Opening a business in Malta is a straightforward process due to the country’s robust business registration laws and highly favorable tax system within the European Union. Many entrepreneurs are attracted to opening a business in Malta, especially in financial services and online gaming, because of the advantageous conditions provided by the government. However, various other industries also find Malta appealing. With a skilled workforce and competitive labor costs, Malta is recognized as one of the top countries for opening a business in Malta in Europe.
Types of Companies You Can Establish in Malta in 2024
Malta’s Company Law offers several business structures:
- Sole Proprietorship: The simplest form, owned and operated by one individual.
- Partnerships: Require at least two members, who can be individuals or companies.
- General Partnerships: All partners have full control and liability.
- Limited Partnerships: Include general partners with full control and limited partners with liability restricted to their investment.
- Private Limited Liability Company (LLC): Requires at least two shareholders and a minimum share capital of around 1,200 euros, with 20% deposited at registration.
- Public Limited Liability Company (LLC): Also requires at least two shareholders, with a minimum share capital of over 46,000 euros, and 25% deposited at incorporation.
- Foreign companies can operate in Malta through branch offices or subsidiaries.
Steps to Open a Business in Malta
- Choose a Business Name: Select a unique name and reserve it with the Companies Register.
- Prepare Necessary Documentation: Gather required documents such as Memorandum and Articles of Association, registration form, proof of identity and address for directors and shareholders, registered office address, details of directors and company secretary, and information on share capital.
- Register the Company: Submit the application to the Registrar of Companies and obtain the Certificate of Registration.
- Register for VAT: Complete VAT registration, a quick process requiring basic identification documents.
- Set Up a Registered Office: Establish a legal address in Malta for official notifications.
- Open a Corporate Bank Account: Deposit the required share capital in a Maltese bank.
Costs and Fees
- Name Reservation: 10 euros
- Document Preparation and Notarization: Between 500 and 1,000 euros
- Minimum Share Capital: EUR 1,200 for private LLCs, EUR 46,000 for public LLCs
- Registration Fee: Varies based on share capital
- Bank Account Opening: Fees vary by bank
- Licensing fees depend on the industry.
Why Opening a Business in Malta?
Strategically located for access to Europe, Africa, and the Middle East, Malta’s EU membership supports a vast market. Its strong economy and reliable banking sector, alongside government incentives, further enhance its appeal. The corporate tax rate, nominally 35%, offers significant shareholder refunds, potentially reducing rates to 5%. VAT stands at 18%, with lower rates on select goods/services, while numerous tax incentives stimulate investment.
Taxation in Malta
- Corporate Tax Rate: Nominal rate is 35%, but substantial refunds for shareholders can reduce this to around 5%.
- VAT: Standard rate is 18%, with reduced rates for certain goods and services.
- Tax Incentives: Numerous incentives and reliefs to encourage investment.
Business Growth in Malta
- Positive trends reported by the National Statistics Office:
- 1.2% increase in registered business units compared to 2021
- Small businesses (10-49 employees) saw a 6.9% increase
- Sole proprietorships or partnerships accounted for 56.3% of registered units
- Limited liability companies or public limited companies made up 39.8% of businesses
Is Opening a business in Malta a good choice?
In essence, opening a business in Malta presents a compelling opportunity for entrepreneurs seeking stability, growth, and access to global markets. Malta’s streamlined business registration processes, coupled with its attractive tax system and strategic location within the EU, offer significant benefits. The country’s strong economy, reliable banking sector, and various government incentives further bolster its appeal. With a diverse range of business structures available and positive growth trends reported, Malta provides a conducive environment for both startups and expanding enterprises. Whether you’re looking to tap into new markets or benefit from Malta’s business-friendly policies, the opportunities here are abundant and promising for fostering long-term business success and growth.
