In the following Blog we shall be looking at the main reasons why entrepreneurs choose Malta and what it entails to set-up and operate a company in Malta, also benefiting of its tax optimisation structures, most notably the Malta 5% effective tax rate
Why Malta
Malta offers several benefits for a business set up, making it an attractive destination for entrepreneurs. Some of the key benefits include:
Favourable Tax Regime: Malta offers a competitive tax regime with several incentives for businesses. The Malta tax system allows for a refund mechanism at shareholders' level this resulting in a 5% effective tax (more details on: https://www.fiduscorp.com/corporate-tax-structure). Additionally, Malta has an extensive network of double taxation treaties, there is exemption from duty on documents covering share transfer and increases of share capital and offers other tax incentives (more details on: https://www.fiduscorp.com/corporate-tax).
EU Membership: As a member of the EU, businesses established in Malta benefit from access to the EU single market of over 500 million people, allowing for the free movement of goods, services, capital, and people.
English-Speaking Workforce: English is an official language this making it easier for businesses to communicate and operate in an English-speaking environment, facilitating international business transactions and attracting foreign investment.
Skilled Workforce: Malta has a highly educated and skilled workforce and produces graduates with expertise in various fields, including finance, law and technology, providing businesses with access to a talented pool of professionals.
Robust Legal and Regulatory Framework: Malta has a well-established legal and regulatory framework that provides a stable and secure environment for businesses. The country's legal system is based on English common law principles, providing transparency, predictability, and legal certainty for businesses operating in Malta.
Strategic Location: Malta is strategically located at the crossroads of Europe, Africa, and the Middle East, providing easy access to markets in these regions.
Quality of Life: Malta offers a high quality of life, with a Mediterranean climate and a rich cultural heritage, this offered at a relatively low cost of living compared to other EU countries.
Visa-free Zone: As a member of the Schengen Area, there are no travel restrictions between Malta and the remaining countries of this zone and consequently a worker of Malta company can travel freely in the Schengen Area.
Business-Friendly Environment: Malta is known for its business-friendly environment, with streamlined procedures for setting up and operating businesses. The government actively promotes entrepreneurship and innovation, offering various incentives and support programs for start-ups and SMEs, with additional incentives offered to companies operating from Gozo (Malta's second island).
How to Set up a Business in Malta
Setting up a business in Malta is relatively easy and straight-forward and involves the following:
Legal Entity Type selection:
There are 4 types of legal entities to choose from:
Limited Liability Company, which can take the form of a:
Private company - having a limit of 50 shareholders
Public company - having unlimited shareholders and can offer shares and debentures to the public
Partnership
Single Member Company
Overseas Company.
In most cases, the set up will take the form of a Private Limited Liability Company, denoted by "Ltd." after its name.
Documentation for Registration preparation:
In order to register a company, the necessary preparations will involve the preparation of:
Company name
Type of company
Main object of company
Share capital amount
Ownership structure
Directors
Company secretary
Registered address
How the company will be legally represented and
Intended flow of money (mainly used for bank account opening).
Due diligence documentation on the shareholders and directors will be required and we will be guiding you step by step in such process. Once all documentation is in place we will be registering the company with the Malta Business Register, which process usually takes 2-3 days.
Operating the Malta Company
Following the registration of the company, other things shall include:
Bank account opening. There are options available, such as physical banks, online ones, and other solutions, this depending on the business in question
Registration for company tax
Registration for VAT
Setting up a web-site, particularly when selling a product
Registration to act as employer
Obtaining a physical office
Hiring employees
Applying for funding &/or incentives, this also depending on the business model
Trademark registration.
We will guide you on the essential requirements and other things which can add value to your operations.
How we can assist
At Fiduscorp we set up and manage companies and other type of business. We are licensed to fill in the necessary roles, provide you with a registered address and can also assist on the necessary for you to become operational in the shortest time possible.
Please contact us on: https://www.fiduscorp.com/contact
Mario Buttigieg - Managing Director
Disclaimer
Copyright Notice: ©2018 FIDUSCORP Limited. The contents of this article have been prepared for informational purposes only and do not constitute or contain any type of advice. Neither the publication of such information nor your receipt of it will create a commercial or legal relationship. Consequently, you should not act or rely upon the information contained in this article without seeking professional council. All rights reserved.