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Are you considering forming a company in Malta? If so, you will be pleased to know that there are a lot of benefits associated with doing so. In this post, we will take a look at the advantages of Malta company formation, as well as giving you a basic overview of how it all works. So, keep on reading to find out all you need to know…
Why choose Malta for company formation?
One of the main reasons why Malta is a popular choice is because of the tax benefits. There is a flat rate of 35 per cent when it comes to company taxation. However, there is the opportunity to reduce the overall amount you pay substantially, often by about five per cent.
Stability and Credibility
Malta is a stable country with a great reputation, and thus it provides a solid base for forming a company. Malta is a EU member and on the OECD white list. The banking system is ranked as the 10th soundest in the world, whilst the Malta Financial Services Authority regulates financial services and the best international practices are adhered to thanks to financial legislation.
There are a number of ways to save money by setting up a company in Malta. Firstly, you will find that operational costs are a lot lower, as are salaries, especially when contrasted with other countries in the EU. You can also make savings when it comes to the likes of legal fees, accountancy fees, maintenance costs, and company incorporation.
How do you set up a company in Malta?
Here is an overview of the steps you will need to take if you wish to start a business in this country…
- Reserve a company name – This must be unique
- Draft the articles of association and memorandum
- Deposit the minimum paid-in capital to the bank – They will open an account for you once reference letters are received from the signatories’ banks
- Register at the Companies Registry
- Get a trade license – You can do this via BusinessFirst or the Trade Licensing Unit Commerce Department
- Get a company TIN (Tax Identification Number) – You will need the Inland Revenue Department for this step
- Open a bank account – You will have paid in the minimum capital earlier and now is the time to make this bank account permanent
- Register for VAT
- Find a supplier like Cloudpay global payroll so you are set up for paying your employees
- Get an employer identification number, which is called a PE number, and register your employees
- Register employees with the ETC (Employment Training Corporation)
- Register for data protection