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Ease of Doing Business in

Malta

Malta Download Profile (1760.8KB, pdf)
Region Middle East & North Africa
Income Category High income
Population 431,333
GNI Per Capita (US$) 19,687
City covered Valletta

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 76 83 up
7
65.01 62.52 down
2.49
Starting a Business 132 131 down
1
80.21 78.01 up
2.20
Dealing with Construction Permits 82 80 down
2
69.99 69.75 up
0.24
Getting Electricity 77 88 up
11
73.00 69.78 up
3.22
Registering Property 147 148 up
1
48.81 48.79 up
0.02
Getting Credit 139 174 up
35
30.00 10.00 up
20.00
Protecting Minority Investors 32 30 down
2
65.00 65.00
-
Paying Taxes 33 26 down
7
84.59 85.88 down
1.29
Trading across Borders 40 40
-
91.01 91.01
-
Enforcing Contracts 58 59 up
1
62.17 62.17
-
Resolving Insolvency 84 81 down
3
45.35 44.78 up
0.57

Positive=Doing Business reform making it easier to do business. Negative=Change making it more difficult to do business.

DB 2017 Rank: 132

DB 2016 Rank: 131

Change in Rank: down1

DB 2017 DTF (% points): 80.21

DB 2016 DTF (% points): 78.01

Change in DTF (% points): up2.20

Standardized Company
Legal form: Private Limited Liability company
Paid-in minimum capital requirement: EUR 233
City: Valletta
Indicator Malta Middle East & North Africa OECD high income
Procedure – Men (number) info_outline 9.0 7.8 4.8
Time – Men (days) info_outline 26.0 20.1 8.3
Cost – Men (% of income per capita) info_outline 12.3 26.3 3.1
Procedure – Women (number) info_outline 9.0 8.6 4.8
Time – Women (days) info_outline 26.0 20.9 8.3
Cost – Women (% of income per capita) info_outline 12.3 26.3 3.1
Paid-in min. capital (% of income per capita) info_outline 1.3 11.2 9.2
  • No. Procedure Time to Complete Associated Costs
    1

    Reserve a unique company name

    Agency: Online

    Checking the availability of a company name can be made online through the website of the Registry of Companies or in person. The reservation confirmation is sent by email.
    Less than one day (online procedure) EUR 8
    2

    Draft the memorandum and articles of association

    Agency: Lawyer, accountant or a registered corporate services provider.

    Lawyers or corporate service providers draft the memorandum and articles of association.
    1 day Between EUR 500 and EUR 1,000.
    3

    Deposit the paid-in minimum capital

    Agency: Bank

    The Bank will open a company account once it receives reference letters from the signatories' respective banks. The following documents are necessary to open a bank account:
    1. A duly filled in Know-Your-Client (KYC) form
    2. A completed request to open an account specifying the type of account, the currency and the preferred mode of tax payment
    3. Copy of the Memorandum and Articles of Association together with a certified copy of the Certificate of Registration issued by the Registry of Companies once the company is registered. The bank may also require a description of the activities of the company and the anticipated turnover thereof.
    4. Confirmation of the permanent address of the Directors through a completed identification statement certified by a Prime bank or Maltese Embassy in the country of residence. The bank also requires the authenticated identification documents for all the directors, signatories, beneficial owners and secretaries. An original copy of a utility bill to be certified by the bank may also be required.
    5. A completed form signed by the directors of the company appointing the bankers.
    1 day no charge
    4

    Register at the Companies Registry and obtain Tax Identification Number (TIN)

    Agency: Registry

    The following documents are submitted to the Companies Registry in order to incorporate the company:
    1. Confirmation of name reservation
    2. Signed memorandum and articles of association
    3. Confirmation of deposit of share capital
    4. Copy of the passport/ID of each shareholder, director and company secretary

    The Registry will take between 2 and 3 days to incorporate the company at which point the official memorandum and articles along with the certificate of registration bearing the registration number and registration date of the company are issued. These documents are then subsequently uploaded to the website of the Registry of Companies.

    The Registrar of Companies also provides an alternative service for the registration of Companies. Registration may now be carried out online through the Registry's portal. Prior to registration, an applicant must register for an account and obtain a personal Digital Certificate by registering for an e-ID. The MFSA would then vet the application within 5 working days.

    MFSA communicates C-number with the Inland Revenue Department (IRD) and IRD then creates an Income Tax Number. This normally happens within a couple of hours. IRD will then communicate this number to the company through email without the entrepreneur having to make a separate visit to the IRD.
    2 days on average If share capital exceeds €100,000 but does not exceed €250,000, they payment for electronic submission is calculated as €736 with the addition of €8 for each €15,000 or part thereof in excess of €100,000.
    5

    Obtain a trade license

    Agency: Trade Licensing Directorate

    Businesses can obtain licenses from the Trade Licensing Unit Commerce Department or through BusinessFirst. There are 2 main types of trading licenses depending on whether your business activity involves the handling of food and/or beverages and activities involving hairdressing, beauty treatment, fitness or physical well-being where a No Objection Declaration issued by the Environmental Health Directorate is required.

    Documents required:
    1. Notification Form.
    2. Copy of Passport or ID Card.
    3. Declaration of Shareholders or by Board of Directors in case the applicant is the legal representative of a partnership or company.
    4. Development Class Number allocated by MEPA (where applicable) and Building Permit Number issued by MEPA and date issued (where applicable).

    Legal basis: Trading Licenses Act (Chapter 441 of 2002) and its subsidiary legislation.
    10 days For commercial activities from fixed premises that are less than 800 square meters
    if the application approved between
    Jan - Mar = € 1,000.00
    Apr - Jun =€ 750.00
    Jul - Sept =€ 500.00
    Oct - Dec =€ 250.00
    6

    Register for VAT

    Agency: VAT Department

    To register for VAT, the entrepreneur submits the application form S.L. 406.09 "Value Added Tax (Forms) Regulations", along with the company Tax Identification Number (TIN). Furthermore, a copy of the memorandum and articles of association, and a copy of the original certificate of registration including the stamp of the Malta Financial Services Authority (MFSA) should be produced.
    7 days no charge
    7

    Obtain a PE number (employer identification number) and register employees

    Agency: Inland Revenue Department

    Both the VAT number and the Income Tax number are required to obtain the PE number
    For PE number: the registration form is available, the entrepreneur can either complete it online or print it and send it to IRD. The entrepreneur has to provide:
    - The tax ID number
    - The number of employees
    - Details of the business
    - Date of first employment
    3 days no charge
    8

    Register the employees with Employment Training Corporation (ETC)

    Agency: Employment Training Corporation

    The entrepreneur must declare the company's recruits to the ETC. The PE number is required.
    Less than one day (online procedure) no charge
    * 9

    Register for Data Protection

    Agency: Office of the Information and Data Protection Commissioner

    Such registration must be done before the company carries out any data processing operations. VAT and registration numbers are required according to the form to be submitted.
    1 day (simultaneous with previous procedure) EUR 23.29

    * Takes place simultaneously with previous procedure.