Coming up with the perfect idea for a start-up in Malta feels a lot like reaching the top of a mountain, but don’t pop the champagne bottles just yet – that’s just the very first step in your entrepreneurial journey.
We have already talked about the importance of due diligence and taking care of the legal side of things in previous posts, but today we’re going to dig a little deeper into the labyrinth-like world of compliance.
First things first: what is compliance? You’ll definitely hear this word from time to time when you’re setting up your business. In its broadest sense, ‘compliance’ refers to your ability to operate according to a set of rules and/or laws; it’s basically doing what you need to do to make sure everything is above board.
In the world of finance, compliance can be said to work on two levels:
- Compliance with any external rules or regulations applicable to a business or organisation as a whole
- Compliance with internal structures created and imposed to align with any external rules or laws
Why is it so important to do things the right way in terms of compliance?
Even though legal compliance is central to starting a real business, you’d be surprised to know how many new companies shoot themselves in the foot by ignoring or forgetting about this part of the process. The benefits of being compliant far outweigh the risks, which include anything from a hefty fine to jail time. Long story short: don’t skip out on compliance, ladies and gentlemen. It’s a pricey mistake to make and when you’re just starting out, every euro counts.
Getting Started with Compliance
At NM Group, our lovely team of experts know exactly what to do when it comes to launching a fresh new business and helping it get the best possible start right here in Malta. Our advisors are second to none when it comes to taking care of the technical side of starting a business. It’s our job to make sure your success is built on solid ground so that you can enjoy long-term success–that’s why we cover everything from compliance to payroll, legal advice, funding, and beyond. When it comes to compliance procedures specifically, the most important points to cover include:
- VAT registration: any person or entity who carries out commercial activity must be registered with the VAT department – even if you are exempt.
- VAT reporting: if you are charging VAT then you also need to keep a record of this. VAT reporting must be carried out monthly.
- MFSA: if you would like to register your venture as a company, then this must be done through the MFSA.
- Tax payments and NI: being your own boss means having to pay your own taxes and national insurance, along with that of your employees.
- Audits: By law, every company registered in Malta must engage an external entity to carry out a financial audit.
- Jobsplus: You as well as your employees must be registered with Jobsplus
These are just a few important processes that our team can take care of to make your life easier and put your start-up en route to success. If you’re looking to learn more about launching a start-up in Malta or simply want some advice on how to make sure you’re following the letter of the law, get in touch with one of our consultants today!
