of local Malawians who were interviewed for the position
6. A letter of no objection from the former employer if the applicant is changing jobs within Malawi
7. 2 passport-sized photographs of the applicant
8. Proof of understudy arrangement
9. Thumbprint
10. Registration certificates and certificates of incorporation
11. Medical report from a Malawian public hospital
12. Original police clearance certificate from the country of origin
13. All supporting documents must be submitted in duplicate.

The tax specialist supports investors by offering advisory guidance on tax incentives and helping them access pre-approved incentives based on their sector of operation. The specialist also assists investors with domestic tax registration.

• Key tools and sources of information for managing tax incentives include:

  1. Taxation Act, Customs and Excise Act, and VAT Act
  2. Tariff Code
  3. MRA website, brochures, and public announcements
  4. Clearing and forwarding agents
  5. These instruments are used to collect revenue and to support government goals through approved and officially published tax incentives.
  • Benefits
  1. A dedicated desk offers investors clear information on incentives for all domestic taxes and international trade
  2. Investors receive services in a well-organized and consistent way
  3. Lower business costs, as investors no longer need to visit multiple MRA offices for information
  4. Easy access to information and guidance helps investors plan better and more effectively
  5. Greater predictability and improved service efficiency
  • Sectors covered under the tax incentives regime
  1. Manufacturing
  2. Mining
  3. Tourism
  4. Construction
  5. Agriculture (Horticulture, Fishing, Irrigation, Poultry farming)
  6. Education
  7. Health
  8. Exportation
  • Priority Industries

  There are two designated priority industry sectors:

  1. Agro-processing Industry
  2. Electricity Generation, Transmission, and Distribution Industries

  These sectors are eligible for a Tax Holiday of up to 10 years, in addition to other general incentives outlined in the Taxation and Customs Acts. Machinery and equipment are exempt from duty, although VAT is payable.

  To access the Priority Industries incentive, a company must submit an application to the Commissioner General. A designated committee will review the application to determine eligibility.

  Investment Requirements for Priority Industry Sector Designation:

  1. US$500,000 for Agro-processing by local investors (100% shareholding)
  2. US$5,000,000 for Agro-processing by foreign investors
  3. US$30,000,000 for electricity generation
  • Industrial Rebate Scheme

  The Industrial Rebate Scheme is available to manufacturers, allowing duty-free access to all raw materials, though VAT is payable and can be reclaimed. The foregone import duty is expected to be recovered through increased domestic taxes, job creation, import substitution, improved domestic taxes, and export growth to generate foreign exchange.

  To benefit from this incentive, a company must submit a formal application to be registered under the industrial rebate scheme.

The Lands specialist assists in facilitating land applications and obtaining land title deeds.

• Land Classification in Malawi

1. Land in Malawi is classified into three categories: customary, public, and private land.
2. Customary land is used, held, or occupied under customary law in the area and is acquired through Traditional Authority leaders. Once an investor acquires Customary Land, it is converted into leasehold land.
3. Public land is used, occupied, or acquired by the government and allocated by the government or a government agency. It is then turned into leasehold land.
4. Private land is owned, used, or held under leasehold title, freehold title, or a certificate of claim and is acquired from individuals or companies.
5. A leasehold title is granted for a period of 21 to 99 years, depending on the nature of the development, and is subject to renewal once the lease expires. The lessee must pay the government an annual ground rent.

Additionally, the lessee pays fees and duties as an acceptance of the offer of land by the government. For serviced land, the lessee pays the premium upfront.

• Process of Land Acquisition

This is a four-stage process:

1. Submit an application for leasehold
2. Obtain offer letter
3. Pay for lease process
4. Obtain leasehold title

Depending on the type of investment, an Environmental Impact Assessment may be required before the land offer is finalized.

The Immigration Specialist at the OSSC is authorized to support the processing of Business Residence Permits and Temporary Employment Permits for investors.

The Companies Specialist assists with the registration and incorporation of both local and foreign companies.

• Local Company Registration

A local company is defined as a company incorporated under the Malawi Companies Act. This refers to a company that is formed or becomes a body corporate under the Companies Act, Cap. 46:03 of the laws of Malawi.

To register a local company, the following documents must be submitted to the Registrar of Companies:

1. Memorandum of Association with at least two subscribers (shareholders/members)
2. Articles of Association. The Articles must include:

(a) Full name, residential and postal addresses, and occupation of the first directors and secretary of the company

(b) The situation and postal address of the company’s registered office, with signatures from directors

Registration fees for Local Company Registration is MK100 for the first MK1000 share capital value, then MK10 for each additional MK2000 of share capital value. Alternatively, the fee is calculated as follows:

MK (Share capital) x 20 + MK25,500 ÷ 2,000

NB: MK refers to Malawi Kwacha. The average exchange rate for 2016 was MK730: 1US$.

• External Company Registration

An external company is defined as a body corporate formed outside Malawi that establishes or maintains an established place of business in Malawi. An ‘established place of business’ means a fixed place of business (excluding an agency) unless the agent has the general authority to negotiate and conclude contracts on behalf of the company or regularly maintains a stock of goods to fulfill orders on its behalf.

To register an external company, the following documents are required:

1. Power of Attorney by an agent to represent the company for registration
2. A duly authenticated (notarized) copy of the Memorandum and Articles of Association
3. A notarized Certificate of Incorporation from the registration authority in the country of origin
4. Notarized shareholder resolution authorizing the opening of a branch or subsidiary in Malawi
5. Authenticated copies of passports of shareholders
6. List of directors residing in Malawi

Registration fees for External Company Registration is MK100 for the first MK1000 share capital value, then MK10 for each additional MK2000 of share capital value. Alternatively, the fee is calculated as follows:

MK (Share Capital) x 20 ÷ 2,000 + MK500

NB: MK refers to Malawi Kwacha. The average exchange rate for 2016 was MK730: 1US$.

• Business Name Registration

For other forms of trading (other than through a company), business name registration involves:

Completion of a two-page form requiring basic information about the business name and the applicant’s personal information.

1. The registration is subject to any trading permits or licenses required by other industries.
2. The application fee payable to the Registrar General is K2000 only.

Malawi offers a welcoming environment for investment. The country’s business ecosystem is designed to attract more investors. With the help of its agency bodies, the government of Malawi supports local and foreign investors and helps thousands of businesses every day. With a smoother process for acquiring land, registering companies, and obtaining permits, the country offers an investor-friendly environment. The tax incentives and priority industry sectors further enhance the investment appeal. The government agencies of Malawi ensure that the investors have access to the resources and support they need to start and grow their businesses here successfully. With the right support system and a business-friendly attitude for investors worldwide, Malawi is definitely open for business and ready for the future. So investors, get ready to prepare for the ultimate business era. With the help of the investor guide, MITC, and others, you too can invest in Malawi, establishing opportunities for thousands!