register company in malta

How To Choose The Best Business Setup in Malta

When starting a business as a foreigner in Malta, you should be able to register the right type of business for you.

Each setup differs and each one of the types comes with different applications.

Let's go through different types of business registration in Malta to help you choose the right one.

1. Sole Proprietorship πŸ’»

This is the most straightforward kind of business to set up.

You just run the company as an individual, with no partners or shareholders.

Best for freelancers.

What are the pros & cons of a sole proprietorship?

It's easy to manage and requires minimal paperwork.

Your personal finances and business finances aren't separate - you're personally responsible for all the debts and risks of your business.

2. Partnership 🀝

A partnership is when two or more people share ownership and responsibility for a business.

There are two kinds of partnerships:

  • general partnerships where everyone shares the profit and loss equally,
  • limited partnerships where some partners only invest money and don't get involved in management.

What are the pros & cons of a partnership?

Partnerships are easy to start and require little money, but everyone involved is personally responsible for the debts and risks of the business.

3. Private Limited Company 🏒

This is the most common type of company registration in Malta.

A private limited company is a separate legal entity from its owners, with limited liability for shareholders.

What are the pros & cons of a private limited company?

Your personal assets are safe from business risks.

But, there's more paperwork and legal requirements, and it can be expensive to set up too.

4. Public Limited Company πŸ“’

Setting up a company in Malta as a public limited company is similar to your private limited company.

The difference is that the company can sell shares to the public, but they have limited responsibility for the business’s losses.

What are the pros & cons of a public limited company?

Only suitable for big businesses, and it comes with strict regulations and reporting requirements.

5. Branch Office 🌳

A branch office is a solution when you own a foreign company that wants to establish its presence in Malta.

It’s a direct extension of your parent company.

What are the pros & cons of a branch office?

It's a cost-effective way to do business in Malta, but the parent company is still responsible for all debts and risks.

Also, it may be hard to get financing or credit.

Choosing the right kind of business you want to start in Malta depends on your goals and circumstances.

Think about the pros and cons of each option before making a decision.

You may also want advice from a professional to help you through the process, you can also check out our tips on setting up a company in Malta, or simply reach out to us.

We will do our best to advise you. 😊

β˜€οΈ [email protected]

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