Operating a Business

flag Malta Malta: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labour | Social Partners

 

Setting Up a Company

Private Limited Liability Company (LTD)
Number of partners: Minimum 1 shareholder, maximum 50 shareholders.
Capital (max/min): EUR 1,200 minimum with at least 20% to be paid upon subscription.
Shareholders and liability: The liability of the partner is limited to the amount of the capital contributed.
Public Limited Liability Company
Number of partners: Minimum 2 shareholders, maximum 50 shareholders.
Capital (max/min): EUR 46,600 minimum with at least 25% to be paid upon subscription.
Shareholders and liability: The liability of the partner is limited to the amount of the capital contributed.
Sole Trader
Number of partners: 1 partner
Capital (max/min): No minimum capital required.
Shareholders and liability: The liability of the partner is unlimited.
General Partnership
Number of partners: Minimum 2 partners, maximum 20 partners.
Capital (max/min): No minimum capital required.
Shareholders and liability: Each partner is personally and indefinitely responsible for the debts and other commitments on behalf of the company.
Limited Partnership
Number of partners: Minimum 2 partners, maximum 20 partners.
Capital (max/min): No minimum capital required.
Shareholders and liability: At least one of the partners is responsible personally and indefinitely for the debts and other commitments on behalf of the company. Sleeping partners' liability is limited to ther contribution.
The Competent Organisation
Companies should be registered at the Registry of Companies, which is under the guidance of the Malta Financial Services Authority (MFSA).
 
Business Setup Procedures
Trade Register

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The Active Population in Figures

201820192020
Labour Force 236,718249,860261,997

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 71.18%73.25%74.39%
Men activity rate 82.60%83.62%83.80%
Women activity rate 59.16%62.35%64.49%

Source: International Labour Organization, ILOSTAT database

 

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Working Conditions

Legal Weekly Duration
The number of normal working hours per week is 40 hours.
Retirement Age
60 years for women, 61 years for men.
Working Contracts
The work contract is mainly governed by the legal provisions of Conditions of Employment (Regulation) Act. Employment contracts can be on fixed or indefinite term and on a full time or part time basis.
Labour Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

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Cost of Labour

Minimum Wage
The minimum wage is EUR 784.68 per month in 2021 according to Eurostat.
Average Wage
According to the National Statistical Office of Malta, the average salary was EUR 1,536 per month in 2020.
Social Contributions
Social Security Contributions Paid By Employers: 10% of the employee's weekly salary (for annual salaries higher than 24,986 euros a weekly fixed rate of EUR 48.57 applies)
Social Security Contributions Paid By Employees: 10% of the employee's weekly salary (for annual salaries higher than 24,986 euros a weekly fixed rate of EUR 48.57 applies)

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Social Partners

Social Dialogue and Involvement of Social Partners
The main union of the island is the General Workers' Union - GWU.
The regulations governing the unions are based on the Industrial Relations Act of 1976.

 

 

 

 

Unions
General Workers' Union of Malta
Unionisation Rate
Trade union membership has grown considerably in the past 20 years. Of around 86,000 members, nearly three-quarters are men. Union representation in the public sector is very strong. Unionization in the private sector is considerably lower than in the public sector. Around one-third of full-time employees of the private sector are covered by collective agreements.
Labour Regulation Bodies
Employment and Training Corporation

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Latest Update: April 2022