Are you considering setting up a company in Malta? If so, you’re in the right place. Malta is becoming increasingly popular as a hub for international business, but there are both pros and cons to consider when it comes to opening a company in Malta.
In this blog article, we will explore the advantages and disadvantages of starting a company in Malta, so that you can make an informed decision.
The cost of living is low
Setting up a company in Malta can be an affordable option for businesses. The cost of living is low compared to other countries in Europe, making it an attractive prospect for many entrepreneurs. This means that salaries, rent, and other living expenses are relatively low, making it easier to operate a business in Malta.
Additionally, the government offers incentives for foreign investors looking to establish their branch in Malta or incorporate their business in Malta. These incentives, along with the low cost of living, make Malta a great choice for businesses looking for a place to set up shop.
There is a skilled workforce
When it comes to setting up a branch in Malta or incorporating a new business in Malta, it’s important to consider the available workforce. Malta has a highly-educated, multi-lingual population with a variety of specialised skills and qualifications.
It’s one of the few countries in Europe that produces more qualified graduates than there are available jobs, making it an attractive option for companies looking to recruit. This talented workforce can provide you with the necessary expertise to set up and run your business in Malta successfully.
English is widely spoken
Malta is a great choice for setting up a company due to the fact that English is widely spoken. In fact, it is one of the official languages in Malta, alongside Maltese. This makes it an ideal destination for those who want to open a branch in Malta or incorporate their business there. With English being so widely spoken, it makes it much easier to communicate with the locals. Also, to understand all of the regulations and requirements that come with setting up a business in Malta.
Furthermore, it also makes it easier to establish relationships with potential customers and suppliers. Overall, speaking English makes it much easier to do business in Malta.
There are incentives for foreign investors
Malta has been actively encouraging international companies to open up their businesses in the country by providing various incentives. Malta has become an attractive destination for foreign investors. Due to its political and economic stability, strong legal framework, modern infrastructure and generous tax benefits. One of the most beneficial incentives that foreign investors can enjoy is the tax credits or deductions on company formation.
Foreign investors who choose to incorporate in Malta can benefit from reduced tax rates and deductions. This is because Malta offers lower corporate income tax rates than many other countries. Including a zero percent rate for any profits earned outside Malta. Furthermore, the Maltese government has devised an extensive array of tax credits specifically tailored to international investors. Such as reducing the corporate tax rate for firms set up in Malta engaged in innovative activities and research & development.
Additionally, foreign investors also benefit from the reduced red tape and regulations associated with company incorporation in Malta. As a result, setting up a business in Malta can be done quickly and efficiently, meaning you can get started with your new venture as soon as possible.
There is a good quality of life
When it comes to setting up a business in Malta, one of the key advantages is the high quality of life. This is due to its beautiful climate and stunning scenery, as well as its bustling culture and vibrant social scene. For those looking to relocate and establish their business, there are plenty of activities to enjoy as well as a variety of accommodation options. In addition, Malta offers excellent healthcare facilities and educational opportunities, making it a great place to start a family too.
The cost of living is also low when compared to other European countries. This makes it a great choice for those looking to save money while incorporating in Malta. As food and groceries are priced in an affordable manner, entrepreneurs are free to concentrate their energies on the growth of their business rather than stress about everyday expenditures. This is especially beneficial for start-ups that have limited funds to invest. Furthermore, safety and security in Malta are very high and the country boasts a very low crime rate, giving business owners peace of mind knowing their investments are safe.
The cons of setting up a company in Malta
Malta is a relatively small country, and the availability of resources can be limited. Finding and hiring qualified staff can be difficult, especially if you require specific skills or industry expertise. The cost of living is low, but so are wages, which means that wages may not be competitive with other countries in the region. Taxes are also quite high in Malta, which can be a drawback for some businesses.
Additionally, the bureaucracy associated with setting up and running a company in Malta can be daunting. It is important to make sure that you have a good understanding of the laws and regulations before you start your business. To conclude, there are still certain regions in Malta with underdeveloped infrastructure which can cause issues. For example, sluggish internet speed and inconsistent power supply.
Speak to an expert
Setting up a company in Malta can be an incredibly attractive option. This is due to its low cost of living and skilled workforce. The availability of English speakers and incentives for foreign investors also make it a great choice. However, there are a few drawbacks to keep in mind. These include the limited size of the local market. Also, a sometimes confusing bureaucracy, and the need to comply with Maltese corporate regulations.
If you’re ready to get started incorporating your company in Malta then let’s go! Contact us to get started!