While current economic growth in several European countries has slowed since the end of the third quarter in 2021, Malta, the smallest of all EU member states, has seen a substantial rise in inflation, around 0.7%, a margin compared to Estonia and Lithuania which had the highest estimated annual inflation.
Analysis of short-term data captured by Eurostatistics revealed that the second quarter of 2021 was quite a challenge for some EU countries, but a path to recovery for many industries has been paved with promising prospects, as the Maltese government seeks to bring back the innovation and business growth on the island.
Although Malta covers a small geographical area, small and medium-sized enterprises (SMEs) employ a substantial number of inhabitants, covering more than 26,059 enterprises, with more than 137,000 employees.
Now with most of the restrictions eased in the country, and the tourism industry back on track – Malta is starting to offer promising business ventures to many entrepreneurs from various countries around the world.
We took a deeper look at what it takes to set up a business in the island nation, and what you need to know.
Can foreigners set up a company in Malta?
Malta offers a diverse economic climate, with niche markets and industries – ranging from the most popular such as tourism, hospitality, and customer service, to smaller technology and software development opportunities.
Foreigners seeking to set up a company in Malta will need to complete a filing and training process with the appropriate legal and government agencies.
For those who rule from European nations within the EU, setting up a company is much easier, but although foreigners can set up a new business, this process can be a little more complex. This LLC formation resource they can also offer better insights.
How can a foreigner start a company in Malta?
As there are several legal procedures involved, foreigners can work with a business formation company, and some steps include:
Step One: Paying business registration fees with local authorities. These fees are around € 245, but depending on the size of the share capital of the business or company these fees may vary.
Step Two: Open a Maltese business bank account, clearly stating the share of capital that will be used for the business.
Step Three: You can either choose to register and pay for virtual office space, or physical office space. There is a monthly fee and can range from € 125 to € 400 per month depending on the type of business you are registering.
Step Four: Set up the business shareholder and authorized capital for the company. The Maltese government hereby requires entrepreneurs to declare all shareholders and investors involved in the new company. There is a minimum share capital fee payable of approximately
€ 1,200. For this to be successful, it is required by law that two business shareholders must be authorized to share capital.
How long does it take to set up a company in Malta?
Various factors can influence the time it takes to set up a company in Malta. Here is a breakdown:
1-3 hours: Register a business name
day: Filing of incorporation documents
1-4 days: Tax registration with local authorities
day: Finalization of share capital deposits
3-6 days: EIN registration and finalization
2-8 days: Registration for VAT
How are companies taxed in Malta?
The current corporate tax rate in Malta is 35%, although in recent years business owners have found a small gap in the taxation system that could reduce the amount significantly. significant.
If an offshore company or business is created in a nearby country that still owns all the shares of the Maltese company – corporate taxes can be lowered to almost 5% as refunds can lower the amount of tax by almost 80%. %.
This is a bit difficult to get right, as there are other legalities involved, but it can benefit the business and its shareholders.
Starting a company in Malta can be an easy task for those looking to adapt and infiltrate the untapped markets offered by the small island nation.
Although the process can be a bit challenging for non-EU countries, the opportunities offered are endless and boast of long-term financial success for many entrepreneurs.