Malta, with its strategic location, favorable tax incentives, and skilled workforce, has become an attractive destination for entrepreneurs seeking to establish businesses. Here’s a step-by-step guide to navigating the process of setting up a business in Malta:
1. Choose Your Business Structure:
- Limited Liability Company (LLC): The most popular choice offering limited liability protection for owners.
- Sole Trader: Suitable for small, individual-owned businesses, but owners have unlimited liability.
- Partnership: Two or more individuals jointly own and manage the business, with shared responsibility and liability.
2. Select a Company Name:
- Ensure the name is unique and available for registration.
- Check availability through the Malta Business Registry website
3. Prepare the Necessary Documentation:
- Memorandum of Association: Defines the company’s objectives and powers.
- Articles of Association: Outlines internal regulations, including share capital, voting rights, and management structure.
- Form BO1: Application form for company registration.
- Evidence of paid-up share capital (minimum €1,165, with 20% paid up initially).
- Identity proofs and beneficial ownership details of directors and shareholders.
- Business plan (optional, but recommended for securing funding or permits).
4. Register Your Business:
- Submit all documents and pay the registration fee (€245) to the Malta Business Registry.
- The registration process typically takes 1-2 weeks.
5. Obtain Required Licenses and Permits:
- Depending on your industry, you might need additional licenses or permits.
- Check with the relevant authorities, like the Malta Competition and Consumer Affairs Authority (MCCAA) or the Malta Environment & Planning Authority (MEPA).
6. Register for Value Added Tax (VAT):
- Mandatory for businesses exceeding a certain annual turnover threshold.
- Register with the Inland Revenue Department.
7. Open a Business Bank Account:
- Open a corporate bank account to manage your business finances.
8. Register for Social Security:
- Register your employees and yourself (if applicable) with the Social Security Department.
9. Comply with Ongoing Requirements:
- File annual returns and financial statements with the Malta Business Registry.
- Pay corporate taxes and social security contributions.
