Cannabis Company Formation in Malta

Malta is a regulated, EU-based jurisdiction with mature compliance standards and a structured approach to regulated industries. For founders who want to start a cannabis company in Malta, from medical cannabis manufacturing and processing to R&D and distribution, Malta’s credibility, clear governance, and export-oriented ecosystem can be a strong base to build from.

However, cannabis company formation in Malta is widely treated as a high-risk setup. The licensing path can be complex, regulatory scrutiny is higher than for standard trading companies, and ongoing compliance expectations are strict. In practice, many founders underestimate the licensing and banking challenges such as deeper KYC/AML reviews, additional documentation requests, and longer onboarding, especially for non-resident owners.

This guide is a complete, step-by-step breakdown of how to set up a cannabis business in Malta, covering incorporation and cannabis business registration in Malta, licensing and compliance readiness, realistic costs, expected timelines, and practical banking options (traditional banks vs EMIs).

Top Providers for Cannabis Business Setup in Malta

Business Banking Providers for Cannabis Companies

Why Set Up a Cannabis Business in Malta?

Malta has positioned itself as one of the most credible jurisdictions in Europe for regulated and compliance‑driven cannabis operations. Below are the key reasons founders choose Malta when planning cannabis company formation in Malta or looking to set up a cannabis business in Malta:

EU regulatory credibility: Malta operates under robust EU regulatory and compliance standards, giving cannabis companies a higher level of legitimacy with regulators, partners, and banks compared to less‑regulated jurisdictions.

Clear medical cannabis framework: The country has a defined legal framework for medical cannabis manufacturing, processing, and research, providing clarity for founders navigating cannabis business registration in Malta.

Access to EU markets: Companies incorporated in Malta can strategically serve EU clients and partners, making it easier to scale cross‑border operations after cannabis company incorporation in Malta.

Skilled workforce and infrastructure: Malta offers access to a qualified workforce, GMP‑ready facilities, and supporting infrastructure suited to pharmaceutical‑grade cannabis manufacturing and R&D activities.

Stable legal and compliance environment: A predictable legal system and strong compliance culture reduce regulatory uncertainty, which is critical when you start a cannabis company in Malta in a high‑risk sector.

Strategic location and international reputation: Malta’s location between Europe, North Africa, and the Middle East combined with its international business reputation, makes it attractive for export‑focused cannabis businesses.

Types of Cannabis Businesses You Can Set Up in Malta

Malta’s cannabis framework supports several distinct business models, each with different licensing, compliance, and banking implications. Choosing the right structure is critical when planning cannabis company formation in Malta, as regulators and banks assess risk based on the exact activity you intend to carry out.

Medical Cannabis Cultivation

Medical cannabis cultivation companies focus on growing cannabis plants exclusively for medical use in licensed, tightly controlled environments. These entities typically supply cannabis flower or raw material to manufacturers or export-focused partners after cannabis business registration in Malta.

Key points in Malta:

• Requires licensing from the Malta Medicines Authority
• Strict GMP, security, and seed-to-sale traceability requirements
• Largely export-oriented, positioning Malta as a hub for EU medical cannabis exports

Medical Cannabis Manufacturing / Processing

Medical cannabis manufacturing companies process cultivated cannabis into medical-grade products such as oils, extracts, and active pharmaceutical ingredients (APIs). This is one of the most common routes for founders looking to start a cannabis company in Malta with an EU-pharma profile.

Key points:

• Mandatory EU-GMP compliance
• Can be co-located with cultivation or operate as a standalone facility
• Strong overlap with pharmaceutical manufacturing and quality systems

Cannabis Research & Development (R&D)

Cannabis R&D companies focus on scientific research, formulation development, and innovation rather than commercial sales. These structures are often used to support manufacturing or pharmaceutical partnerships after cannabis company incorporation in Malta.

Key points:

• Requires specific research permits and approvals
• No direct commercial or retail cannabis sales
• Often paired with manufacturing or API-focused licences

Industrial Hemp Businesses

Industrial hemp companies operate with low-THC cannabis varieties that fall within EU thresholds. These businesses may produce or trade fibres, seeds, industrial materials, or hemp-derived ingredients, offering a lighter regulatory pathway compared to medical cannabis.

Key points:

• Regulated separately from medical cannabis
• THC limits must comply with EU rules
• Easier licensing than medical cannabis, but still regulated

CBD Businesses (Restricted)

CBD-focused companies produce or distribute CBD-based products such as oils, cosmetics, or wellness items. In Malta, CBD remains a sensitive category, requiring careful structuring during cannabis company formation in Malta.

Important in Malta:

• CBD cannot be marketed as food or medicine without specific approvals
• High regulatory and banking scrutiny
• Many operators rely on export-only or cosmetics-focused business models

Cannabis Associations (Non-Commercial)

Cannabis associations operate on a non-profit basis and are designed for personal consumption by registered members rather than commercial activity. These structures are not suitable for founders seeking cannabis company incorporation in Malta for business purposes.

Key points:

• Non-commercial and non-profit
• Cannot advertise or distribute for profit
• Not relevant for typical company formation or banking use cases

Ancillary / Supporting Cannabis Businesses

Ancillary cannabis businesses provide services to the sector without directly handling cannabis plants or products. These are often the easiest way to set up a cannabis business in Malta with reduced regulatory friction.

Key points:

• Includes equipment suppliers, compliance consultants, packaging, software, and logistics (non-plant touching)
• Lower regulatory burden and easier banking access
• Common entry point for new founders entering the cannabis ecosystem

Step‑by‑Step: How to Start a Cannabis Company in Malta

Starting a cannabis business in Malta is a multi‑layered process that goes well beyond standard company incorporation. Because cannabis is treated as a regulated and higher‑risk sector, authorities and banks expect founders to follow a clearly structured, compliance-first approach when planning cannabis company formation in Malta.

Below is a detailed, regulated‑aligned step‑by‑step process that reflects how successful founders actually start a cannabis company in Malta.

Step 1: Business Model & Activity Assessment

The first and most critical step is defining your exact cannabis business model. Maltese regulators and financial institutions assess risk almost entirely based on the specific activity you intend to carry out, not simply the fact that you are in the cannabis sector.

At this stage, founders should clearly determine whether they are pursuing medical cannabis cultivation, manufacturing, R&D, industrial hemp, CBD (restricted), or an ancillary cannabis business. This assessment also involves defining whether the business will be export‑focused or include any local activities, as this directly impacts licensing scope and compliance obligations.

At this stage, founders should clearly:

• Define the exact cannabis activity (cultivation, manufacturing, R&D, hemp, CBD, or ancillary)
• Decide whether operations are export‑only or include local activity
• Identify the likely licensing authority and licence category
• Assess early banking feasibility for the chosen activity

Getting this step right early is essential for smooth cannabis business registration in Malta, as an unclear or mismatched activity description is one of the most common reasons for licence rejection or banking refusal later.

Step 2: Pre‑Licensing Feasibility & Regulatory Mapping

Before proceeding with formal incorporation or licence applications, serious founders carry out a pre‑licensing feasibility review. This step aligns the proposed business model with Malta’s cannabis framework and applicable EU regulations.

During this phase, founders typically map the relevant regulatory authority, review EU‑GMP requirements, assess security and traceability obligations, and identify minimum substance expectations such as facilities, staffing, and operational controls.

This step usually includes:

• Confirming eligibility under Malta’s cannabis framework
• Mapping EU‑GMP, security, and quality obligations
• Reviewing substance, staffing, and facility expectations
• Preparing a high‑level compliance and licensing roadmap

This step significantly improves approval outcomes during cannabis company formation in Malta, as regulators prefer applicants who show clear planning rather than reactive compliance.

Step 3: Company Incorporation in Malta

Once the business model and regulatory pathway are validated, the Maltese legal entity is incorporated. This is the formal cannabis company incorporation in Malta, but it is important to understand that incorporation alone does not grant permission to operate a cannabis business.

Company incorporation involves registration with the Malta Business Registry, appointing directors and shareholders, establishing a registered office, and setting up mandatory corporate roles such as a company secretary. Company objects must be carefully drafted to reflect the intended cannabis activity, as vague or generic wording can create licensing issues later.

Step 4: Cannabis Licensing & Regulatory Approval

Licensing is the most complex and heavily scrutinised phase of cannabis company formation in Malta. Applications are reviewed in detail and often involve multiple clarification rounds with regulators.

Founders must submit comprehensive documentation, including a detailed business plan, operational procedures, security protocols, quality management systems, and compliance policies. Fit‑and‑proper assessments are also carried out on shareholders, directors, and key personnel.

Licensing timelines vary widely depending on preparedness, documentation quality, and the specific cannabis activity involved.

Step 5: Facilities, Substance & Operational Compliance

Before final approvals are granted, cannabis companies must demonstrate real operational substance in Malta. This step goes beyond paperwork and focuses on practical readiness.

Regulators expect secured premises, approved facility layouts, GMP‑aligned equipment, trained staff, and functioning operational workflows. Seed‑to‑sale tracking systems, reporting processes, and internal controls are closely reviewed, often through inspections or audits.

This stage is critical for companies aiming to set up a cannabis business in Malta with long‑term regulatory sustainability.

Step 6: Banking & Payment Account Setup

Banking is often the final and most challenging step in cannabis company formation in Malta. Many otherwise compliant cannabis companies fail at this stage due to insufficient preparation or misaligned risk profiles.

Founders typically choose between traditional banks, which offer higher credibility but longer onboarding timelines, and EMIs, which provide faster access but more limited services.

At this stage, founders should:

• Decide between traditional banks and EMIs based on risk appetite
• Prepare enhanced KYC, source‑of‑funds, and business activity explanations
• Align banking applications with approved licensing and compliance scope
• Plan realistic onboarding timelines and contingency options

When licensing, substance, and compliance are aligned correctly, banking approval becomes achievable rather than a roadblock.

Costs to Start a Cannabis Company in Malta

The cost of cannabis company formation in Malta depends heavily on the business model, licensing scope, compliance requirements, and banking complexity. Medical cannabis activities typically involve higher upfront and ongoing costs due to EU‑GMP standards, security requirements, and regulatory oversight. Below is an indicative cost breakdown for founders planning to start a cannabis business in Malta.

Estimated total setup cost (excluding ongoing annual costs):

• Ancillary / non-plant-touching businesses: €20,000 – €50,000+
• Industrial hemp businesses: €30,000 – €80,000+
• Medical cannabis R&D entities: €50,000 – €120,000+
• Medical cannabis cultivation or manufacturing: €80,000 – €300,000+ (facility- and GMP-dependent)

How Long It Takes to Set Up a Cannabis Company in Malta

The timeline for cannabis company formation in Malta depends on the business model, licensing complexity, due diligence depth, and banking strategy. While company incorporation itself is relatively fast, cannabis licensing and banking reviews are the main time drivers when you start a cannabis business in Malta.

Typical timelines to set up a cannabis company in Malta:

• Company incorporation: 1–2 weeks once shareholder, director, and company details are finalised and submitted to the Malta Business Registry.
• Cannabis licence approval: 3–6 months on average, depending on the activity type (cultivation, manufacturing, R&D), EU‑GMP readiness, facility preparedness, and regulator feedback cycles.
• Banking & EMI onboarding: 2–8 weeks, depending on whether you apply to an EMI or a traditional bank, and how well licensing, compliance, and source‑of‑funds documentation are aligned.

In most cases, founders should plan for 4–7 months from initial planning to having a fully licensed and banked cannabis company in Malta. Complex medical cannabis manufacturing or cultivation setups with EU‑GMP facilities may take 6–9 months or longer, especially if facilities, inspections, or banking approvals extend beyond standard timelines.

Document Requirements to Register a Cannabis Company in Malta

Cannabis company formation in Malta requires enhanced documentation due to the regulated and higher‑risk nature of the sector. Below is a complete and realistic document set typically required for cannabis licensing, compliance, and banking. Some documents must be prepared upfront, while others are requested during the licensing and inspection stages.

Personal documents (shareholders & directors):

• Valid passport copy
• Proof of residential address (utility bill or bank statement)
• CV / professional background (regulated or pharma experience preferred)
• Source of funds declaration
• Source of wealth declaration
• Clean criminal record / police conduct certificate
• Personal bank reference (sometimes requested by banks)

Company & corporate documents:

• Certificate of incorporation
• Memorandum & Articles of Association (with cannabis‑specific objects)
• Shareholding and ownership structure chart (UBO mapping)
• Board resolutions and authorised signatory list
• Registered office and company secretary details

• Detailed business plan and cannabis activity description
• Cannabis licence application forms
• Operational procedures (cultivation, manufacturing, R&D, or hemp scope)

Additional documents may be requested during inspections, audits, or enhanced due diligence, especially for medical cannabis cultivation and manufacturing businesses.

Banking for Cannabis Companies in Malta

Banking is one of the biggest challenges during cannabis company formation in Malta, particularly for non‑resident founders and international ownership structures. Despite Malta’s clear regulatory framework for medical cannabis, many banks remain cautious due to sector risk, cross‑border activity, and enhanced compliance obligations. As a result, otherwise licensed cannabis companies often face delays or rejections at the banking stage.

Traditional banks in Malta apply significantly stricter KYC and AML checks for cannabis businesses. These typically include enhanced due diligence on shareholders and UBOs, detailed source‑of‑funds and source‑of‑wealth reviews, in‑depth analysis of the cannabis business model, and longer onboarding timelines that can stretch for several months. Minimum balance requirements are also higher, and some banks may limit services or avoid certain cannabis activities altogether.

Electronic Money Institutions (EMIs), on the other hand, are often more accessible for founders looking to start a cannabis company in Malta. EMIs usually offer faster onboarding, lower minimum balance requirements, and better support for international payments. However, they may have transaction limits, fewer local services, and stricter ongoing monitoring. In practice, many founders use EMIs as an initial solution, then transition to a traditional bank once licensing, compliance history, and transaction patterns are established.

Top Banks and EMIs That Accept Cannabis Businesses

Common Mistakes During Malta Cannabis Company Incorporation

Founders often underestimate the complexity of cannabis company formation in Malta and approach it like a standard EU company setup. Because cannabis is a regulated and higher-risk sector, small planning errors can quickly delay licensing, block banking, or increase compliance costs during cannabis business registration in Malta.

Starting incorporation before the licensing strategy is clear: Incorporating a Maltese entity without first defining the exact cannabis activity and licence scope often leads to misaligned company objects, regulatory questions, and rejected or delayed licence applications.

Choosing the wrong cannabis activity category: Misclassifying cultivation, manufacturing, R&D, industrial hemp, or CBD activities can force founders to restart the licensing process and rework documentation during cannabis company incorporation.

Underestimating EU‑GMP requirements: Regulators expect early GMP planning, quality documentation, and facility alignment, particularly for medical cannabis manufacturing and cultivation businesses.

Applying without secured premises or facility plans: Submitting licence applications without leased premises, layout plans, or security concepts is a common reason for slow approvals or outright refusals.

Weak or generic business plans: Cannabis regulators in Malta expect detailed, activity-specific business plans; generic templates reduce credibility and raise compliance concerns.

Leaving banking until the end: Many founders complete licensing but fail to open accounts because the business model does not align with a bank’s risk appetite for cannabis companies.

Poor source‑of‑funds and ownership transparency: Inadequate source-of-funds, source-of-wealth, or UBO documentation is one of the most frequent causes of banking rejection for cannabis companies in Malta.

Assuming CBD is low‑risk in Malta: CBD businesses face heavy regulatory and banking scrutiny, especially where products resemble food or medicinal claims.

Lack of real operational substance in Malta: Attempting to operate a cannabis business without local staff, facilities, or decision-making presence weakens regulatory confidence and complicates both licensing and banking approvals.

Bottom Line

Malta remains one of the most credible EU jurisdictions for regulated cannabis businesses, particularly in medical cannabis cultivation, manufacturing, R&D, and export‑focused operations. Its clear regulatory framework, EU‑GMP alignment, and international reputation make it attractive for founders looking to start a cannabis company in Malta with long‑term scalability in mind.

That said, cannabis company formation in Malta is not a simple incorporation exercise. Licensing requirements are detailed, compliance expectations are high, and banking is often the biggest bottleneck, especially for non‑resident founders. Planning licensing, substance, and banking together from the outset is critical to avoid delays, rejections, and costly restructuring during cannabis business registration in Malta.

For founders entering this space for the first time, or operating across borders, using expert support can significantly improve approval outcomes. Working with providers who understand cannabis regulation, EU‑GMP standards, and high‑risk banking increases the chances that your cannabis company incorporation in Malta moves smoothly from planning to licensing, banking, and active operations.

Starting a Cannabis Company in Malta – FAQs