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What are the different types of businesses I can set up in Malta?

Malta offers a diverse range of business opportunities and caters to various company structures depending on your needs and goals. Here are some of the most common types of businesses you can establish in Malta:

1. Limited Liability Company (LLC):

  • This is the most popular choice for both local and foreign investors due to its limited liability protection.
  • It can be private (Ltd.) or public (PLC), offering flexibility in terms of ownership and financing.
  • Requires a minimum share capital of €1,200 for private and €46,587.47 for public companies.

2. Partnership:

  • Two types exist:
    • General Partnership: All partners share unlimited liability for the company’s debts and obligations.
    • Limited Partnership: Offers limited liability to some partners (limited partners) while others (general partners) have unlimited liability.
  • Suitable for smaller businesses where partners have a close working relationship.

3. Sole Proprietorship:

  • Easiest and fastest business structure to set up, but the owner has unlimited personal liability for the business’s debts.
  • Suitable for small-scale businesses with limited financial risks.

4. Branch Office:

  • An extension of an existing foreign company, operating under the same name and legal framework as the parent company.
  • Requires registration and submission of relevant documents from the parent company.

5. Holding Company:

  • Used to own and manage shares of other companies, offering tax benefits and asset protection.
  • Requires specific criteria to qualify and may benefit from Malta’s extensive network of double tax treaties.

Additional Options:

  • Limited Liability Partnership (LLP): Combines features of partnerships and limited liability companies, offering limited liability to all partners.
  • Cooperative: Owned and democratically controlled by its members, with profits shared among them.
  • Trust: A legal arrangement where assets are held by a trustee for the benefit of beneficiaries.

Choosing the Right Structure:

Selecting the most suitable business structure depends on several factors, including:

  • Number of owners and their liability preferences
  • Business size and future growth plans
  • Investment and funding requirements
  • Tax considerations

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