Malta offers an attractive business environment for entrepreneurs seeking to set up a company. You must adhere to certain processes and satisfy certain conditions to form a corporation in Malta. Here is a step-by-step procedure for forming a corporation in Malta:
Pick a business name
Start by giving your business a distinctive name. You must make sure the name does not infringe on any trademarks and is unique to no other Malta-based business. Through the internet site of the Malta Business Registry (MBR), you may determine if the name is available.
Select a business type
Private limited liability corporations, public limited liability companies, partnerships, and sole proprietorships are the most prevalent business structures in Malta. A limited liability corporation is the most typical kind. By isolating the corporation from the owner, a limited liability company protects the owner. Additionally, it has a more professional and official position, making it seem more impressive to potential customers.
Prepare the articles and memorandum of association
You must write these two crucial papers for a limited liability corporation and file them with the Registry of Companies. It is advised to contact a lawyer or expert since these papers serve as a contract between shareholders. The paperwork will specify the authority granted to business directors as well as any restrictions that may apply. In a sole proprietorship, it is not necessary to do this.
Deposit the required minimum share capital
A limited liability business will need a certain amount of capital to cover expenses before revenue begins to flow. The memorandum and articles of association should include information about the capital sum invested. The minimum share capital must be more than €1,200, although, just 20% of the share capital must initially be deposited at a bank. A receipt will be provided by the bank, which is a crucial record that must be safeguarded for use in the next action.
Register the new company
Sending paperwork to the Financial Services Authority is the next step. First, a company registration form must be filled out and sent to the appropriate authorities. It must be sent together with the Memorandum and Articles of Association and the share capital receipt from the bank.
Obtain a license for your company
The Commerce Department gives all the necessary information about licenses. For the majority of businesses, obtaining a license just requires the submission of a brief form outlining the nature of the firm. There are additional licenses that must be applied for if you are opening a food establishment or beauty salon. The cost of the licenses varies depending on some factors, including the type of company being established.
Request a tax identification number
Whether you operate as a limited liability business or are an independent contractor, you must file annual tax returns after you obtain the TIN. It is extremely advised that you obtain expert help while submitting tax returns to avoid any mistakes, particularly if you are unfamiliar with accounting.
Enroll for VAT
When a firm’s annual revenue surpasses €35,000, VAT is imposed, necessitating the registration of the corporation. The tax year goes from January to December. Businesses that make less than €7,000 a year are exempt from the need to register for VAT. However, registration for VAT purposes is optional when the turnover is between €7,001 and €35,000. You may find a wealth of material on the VAT department’s website to aid in your understanding of the ramifications.
Get a PE number
Only a limited liability corporation needs permission to employ (PE) number since you will automatically be an employee. The process is simple and free. All you need to do is complete the online application on the Inland Revenue Department’s website. Obtaining the PE number usually takes three days.
Register at the employment and training center
All enterprises are required to register with the ETC which gathers all the information on employment registration for the island. For each new person hired when a new company is launched, a new form must be filled out. Additional paperwork has to be completed and submitted once an employee is terminated.
Protection of data obligations
If your company intends to collect sensitive and individually identifiable information from clients, you must register your business for data protection. Some precautions must be taken to safeguard the information you gather and maintain to keep your clients secure. It is important to follow European standards while preventing software breaches and data loss or theft. The integrity of the business may be irreversibly damaged, and penalties for data loss may be quite high. Additionally, you must adhere to the GDPR standards while collecting data since Malta is a member of the EU.
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Breakdown of Malta company registration fees and expenses
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