Curious about the advantages of setting up a company in Malta and how to start a business there? Let’s talk about it!
Malta is one of the small island countries located between the Middle East and North Africa regions. Although it is not a profitable decision to start a business in Malta, some industries are quite appealing, and you can make lots of money. The population of Malta is around 480,000 and the GNI Per Capita is $26,220.
Although Malta may not be the best choice to start a business, it still offers many opportunities for entrepreneurs. Therefore, we wanted to compile this guide for you and provide you with some statistics. We believe these statistics can be quite beneficial for entrepreneurs.
Malta with Figures
Among 190 countries, Malta ranks 86 for suitability to start a business. However, this is the average evaluation and some fields such as tourism are highly profitable to start a business. The country ranks number 57 in terms of dealing with construction permits.
Getting electricity is a bit challenging and requires many procedures. Thus, Malta ranks number 73 in this category. Registering property is much more challenging, as the country ranks 152. If you are planning to get a loan to start your business, you may want to look for other funding options. Malta ranks number 144 among 190 countries.
However, the country ranks number 44 in protecting minority investors and number 78 in paying taxes. You will not have too much trouble trading across the borders as well. Malta ranks number 48 in this category.
We believe you will not have any troubles in enforcing contracts too, which the country ranks number 41. On the other hand, Malta ranks number 121 in resolving insolvencies, which may cause a serious problem for you and your business from time to time.
How to Start a Business in Malta?
Starting a business and registering your company in Malta is a bit complicated. You need to complete five stages to make your business ready to operate.
- The first stage is reserving a unique company name. This is an online process that takes less than a day and costs €10.
- After that, you need to draft articles and a memorandum of association. You need to receive professional support from lawyers and corporate service providers to complete this procedure. It takes a day and fees may vary between €500 and €1,000.
- Later on, you need to deposit the minimum capital of your business. You need to open a business account to do so. Keep in mind that you need to provide some documents to any bank you are willing to work with. These documents are a know-your-client form, a document to inform the type and currency of the account, and tax payment method, a copy of your articles and memorandum of association, and confirmation of permanent address. Some of these forms can be acquired from the bank, while you need to apply to relevant bodies to acquire some. For example, confirmation of a permanent address can be acquired from the Maltese Embassy or Prime bank. This process is completely free.
- After these, you need to register your company and get your tax identification number. This process usually takes two business days. You need to provide all the documents that you have submitted or got in the previous stages. Depending on your capital, you will be charged a calculated fee to start your business.
- For the last stage, you need to register for VAT and get your employer identification number to hire employees in Malta.
All these procedures can be quite complicated and therefore, it may be a better idea to receive a consultancy service for starting a business in Malta. Consultancy agencies can carry out all the procedures on behalf of you and help you to save time and effort.