Worrying News from Libya Concerning to Malta
Posted: 20/03/2012 Filed under: Malta News, Small Business | Tags: business, Libya, Malta Leave a comment »
Considering the close proximity of Malta to Libya, it is well known by Maltese that things that happen in Libya can have a profound effect on Malta. With Libya’s interim government struggling with the area of Cyrenaica, Malta could get caught in the crossfire. With Cyrenaica announcing that they were going to break from the National Transitional Council of Libya and setting up a semi-autonomous government in Benghazi, Libya has vowed that they will not tolerate any secession and would keep Libya from splitting in any way possible.
Many Maltese businesses have interest in Libya and the further breakdown and struggle of the interim Libyan government is certainly troublesome to business leaders who have a stake in the country. Though many say it is too early to really get a good assessment of the situation,, the Maltese business community, especially those with close ties to Libya, could see a bumpy road over the next several months.
Those Libyan nationals who have taken root in Malta seem to be a bit more concerned about their homeland. One Libyan national stated that she believed her countrymen in Cyrenaica are simply confused about the role that the new government is taking. She said many Libyans are afraid that the new, interim government will turn into a copy of the Gaddafi regime and they are fighting against any changes, even though many of the changes would be good. She continued by saying they don’t understand that the Libyan government is helping, not hurting.
Overall, those in Benghazi seem to share a feeling of being left out of Libyan government unlike those in Tripoli. Maltese businessmen who have interests in the region are certainly hoping that Cyrenaica doesn’t break away from the new Libya, but only time will tell how the country will work out its internal problems.
Tips for Establishing a Business Premises
Posted: 23/05/2011 Filed under: Business Setup In Malta, Investment, Small Business | Tags: business, Lease, Premises, Purchase Leave a comment »
When considering a location for your business in Malta or anywhere the considerations are the same. Other than finding something in your budget you really have to take into account what kind of business you are planning on conducting. If you are a clothing shop, book store, or other retail shop you are probably looking for a place with good visibility and traffic flow. You are looking pedestrian shopping streets and shopping centres. These are the kind of places that draw retail customers. If you are a bakery or café, or a restaurant you also want visibility, and a popular place but you have more to think about. You have to have a building that can house the kind of equipment you need to use in making food, and the premises has to be able to pass all of the inspections, and obtain the required permits. If your business is more complicated, such as the opening of a new school you are going to want to consider space for classrooms, and a safe are for the children to pay in depending on their age. Hospitals and the like are very similar. You need space, particularly away from most of the major traffic outlets to avoid congestion. Warehouses or plants are entirely different. You need space, but you do not necessarily need to be visible. You need a place where you can work safely and where you can create your products and safely dispose of the waste from producing the product if any.
The point is that you need to consider what your business needs are before you jump on any real-estate. Beyond that the process is very basic. Consider the competition in the area; make sure that your location won’t strain your own business. If there are 5 other bakeries in the area it might not be an optimal location. Talk to the other shop owners in the area to see if the building has any issues that might be too much for you to take on. Make sure you are comfortable with the area as well for your safety and the safety of your employees.
Lastly if you are not planning to purchase, and are instead planning to lease then make sure you check that lease over and over again. Make sure there are no legalities in your lease or that you have over looked (Don’t forget any applicable permits!) that will hamper your business or trip you up later down the road.
Purchasing or leasing property in Malta is not wildly different from doing so in the UK, but there are enough differences that it is wise to work with a seasoned realtor.
Choosing Your Companies Legal Structure In Malta
Posted: 19/05/2011 Filed under: Business Setup In Malta, Small Business | Tags: Business Set-up, Legalities, Malta Leave a comment »
After deciding on what kind of business you want to run the next question for anyone on the same path is usually about whether or not they should incorporate. Under Maltese law incorporation takes place when you submit the Memorandum and Articles of Association for your company to the Registrar of Companies. The Memorandum and Articles of Association is essentially a contract between all of the share holders associated with your company. Before you can incorporate you must know your company’s legal structure.
A limited liability company is the most common legal structure. These companies usually have one legal person who is not also a member of the company. The members of this company have less, if any liability to any unpaid shares.
A partnership en commandite which means a limited partnership has a completely separate legal person. This kind of company generally has two different kinds of partners: General partners who have unlimited responsibility for the investments, and limited partners who have little to no responsibility.
A private company must have two share holders unless it is a private exempt company in which case it can be allowed to have only one owner. A private company has well defined limitations set in place by business laws such as the Companies Act of 1995. Under that law a private company must:
- · Not transfer any of its shares.
- · Must limit the number of members of its members to 50.
- · Cannot allow the public to take part in its shares or debentures even by invitation.
A public company must have at least 2 owners and has fewer limitations set in place by business laws regarding its shares. They are allowed to issue applications to their shares and debentures as long as the company is registered and each issue is accompanied by a prospectus.
The name of a private company must end in Ltd, meaning limited. The name of a public company must end in Plc. All company names must be original and not at all similar to any already established companies. Any company can be reserved with the Registrar of Companies for up to 3 months.
Make sure that you choose the legal structure that is correct for you and your company and do not be afraid to consult a lawyer versed in business law before doing so.
What Do You Need To Do To Set Up A Business In Malta
Posted: 17/05/2011 Filed under: Business Setup In Malta, Small Business Leave a comment »
For many, a dream of setting up their own business is just that, a dream. Whether it is because of a lack of funds, technicalities or legalities in setting up the business, or just lack of motivation, many would be businesses never get out of the dreamers stage.
For those that do manage to get out of the dreamers stage an launch their concepts and ideas into reality, there are many intricacies and legalities that need to be taken care of, if you intend to get your start up off the ground and running, and for it to remain successful.
In Malta, those legalities and intricacies should be followed carefully, for the simple reason that failing to do so will put you on an uneven keel before your business even has a chance to grow roots. That is no way to start a business.
So what do you need to know about setting up a business in Malta? (Note that I will explore each of these steps individually in future blog posts.)
- Companies and Commercial must be set up under the companies act.
- You must choose the companies legal structure. (Non-profit, for profit, corporate or personal business in your own name.)
- Sound commercial strategy and secure financing.
- Business Registration.
- Social Security Registration.
- Establishment of business premises.
- Obtain a VAT number
When setting up a business in Malta, it is important to also keep on top of the ever changing tax laws. Though Malta is clearly a very promising place for new businesses to set up shop, especially after reading in our previous blog about Malta’s favorable inflation rating, setting up a new business anywhere is challenging. If you make it out of the first year, you are already on sound footing. Most businesses that will fail will do so in the first year. It is therefore exceedingly important that when contemplating a new business, in Malta, or anywhere, that you ensure that you are as well informed as you can be, and that you take all of the appropriate steps.
For UK residents, Malta is a great place to set up a foreign business, simply because English is one of the official languages. Because of this, understanding the legalities and technicalities will not be hindered by a language barrier. It is also a small country, so getting in contact with people that can help you will not be a never ending struggle.
Expanding Your Small Business into Malta
Posted: 14/05/2011 Filed under: Malta Taxation, Small Business | Tags: Expansion, Malta, Small Business, Tax credit Leave a comment »
Planning to expand your current small business overseas? Before you make up your mind, you should consider Malta. With its stable government, low cost real estate and tax incentives, Malta should top your list of potential expansion sites.
Malta was given entry to the European Union in 2004 after meeting the acceptance criteria. Malta then became one of the most open economies in the region, a welcome sign for incoming investors and businesses. Companies looking for a positive foreign investment will find Malta’s attitude toward commerce refreshing. The government is pro-business, welcoming incoming new ventures and investors in order to see their economy continue to flourish. With a solid market, and open government your business can expand without worry.
In addition to laws set in place to keep businesses from being double taxed, Malta also keeps its international tax rulings in place for five years. This ensures no sudden tax changes or issues. They also offer tax incentives to small businesses looking to invest or expand. One of these tax incentives is called the MicroInvest Scheme. If your business meets the eligibility criteria you could receive a tax credit of up to 40% of your eligible expenditure with a cap of €25,000 for the duration of the incentive. Malta based businesses are eligible for up to 60% of their eligible expenditure with the same €25,000 cap.
The criteria are:
- Your business must not employ more than 9 full time employees.
- Your annual financial turnover may not exceed €2 million.
- Your business must be registered with the VAT department and have all of the applicable licenses and permits.
- You must pay all VAT, income tax and social security dues if there are any.
Qualifying costs include:
- Investments in refurbishing and upgrading of business premises.
- Investment in machinery, technology, apparatus and plant to enhance operations, reduce energy expenditure.
- Investment required for compliance of Health and Safety regulations.
- Investment in one motor vehicle used for the carrying of goods.
- Wages covering a 12 month period.
This tax credit is available until March 31st 2012 and can be extremely beneficial to a business, helping to offset the costs associated with expanding to a foreign country. With this tax incentive available as well as the current stability and low cost real-estate Malta is a top contender in the business market. Do your research, maybe even visit Malta with its near perfect climate and friendly English speaking populace. You are sure to find that it is an excitingly promising place to expand a small business.
Construction Rescues Britain
Posted: 23/08/2010 Filed under: Small Business | Tags: business concerns, Small Business Leave a comment »Britain’s economic recovery is booming according to latest reports due to the construction industry.
Our economic growth between April and June could be revised up to 1.2pc after construction output expanded even faster than expected. Revised construction output of 8.6pc – compared with an initial estimate of 6.6pc – would add 0.1 percentage points to earlier forecasts of 1.1pc GDP growth, other things being equal, a spokesman for the Office for National Statistics said.
The ONS said that the construction output growth was the strongest since the second quarter of 1963, and like then was driven by a sharp rebound following an unusually harsh winter.
“It does look incredibly strong, but there were good reasons for construction to be strong in the second quarter,” said Alan Clarke, UK economist at BNP Paribas.
“The snow had melted and the government was spending in a final fling before the election. Will it last? I doubt it. It was a one-off snow melt boost,” he added.
The initial GDP estimate of 1.1pc growth in the second quarter was the strongest in four years. Most economists expect it to represent a peak in the rate of recovery before growth slows later this year and in 2011 due to slowing overseas demand and impending budget tightening.
This is fantastic news for the UK economy, showing we are going from strength to strength in a lot of areas of industry.Small businesses across the nation will be benefiting from this too, make no mistake, even if they are not primarily in construction the improvement in the economy benefits all business.
Plimco Say the UK is Going to be OK
Posted: 10/08/2010 Filed under: Small Business, UK Company Set Up, UK Immigration | Tags: business, business concerns, corporate tax, Moving to London, moving to UK, VAT 1 Comment »I am always pretty sure that the UK is going to continue to be an economic strength despite the somewhat hard times we have been experiencing. It is always good to have outside confirmation of this though.
The UK have been backed by the world’s second largest bond house, Pimco, after they changed their aggressive stance against Britain’s gilts.
This is a major turn around from the beginning of the year when the very same company warned that the UK gilts (gilt-edged security) were “resting on a bed of nitroglycerine” as a result of the nations high levels of debt.
Strong words indeed and they caused a lot of angst at the time.
But after Pimco talking down the UK for much of the year they now seemed pleased since yields, which fell as gilt prices improved, have recovered from 4.27pc in February to 3.39pc.
The bond house have been quoted as saying “We do not expect the UK to fail in meeting its commitments”. For expert investors, Pimco added: “We believe exposure to the UK in the credit default swap (CDS) market offers a valuable opportunity.”
This dramatic change of stance has been put down to the Governments plan to attack the deficit. Mike Amey, an executive vice-president stated in his bid to support the Coalition Government “The coalition has demonstrated their intent to tackle the deficit immediately, and we think that is generally good news.”
I for one am happy with this new opinion, as I believe it shows the world that Britain is making a come back from our recession and that the likelihood of a ‘double-dip’ recession has decreased.
Austerity measures may well be as much about world opinion as anything else and I suppose we must look at the big picture for the UK economy.
Small Business to Prosper In The UK
Posted: 08/08/2010 Filed under: Small Business | Tags: business, business concerns, moving to the UK, moving to UK, Non Dom, Small Business, UK tax Leave a comment »I have always been confident that Britain is going to pull itself out of the recession and it is great to see the Bank of England have stepped up to lend a hand to small and large businesses alike.
They have done this by purchasing more corporate bonds in May and June under their qualitative easing programme in order to push cash into the economy, for businesses who have been struggling with the sovereign debt crisis.
Bank holdings of corporate debt rose from £1.36bn to £1.6bn in the three months leading up to June, its quarterly Asset Purchase Facility report showed. The Bank has bought £198bn of gilts from companies under the programme and continues to buy and sell around £2bn of corporate debt.
The Banks facilities have been made use of by Corporate’s in the past quarter as concerns about sovereign debts fed through to fears about companies, pushing the price of bond issuance higher and reducing demand.
“Increased concerns about the fiscal adjustment of some euro-area member states and banks’ exposure to sovereign debt fed through into other risky asset prices, such as corporate bonds,” the Bank said. “The resulting increase in uncertainty and volatility saw conditions in UK corporate debt markets deteriorate marginally during May and early June.”
The cost of raising debt through bond issuance, compared with Government gilts, increased by 0.3 percentage points. “Issuance was lower than in 2009 but broadly in line with historical averages. Market contacts suggested that some firms had delayed issuance as a result of market conditions,” the bank said.
This is all good news for Britain and the both large and small businesses that reside here. In times of austerity it is important, in my opinion, that we highlight the positives and at the moment I must say I do not have to search very far to find them.
Small business may well prosper under this government. Time will tell.
A License To Print Money In The UK?
Posted: 29/07/2010 Filed under: Small Business, UK Investment, UK Taxation | Tags: business, business concerns, corporate tax, corporation tax, economy Leave a comment »In recent news it was revealed that economist believe the Bank of England could restart quantative easing in the near future. What does this mean in real terms, well, basically the government is considering printing more money. Whether this is a good or a bad thing, just like with VAT rises, depends on who you talk to.
Minutes have been released from this month’s BoE rate-settings meeting and showed that the topic of “money printing” had been discussed for the first time since February.
The discussion was prompted by fears over the economic recovery.
“In the light of the news over the month, it seemed likely that growth would be weaker than previously expected,” the minutes said.
In a broad debate about policy actions in the event of an unexpected weakening or strengthening of the economy, the minutes suggested: “A further modest monetary stimulus would act to offset the softening in demand prospects and make it more likely that the inflation target would be met in the medium term.”
Vicky Redwood of Capital Economics noted that the discussion was “perhaps the clearest steer so far that more QE could yet be on the agenda”, and added: “July’s minutes suggest that a near-term interest rate hike still looks unlikely. What’s more, there were some dovish comments from other members, who noted that the prospects for GDP had deteriorated a little.”
Philip Shaw at Investec agreed, saying: “The key change was that members recognised that the outlook for activity had weakened since June’s meeting, and as a result, actively discussed the option of easing policy again… We cannot rule out a further round of QE… The outlook for interest rates is shrouded in uncertainty.”
Uncertainty indeed, with the government saying one thing and the Bank of England saying another, how are the British public supposed to know where they stand? I think they need to converse with each other in order to give us an honest answer.
Interest Rates To Rise Or Not To Rise
Posted: 27/07/2010 Filed under: Small Business, UK Immigration, UK Taxation, Uncategorized, VAT | Tags: business concerns, corporation tax, tax refunds, Taxation, UK tax, VAT Leave a comment »Andrew Sentance was on his own in calling for a rise in interest rates from 0.5pc to 0.75pc for a second month running. With VAT up, taxes up and employment down it seems to be one of the few things to stay stagnant.
Mr. Sentance argued that “the inflation outlook had shifted sufficiently to justify beginning to raise interest rates gradually”.
The rate of inflation has remained constantly high this year and despite falling 0.5pc, from 3.7pc to 3.2pc in the past two months, is still way above the banks target of 2pc. However the call was denied again as majority of members believe inflation will fall over time.
The minutes from a Bank of England rate-settlement meeting read “the weight of evidence from both home and abroad continued to indicate that the margin of spare capacity was likely to bear down on inflation and bring it back to the target in the medium once the impact of temporary factors had worn off.”
This time however, there was some sympathy with Mr. Sentance as policymakers acknowledged that inflation is “likely to remain above target for some months as the impact of the past increases in indirect taxes and oil prices, and the depreciation of sterling offset downward pressure on inflation from spare capacity”.
The increase in VAT to 20pc is also “likely to add to inflation [as] some companies may anticipate the increase by raising prices in advance”. They fear a rise in “medium-term inflation expectations” becoming entrenched by feeding into pay settlements.
However, the “committee’s central view remained that the substantial margin of spare capacity was likely to persist for some time and would bear down on inflation over the medium term”.
In my humble opinion this view is good, UK tax payers are happy to keep the 0.5pc interest rate, Mr. Sentance needs to stop pushing for this and let the market settle in its own time. It seems there are more than one or two experts who agree with me.
