Entrepreneurship in Malta

The required documents and qualifications for entrepreneurship in Malta

There are some requirements for investment and entrepreneurship in Malta.
Malta National Development and Social Fund: Applicants must contribute € 650 to the Malta National Development and Social Fund. This money is non-refundable. Entrepreneurs in Malta should pay € 25,000 for their spouses and children under the age of 25 and € 50,000 for children over 25.
• Investing in real estate: Applicants for investment in Malta through buying a real estate must pay € 350,000 and keep the purchased property for 5 years. In this case, they can obtain a permanent Maltese citizenship.
• Investing in bonds that are approved by the government: this way applicants for entrepreneurship in Malta have to invest € 150,000 in stocks or funds.
Applicants for Malta Individual Investor Program must prove that they have a connection in Malta. In this case, they must have bought or rented a property 12 months before starting their entrepreneurship.
Applicants for Malta Individual Investor Program must meet the following requirements:
• Being over 18 years old.
• Having no criminal record.
• Paying the minimum investment costs.

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Topics reviewed in this article:

• Checking the standards and indicators which effect investment in Malta
• Entrepreneurship in Malta
• How to start a business in Malta?
• Getting a residence permit in Malta through company registration

Checking the standards and indicators which effect investment in Malta

International entrepreneurs who intend to invest in Malta through entrepreneurship should consult with qualified investment and immigration lawyers so that they can know the indicators and standards of investment in Malta and be aware of the level of the investment risk. The most important investment standards are: corruption rate, confiscation of property and investment indicators are: investment growth, GDP, unemployment, bank interest rates and inflation rate.

• Corruption rate: Corruption rate is an important factor in investing. The closer the number is to 100, the lower the corruption rate in that country will be. In another interval, the corruption control rate is defined and evaluated in a range of +2.5 to negative 2.5. Thus, the closer the number is to +2.5, the higher the corruption control in that country will be and as a result the investment will be more secure. This rate in 2019 was equal to 0.24 in Malta.
• The gross domestic product (GDP): The chart below shows the gross domestic product of Malta. The higher the GDP in a country is, the higher the economic growth in that country will be. In the recent years, we have seen an increase in GDP in Malta, and in 2019 its value reached more than 44 thousand.
• Unemployment: If we leave out and exclude retirees and children, unemployed people in a society represent/show the unemployment rate. Malta has the lowest unemployment rate at around 3%.

• Inflation: Making changes in the consumer price index is called inflation. Inflation in Malta in 2019 was 1.6 percent.

Malta is known as one of the safest countries in Europe.

Entrepreneurship in Malta

Entrepreneurship in Malta is possible in different companies:

Limited Liability Companies, which are divided into two types:

• Private Limited Liability Company
• Public Limited Liability Company

The main difference between the two types of private and public companies is the required capital to set them up and establish them. Foreign investors need around € 12,000 to start a private limited company. Applicants who want to start public companies should have an initial capital of around € 46,600. The maximum number of members in private companies is 50.

Partnership in Malta: There are two types of participation in Malta.

• Public Partnership
• Limited Partnership

The main difference between these companies is the responsibility of the shareholders. General partners are responsible for managing the company and will be liable for all business assets with business debts. Limited partners are only liable for the extent of their partnership in the company.

How to start a business in Malta?

Many entrepreneurs dream about having a business in Malta. According to the statistics over the past few years, more than 11,000 new jobs has been registered in Malta annually. Here’s how to start a business in Malta.

• The first step for applicants for entrepreneurship in Malta is to create a business plan with a clear vision. Entrepreneurs need to be able to describe and write what they want to do and how to achieve it.
• Applicants must decide on their business to see whether they intend to start their business alone or in partnership.
• The entrepreneur must get the required licenses.
• The entrepreneur must register for income tax and VAT.
• Hire your employees.

Getting a residence permit in Malta through company registration

Applicants who want to obtain citizenship through entrepreneurship in Malta must be in good health and also must have international health and travel insurance. One of the fastest ways to directly obtain EU citizenship is through government capital. Malta Citizenship through Investment Program is one of the most popular investment programs in Europe due to its benefits for those who invest in it. Applicants can obtain the citizenship of Malta through investing in this country for a short time and within 1 year which after 5 years of compulsory residence, even after the sale of investment their citizenship won’t be revoked. Applicants must prove that they have already resided in Malta, which requires buying a property or renting an apartment. Malta is a member of the European Union and is located in the Schengen area, which means that people with a Maltese passport can live, work or study anywhere in Europe. They can also travel to 168 countries without the need for a visa. Investors in Malta can also obtain citizenship for their family.