KSi Malta provides its clients with tailor made regulatory strategies and solutions when it comes to the medical cannabis industry. Our areas of expertise include, but are not limited to:

• Assistance with applying for an LOI (Letter of Intent) with Malta Enterprise
• Liaison with the Medicine’s Authority for the EU-GMP Certification
• Company formation and group structuring
• Accounting and VAT Compliance
• Annual financial auditing
• Corporate services provider
• Payroll services and HR advice
• Tax Advice – tackling cross-border implications
• Compliance, due diligence and assistance with banks
• Legal Advice and GDPR
• Business Plan and Financial Analysis

Assistance with applying for an LOI (Letter of Intent) with Malta Enterprise

KSi Malta’s team of advisors can help you with obtaining the necessary permissions and licences to produce medical cannabis in Malta. For this to happen a number of steps must be followed:

• A letter of intent must be obtained from Malta Enterprise
• Following the issue of the LOI, the applicant must enter into a contract with Malta Industrial Parks and will be provided with highly subsidised land.
• After the setting up of the facility, it will need to be EU-GMP certified.
• The applicant will also need a licence to operate from the Medicines Authority

KSi Malta assists in all of the above requirements.

Liaison with the Medicine’s Authority for the EU-GMP Certification

KSi Malta, through its experts, is constantly in liaison with the Malta Medicines Authority and frequently reserves slots to ensure timely outcomes for projects entrusted in our care.

The firm can guide you to achieve the Certificate of Good Manufacturing Practice (GMP) which is essential as all medicinal products for human use manufactured or imported into Malta and the EU have to be manufactured in accordance with the principles and guidelines of Good Manufacturing Practice (GMP) concerning both production and quality control.

Company formation and group structuring

If you are looking to set up a Maltese company we can assist in its formation. We will use the best possible structure specifically tailored to the needs of the client.

Our company formation services comprise the preparation and submission of the Memorandum and Articles of Association, registration for Income Tax and VAT (if necessary) and opening of a bank account with a Maltese bank

Our company formation services are not only limited to Malta, but owing to our membership in international networks we are also in a position to assist in the formation and management of non-Maltese companies.

Tax Advice – tackling cross-border implications

KSi Malta can provide your firm with the right corporate tax advice, especially when it comes to tackling cross-border implications related to the medical cannabis industry.

The corporate income tax rate for a company incorporated in Malta is 35%. However, the effective tax rate incurred by a registered foreign shareholder could be lowered significantly to as much as 5% if a refund is claimed upon the distribution of dividends (or bonus shares) by such company.

The rate of the tax refund which could be claimed by a shareholder could vary due to factors such as:

• the nature of the underlying profits out of which the dividend has been distributed
• the application of double taxation relief by the Maltese distributing company on the profits distributed

Generally, a shareholder would become entitled to 6/7ths of the tax due in Malta originally suffered by the Maltese company on the profits being distributed as dividends.

How it all started

Malta is one of the few countries around the world which approved the use and possession of medical cannabis with a prescription.

In March 2018, the President of Malta signed into law, legislation that governed the use of medical marijuana, and it is now taking aggressive steps towards making the production of such products a new, local industry.

The “Production of Cannabis for Medicinal Use Act, 2018’ provides all of the legal guidelines for those that wish to produce cannabis for medicinal use and it describes the process that needs to be followed in order to apply.

European Market

Europe is home to more than 740 million people, a population more than double the roughly 360 million people that live in the United States and Canada—the two largest cannabis markets today.

The companies that secure significant market share in Europe—once the market opens up—will likely become the largest cannabis companies in the world.

Europe has the potential to be the largest medical cannabis market in the world with potential of topping €50 Billion.