Why Start a Business in Malta?
Why Start a Business in Malta?Updated on Wednesday 25th May 2016
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The Maltese business environment has flourished during the last years because of the country’s transition from an economy principally based on agriculture to a diversified one. Malta has invested a lot in expanding industries like technology, pharmaceuticals, engineering, IT&C, tourism, financial, aviation and maritime, thus providing many investment opportunities in these domains.
Many foreign businessmen have also been attracted by the development of Malta’s infrastructure that allowed them to carry out their activities in optimal conditions. Malta also supplied one of the best and cheapest workforces in Europe for companies operating in the country. Another strong point that led to the development of the business environment are the types of companies that can be established in Malta, including foreign companies that must only register for the value added tax in order to conduct business operations.
Why is Malta an attractive destination for foreigners?
When it comes to starting a business in Malta, the main attractions are the legal and taxation system the country provides for both local and foreign enterprisers. The Maltese business legislation and taxation of companies are among the most advantageous in Europe.
Malta also has some of the most powerful financial and online gaming industries in Europe which makes the country very appealing for investors. Malta is also one of the countries that have maintained a stable credit rating since it entered the European Union which gives enterprisers a high sense of security in opening companies.
In terms of taxation, Malta has one of the lowest corporate tax rates and personal income taxes in Europe which is very appealing to foreign businessmen and also to foreign citizens coming to live and work in Malta.
Business start-ups in Malta
Foreign investors will definitely be inclined to open companies in Malta because no licenses are required for most types of companies which means less bureaucracy, the only activities requiring special business licenses being the regulated ones, such as financial services and professions, such as the medical ones.
Foreign investors will benefit from a quick and simple registration procedure and have many options when it comes to types of businesses they can open, the most employed types of business vehicles in Malta being the limited liability companies and also small businesses, such as sole traders.
Investment programs in Malta
In order to attract foreign investment, the Government has enabled several programs in order to promote Malta as an attractive destination. Most of the programs were designed for star-ups which have become very popular across Europe during the last few years. Among these programs are:
- - the Micro Investment Scheme,
- - the Strengthening Market Entry and Internationalization Scheme,
- - the Venture Capital Malta Program,
- - the Business Development Scheme,
- - the Business Advisory Program.
One of the most successful program developed by the Government is the Citizenship by Investment Program which allows foreigners to apply for Maltese citizenship after investing or buying a property in the country.
Our law firm in Malta will offer business consulting services for clients interested in investing in the country. You can contact us for information about company registration in Malta.