Malta’s economy: what business can you open on the island?
There are several reasons that force foreigners to open their business – tourist or any other – in Malta. First, you can register your company there pretty quickly. Capital, property and dividends transferred abroad are not taxed, and non-residents, in addition, are exempt from paying taxes on an increase in the market value of capital with certain transfers of shares.
In addition, in Malta there is the possibility of transferring the existing company both to the island and back abroad – without closing the company. A foreign company in Malta enjoys the same rights as a resident company. A well-developed banking system, a stable political system, support for the Maltese legislator complete the overall favorable picture for foreign businessmen in Malta.
Malta is a member of the European Union, which means that by registering your own business there and obtaining the status of a residence permit, you will be able to move freely around all the EU member countries – which is important for business people.
What business is profitable to do in Malta? First of all, it is, of course, any business related to tourism – from the restaurant, to the hotel or retail and entertainment. Gambling business is allowed in Malta, so many businessmen open their own casinos and gambling grounds there. Another option is a translation agency focused on tourists from their own entrepreneur’s country. The third – a spa, massage room, beauty salon or hairdresser. In a word, everything that a tourist may need on vacation – everything further depends on your imagination.
When the business idea is found and the business plan is made, the process of starting a business in Malta will begin. True, it is quite simple. According to the Commercial Code of Malta, anyone can create a business in their own name or legal entity, and work through it. The legal form of business in Malta is a limited liability company or a limited partnership, in the latter case we are talking about shares that belong to all members of the company. In addition, there is an executive partnership and a limited one, but these details will tell you more in the Malta Financial Services Authority – it is this structure that deals with all administrative business registration procedures in Malta.
In the same place you will need to register your company – i.e. provide detailed information about the charter and type of company, the specifics of the work, place of registration, as well as shareholders and organizers. In addition, your company will need to register with the Department of Social Security – but you need it sooner, since the Department is committed to providing financial, legal and other assistance to aspiring entrepreneurs on behalf of the Government of Malta. In order to be able to do this, you will still have to get the VAT for your business and, in principle, adhere to the established laws – Malta is a small country, and violations there are detected very quickly.
When a business is established and functioning, it will only be necessary to follow the annual financial statements, which will need to be checked with an independent auditor, as well as submit an annual tax return.