MALTA – A BUSINESS AND FINANCIAL SERVICES HUB IN EUROPE

Since Malta joined the European Union almost 20 years ago, and later adopted the euro, the islands have been punching above their weight when it comes to attracting foreign investment to their shores.

The country has evolved into a trans-continental hub for trade, a popular tourism destination and a top performer in high-tech industries such as high value-added manufacturing, aviation maintenance, financial services, iGaming, cryptocurrency, shipping, and emerging technologies, including Artificial Intelligence. This high-paced activity has attracted an influx of expats, who contribute to render the social and economic landscape truly exciting, diverse and cosmopolitan – could you be the next to join?

Whether you’re searching for a fresh start in life, or simply looking to grow your business, Malta could be the steppingstone you’ve been waiting for. But before you make the move, here are some things you need to know.

All About Setting Up A Business In Malta

With a well-established regulatory environment based on EU law, a favourable tax regime, attractive Government incentives, and a well-educated and highly motivated workforce, Malta can be a very attractive place for a foreigner to set up a business. Doing business in Malta does not only mean access to trade in the EU, but also gaining access to Africa and the Middle East, as Malta has developed healthy business ties and beneficial fiscal agreements with various countries in these two regions too. For those who wish to start a business in Malta, there are seven stages to keep in mind:

1. DECIDING BETWEEN SELF-EMPLOYMENT AND SETTING UP A LIMITED LIABILITY COMPANY

A limited liability company gives your business a more trusted face and protects you as a shareholder in case of defective products or lawsuits. On the other hand, there are more bureaucratic steps to follow when creating such a company (as opposed to starting a business as a self-employed person), such as undergoing an annual audit, so make sure your business is viable before registering it as LTD. You need to be at least two shareholders to register a company.

2. 3.

Preparing For Registration

If you are going to proceed with a limited liability company, then you need to draft the company’s memorandum and articles of association. These documents are important for registration, but they also detail what the company, its shareholders and its directors can and cannot do. It is important to identify the right legal firm, accountancy and audit firms, as well as business consultants to guide you during this stage.

Depositing The Minimum Share Capital

Every company needs some capital to start off, however small. As a new business owner, you need to open a bank account in the company’s name and inform the bank that you are depositing your share capital. The money will go into a holding account until the company is properly registered. The receipt issued will need to be presented in the next stage.

4.

Presenting Documentation To The Malta Business Registry

The filled-in company registration form, together with the memorandum and articles of association and the share capital deposit slip need to be presented to the Malta Business Registry. Registration is done within two to three days and the registration fee depends on the size of the company.

5. 6. 7.

Obtaining Licences And A Tax Identification Number

Once the trade name is approved and the memorandum and articles of association are filed with the Malta Business Registry, the company is almost ready to start operating. However, before that, one must also check if any special licences are required. Furthermore, each business in Malta must have a tax identification number. While this is free of charge to obtain, once a year you will need to fill in a tax return form. This is another step where the assistance of a trusted accountant, audit or legal firm is invaluable.

Getting A Vat Number And Pe Number

You also need to register with the VAT Department to obtain a VAT number. Furthermore, if you have a limited liability company and you intend on hiring personnel, you also need to register as an employer and obtain a PE number. Both steps are free of charge and can be carried out online.

Registering With Jobsplus

Jobsplus is responsible for all employment registration in Malta. You need to fill in a form for each employee upon registration, and again upon termination of each employee. The process is quick and free of charge.

Government department Business First can help you with all of these steps, and can be easily reached through their website, www.businessfirst.com.mt, or over email.