Doing Business with Malawi

A comprehensive guide to doing business, exporting, investing, and manufacturing in Malawi.

Foreign Direct Investment with the International Trade Council / Company Incorporation / Company Formation

Malawi Investment and Trade Centre

Tel: +265 885 568 571
Email: info@mitc.mw
Website: www.mitc.mw

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Malawi Revenue Authority

Tel: +265 1 835 000
Email: info@mra.mw
Website: www.mra.mw

National Chamber of Commerce

Malawi Chamber of Commerce and Industry

Tel: +265 999 970 950
Email: mccci@mccci.org
Website: www.mccci.org

Ministry of Economy Information from the International Trade Council - a Peak-body - international chamber of commerce

Ministry of Trade and Industry

Tel: +265 1770 244
Email: trademin@trade.gov.mw
Website: www.trade.gov.mw

  • Type of Government: Presidential republic
  • Population: Approximately 20 million
  • GDP: Around $12 billion USD
  • Corporate Tax Rate: 30%
  • Personal Income Tax Rate: Up to 30%
  • Major Exports: Tobacco, tea, sugar, coffee
  • Major Imports: Foodstuffs, petroleum products, consumer goods

 

Exporting to Malawi involves several steps. Here’s a comprehensive guide:

  1. Research Market Requirements

    • Understand Malawi’s import regulations and standards for your product.
  2. Identify Local Partners

    • Establish relationships with local distributors or agents in Malawi.
  3. Prepare Export Documentation

    • Include commercial invoices, packing lists, and certificates of origin.
    • Ensure compliance with labeling and packaging requirements.
  4. Arrange Logistics and Shipping

    • Choose a reliable shipping company. Ensure accurate completion of shipping documents, such as bills of lading.
  5. Customs Declaration

    • Work with a customs broker to facilitate the clearance process.
    • Submit all required documentation to Malawi Revenue Authority.
  6. Understand Duties and Taxes

    • Familiarize yourself with any applicable import duties and taxes in Malawi.
  7. Distribution and Sales

    • Establish distribution channels within Malawi.
    • Consider partnerships with local businesses for effective market penetration.

Key Contacts

  • Malawi Revenue Authority
  • Malawi Investment and Trade Centre

Importing goods into Malawi involves several steps. Here’s a comprehensive guide:

  1. Register as an Importer

    • Ensure your business is registered in Malawi and compliant with local regulations.
  2. Classify Your Goods

    • Determine the correct Harmonized System (HS) code for your products to identify applicable duties and taxes.
  3. Check Import Regulations

    • Ensure compliance with specific standards and obtain necessary permits or certifications for your goods.
  4. Find a Reliable Supplier

    • Establish a relationship with a trustworthy overseas supplier.
  5. Arrange Shipping and Logistics

    • Choose a reliable freight forwarder.
    • Ensure all shipping documents are in order, including the bill of lading and commercial invoice.
  6. Customs Declaration

    • Submit all required documentation to Malawi Revenue Authority (MRA).
    • Work with a customs broker if necessary to facilitate the process.
  7. Pay Duties and Taxes

    • Calculate and pay applicable import duties and taxes through the customs system.
  8. Receive Your Goods

    • Arrange for the transportation of goods from the port to your warehouse or distribution center.

Key Contacts

  • Malawi Revenue Authority (MRA)
  • Malawi Investment and Trade Centre (MITC)

Incorporating a company in Malawi involves several steps. Here’s a comprehensive guide:

  1. Choose a Company Type

    • Decide on the legal structure (e.g., Private Limited Company, Public Limited Company).
  2. Reserve a Company Name

    • Check and reserve the desired company name with the Registrar General’s Department.
  3. Prepare Incorporation Documents

    • Draft the Memorandum and Articles of Association and prepare other necessary documents.
  4. Submit Registration Application

    • File the application with the Registrar General, including all required documents.
  5. Register for Taxes

    • Obtain a tax identification number from the Malawi Revenue Authority (MRA).
  6. Obtain Business Licenses

    • Apply for any necessary business licenses specific to your industry.
  7. Open a Bank Account

    • Open a corporate bank account in the company’s name.

Costs

  • Registration Fees: Vary depending on company type and capital.
  • Additional Costs: Legal fees for documentation and consultancy.

Key Contacts

  • Registrar General’s Department
  • Malawi Revenue Authority (MRA)
  • Malawi Investment and Trade Centre (MITC)

Setting up a manufacturing plant in Malawi involves several steps. Here’s a comprehensive guide:

  1. Conduct Market Research

    • Analyze demand, competition, and location advantages in Malawi.
  2. Choose a Suitable Location

    • Consider available infrastructure, proximity to resources, and zoning regulations.
  3. Incorporate Your Company

    • Register your business with the Registrar General’s Department.
  4. Obtain Necessary Permits and Licenses

    • Apply for industrial and environmental permits from relevant authorities.
  5. Secure Financing

    • Explore options through banks or investment partners.
  6. Design and Construct the Facility

    • Hire architects and contractors for design and construction.
    • Ensure compliance with local building codes and safety regulations.
  7. Install Equipment and Machinery

    • Purchase and set up machinery necessary for production.
    • Ensure safety and operational standards are met.
  8. Hire and Train Workforce

    • Recruit skilled labor and provide necessary training.
  9. Set Up Supply Chain and Distribution

    • Establish relationships with suppliers and distributors.
  10. Begin Operations

    • Start production and monitor operations for efficiency and quality control.

Key Contacts

Registering a trademark in Malawi involves several steps. Here’s a comprehensive guide:

  1. Conduct a Trademark Search

    • Ensure your trademark is unique and not already registered.
  2. Prepare Your Application

    • Include the trademark design, classification of goods/services, and applicant details.
  3. Submit the Application

    • File your application with the Department of the Registrar General.
  4. Pay the Application Fee

    • Confirm the current fee structure with the Registrar General and make the necessary payment.
  5. Examination Process

    • The application undergoes examination for compliance and potential conflicts.
  6. Publication and Opposition

    • If approved, the trademark is published for opposition. A period is given for third parties to oppose.
  7. Registration and Certification

    • If no oppositions arise, the trademark is registered, and you receive a Certificate of Registration.
  8. Maintain and Renew the Trademark

    • Trademarks need periodic renewal to maintain protection.

Costs

  • Application Fee: Check with the Department of the Registrar General for the latest fees.
  • Additional Costs: May include legal and consultancy fees.

Key Contacts

Resolving commercial disputes in Malawi involves several steps. Here’s a guide on the process:

  1. Attempt Negotiation

    • Start by negotiating directly with the other party to reach an amicable solution.
  2. Mediation

    • Engage a mediator to facilitate discussions. This is often quicker and less formal than court proceedings.
  3. Arbitration

    • Consider arbitration for a private and binding resolution. Both parties must agree to this method.
  4. Seek Legal Advice

    • Consult with a lawyer specializing in commercial law for guidance on your case.
  5. File a Lawsuit

    • If other methods fail, file a lawsuit with the Commercial Court in Malawi. Prepare necessary documentation and evidence.
  6. Court Proceedings

    • Attend hearings and present your case. Follow legal procedures as guided by your lawyer.
  7. Judgment and Enforcement

    • If a judgment is made, ensure its enforcement through legal channels.

Costs

  • Mediation and Arbitration Fees: Vary depending on the service provider.
  • Court Filing Fees: Depend on the jurisdiction and case type; consult local courts.
  • Legal Fees: Vary based on the lawyer and complexity of the case.

Key Contacts

When considering doing business in Malawi, various social, cultural, political, and economic factors must be taken into account.

Social and Cultural Factors

  • Language: English is the official language, widely used in business. Chichewa is the national language.
  • Business Etiquette: Building relationships and trust is important. Meetings often start with informal conversation.

Political Factors

  • Government Structure: Presidential republic. Political stability can vary, so staying informed is crucial.
  • Regulations: Business regulations may be complex; local expertise is beneficial.

Economic Factors

  • Economic Stability: Developing economy with opportunities in agriculture, mining, and energy.
  • Corporate Tax Rate: 30%, which is standard for the region.

Foreign Exchange

  • Currency: Malawian Kwacha (MWK).
  • Exchange Rate: Subject to fluctuations; it’s important to manage currency risk.

Rule of Law

  • Legal Framework: Developing legal system; contract enforcement can be challenging.
  • Judiciary: Efforts are ongoing to improve efficiency and transparency.

Business Environment

  • Infrastructure: Developing infrastructure; transportation and logistics can be challenging.
  • Workforce: Young and growing workforce, though skills development is needed.

Key Resources

  • Malawi Investment and Trade Centre (MITC)
  • Malawi Revenue Authority (MRA)

Our Members Include Leading Organizations in Malawi

Ask our Experts on Doing Business in/with Malawi

If you’re looking to do business or invest in Malawi, we can provide expert guidance, market insights, and valuable connections to help you navigate the local landscape. Contact us today to discover how we can assist in making your venture a success.