Starting a Business in Malta

Thinking about starting a business in Malta? Malta is known for being business-friendly. It has great tax benefits and low costs for setting up and running a company. This makes it a popular choice for entrepreneurs.

Registering a business in Malta is easy and quick. The government has made it simple for start-ups and foreign investors. Whether you’re from Malta or abroad, starting a business here can be rewarding.

One big advantage of starting a business in Malta is the tax system. Malta’s corporate tax rates can be as low as 5% to 7%. This is because profits can be split with a holding company in another country. Plus, Malta has double taxation treaties with over 70 countries, which is great for EU businesses.

Setting up a company in Malta is also affordable. You only need €1,165 in share capital for a private limited company. And, you only have to pay 20% of this upfront. This is good for small and medium-sized businesses.

Choosing the right company type is important when starting a business in Malta. Limited Liability Companies (LLCs) are popular for their flexibility and tax benefits. General Partnerships are good for medium-to-small businesses, and Single Proprietorships are simple for sole traders.

When registering your business, picking a unique name is crucial. You’ll also need to prepare documents like the Memorandum and Articles of Association. And, you’ll need a Certificate of Registration from the Malta Business Registry.

After setting up, you might need to register for VAT in Malta. This depends on your business and the nationality of its legal representatives. The VAT registration process is different for each case.

Starting a business in Malta means following local rules and regulations. This includes getting the right licences, setting up a physical space, and hiring staff. The government helps ensure businesses follow the law.

Malta’s business-friendly environment, strategic location, and access to the European market are big draws. By understanding how to start a business in Malta, you can take advantage of its opportunities.

Why Start a Business in Malta?

Malta is a great place for entrepreneurs from all over the world. It has a good location, a stable economy, and friendly business rules. Starting a business here can be a wise choice for many reasons.

Taxation Benefits for Businesses in Malta

Malta’s tax system is very attractive for businesses. It has a full imputation tax system, which helps shareholders. Also, Malta doesn’t tax income from certain investments.

Businesses pay a corporate tax of 35%. But, they can lower this to 5% by sending profits to certain countries. This makes Malta a good place for tax savings.

Low Incorporation and Maintenance Costs

Starting a business in Malta is cheaper than in many European countries. You only need €1,165 in share capital, with just 20% needed upfront. The process to register a company is quick, taking only 1-2 weeks.

Annual fees and corporate taxes are also low. This makes Malta a great choice for those wanting to save on costs.

Exemption from Duty on Documents

Malta doesn’t charge duty on documents for international business. This is a big help for companies doing business across borders. It makes it easier and cheaper to handle international paperwork.

Double Taxation Treaties with Over 70 Countries

Malta has double taxation treaties with over 70 countries. These treaties prevent paying taxes twice on the same income. This helps businesses in Malta save on taxes.

This wide network of treaties makes Malta a top choice for international businesses. It helps them plan their taxes better.

In conclusion, Malta’s tax benefits, low costs, duty exemptions, and many double taxation treaties make it a great place for businesses. It offers a supportive and business-friendly environment for entrepreneurs.

Choosing the Right Company Type for Your Business in Malta

When starting a business in Malta, picking the right company type is key. Malta has many types, each with its own benefits. Let’s look at the main types to help you choose wisely.

Limited Liability Companies (LLCs)

Limited liability companies (LLCs) are very common in Malta. They can be private or public. Private LLCs have up to fifty members, while public ones can have more.

General Partnerships

General partnerships in Malta have two or more partners. They share unlimited liability for debts. There are two types: “en nom collectif” and “en commandite.” In “en nom collectif,” all partners have equal rights. In “en commandite,” there are general partners with unlimited liability and limited partners with restricted liability.

Single Proprietorships or Single Member Companies

Single proprietorships or single member companies are owned by one person. This type lets entrepreneurs keep their personal and business finances separate. They also have full control over the company.

Overseas Companies with Branches in Malta

Overseas companies can open branches in Malta. These branches must follow Maltese laws and report as needed.

When picking a company type, think about liability, taxes, and shareholder numbers. Here’s a table comparing Malta’s main company types:

Understanding Malta’s company types helps you make a choice that fits your business goals.

Selecting a Unique and Appropriate Company Name

Choosing a company name in Malta is key to starting your business. The name must be new, not hurtful, and show what your company does. You might need to prove you can use certain words like “Insurance” or “Blockchain” in your name.

Think about these things when picking a name:

• The name must be unique and not already in use by another registered company in Malta.
• It should not contain any offensive or misleading language.
• The name should reflect the nature of your business and its activities.
• If you wish to use restricted words, you may need to provide additional documentation or justification.

To see if your name is free, use the Malta Business Registry’s online search tool. This helps avoid any name issues later on.

After picking a good name, you can move on to other steps. This includes making the Memorandum and Articles of Association, choosing directors and shareholders, and finding a registered office in Malta.

By picking a unique and fitting name, you lay a solid base for your business. This helps avoid problems during the registration process.

Preparing the Necessary Documentation for Company Registration

When you register a company in Malta, you need to gather certain documents. The main ones are the Memorandum of Association and the Articles of Association. These documents detail the company’s structure and rules. It’s vital to get these right for a smooth registration.

Memorandum of Association

The Memorandum of Association holds key company details. This includes the company name, address, goals, share capital, and who owns the shares. When making this document, make sure all details are correct and complete. For a private company in Malta, you need at least €1,164.69 in share capital, with 20% paid up.

Articles of Association

The Articles of Association sets out the company’s internal rules. It covers who does what, how meetings are held, and how shares are transferred. It’s wise to get help from experts to make sure it follows Malta’s laws and best practices.

Form BO1 for Corporate Shareholders

If your company has corporate shareholders, you need to submit Form BO1. This form gives details about these shareholders, like their address and who runs them. It’s important to fill this form out right to meet Malta’s rules.

Evidence of Paid-Up Share Capital

You also need to show proof of the share capital paid up. This usually means a bank statement or deposit. For a private company, you need to show 20% of the total share capital, which is about €233.

The Registrar of Companies in Malta might ask for more documents depending on your business. Working with experienced professionals is key. They help make sure all documents are correct and on time, making the registration process easier in Malta.

Obtaining a Certificate of Registration

After you’ve sent in all the needed papers for company incorporation in Malta, the Registrar will check your application. If it’s all correct, you’ll get a Certificate of Registration. This document officially starts your company and lets it do business from that day on.

The process of setting up a company in Malta is quite fast. It usually takes 1-2 weeks. Sometimes, it can be done in just 24 hours, depending on the company type and the documents you provide.

The cost to register a company in Malta changes based on the share capital and how you register. It can be as low as €100 or as high as €2,250. For a public company, you need at least €46,587.47 in share capital. For a private company, it’s €1,164.69, with 20% of that needing to be paid upfront.

After getting the Certificate of Registration, your company can start working in Malta. It’s important to know that public companies need at least two directors. Private companies need at least one. Also, every company must have a secretary, except for some private companies or those with a corporate director.

Registering for VAT in Malta

After setting up your business in Malta, you need to register for Value Added Tax (VAT) if you plan to trade. Malta’s VAT rate is 18%, but there are lower rates for some services like accommodation and food. The VAT registration process depends on your business type and the nationality of your legal representatives.

VAT Registration Process for Sole Proprietors

Sole proprietors in Malta can apply for VAT by filling out a form and providing ID documents. This usually takes three to four weeks. Once you’re registered, you’ll get an 8-character Maltese VAT number.

VAT Registration for Company Legal Representatives with a Valid Maltese ID Card

Legal representatives with a valid Maltese ID card can register for VAT online using their eID. This makes the process faster and easier.

VAT Registration for Foreigners without a Maltese ID Card

Foreign business owners without a Maltese ID card can still register for VAT. They can apply by post or online. Make sure to include all needed documents to avoid delays.

Malta has three types of VAT registration:

• Article 10: Standard registration for businesses, providing a VAT identification number with an “MT” prefix.
• Article 11: Simplified registration for small businesses with an annual turnover exceeding €14,000 but exempt from standard registration.
• Article 12: Registration for entities or individuals making intra-Community acquisitions in Malta, required if they exceed €10,000 in a calendar year. VAT identification numbers for these businesses also carry an “MT” prefix.

After registering for VAT, businesses must file VAT returns regularly. The frequency depends on their turnover or activities. It’s important to follow VAT rules to avoid fines for late or incorrect filings.

Post-Incorporation Steps for Your Maltese Company

After setting up your company in Malta, there are key steps to follow. You need to get the right licences, find a place to work, and hire staff. Also, you must follow local laws and rules.

First, you must register for VAT if your sales are over €35,000. Companies in Malta pay a 35% tax on profits. But, they can pay less by meeting certain shareholder conditions. Malta’s tax rate is about 5% through a special system.

Maltese companies must keep good records and make annual statements following IFRS. It takes 14 days to form a company in Malta. It usually takes 6 weeks from start to finish. Getting help from experts can make things easier and ensure you follow the law.

After setting up, you might need a bank account for your business. Our banking team can help open one. You might need to meet with Maltese banks in person. Opening a bank account can take about 4 weeks.

Malta has rules for company mergers and allows companies to move their base here. This makes it easy for businesses to grow or change location without starting over.

Obtaining Necessary Licences and Permits for Your Business

Starting a business in Malta means getting the right licences and permits. The type of licence or permit you need depends on your business and what you do. Here are some common ones:

• Trade licences from the Malta Business Registry, valid for a year
• Food handling licences from the Environmental Health Directorate for food prep businesses
• Liquor licences from the Malta Tourism Authority, also valid for a year
• Gaming licences from the Malta Gaming Authority for online gaming or gambling
• Environmental permits for construction or waste management

To get these licences, you’ll need to apply, pay fees, and pass inspections. How long it takes can depend on your application’s details.

All businesses in Malta must also register with the Malta Business Registry (MBR). This gives you a Certificate of Incorporation and a company number. Some industries need licences from other bodies too:

Businesses with big environmental impacts might need an Environmental Impact Assessment (EIA). Local councils in Malta also have their own rules, like local business permits.

Remember, getting business licences in Malta costs money, paid when you apply. Having the right permits lets you run your business smoothly and avoid legal trouble.

Setting Up a Physical Location for Your Business in Malta

Getting a physical spot for your business in Malta is key. You can find office spaces or retail stores that fit your needs. Valletta, Sliema, St. Julian’s, San Gwann, Mriehel, and Gzira are top spots. Each has its own benefits for different businesses.

Choosing the right business location in Malta is vital. Think about how easy it is to get there, how close it is to your customers, and the cost. Office space in Malta ranges from sleek modern buildings to charming old houses. This gives you many choices based on your style and budget.

If you’re in retail, finding the best retail space in Malta is crucial. Places like Sliema’s Bisazza Street or Valletta’s Republic Street are great for drawing in customers. But, these spots are popular, so you need to act fast.

Make sure your physical location meets all the rules. You’ll need permits like a trading licence and your place must be safe. Also, remember that your business must have a registered address in Malta. You’ll need a letter from the property owner saying it’s for your business.

By picking the right spot and following the rules, you’re on the path to a successful business in Malta.

Hiring Employees for Your Maltese Company

Expanding your business in Malta means finding the right team. You need a PE number, to follow local rules, and to recruit well. Onboarding is also key.

Obtaining a PE Number (Permission to Employee)

Before hiring employees in Malta, get a PE number. You can do this online and it’s quick, usually a day. This number helps you register employees and follow employment regulations in Malta.

Complying with Local Employment Regulations

Malta has strict employment regulations. Here are some:

• Give written contracts within eight days of starting work
• Pay social security for your employees
• Follow rules on working hours and leave
• Keep the workplace safe and healthy
• Respect laws against discrimination and for equal chances

Here’s a quick guide to some key rules in Malta:

Get a PE number in Malta and follow the rules. This way, you can create a strong team. And help Malta’s business scene grow.

Marketing Your Products or Services in Malta

Marketing in Malta means understanding the local market and culture. Tailoring your strategies to the Maltese audience helps promote your business. This approach attracts potential customers.

Print media is key to reaching Maltese consumers. Although circulation is lower than in Europe, people love reading newspapers and magazines. Advertising here can introduce new products to the market.

Television ads are more expensive but very effective in Malta. Billboards in major cities offer another chance to promote your products or services.

When planning your marketing in Malta, remember these stats:

To succeed in Malta, align your marketing with your business goals. Target the right customers who will spend more with your efforts. Keep up with industry trends to stay ahead, using online sources for information.

Use social media to connect and engage with more people. Choose platforms that fit your industry and audience. Have a clear, consistent message in all your marketing strategies Malta and promotional materials. This will help promote your business and attract customers.

Complying with Local Regulations and Requirements

Starting a business in Malta means following many local rules. These rules cover taxes, health and safety, data protection, and more. It’s key to follow these to run your business smoothly.

Malta’s corporate tax rate is 35%. But, non-resident companies can get refunds to lower this rate. Talking to a tax expert can help you understand these options and follow Malta’s tax laws.

Malta also has a VAT system with a standard rate of 18%. Some goods and services get lower rates. Companies must register for VAT and meet reporting and payment rules to avoid fines.

Malta has double taxation treaties with over 70 countries. These treaties help avoid being taxed twice. This makes Malta a good place for international businesses.

When hiring in Malta, follow local employment laws. This includes giving employment contracts within eight days and meeting minimum wage rules. These rules help ensure fair pay for workers.

Protecting your business’s intellectual property is vital. You can register trademarks, patents, and copyrights in Malta. This helps keep your brand and creations safe.

To keep up with legal requirements for companies in Malta, get advice from legal experts. They know Maltese business law well. Following local rules lets businesses thrive in Malta.

Benefiting from Malta’s Business-Friendly Policies

Malta has many policies and incentives to help entrepreneurs and companies. It has a low corporate tax rate of 35% and can be as low as 5% with tax refunds. This makes Malta a great place for businesses to save on taxes.

The country also has many double taxation treaties. This means businesses won’t be taxed twice on the same income. It makes Malta even more attractive for businesses.

The Maltese government supports both local and foreign businesses. It has programs like Malta Enterprise to help with investment, exports, and innovation. There are also grants and funding for startups and growing businesses.

Malta is perfectly located between Europe and Africa. This makes it a great spot for businesses wanting to reach both markets. Being part of the European Union also opens up the EU market to companies, with over 500 million consumers.

Malta has a skilled and English-speaking workforce. It also has a high rate of tertiary education. This means there are many qualified professionals available for businesses.

The island is home to vibrant industry clusters like SmartCity Malta and the Life Sciences Park. These places encourage collaboration, innovation, and growth. Malta’s policies and support for entrepreneurs make it a great place for investment and business growth.

Starting a Business in Malta: Costs and Fees

Starting a business in Malta comes with costs and fees. But Malta’s business environment is favourable, with competitive setup costs. This makes it a great place for entrepreneurs and investors.

One big advantage is the low minimum share capital. For private LLCs, it’s just €1,164.69. This is much lower than in many countries. So, you can start your business without a big upfront cost.

There are also registration fees to think about. These fees depend on the share capital and the format of registration. For companies with up to €1,500 in share capital, the fee is €245 for paper and €100 for electronic. As the share capital increases, so do the fees, up to a maximum of €2,250 for paper and €1,900 for electronic for over €2,500,000.

The company registration process in Malta is fast. Most companies are set up in 5-10 working days. Remote incorporation can take about 2 weeks. This speed makes Malta very appealing for entrepreneurs.

There might be other costs, like legal and accounting fees. But Malta’s business environment and costs make it a great choice for setting up in Europe.

Opening a Business Bank Account in Malta

Malta’s banking system is very safe and liquid, having gone through tough times before. It has almost 50 financial institutions and 26 banks. Many offer special services like investment banking and syndicated loans. The country’s banking laws follow EU rules and are overseen by the Malta Financial Services Authority.

Malta’s banking industry has grown a lot, attracting many international banks. This is because of low costs and the chance to offer services across the EU. Many entrepreneurs are now choosing Malta for their businesses, thanks to its excellent services.

Choosing the Right Bank for Your Business

Choosing a bank in Malta is easy with so many options. There are 29 MFSA-approved banks, including 23 local banks and three foreign bank branches. Some top choices for business bank accounts include:

• Bank of Valletta – Serves Maltese customers with about 100 ATMs and branches across the island nation.
• HSBC Malta – Has approximately 65 branches across Malta.
• Sparkasse Bank Malta – Part of an international group based in Germany, providing security and multiple services for EU operations.

Malta is great for financial companies, ecommerce, affiliations, and gaming. The Malta Gaming Authority (MGA) regulates gaming, issuing licenses and ensuring rules are followed.

Preparing the Necessary Documents for Account Opening

To open a business bank account in Malta, you need a registered business and the right documents. The documents needed can vary by bank but usually include:

Many banks in Malta, like Bank of Valletta, HSBC Malta, and APS Bank, let you open a business account online. This shows Malta’s banking system is modern and ready for today’s businesses.

Residence Permits, Permanent Residence, and Citizenship for Business Owners in Malta

As a business owner in Malta, you might get special perks. These include easy travel to the Schengen Area and low taxes. You could get a Malta Permanent Residence Programme permit or join the Malta Global Residence Programme.

The Malta Global Programme needs a yearly tax payment of €15,000. It also has a 15% tax on income from abroad. For self-employed, investing at least €500,000 in Malta is needed within six months.

For Maltese citizenship, the MEIN program is available. It takes 12 to 36 months of living in Malta. With a Maltese passport, you can travel visa-free to 187 countries.

The Malta Business Residency Program gives a three-year permit for investing in start-ups. You can renew it for five more years if your business stays active.

To join the Malta Startup Residency Program, start-ups need to invest €25,000. They must also have a share capital of €25,000 or more. The program focuses on companies in manufacturing, software, and healthcare.

The MSRP offers a three-year residency permit for start-up founders and their families. Start-ups need to invest at least €25,000. They must also meet certain criteria like innovation and income potential.

To apply for the MSRP, you must be over 18 and have no criminal record. You should also be a third-country national. Your business must be new and innovative, with the potential to make money in different places.

Applicants and their families must have health insurance and live in Malta for at least 183 days a year. They must also pay taxes in Malta and have at least one non-EU co-founder as an employee.

In summary, Malta has many programmes for business owners. These include the Malta Permanent Residence Programme, the Malta Global Residence Programme, and the Malta Startup Residence Programme. These offer Malta residence permits for business owners, permanent residence in Malta, and even citizenship by investment in Malta. This makes Malta a great place for entrepreneurs and investors.

Benefits of Setting Up a Business in Malta

Starting a business in Malta comes with many benefits. Its tax system is a big draw for entrepreneurs and investors. With a corporate tax rate of 35%, Malta offers the chance for big tax savings. This can lower the tax rate to just 5%.

Malta’s location is also a plus. It’s at the heart of Europe, North Africa, and the Middle East. This makes it easy to trade and expand into new markets. Being an EU member means businesses here can easily sell goods and services across the EU.

Malta’s workforce is another reason to start a business here. People are well-educated and speak English, making it easy to work with others worldwide. The government supports businesses with incentives, making it easier to invest here. Plus, Malta has a great quality of life, with beautiful landscapes and a rich culture.

In short, Malta is a great place to do business. It offers low taxes, access to EU markets, a strategic location, a skilled workforce, and a supportive environment. These advantages, along with political and economic stability, make Malta perfect for starting and growing a business. Read more about the benefits of setting up a business in Malta.

Contact us

Setting up a business in Malta can be a tough nut to crack for many folks, but the good news is you don’t have to go at it alone. To find out more useful information, you can visit Start Company Formations. Whether you are looking to set up a new business or a subsidiary in Malta, you are going to find all the information you need, along with valuable resources, all under one roof.