Things You Must Do When Planning to Set Up a Company in Malta
Starting up a company comes with different steps and requirements to follow. This might appear tacky at some times because there are specific policies guiding business formation. For instance, a personal holding company can only be considered as one if it meets both the income and stock ownership tests.
Malta is a country with a high business advantage, even for foreigners. The corporate tax is low and business legislation is quite accommodating. Though the country is a small island, it has the infrastructure that meets the needs of anyone looking to set up a company in Malta.
When starting a new business, company registration in Malta is a key step that is usually taken by owners. Registering a business can help build a good identity and also aids credibility between an owner and a customer. Primarily due to the tax benefits and for its entrepreneur-friendly mindset, Malta is a paradise for both residents and non-residents to establish a company.
Malta’s policies are fair to businesses in several ways. It is a highly investment-friendly country with many policies that benefit businesses. It is however, prudent to seek the help of professionals to aid you in the process of registering a company in Malta. This would help you cut out mistakes that might cost you in the long haul. Access to adequate guidance during the entire process of company formation in Malta can hasten successful setup. It can also help smooth running without any issues of customs regulations or government policies.
How to Set Up a Company in Malta
It is possible to get overwhelmed by the ups and downs of creating a company. However, here are guidelines that can help one do the necessary things before starting a new business in Malta.
Choose your Suitable Company Structure
If you want to create a company in Malta, it is better to know the type and choose the perfect structure for a business. The different types of companies that can be formed in Malta include:
- Partnership Company
This kind of business is when two or more persons share a common interest and form a company and make gains. Here, we also have a general partnership where one or more people have obligations to the company’s debts and assets.
- Limited Liability Company (LLC)
Limited liability companies can either be private or public.
Private LLC has to do with 50 members or fewer, and it has nothing to do with selling shares out to the public. On the other hand, public LLCs issue shares to the public.
- Sole Proprietorship
This is a case where only one person owns a business. More often sole proprietorship of a business in Malta is acquired right from company formation or through the acquisition of all the shares by a single person.
- Personal Holding Company
A personal holding company is like a parent business that holds the interest and coverage of other companies.
- Foreign Company
This refers to a branch of a foreign company located in Malta. This company formation structure usually has a corporate body outside the country.
Pick a Unique Business Name
Branding your company uniquely has a role to play in conveying your business goals and values. It is very important to note that your company name must not be that of an already existing company. Also, your company name should be one that you are authorized to use, as it is part of the requirements for company registration in Malta. A unique, yet relatable brand name draws an immediate connect with the consumers.
Decide the Amount of Share Capital
Share capital refers to the money gained by a company from issuing shares. The minimum share capital in Malta is $1200, and a company must pay up to 20%.
Register your Company with an Authorized Body
The importance of Malta company registration cannot be overemphasized, as this validates the existence and functionality of a business. After registration, a certificate is issued, and this confirms and authorizes the company to operate starting from the date of issuance.
Prepare and Submit the Necessary Papers
There are some documents and necessary papers submitted to the registrar of the Company Association of Malta. The number one paper to prepare when planning to set up a company in Malta is the memorandum and article of association.
A company’s memorandum contains all information including the name and structure of the company and all other relevant details of the company. The article of association contains the internal rules and objectives of the company.
After Company Registration in Malta, What Next?
After successfully registering your new business with appropriate officials, here are other things you should do before going into full operations.
- Source for Business Funds
When planning to set up a company in Malta, sourcing for funds is another thing to consider typically. Most times one might have some money saved up, but at some times there might be a need for extra funds. Business funds can be sourced through:
- Commercial bank loans
- Use of private investors
- Startup support organizations and so on.
These sources can come in as additional funds when setting up a company.
- Open a Good Bank Account
Of course, one will need a standard bank account suitable for the company structure. It is important to get a good bank and open an account strictly for business.
- Get a Good Company Space
The company space is another thing to consider when setting up a new company in Malta. This is dependent on the company structure, budget, estimated number of employees, and long-term goals.
- Opt-in for Insurance
Insurance is essential during company formation in Malta, and this ranges from health coverage to asset and employee insurance. Most times, the policy depends on the type and structure of the business.
- Register for a PE number
A Permission to Employee Number is required by everyone who has created a business, pays taxes, and employs people in Malta. This enables the company to employ more staff and pay taxes on behalf of the employees.
- Bring in your Employees
Another key step to take after registering a company in Malta is to hire appropriate skills and talents to do the job.
Company formation in Malta has several benefits. These include the low taxation policy, moderate cost of setup, and ease of registration especially when one goes through the right channel. As a result of the flexibility of company creation and several other advantages, Malta is perfect for business and a good place for entrepreneurs who want to retire there.
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