As an accountant and an entrepreneur myself, Malta is the place where I incorporated my start-up a few months ago which is gradually evolving into a successful business.
It’s in the European Union and has a great economy, a good tax system, a great location and friendly people. This makes it a top spot for starting a new business. I’ll show you what you need and the costs to set up a business in Malta.
First, you must pick the right business type. You can choose from being a sole trader, a partnership, or a limited liability company. Each has its own legal and financial rules. Knowing these will help you pick the best one for your business.
If you are after a limited liability company, then you need to choose a name, pick directors, legal representatives and a company secretary, and figure out the share capital.
The Malta Business Registry helps with this, making sure you follow the law.
Next, you need to look into the legal stuff and what you need to do to follow the rules. This means getting the right licenses and permits.
Malta also has support for businesses through the Malta Enterprise. They offer incentives and advice to help new businesses start up.
There are costs to think about, like fees for registering, professional services, and ongoing expenses. Knowing these is key to a good business plan and getting the right funding.
Starting a business in Malta is a great chance for entrepreneurs looking for a European base. By understanding what’s needed, the costs, and the support available, you will be ready to start a successful business here.
Introduction to Starting a Business in Malta
The country has a strong regulatory framework and offers incentives and support schemes for businesses. The Malta residency programmes are also a big draw for those wanting to be part of the EU. business.
“Malta’s thriving economy, coupled with its progressive companies act and diverse business structure options, make it an exceptional choice for entrepreneurs and business owners.”
For both new and experienced entrepreneurs, starting a business in Malta is a great move. Next, we’ll explore why Malta is a good choice, the different business structures you can have, and how to register your business.
Favourable Tax Regime
Malta is a top choice for businesses because of its favourable tax incentives for foreign investors. The corporate tax rate is a flat 35% on the chargeable income. But, you can cut this down to 5% or even 0% with special tax breaks.
This makes Malta very competitive, especially for finance, aviation, and digital companies.
Strategic Location
Malta is perfectly placed in the European Union, right where big markets meet. It’s close to North Africa, the Middle East, and Southern Europe. Plus, it has good transport links.
This means businesses can easily reach out to many customers. Being in the Eurozone and the Schengen Area also makes trade and moving people around easier. It’s a big plus for investors and entrepreneurs wanting to grow in Europe.
“Malta’s favourable tax regime and strategic location make it an increasingly attractive destination for businesses looking to expand their operations within the European Union.”
Companies that use Malta’s business-friendly setup can really grow and succeed. They can take advantage of the island’s huge potential as a key spot for global trade and investment.
Types of Business Structures in Malta
Starting a business in Malta gives entrepreneurs several legal structure options. Each structure has its own benefits, legal rules, and characteristics. Let’s look at the main business structures in Malta:
Sole Proprietorship / Self-employment
A sole proprietorship / Self-employment is the simplest business type. One person who runs an economic activity. It’s great for small businesses because it has relatively few rules compared to corporate entities (companies) and is easy to manage. But, the owner is personally responsible for all debts and duties.
Partnership
Partnerships are when two or more people own and run a business together. There are general partnerships and limited partnerships. In general partnerships, everyone is equally responsible. Limited partnerships have some partners with limited liability.
Limited Liability Company (LTD)
The LTD is a top choice for many businesses in Malta. It offers the flexibility of a partnership with the protection of a company. LTDs can be either private LTDs or public. Private LTDs are often chosen by small and medium-sized businesses.
“When starting a business in Malta, the choice of legal structure is crucial as it will impact the company’s operations, taxation, and liability.”
It’s vital to weigh the pros and cons of each structure to find the right one for your business. Getting expert advice helps make sure you pick the best option for your goals and needs.
Starting a business in Malta
Starting a new business in Malta is exciting and rewarding. The process is easy, with lots of resources to help you. I’ll guide you through the main steps of registering your company in Malta.
First, you need a detailed business plan. This plan will outline your goals, strategies, and money plans. It’s key to know your market well, including your customers, trends, and competitors.
After your business plan is ready, choose the right business structure. Malta has options like sole proprietorships, partnerships, and limited liability companies. Think about what you need before deciding.
To register your company, you must do some admin tasks. You’ll need a unique company name, directors, and a company secretary, and decide on the initial share capital. This process is easy, but getting help from a professional is wise to follow the rules.
While starting your business, learn about the legal stuff and what you must do to stay compliant. This includes getting licenses, registering for VAT, Tax number and keeping good financial records (Bookkeeping and accounting).
Knowing the steps and rules for starting a business in Malta will help you succeed. With the right preparation and support, you can make your business thrive in this vibrant country.
“Malta offers a business-friendly environment with a competitive tax regime, making it an attractive destination for entrepreneurs and investors alike.”
Step-by-Step Guide to Company Registration
Setting up a business in Malta is easy yet detailed. I’ll walk you through the main steps for a smooth process.
Choose a Company Name
First, pick a unique and catchy company name that fits your business goals. The Malta Business Registry checks your name to make sure it’s new and follows the rules.
Appoint Directors, legal representatives, and Company Secretary
Then, choose at least one director and a company secretary for your Maltese company registration. They must have the right qualifications and be officially appointed legally.
Opening a business bank account and Determine Share Capital
Lastly, figure out how much share capital you need. You must have at least €1,200 of which you can settle 20% upon incorporation, but you can set a higher amount if you want. This money is not a cost but your business’s starting investment.
By doing these steps, you’re on your way to registering your company in Malta. The Malta Business Registry will help you, make sure your business starts well.
Legal Requirements and Compliance
Starting a business in Malta means following certain legal rules and staying compliant. It’s important for entrepreneurs to do appropriate research or consider appointing a professional to assist with the journey.
Business types like sole proprietorship, partnership, or limited liability company have their own legal duties. Companies and holding companies face more rules than other structures which includes a mandatory annual statutory audit.
The Companies Act is key for businesses in Malta. It sets the rules for everything from shareholder rights to how to start and report on a business. Following this Act is vital for staying legal and avoiding fines.
“Navigating the legal landscape in Malta is crucial for the success and longevity of your business. By understanding and complying with the relevant laws and regulations, you can establish a solid foundation for your entrepreneurial venture.”
Malta Enterprise and Business Support Services
The Malta Enterprise is Malta’s economic growth agency. It offers lots of support and resources to businesses. They have attractive incentives, innovative schemes, and expert advice to help businesses grow.
Incentives and Schemes
The Malta Enterprise has many incentives and schemes to boost investment, innovation, and growth. They offer tax credits, grants, and other financial help across different sectors. These benefits make starting and growing businesses in Malta more affordable.
Advisory Services
They also provide advisory services to help businesses. Experts advise on the local rules, finding funding, and using Malta’s strategic location. The Malta Enterprise helps both start-ups and big companies succeed in this market.
“The Malta Enterprise has been instrumental in our success, providing valuable insights and practical support throughout our journey in the country.”
Cost of Starting a Business in Malta
Starting a business in Malta means knowing the costs involved. You’ll need to plan your budget for registration fees and ongoing expenses. This ensures a smooth start to your business journey.
Registration Fees
The first step in setting up a business in Malta includes paying for company incorporation and registering your business name. The costs depend on your business type but are usually clear and fair.
Professional Services
Many businesses hire professionals to help with legal and regulatory matters in Malta. These services cover company setup, compliance, bookkeeping, and tax planning. “They’re crucial for a business to run well and legally.”
Ongoing Costs
Running a business in Malta also means dealing with ongoing expenses. These include office rent, utility bills, employee wages, and more. Make sure to include these costs in your business plan for financial stability.
Equitas Advisory is here to support you in your entrepreneurial journey.
