Start in Malta
In most recent years many foreigners have been and still are relocating to Malta to start a business here. There are many reasons, benefits and advantages in doing so, some being: Malta is a cosmopolitan island located in a strategic location, it has a diversified economy, lots of sun and outdoor activities, the cost of living, although rising is still on the lower side, it welcomes families, offers tax benefits, is part of the EU and the Schengen Area, and many other good things.
There are different options to set up a business in Malta mainly being:
- Self Employed (Sole Trader)
- Registered Partnership
- Limited Liability Company
There are various common factors between the above-mentioned types of setting up a business, such as obligations to apply for a VAT number, to obtain an employment number (PE number), registering yourself and your employees with Jobsplus, keeping your books up to date and much more. When it comes to self-employment and registered partnerships the pros here are that it involves less and less paperwork in terms of corporate, tax, auditing and accounting obligations. Of course, one still needs to submit VAT returns, prepare a yearly income statement (profit and loss), file for personal tax returns and pay NI Contributions. Here the costs to hire an accountant are on the lower side so this will help you keep your business running expenses low. The cons on the other hand is that one is operating under his/her own name, which means they carry unlimited liability, so any problems are to be resolved on a personal level and furthermore there is no limits to the liability that can be brought against the individual.
When it comes to a Limited Liability Company the pros here are that it is generally deemed to be more professional to trade under a company as it shows a level of seriousness and a proper structure for your business. Moreover, a company is a separate legal entity that is set to carry trading activities in its own name. The company provides full powers and responsibilities to the director. The liability of the company is limited to the company only and not oneself as an individual, as we have seen when it comes of the self-employed scenario. This option brings some cons with it in terms of expenses as one would need a corporate service provider to incorporate the company and set up the structure, as well as yearly auditing fees and company tax returns, in addition to the bookkeeping fees.
If you are looking to set up your new business in Malta no matter which options you decide to go for, please do not hesitate to contact us. Please email our Director, Ms Joceline Caruana on email@example.com.
Article written by Charlene Sciberras and originally posted here: https://fairwindsmanagement.net/start-in-malta/