The Requirements For Opening A Business In Malta
While Malta is a tiny nation in the Mediterranean Sea, it is a good option for people who want to start a business. The strategic location of the nation between Europe and Africa gives businesses the opportunity to expand in the future. Of course, before you can look at the future of your business, you will need to know what you have to do to open a business on the island nation.
Choose Limited Liability Or Self-Employed
While it is generally simpler to start a business as a self-employed person in Malta, there are some distinct benefits to starting a limited liability company. The first benefit is the fact that your business will appear to be more trustworthy and professional. With this type of company, you will also be better protected against risk as you will be a shareholder.
Of course, creating a limited liability company will come with more bureaucratic steps and you need to be aware of this. You will need to have at least 2 shareholders to register the company and you will have to have an annual audit. There are also some steps to starting a limited liability company that you will not have to complete when work as a self-employed business.
Prepare Your Registration Documents
If you are going to open a limited liability company, you need to draft articles of association and a memorandum. This is something that you could do yourself if you have the experience. However, it is generally recommended that you work with an attorney to do this as they will better understand Maltese law and requirements.
These documents will need to be created for the registration of your company. This is due to the fact that they will provide information regarding the details of what the company, as well as the shareholders, will be able to do.
Deposit The Minimum Share Capital
Another step for limited liability companies will be to deposit the minimum share capital. The minimum allowed will be €1200, but you only have to deposit around 20% of this into a bank account. It is important to note that this amount will need to be outlined in the documents that you created for your company.
In order to do this, you will need to open a bank account in your company name. This is something that you will also need to do if you are going to be opening a self-employed business. Once you have deposited the minimum share capital into the bank, you will need to keep the receipt that is provided.
Register The Business
Once you have the documents as well as the deposit receipt, you will be able to fill in your company registration form. This form will need to be taken to the Malta Financial Services Authority to be filed. This is the authority that oversees the local registration of all companies in the country.
It is important to note that it can take 2 to 3 days for the registration to be completed. You will also have to pay a registration fee before the form is processed. The fee will vary depending on the size of your company and you will be able to find out more information on the MFSA website.
Getting A Trading License
This is the point where limited liability companies and the self-employed will start the same process. If you want to open a business in Malta, you will need to get a trading license and this is fairly simple for most companies. You will need to fill out an application form for commercial activity.
It is important to note that you will need to apply for further licenses if you are going to be opening a business in food preparation, a large manufacturing business or related to the beautician industry. The Commerce Department will be the best place to look for more information about the proper licensing that you need for your business. There is an annual fee for each license that you need to pay and this will be around €70 for a small business.
Get A Tax And VAT Number
All businesses have to pay tax and getting a tax identification number is a legal requirement. To get this number, you will need to fill out the necessary form which can be found online. There are no fees which need to be paid for this number, but you do have to fill in a tax return each year. The form that you have to complete will vary depending on the type of business that you have.
Once you have your tax number, you can register for a VAT number. While you need to have a VAT number, you do not have to charge VAT. There are 3 thresholds in Malta when it comes to charging VAT and you will need to know what they are. However, it is important to note that even if you do not have to charge VAT, you still need to register.
Register With The ETC And Get A PE Number
The Employment and Training Center is the authority in charge of employment registration in Malta. You will have to register with them regardless of the type of company that you have and you will need to fill in a form for every employee you have. These forms need to be complete upon registration and termination of each employee.
You will also need to get a PE number if you are going to have any employees. To get the PE number, you will have to fill out an online form which is processed by the Inland Revenue Department. This will generally take 3 days to be processed and is free of charge.
The Requirements For Opening A Business In Malta