Starting a business in Malta is quite straightforward. In recent years, the various incentives offered by the government have convinced many foreigners to settle in Malta as entrepreneurs. The streamlined procedures and low tax rates enable entrepreneurs to get started quickly. The government strongly encourages entrepreneurial spirit to further stimulate the country's growing economy.
The business environment in Malta
Starting a business in a foreign country can be challenging. Given the unfamiliar environment, it is crucial to pay extra attention to local legislation and necessary documentation. However, as Malta's regulatory framework is constantly in line with that of the EU, foreigners can easily conduct business in the country.
With a population of over 500,000, Malta's development is largely attributed to its focus on knowledge and value-added industries. The Maltese government is business-oriented, making it easier for foreigners to expand and develop their ideas.
Moreover, the country's numerous advantages, from the quality of its workforce to low operational costs, quality of life, and strategic location, offer a good work-life balance.
Why start a business in Malta?
Home to thousands of businesses, Malta boasts an attractive economy for entrepreneurs. Regular economic growth despite the global recession, solid labor market foundations, and the resumption of investments make Malta a prime destination for management and control transfers.
Malta's GDP experienced several years of strong growth before stabilizing with a promising average of 5% in 2024. The Maltese economy was affected during the Covid-19 health crisis but has since seen a substantial听and rapid recovery.
This has also allowed the country to maintain one of the lowest unemployment rates in Europe, hovering around 3% in 2024. The financial services, tourism, online gaming, and real estate sectors represent the key drivers of the Maltese economy.
Other sectors, such as aeronautical maintenance, life sciences, high-end industry, and IT services, have also expanded rapidly听in recent years, with the booming online gaming sector being the first to attract many foreign professionals to Malta.
Good to know:
Malta is a politically stable and neutral country with the potential to become a hub for business creation.
Benefits of starting a business in Malta
Here are the main advantages of starting a business in Malta:
A favorable business environment
Malta is open for business with more flexible company formation conditions than other countries. Investors benefit from a simple and fast registration process as well as numerous incentives: minimal bureaucracy, low incorporation and management costs. The minimum share capital to open a private company in Malta is 鈧�1,164.69, of which 20% must be paid upfront.
A multilingual and multicultural environment
Malta is a bilingual country, with English and Maltese as the two official languages. The widespread use of English facilitates business creation, while many people also speak Italian. In the international trade sector, French, Spanish, and Arabic are often spoken. Moreover, the country offers a multicultural environment. People come from all over the world to live and work in Malta, enriching its culture, population, and skills.
A competitive and attractive tax system
Malta is renowned for its low effective net tax rates. Business creators can benefit from investment incentives and tax reductions. The 鈥�Malta Tax Refund System鈥� is the most popular investment program. Shareholders can request a refund of part of the tax paid in Malta after a dividend distribution.
Double taxation treaties
Malta has signed more than 70 double taxation agreements. This means that foreigners from one of the signatory countries living in Malta are not taxed twice on the same income.
A strategic geographic pPosition
Malta is located in the heart of the Mediterranean Sea, between Sicily and North Africa. It is therefore on one of the world's busiest logistics routes. Malta's freeport is one of the largest in Europe and hosts the world's largest shipping transport vessels.
Sunny weather and Mediterranean climate
Malta enjoys about 3,000 hours of sunshine per year (one of the highest in Europe). Its Mediterranean climate is very pleasant. Setting up a business and living in Malta will allow you to enjoy long summers and mild winters (despite the humidity).
How to start a business in Malta: Procedures
To create a听business in Malta, you must first apply for a , which will allow you to register with the VAT department. Registration can be done online or in person at the department's offices.
Once you have obtained your VAT number, you need to complete and sign a form called the 鈥�JobsPlus Engagement form鈥� (or 鈥�Declaration of Commencement of Employment鈥� for self-employed workers). This form can be downloaded from the website, the website, or picked up in person at a JobsPlus branch.
You are then required to register for a Tax Identification Number (TIN) with the Office of the Commissioner for Revenue, except for EU start-ups with a social security number. This will allow you to pay your social security contributions and taxes.
Next, you must apply for a with the Ministry of the Economy for certain specific commercial activities such as trade fairs. You will also need an additional permit if your business is involved in the import and export of goods and freight.
Important:
Make sure to contact a local bank to open a business bank account in Malta.
Formalities and Fees to Start a Business in Malta
Once these steps are completed, you will need to tackle the following tasks:
- Reserve a company name;
- Draft the company's memorandum and articles of association (between 鈧�500 and 鈧�1,000);
- Deposit the minimum capital;
- Register the company with the commercial and company register (from 鈧�100 to 鈧�1,900 depending on the type of company);
- Obtain a business license if your activity requires it;
- Obtain a tax identification number;
- Open a permanent bank account in the company's name;
- Register your business for VAT;
- Obtain an employer number;
- Register employees with JobsPlus;
- Register with the Office of the Commissioner for Information and Data Protection (around 鈧�23.29).
Once you have completed all these procedures, you can proceed to open your business.
The different types of businesses in Malta
Before starting a business in Malta, you need to choose a type of company. There are limited liability companies, which can be private or public, and partnerships, which can be general or limited. If you want to "start small," you can opt for the freelancer status.
Self-employed
If you wish to work in Malta and be your own boss, you can choose to be self-employed. It is true that forming a company offers better protection and gives the business a more reliable identity. However, being a freelancer听can allow you, for example, to test a business idea and its viability in Malta. Later, you can transition to a company if your business is doing well and you want to take it to the next level.
Private limited liability company
This is the most sought-after type of company when it comes to starting a business in Malta. Indeed, the requirements are fewer than for other types of companies. To open a private limited liability company, foreign investors must have a minimum share capital of around 鈧�1,200. Such a private company cannot have more than 50 shareholders.
Public limited liability company
The requirements are higher for a public company with a starting capital required of around 鈧�46,600. Public companies can trade their shares on the Malta Stock Exchange, while private companies are not allowed to do so.
General partnership
If you wish to create a partnership in Malta, you must draft and authenticate a partnership agreement. In the case of general partnerships, one or more partners share the responsibility for the company's debts and obligations with all their assets.
Limited Ppartnership
Again, a partnership contract must be drafted and notarized. In limited partnerships, there are two types of partners: general partners and limited partners. General partners are responsible for managing the business and are liable with all their assets for the company's liabilities. Limited partners, on the other hand, are only liable to the extent of their contributions to the company.
Joint stock company
Joint stock companies are available for large enterprises. The minimum share capital is 鈧�46,600.
Joint venture
Joint ventures are standalone entities. They must be incorporated with the Malta company register.
Sole proprietorship
This is the simplest form of business in Malta and the most sought after by independent entrepreneurs. It allows them to be fully responsible for all the actions and debts of the business.
Buying a company in Malta
Setting up a company in Malta requires a few steps and formalities, but if you do not wish to go down this route, why not buy a "shelf company"? This is a well-established company already registered with the Maltese authorities, thus in compliance, which is a significant advantage. The transfer of ownership is completed within a few days once the documents have been accepted by the authorities. The next and final step is to set up a new management team. This simple and quick procedure makes the shelf-company the most popular choice among foreigners who wish to start a business in Malta.
Starting a business and hiring employees in Malta
By starting a business in Malta, you will have access to a vast pool of multilingual and versatile talent. Many highly educated foreigners come to work in the archipelago. Start by registering your business with JobsPlus and then fill out the declaration of commencement of employment form for each employee in your company. This form must be completed, even if you are a limited liability company or a freelancer.
Important:
Another form must also be completed when an employee leaves your company.
Best places for听starting a business in Malta
Location is a factor you need to consider when starting a business in Malta.
Valletta
Valletta, Malta's capital, is home to numerous financial institutions, law firms, and maritime businesses. It is therefore a good place to start a business in Malta, especially if your business belongs to the hospitality sector.
Sliema
Sliema is a short ferry or car ride from Valletta. The city attracts operators from the travel, iGaming, aviation, finance, and technology sectors.
St Julian's
St Julian's is Malta's most prestigious district. Its business centers offer numerous amenities: spacious meeting rooms, open and private coworking spaces, on-site parking, 肠补蹿茅蝉, telecoms, etc.
骋偶颈谤补
骋偶颈谤补 is a rapidly evolving city full of potential, perfect for start-ups located in central Malta. 骋偶颈谤补 is next to Sliema and close to Valletta. It is a relevant choice for a retail outlet, bar, or restaurant.
Birkirkara
Birkirkara houses numerous showrooms, factories, and financial institutions. Regarding company premises, there are several options: commercial lease, serviced offices, or purchase. Choose what suits you best based on your budget, the size of your business, and your medium- and long-term plans.
Finally, the entire island of Malta is equipped with high-speed internet and reliable electricity. Most sites are less than 40 minutes' drive from the airport, ideal for business.
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