Persons not in possession of a permanent Maltese ID Card between the age of 16 and pension age need to apply for a social security registration number. All companies, including private limited liability companies that only have one employee (you), must fill out the Commissioner for Revenue’s form to obtain a PE number. If your business is going to collect personal and sensitive data from clients, you must register a company for data protection. These processes are easy to carry out and there are no costs involved. Our Maltese lawyers can offer detailed information on how to register a business for employment purposes. Whether you’re looking for a low-cost, sunny place to live or a low-tax place to do business, Malta Guides is here to walk you through your options. ... 5 Business Ideas For Expats Living In or Moving To Malta. The cost can be quite a bit more for larger operations and if you hire an adviser to assist. Your data will be processed and the LEI code sent to you by e-mail. For a simpler approach, the self-employed route needs fewer steps and less paperwork, but the owner is at personal risk from law suits and debts without the protection of limited liability. Specifically, public companies can: The registration process is slightly more onerous for public companies in Malta than for private ones. If you are looking to form a company in Malta, we can help. As long as all documentation is in order these can be issued immediately or within a maximum of three days The process takes at least 2-3 business days and the speed with which your registration is approved depends largely on having a carefully prepared application. You will have to continue to pay licensing fees annually, but for a small, simple company it could be as little as €70 a year. For most companies all that is needed to get a licence is the completion of a simple form that details the businesses activity. Many of these company formation services are offered by lawyers in Malta but tax professionals also can be useful if your tax situation is particularly complicated. The short answer to the VAT question is if your annual turnover is: Regardless of whether your revenue meets the threshold or not, you need to register your company with the VAT authorities. Many of these are advantages involve the tax rates offered to companies with a participating holding in a subsidiary. The registration process is slightly more onerous for public companies in Malta than for private ones. Additionally, since Malta is part of the EU, you must comply with the GDPR requirements when collecting data. A minimum starting share capital of at least €46,588. This step provides the Tax Identification Number that will be necessary when filing your company’s first tax return. It’s a popular place for businesses in aviation, crypto, iGaming, and Amazon sellers who work with the European market. If you aren’t familiar with the tax system, it’s definitely worth getting some advice here. 75% of the employment in Malta is in the services industry, while 22% is in the manufacturing sector and 3% in agriculture. The next steps involve once a company is registered, a business owner may, if applicable, acquire a PE number to register employees, a Tax Identification number, a VAT number, registering with the Employment and Training Corporation and finally register for data protection. We also support you by advising on your personal situation linked to the formation – Maltese taxation and residency or citizenship if applicable. A tax refund of 5/7ths of the Maltese tax is the dividends are based on passive income like interest or royalties. What Details are Required for Company Formation in Malta? Click the questions for more information. Finally, your holding company must have certain rights to purchase further stock in the subsidiary, a seat on its board, or the shares in the subsidiary must be worth at least €1,164,000. Whatever amount you choose, a portion of it must be deposited with a Maltese bank. Any new limited liability company will need a sum of money as capital to pay for a number of things before any income starts to roll in. In Malta, corporate tax is calculated on the gross profits based on the audited financial statements of the company at a flat-rate of 35%. Submit your application and pay with credit card, PayPal or bank link. Article 10 registration also applies to sellers from other EU member states making distance sales to non-taxable customers in Malta. Last updated Apr 8, 2020 | Published on May 1, 2018. If your company owns at least 5% of another company’s shares and that means the holding company can: As well, the subsidiary must not own or have rights to immovable property in Malta (including through a second-degree subsidiary). by Welcome Center Malta | Last updated Apr 8, 2020 | Published on May 1, 2018 | Starting a Business. 2. EU citizens already in possession of a Maltese Social Security number and an Income Tax number are required to fill in the Jobsplus Engagement form and the VAT new number registration form. We have a wealth of expertise in incorporating companies and strengthening operations & international tax planning. If you have an entrepreneurial idea, few places are better than Malta for starting your company. When a new business is started a new form must be completed for every employee taken on. Malta’s Commerce department publishes a full list of activities and their regulatory authority. An Ltd. also confers the idea that your operation is a serious one and can help improve the impression clients, banks, business contacts and potential employees will have of you. Facilitating a move to Malta is seamless when you rely on the Welcome Center Malta. Many new companies are established in Malta every year and the process is relatively easy. Registration by an Individual as an Employer Overview Application to be used by an individual regarding the allocation of a PE number, whenever such individual starts employing workers. Input the Registration Number, or the Name and/or Surname of the Practitioner in the FIND field. According to the Maltese Company Act, a private limited liability company must have a minimum share capital of EUR 1,165.However, if the share capital does not exceed the minimum requirements, it must be fully subscribed upon incorporation, while if it exceeds the minimum … or assets on winding up it qualifies as a participating holding. Vat Registration Types In Malta – Article 10, 11 or 12? Firstly, a company registration form needs to be completed and sent in to the authority along with the share capital receipt from the bank, the Memorandum and the Articles of Association. The 12 Steps of Malta’s Company Formation Process. Though Malta isn’t as easy to do business in as some other jurisdictions, Malta can be a very strategic place to start your business. Having a limited liability company protects the owner by separating the business from the individual person. The ground rules for any company in Malta are set out in its memorandum of incorporation and articles of association. TIN national website Information on TIN: Application form for expatriate taxpayers: With its year-round sunshine and flexible workers, this small island is a great place to register a company. This must be a physical office space and not just a post office box. Both the memorandum of incorporation and the articles of association must be submitted to the Registry of Companies section at the Malta Business Registry. Local name for VAT number in Malta is Vat reg. Because the Maltese government has set economic growth as a key goal and its departments have moved recently to streamline regulations around company formations. When this money is available to be paid into a bank, let the banker know what it is for and it will be held separately until the new company is fully registered. How much share capital has been authorized and how much of that has been issued. Between €10,000 and €35,000 it will depend on a number of factors. It means you don’t need to name two shareholders or have annual audits. Tax refunds under Malta’s tax system mean that an intermediary holding company can be used for moving dividends from a trading company elsewhere in Europe to another jurisdiction (like Nevis) where they can be realized with the payment of very low taxes. So, the question of how to open a trading company in Malta is simply just about stipulating the former in the Memorandum of Association. Persons in possession of a permanent Maltese ID Card will be automatically registered under the Social Security Act (Cap. The name and identifying details of all corporate directors. It’s also important to remember that good advice is worth the money. How much it costs to open a company in Malta breaks down like this: In the best-case scenario, the company registration process will take 48 – 72 hours. There are a fairly wide variety of companies that won’t have to register, but it is best to err on the side of caution and check if your company falls into the category of ones who do. 7. If this is the first time that you are employing and you still do not have this number, please leave it blank. Deactivate and Reactivate PE Numbers Employers' Delegated Users and Tax Practitioners that request to activate or de activate the PE number VAT & PE Registration Services: Find more information and contact us by clicking here. Businesses registered under Article 10 are given a VAT identification number with an "MT" prefix.Article 11 Registration It typically takes around three days to gain the PE number. If the process seems a bit more complicated than what you want to tackle as a DIY project there are experts who can help you with your company formation in Malta. All companies who do business in Malta must register with the tax authorities. For private companies, this is 20% of the starting capital. Vat Registration Types In Malta – Article 10, 11 or 12? Fill in all the blanks in the LEI application form above. Process of VAT number registration is maintained by the Department for Value Added Tax. For self-employed status this step is not necessary. In other words, you may want to open an offshore company in Malta if you have a very specific structure in mind, but unless you’re a tax expert yourself, I do recommend getting a professional involved. There are many companies in Malta providing corporate services. Private companies must have a starting share capital of at least €1,164.69. We work with a trusted Corporate Service Provider who is fully licensed by the Maltese Government and we work with them to ensure that your company is formed to meet your needs. In 2017, a public-private foundation was set up to develop Malta’s property industry and promote. Malta has developed its natural harbours, investing heavily in state-of-the-art super-yacht marinas and encouraging the creation of a number of onshore service-providers such as refitting yacht yards and yacht-management companies of the highest standard. 3. The characters are always printed in black on a white background, and to the left one can find a blue box with the Flag of Europe and the letter M underneath it in white. The issued share capital must meet the legal minimum requirement and one-fifth (one-quarter for public companies) of it must be paid up and held on deposit at a Maltese bank. A person wishing to register as self-employed in Malta must follow the following steps: Obtain a social security number; this can be obtained from the social security office closest to the place of residence (Malta is divided into Districts). If the applicant self-employed is foreign, or has never worked in Malta, the individual will need to apply for a social security number, also known as national insurance number (NI) and/or a tax number, depending on the specific case. Upon termination of an employee, further forms must be filled and filed. March 29, 2018 by Editor. Less than €10,000 you are probably exempt from charging VAT. Starting the new business off in the best way for your circumstances needs careful consideration, so do some research and take time to think it all through. The registration number was the provincial code, which is a two-letter code (exception: Rome's code is Roma), and a progressive code, unique for that province, up to 6 characters long. Legislation on employment in Malta The term “Household Employer” can only be Malta’s Law for Offshore Company Formation, Getting Help From One of Malta’s Company Formation Agents. On the other hand, a holding company in Malta can be used to gather a portfolio of ownership rights under the advantageous tax laws of Malta. Maltese company formation fees are relatively low but the price goes up for large or complicated operations. The PE number is also required when registering for VAT in Malta. The VAT department has a website where a lot of information is available to help you fully understand the implications. If the applicant self-employed is foreign or has never worked in Malta, the individual will need to apply for a social security number, also known as national insurance number (NI) and/or a tax number, depending on the specific case. So, the bank of your choice will hold the deposit and issue a receipt. In the end, company has to obtain an employer identification number (PE number) and register its employees with the Employment Training Corporation (ETC). Registering for a PE number. The minimum share capital must be more than €1,200, but only 20% of the agreed sum needs to be deposited at a bank at the beginning. Property Malta Launched. Malta is a strong candidate if you’re looking for a jurisdiction to start a holding company meant to shelter European income from taxes. We store information about your use of our site with our social media, advertising and analytics partners. Frequently Asked Questions related to filling of employment forms . If you choose the latter, you will then have to select between a private or public company. This has to be done under the employer’s PE number, which has to be applied for once the company will decide to start recruiting employees. The cost of the licences vary and is related to the type of business being set up amongst other things. Press enter and the pdf. Malta has a dynamic and growing economy with a labor force that is starting to catch up to the rest of Europe in terms of competitiveness. Companies in Malta pay €100 to renew their registration. If you are setting up as a beautician or food outlet, there are more licences to apply for governing those business particular areas. As with many other business processes, planning is everything when it comes to starting a business in Malta. Making Sense of Malta’s Company Registration Process, fill out the Commissioner for Revenue’s form, easy to do business in as some other jurisdictions. This identifier is tied to payroll-linked contributions you may have to make to the Maltese government to support Malta’s healthcare system. Receipt for the starting share capital deposit at your bank. This step is only needed for limited liability companies and involves sending documents to the Financial Services Authority. Want to use the company formation as a way to raise capital by selling shares to the public. A name for your company that is original, not misleading and not considered offensive by government regulators. Setting up a Sole Trader Business in Malta – Self Employed. There are several documents required as part of the multi-step process. This comprehensive guide will help you get set to plan and register any type of company that you want to form in Malta. Once you have your Certificate of Incorporation that confirms details like the name of your company you can go ahead and open a bank account for it. Malta has a thriving economy & is a wonderful place to raise a family with plenty of sun, culture & fun things to do. As part of broader EU regulations, all companies, including sole operators, who handle customers’ personal information are required to register with the Office of the Information and Data Protection Commissioner. The ETC (now referred to as Jobs Plus) collects all the employment registration details for the island and all businesses must register with them. You will need to complete an online form, for which there is no fee to pay. Value Added Tax recovery time in Malta is 6-12 months. Cryptocurrency Taxes In Malta – Bitcoin Trading. Also, if intending to hire personnel a Maltese company must register as an employer and obtain a PE number. Malta’s significance within the maritime transport industry has duly been noted this past decade, where. For that reason, it might make sense for you to work with a local adviser who can help walk you through the finer points of the process. The additional requirements are: A minimum starting share capital of at least €46,588. The Commerce Department has all the information needed about licensing and it is the best place to go to with any queries. At least 25% of the starting share capital must be … How to register the LEI number 1. We have an extensive list of top companies that can assist you in relocating to Malta and provide you with individual services or complete business solutions. Identity card (Karta ta’ l-Identita’) 4. These should be written and reviewed by a lawyer. Please note: Due to tightening compliance “Know your Customer” regulations reputable firms on the island need to meet their clients before offering formal advice. Depending on your scenario, one option will likely end up better than the other. It also has a more formal and official status which looks more impressive to clients who are thinking of working with you. Malta publishes certain thresholds that determine whether a company needs to charge VAT. You may choose to not have unique articles of association drafted and, in that case, the default prescribed by the Maltese Company Act will be used for your company. Acquiring a PE number is another quick process that does not incur a fee, you simply complete the form online that can be found at the Inland Revenue Department’s website. They will describe what the shareholders can expect in terms of control and distributions and will affect what role the company’s directors play. Persons who will purchase or sell property in Malta and who are not registered taxpayers can obtain their TIN from a secure on-line registration system used by the Notary. Section B (Details of Employer), “Employer Number (Jobsplus)” is a number issued by the Jobsplus when a person registers as self-employed or as company. EU NATIONALS . The registration for an LEI number or code is a simple three step process: 1. MT – Malta en – English Version 23/02/2012 16:09:00 2/3 3.2. The amount of money invested as capital should make up part of the Memorandum and Articles of Association. Opening a company in Malta has many advantages among which the taxation system, which provides up to 6/7 refunds to foreign shareholders, full tax exemptions for holding companies and no withholding taxes or stamp duties in case of profit repatriation. Need to allow for a long list of shareholders (more than 50). These benefits come with some additional bureaucracy however, such as yearly audits and at least two named shareholders who appear on the registration. The Registry of Companies Agency, established under Subsidiary Legislation 497.27, is responsible for the registration of new commercial partnerships, the registration of documents related to commercial partnership, the issuing of certified documentation including certificates of good-standing amongst others, the reservation of company names, the collection of registration … Memorandum of association and articles of association (if not using the standard). Other Links : ROC Support Services : Insolvency Register : European Business Registry Association (EBRA) Guarding against software breaches and loss or theft of data should be taken seriously, and in line with European standards. There is a registration fee to pay but the process is quick and only takes a couple of days. 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