Malta is a small country located in the Mediterranean Sea, positioned between Africa and Europe. It is home to both budding entrepreneurs and established business owners. It is the ideal country to operate a business, offering great weather, short transportation times, and a skilled workforce.
With its easy accessibility to Europe and Africa and membership of the European Union, business owners are constantly showing their keen interest in starting a company in Malta. If you are one of them and are looking forward to start your very own business in Malta, here is a step by step guide that can help you.
Self-employed or limited liability company
Operating as a self-employed person in Malta is very easy. However, liability for business debts will extend to the owner’s assets, and therefore personal risks are higher.
On the other hand, a limited liability company gives your business a separate legal personality, limiting the owner’s liability to any part of the share capital which is unpaid.Registering a company in Malta is easy, and running it is also cost-effective. A company must have an annual audit and can be registered even with only one shareholder.
Documents for registration
If you are planning to open a limited liability company, then you will have to prepare a set of documents, the most important of which is the Memorandum and Articles of Association.While you can prepare this on your own, most prefer to seek advice from a professional corporate service provider to help them set-up their business in Malta. The proper documentation is important for the registration of the company. We can help you with such incorporation.
Companies can be set-up with as little as €1,200 in share capital, which must be at least 20% paid-up. You can liaise with your accountant to decide the best amount to include in your memorandum and articles.
Until the Company is operating and a functioning bank account opened, these funds can be deposited in a company-in-formation bank account which will hold these funds until they are transferred to an operating bank account.
Setting up a Company in Malta
To set-up a Company in Malta, you will have to submit the Memorandum and Articles of Association, confirmation that the Company-in-Formation funds have been deposited, and copy of the identification documents of the shareholders, directors and company secretary. These documents are to be submitted to the Malta Financial Services Authority, which is the regulator of all registered companies in Malta. A registration fee, which depends on the share capital of the company, is to be paid to such authority together with the submission of the documents and registration is generally completed within 2-3 working days.For details on registration fees and the entire process of registration, kindly contact us.
VAT registration for a Maltese Company
If you want to start a trading company in Malta, it is also very important to register your company with the VAT department. You will have to provide details about your trading activity, forecast of EU revenue and purchases, and contact details of your Company. Being VAT registered in Malta allows you to make use of the reverse charge VAT mechanism for intra-EU sales and purchases. We can help you make the VAT registration process easy and efficient.
Obtain a tax identification number
Once the Company is registered with the MFSA, the Commissioner for Revenue registers the company for tax purposes. For self-employed individuals, the tax identification number is their ID card if they were born in Malta. If not, an application must be filed with the Commissioner for Revenue and a tax number will be given by such department. After such registration, you have to file a tax return once a year, whether you are self-employed or a limited liability company. It is always preferable to seek professional advice and assistance from an accountant or tax advisor for such procedures.
Get a PE number
If your intention is to have employees, whether you are self-employed or a company direct, you need to apply for a PE number. We can assist you with such application to ensure that it is done efficiently.
Register with Jobsplus
If you are beginning your business venture as self-employed, you must register with Jobsplus as a self-employed individual.
If your company is going to employ an individual, then registration of such employment must also be done with Jobsplus. Termination of employment should also be registered with the same agency.