Published On: Fri, Feb 15th, 2019

How To Register A Company In Malta

Starting a business in Malta right now is a very exciting prospect considering the country’s current economic outlook. There are a lot of interesting and exciting opportunities for entrepreneurs to take advantages of in several different sectors including iGaming, eCommerce and blockchain technology.

But, before you get excited and start imagining yourself as the next Elon Musk you’ll have to take care of the basics. You have to register your company to become a recognized legal structure. The great thing about having a business in Malta is that you’ll have all the infrastructure you need to succeed and the company registration process is quick and straightforward.

How to register a company in Malta

Here’s a step-by-step process of how to register a company in Malta:

  • Choose your status:

In Malta, you can register a company under a Limited Liability or Self-Employed status. A limited liability company is a separate legal entity to the owner which protects the owner from any legal or financial liability related to the business.

But, this option comes with certain prerequisites that you have to consider. For example, you need to have two shareholders and submit annual account audits at the end of each tax year.

On the other hand, a self-employed company is super easy to register but it doesn’t separate the owner from the company. This poses a higher risk because if anything happens to the business you’ll be held personally liable. You’ll be responsible for any lawsuits or debts that the company accrues and will have to pay for it out of your own pocket.

Each option has its own advantages and disadvantages so you need to consider your circumstances and your risk tolerance and conduct through research before you choose.

  • Memorandum and Articles of Association

If you choose the limited liability route, you’ll have to hire a lawyer to compile the memorandum and articles of association documents. These documents set out shareholder and director conduct and they must be registered with the Malta Registry of Companies.

  • Minimum share capital

Next, you need to deposit seed capital into the company’s bank account. This is known as the “minimum share capital” and it should beat least 1, 200 EURO. Ask the bank for a receipt showing that you’ve deposited the money because you’ll have to submit that along with your other documents.

  • Registration

Once you’ve decided on the type of company structure you’d like to register and have your minimum share capital, you’ll have to send the required documents to the Financial Services Authority. You must also pay a registration fee. It usually takes the FSA a few days to grant a registration and you’ll be free to commence operations afterward.

  • Getting licensed

Your business might need a license depending on your operations. For example, if you’re starting a food business then you’ll need permits to serve food and pass health and safety exams. Licenses differ according to the nature of the enterprise and the cost varies according to the regulation body that issues them out. In most cases you’ll be required to renew your licenses annually by paying a small licensing fee.

  • Tax ID number

In Malta, it’s really easy to obtain a tax identification number and the whole process can be completed online. You don’t have to pay anything to obtain the tax id number, but once you get it you’ll have to file annual tax returns for you company regardless of its structure.

  • VAT registration

Vat only applies to companies whose annual turnover exceeds 35, 000 EURO. Prior to that, you don’t need to register for VAT.

  • PE number registration

Only limited liability companies require a PE Number because the company is a separate legal entity from you so you automatically become an employee. Acquiring a PE number in Malta is super quick and easy. You don’t have to pay any fees and you’ll have it within 3 days of application.

  • Employment and training centre

You must also report to the ETC in order to register your employment details if you registered a limited liability.

  • Fulfill data protection requirements

This final requirement only applies to businesses whose operations involve the sensitive data collection from clients. You need to apply for data protection to safeguard confidential information that you require clients to share with you. Failure to do can lead to hefty fines and even threaten your ability to do business in Malta.

For more information visit the csbgroup company registration guide.

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