Why Set Up a Business in Malta?
Malta is a strategic location for entrepreneurs. Its position in the Mediterranean Sea connects Europe, Africa, and the Middle East. Political stability and a business-friendly environment are just some of the advantages. Malta is an EU member, which facilitates international trade.
Friendly Tax System
One of Malta’s biggest assets is its attractive tax system. The corporate tax is nominally set at 35%. However, after deductions, the effective rate is often around 5%. This results from the possibility of shareholders receiving refunds.
What Types of Business Structures Can Be Established?
Various business forms are available in Malta. The most popular are the Limited Liability Company and the Sole Proprietorship. Other options include a Partnership and a Trust.
Steps to Setting Up a Company in Malta
The process of setting up a company in Malta is simpler than it seems. It involves a few basic steps:
1. Choosing a name and legal form.
2. Registering with the Maltese Companies Register.
3. Opening a bank account in Malta.
4. Obtaining a VAT number, if required.
Challenges in Setting Up a Business in Malta
Despite numerous advantages, there are certain challenges. Finding the right location can be difficult due to the island’s limited space. Another challenge is hiring skilled employees.
Employment Regulations
Malta offers flexible employment regulations. Employers can hire both Maltese citizens and non-EU nationals. An understanding of local regulations and the necessary work permits is crucial.
Conclusion
Setting up a business in Malta has many advantages. From a favorable tax system and strategic location to government support. Overcoming certain barriers is inevitable, but the potential benefits are significant. Malta is the ideal place for entrepreneurs seeking favorable conditions for business development.
