Roadmap booklet English

8/8/2019 Roadmap booklet English

http://slidepdf.com/reader/full/roadmap-booklet-english 1/33



Published by M alta Enterprise

© Malt a Enterprise 2004

Roadmap for starting a

NEW BUSINESS



Int roduct ion 1

Using this Guide 1

Hints and issues 2

Glossary 2

The First Steps 3

Stage 1 3

Stage 2 4

Stage 3 4

Stage 4 4Stage 5 4

The Start -Up Mentor 5

Choosing your mentor 5

What to look for 5

Whom to choose 5

The mentor / advisor 6

The Legal Format 7

The legal formats 7

Sole Trader 7

Partnerships 8

Private Limited Liability Companies 8

Co-operat ives 9

Making the choice 9

The Business Plan 11

Elements of a Business Plan 11

The Business Plan in out line 11

Bank Facilit ies 13

Normal bank accounts 14

Current accounts 14

Savings or term accounts 14

Special facilit ies 14

Overdrafts and loans 14

Seed and venture capital 15Other 15

Bank cards 15

Company in Formation accounts 15

Bank t ips 16

Register the Company 17

Preparing to register the Company 17

Registering the Company 17

Register w ith ETC 19

Declarat ion of Commencement of Employment 19

For self -employed 19

For employees 19

First t ime employment 19

The forms 20

Get t ing the forms 20

Submitt ing the applicat ion 20

Contents



Register with Inland Revenue 21

Registering yourself 21

Applicat ion 21

Your personal Provisional Tax and Social Security Contributions 21

Registering your Company 22

Applicat ion 22

Report ing 22

Employing staff 23

Applicat ion 23

Employee deduct ions 23

Start ing your report ing 24

Register with the VAT Off ice 25

Registering for VAT 25

Anyone registering for VAT 25

Registering a Partnership 25

Registering a Limited Liability Company 25

If you are already VAT registered 27

Report ing 27

Further details 27

Obtain a Trading License 29

Import /Export Licenses 30

Planning Permits 31

The new business 31

Environment and planning 32

Account ing Assistance 33

Data Protect ion 34

IT & Communicat ions 35

Telecommunicat ions 35

Telephones 35

Mobile phones 36

Fax 36

E-mail 36

Internet 37

Off ice equipment 37

Computers 37

Printers 37

Scanner 38Photocopier 38

Off ice applicat ions 38

Business applicat ions 38

Other useful applicat ions 38

Network 39

Shredder 39

IT administrat ion & support 40

Protect Your Ideas 41

Trademarks 41

Patents 41

Designs 41

Copyright 41

Register your intellectual property 42

Useful Addresses 43

Glossary of Terms 47



If you are about to embark on a new business venture th en you are faced with

the task of getting all the pieces together in the right order and at the righ t

time to ensure a quick and smooth start-up for your business.

The setting up of a new business is a relatively straightforward process if you

know the right approach. But not everyone knows what is required and,

wit hout proper guidance, it can be a daunting task.

This booklet is intended to address this problem by making the process of

setting up a new business clearer. It is intended to offer you a simple roadmap

of the various tasks that you need to undertake when starting a new business.

This booklet provides you with a clear and comprehensive checklist of the

activities you need to undertake. It also helps you to identify the various

entities that you w ill need to contact as part of the sett ing up process of the

new business.

In addition it provides you with hints on specific issues that you need to be

aware of wh en embarking on your new start-up journey.

However, there are instances where you must follow the prescribed sequence. An

example is when a company is registering for VAT. This can only be done once

you have registered with the Registry of Companies and the Inland Revenue.

It is therefore recommended that you follow the sequence give wherever possible

if you want a rapid and smooth jo urney tow ards your business start up.

Hints and issues

Within the contents of t his booklet, specific hint s or warnings have been

included (Coloured exclamation mark) to better help you identify key actions

or issues that need to be tackled.

Introduction

As you read this booklet, you will definitely come across some ‘phrases or

terms’ that w ill be new t o you. A glossary giving a brief definit ion of these

terms has been included to help you understand them. The ‘ Glossary of Terms ’

can be found at the end of t his booklet.

Glossary

1 2

!This signifies a ‘Hint’ or a ‘Suggestion ’

This signifies a ‘ Stop ’ or a ‘ Major Issue ’ that requires special attention

and which needs to be tackled before proceeding.!This guide outl ines the main steps that you will need to f ollow when starting

your new business journey.

In some instances the steps listed in the guide have to be followed in sequence.

However, this does not mean that you cannot carry out tw o or more steps

simultaneously when it is logically possible to do so.

Using this Guide



Start ing and managing a business demands motivat ion, desire and talent . It

also requires market research and good planning.

Being successful in a small business can on ly be achieved if you t ake t he

correct actions in the right manner from the very start of your new business

journey.

When start ing a b usiness some ini tial mistakes are inevit able. Whil e these may

not n ecessarily prove fatal, it w ould be a lot better t o spend t ime and effort in

careful planning than in correcting mistakes.

If you want to succeed, you need t o spend the time to explore and evaluate

your personal and bu sinessobjectives. You need to be very clear in what you

want to achieve both p ersonally as well as in your chosen business.

Once you are clear on your p ersonal and business objectives, you can t hen use

this information to build a comprehensive and well-prepared plan of action

that will help you reach these goals.

The first steps in setting up a new business are t he most crucial on es. These

can determine the success or failure of your new venture. Certain important

points which you need t o consider have been listed on the f ollowin g pages.

The First Steps

!

The process of developing a Business Plan will help you think through

some important issues that you may not yet have considered. Your

Business Plan is a valuable tool not only to help you to raise money

but also to serve as your map on the road to success.

Stage 1

Before starting out, list your reasons for wanting to go into business.

Some of the most common reasons for start ing a business are:

• You want to be your ow n boss

• You want financial independence

• You want creative freedom

• You w ant t o use your skills and knowl edge for your own gain

Stage 2Next you need to determine what business is " right for you." Ask yourselfth ese q uestio ns:

• What am I good at?• What do oth ers think t hat I am good at?• Do I have a pastime or hobby that is marketable?• Do I have the support of my f amily?

Stage 3You need to identify the niche or special need that your business will fill:

• What sort of business am I interested in starting?• What services or products will I be selling?

Stage 4You will then need to carry out the necessary research to answer these questions:

• Is my idea practical?• Is there a need f or m y services or p rodu cts?

• Can I create a demand for my bu siness?• Can I deliver a quality service or product?• What is my competition ?• What is my advantage over t he competition?

Stage 5The final step before moving on t o develop your plan is to carry out a pre-Business Plan checklist. You need to answer these questions:

• What skills and experience do I bring to the new business?• What w ill my legal structure be?• What wi ll I name my b usiness?• How will my business records be maintained?• Do I need i nsurance cover?• What equipment and supplies will be needed?• Do I need to employ people?• Do I need t o engage external providers of services?• What fi nancing wi ll I need?• Where w ill I l ocate my business?• How wil l I get paid?

Your answers will help you create a focused, well-researched plan of actionthat should serve you as a map for success.

3 4



THE MENTOR / ADVISOR

There are various firm s as well as individuals who can provide you wit h excellent

advice and mentoring when you are starting a new business.

You have various choices open to you ranging from qualified individuals to

large firms. Your choice will be determined by the size of your business, the

level of service you require and the b udget you have allocated f or such services.

Talk to the firms or individuals whom you think would be suitable

for you.

Choose the one whom you feel most comfortable w ith.

!

!When you are setting up your new business you will definitely need some

advice on t he best available options for your new initiati ve.

You wi ll need to know what enti ties to contact and what you need to do t o

comply with the current laws and regulations that affect your particular

business activities.

A reliabl e advisor, who is capable of giving the r ight advice and assistance, is

essential. A good advisor will be happy to offer you sound advice during your

start-up process; however, the quality of this advice will depend on the

completeness and accuracy of the information that you provide.

The Startup Mentor

Do not use someone as an advisor just because “ he has been in

business for quite some time! ”

This does not assure you that you will get good advice. You may

actually be getting advice that is out of date. This could put you in an

irregular position w ith t he authorities regarding compliance w ith t he

latest regulations.

5 6

CHOOSING YOUR MENTOR

What to look for

When selecting your mentor / advisor you should check that the advisor:

• Is knowledgeable about new start-ups

• Has experience with businesses such as your own

• Is informed on local laws and regulations

• Is really interested in helping you and not just looking at you as another

source of revenue

• Will be available not only during t he initial planning but also during the

first crucial months of your new venture

Whom to choose

When it comes to choosing a suit able advisor wh o has experience with assistin gbusiness start -ups, you w ould prob ably be best served by someone wh o is:

• A Business Ment or / A dvisor or

• An Accountant or

• A Lawyer

in that particular order of preference.



When you come to set up your new business you will need to decide what

legal format you want to op erate under. This is one of t he most impo rtant

decisions you need to take at an early stage as this will determine how you

will operate your business in the fu ture.

THE LEGAL FORMATS

The most commo n legal for mats for businesses are:

• Sole Trader

• Partnerships

• Private Limit ed Liabilit y Companies• Cooperatives

To determine w hat legal format is best f or you, you need, first of all, to

understand some of the b asic diff erences namely:

1. Sole Trader

Sole Traders need t o regi ster wit h t he Inland Revenue as self-empl oyed.

Unlike ot her business format s, Sole Traders (and Part nerships) can start

trading straight away as long as the required permits and registrations are

carried out .

Liability: If the business fails, then the owner is fully

responsi ble fo r all t he business debt s.

Management: The owner is solely responsible for controlling the

business. The owner’s word is final.

Finance: Normally, the owner's personal money.

Profits: All profit s go to t he owner.Taxes: Self-empl oyed status. Even if the o wn er does not

draw on t he prof its they are still taxed. Losses can be

offset against tax on ot her income.

2. Partnerships

Partners need to register with the Inland Revenue as self-employed. It is

wise to seek the advice of a lawyer and form a 'deed of Partnership'.

Liability: If the business fails, then the owners are fully

responsible f or all the business debts.

Management: The partners share responsibility for controlling the

business.

Finance: Generally, the partners’ private funds provide the

Company’s finances.

Profits: All profits are shared between the partners (asagreed within the 'd eed of Partnership').

Taxes: Self-emplo yed stat us. Even if th e partn ers do not

draw on the profits they are still taxed. Losses can be

off set against t ax on ot her income.

3. Private Limited Liability Companies

Companies cannot just start operating but need to f ollow a predefined

process of registration and set-up (please refer to the section ‘ Register th e

Company ’ on page 17). It should be noted that a Company is a legal entity

in its own right.

Liability: The sharehold ers' p ersonal assets are protected if t he

business fails (Limited Liabilit y). The sharehold ers can

only lose what they have put into the business.

Management: The business is cont roll ed by t he Board of Directors.

Each director is held personally responsible for its

management and must act in the Company's bestinterests.

Finance: Generally, the shareholders’ private fu nds and/or

bank facilities provide the Company ’s finances.

Profits: Dividends are paid to the shareholders.

Taxes: The Company p ays taxes on it s profit s. All emp loyees

and directors pay taxes on income earned through

wages, salaries or other forms of remuneration.

The Legal Format

7 8



4. Cooperatives

A Cooperative is similar to a Company b ut its employees, or a larg e

percentage of them, own the Company. A Cooperative cannot just start

operating but needs to f ollow a predefined process of registration and

set-up (please refer to the section ‘ Register t he Company ’ on page 17). It

should be not ed that a Co-operative is a legal entity in i ts own right .

Liability: The sharehold ers' (employees’) personal assets are

prot ected if the business fails. The shareholders can

only lose what they have put into the business.

Management: A Board of Directors contro ls the business. They areeach held personally responsible for its management

and must act in the Cooperative’s best interests.

Finance: Generally, the sharehold ers’ personal money or bank

facilities provide the Company finances.

Profits: Dividends are paid to the shareholders.

Taxes: The Cooperat ive pays taxes on its prof its. All

employees and d irectors pay taxes on income earned

through wages, salaries or other forms of

remuneration.

MAKING THE CHOICE

The type of legal format you choose depends on what type of business you

will be setting up and w hat industry sector you will be operating in. In addition

it also depends on t he number of people investing money in the new venture.

The legal format of your new business should be reflected in your Business

Plan and the strategies contained therein. Please refer to the next section formore details about the Business Plan.

9



!

Once you have completed your Business Plan, review it with a friend or business

associate. When you feel comfortable with the content and structure, make an

appointment to review and discuss it with your business advisor.

You may want to seek external assistance with the preparation of the BusinessPlan. Malta Enterprise offers guidelines and guidance on preparing a solid

Business Plan w ith all i ts essential component s.

One of t he most imp ort ant corn erston es of start ing a b usiness is the Business

Plan. Business planni ng is a process that every enterp rise shoul d u ndert ake as

it provides the basis for sound management.

The plan should detail how the business will be operated, managed and

funded. It should be your blueprint for all your activities not on ly during t he

start-up phase; but also throughout the lifetime of your business.

ELEMENTS OF A BUSINESS PLAN

The cardinal elements of the Business Plan are:

• The Marketing Plan

• The Operations Plan

• The Hum an Resources Plan

• The Financial Plan

Appendi ces can be included in t he Business Plan and shoul d cover support ing

documents, market research findings and financial projections.

THE BUSINESS PLAN IN OUTLINE

Below is an outline of the main areas that would be covered in a typical

Business Plan.

The Business Plan

1. Executive Summary

2. Mission Statement

3. Table of Cont ents4. Descripti on Of Produ ct or Service

5. The Mark eting Plan

6. The Operations Plan

7. The Human Resources Plan

8. The Financial Plan

9. Str ategic Optio ns

10. Mi leston e Schedule

11. Suppo rti ng Documents

The Business Plan

What is actually included in each specific Business Plan depends a

lot on t he type of business and the industry it int ends to operate in.

This is particularly true of the financial details section of the plan.

It is important to note that a Business Plan is not intended just to help

you acquire funds from the bank, or as a document required by some

agencies to provide you with assistance.

The Business Plan should be your constant companion – something

which is constantly evolving and against which you can measure your

progress towards achieving your business objectives.

11 12

!



NORMAL BANK ACCOUNTS

When you are starting your new b usiness you w ill need to open one or mor e

accounts of the types described below:

Current accountsYou w ill need to open at least on e ‘current account ’ for your daily banking

activities. The bank will issue a chequebook for use with this account.

You may want to have more than one current account for different uses. You

might, for example, prefer to keep a separate account specifically for paying

out wages and salaries.

SAVINGS OR TERM ACCOUNTS

You may also need to think about having a different account to hold funds that

are being kept in r eserve for special reasons. Such account s could be used for :

• Payments on account fro m clients;

• Depositing money held as a reserve;

• Reserving money t o pay taxes such as VAT or Nation al Insurance cont ribu tions.

As a minimum you w ould normally w ant to have at least one ‘savings account ’

or ‘term account ’ for such use.

SPECIAL FACILITIES

Every business needs worki ng capit al in o rder t o have enoug h disposable

funds available for operating the business until it starts generating sufficient

revenues. There are various ways in which you can acquire such working capital.

Overdrafts and loans

One-way of acquiring the necessary working capital w ould be t o get a ‘Loan’

or an ‘Overdraft Facility’ from your bank. The one that is most appropr iate for

you depends on your specific circumstances and on what facilities the bank is

prepared to off er.

!One of the first actions you need to take when starting a new business is to

set up bankin g f acilities. These facilit ies can be listed as follo ws:

• Normal Bank Accounts

i. Current accounts

ii. Savings or term deposits

iii. Fixed deposits

• Special Facilities

i . Overdraf t

i i . Loan

iii. Seed capitaliv. Venture capital

• Other

i. Bank cards (Debit / Credit cards)

ii. “ Company in Formation” account

At some point you will need to choose a bank. There are a number of local

banks off ering similar services. However, each bank off ers these services under

different terms and condition s. Therefore, when selecting a bank i t i simportant to ask:

• Can you convin ce them th at you are serious about your b usiness?

• Do you feel comfortable w ith t he selected bank?

• What are their charges and do they offer facilities for start-ups?

• What f acilities are they prepared to offer you?

• What rates of in terest w ill t hey charge?

It is definitely important that you select t he bank carefully and t hat you are

aware of these differences before you decide on which bank to use.

!

Bank Facilities

13 14

You should not arrange any facilities with the bank until you have

completed your Business Plan. Only then will you be in a position to

really know what bank facilities you actually require.

Most bank managers would want to see your Business Plan before

taking decisions on what f acilities to offer.

Seek advice on the different services and facilities offered

by each bank. Choose the one that best meets your specific

requirements.



Seed and venture capital

Certain new businesses need a substantial injection of capital to be able to get

the business off the ground. There could be, for example, unexpected delays

between the start of operations and the generation of revenue. In such cases

you must ensure that you have access to sufficient funds until you become

fully operational.

Therefore, you may need to acquire ‘Seed Capit al’ or ‘Venture Capital’ from

‘Venture Capitalists’ or ‘Business Angels’. Malt a Ent erprise can advise you on

what would be the best approach if you need to acquire such capital.

OTHER

Bank cards

You could also apply for a debit and/or a credit card specifically for your

business activi ties. This helps you t o k eep bu siness tran sactions made b y credit

/debit card separate from your personal ones.

Company in Formation accounts

If you are about to set up your business as a Company then you will need to

open a special type of bank account called a ‘Company in Formation Account ’.

The money that you deposit int o t his account will be made available for your

norm al business activit ies aft er you have regi stered t he Company.

A copy of the ‘Company in Formation Account’ deposit slip w ill need

to be attached to the ‘Company Registration Application Form’ whenthis is presented to the Registry of Companies at MFSA.

!

You will need to open this account in order to deposit the paid-up

share capital into it before you register the Company.!

!

! You will definitely need to have a solid Business Plan if you think that

you may need to obtain Venture or Seed Capital.

15 16

If you are setting up your business as a Company and you intend to

apply for a debit or credit card in the name of the business, then you

will need to present the bank w ith a copy of the supporting ‘Board

Resolution’. In t his resolution you w ould normally need to include the

person or persons who have been authorised to use the card.

BANK TIPS

Before you go to t he bank and meet the bank manager, you need to be well

prepared. Here are a number of tips that you should remember.

• Present yourself positively and demonstrate your commitment and

enth usiasm f or your business.

• You will need to explain in detail the reasons why you are seeking bank

funding . This will enable the bank t o infor m you of t he most appropriat e

type of funding to meet your business' needs.

• Demonstrate t hat you have the appropriate experience and drive to run

your business effectively.

• Show t hat you have the abilit y to prod uce up-to -date and accurate financial

informat ion t o reassure th e bank about your control over the business.• Ensure that you have cash flow and budget forecasts that cover the period

for which you are requesting the f acility.

• It is also essential that you clearly outline the sources from where you

expect to make the necessary repayments for the bank facilities.

• Ensure that you establish the correct amount that needs to be borrowed,

allowing for unexpected expenses. Borrowing t oo much w ill incur mor e

interest t han you need to p ay. Borrowi ng to o lit tle may leave you wit h

insuffi cient f unds and wil l force you to return to t he bank at a later date.



The operations and activities of companies operating in Malta are regulated

by the Companies Act of 1998 which stipulates, amongst other things, that all

companies in M alta must be registered w ith the ‘Registry of Compani es’.

If you have decided to set up your n ew b usiness as a Limited Liabili ty

Company, there are a number of the key points that you will need to consider.

PREPARING TO REGISTER THE COMPANY

Prior t o registering a Company, you need t o consider and carry out the f ollow ing:

1. Define who the ‘shareholders ’ will be

2. Define the ‘share capit al ’ of t he Company

3. Determine how much the ‘paid up share capital ’ will be

4. Determine who the ‘directors ’ of t he Company will be

5. Determine who the ‘Company secretary ’ will be

6. Define what the main ‘lines of business ’ for t he new Company will be

7. Choose a 'registered offi ce '

8. Choose a Company name

9. Prepare the ‘Memorandum of Association ’

10. Prepare the ‘Art icles of Association ’

REGISTERING THE COMPANY

Once you have taken care of t he above you are ready to r egister t he Company.

Company applications are made at:

Registrar of Companies

Registry of Companies

Malt a Financial Services Aut hori ty

Attard

!The information for points 1 to 8 should be defined in your

Business Plan.

Register the Company

17 18

The entrance to t he Registry of Compani es (ROC) is situ ated at the b ack of t he

MFSA building. When you go t o the ROC you will need to t ake with you:

• A copy of t he ‘Memorandum and Articles of Association’

• A copy of the bank ’s ‘Company in Formation’ account deposit slip

• A copy of t he passport or some other official document of identifi cation

(if t he application is being made by an i ndividual)

• A copy of a certificate confirmin g the existence of the enti ty (if t he

application is being submitted b y a Company or ot her entit y)

A staff member at th e ROC will help you to fill i n the appropr iate applicationform, w hich will th en be forwarded t o the Registry fo r vetting. This normally

takes around four workin g days unless problems are encountered d uring the

vett ing process.

As part of the application process you should order at least four ‘certified

copies ’ of the Company’s ‘Memorandum and Art icles’, which will be issued by

the ROC. You will need these copies for various purposes such as:

• Opening Company b ank account s.

• Registering for VAT.

• Your o wn Company records.

! When you register a Company, there is a registration fee plus a small

charge for the ‘certified copies’, which you have to pay when you

hand in the application form.

Once the application has been vetted, you can then pick up the ‘Company

Registration Certif icate’ and the ‘certified copies’ from the ‘Registry of Companies’.



THE FORMS

Getting the forms

The relevant Employment and Training Corporation application forms may be

obtained from the:

• ETC office at Hal Far

• ETC off ice at Victo ria Gozo

• Job Centres

• Local Councils

• Department of Social Security Area Offices

Submitting the application

The completed Employment and Training Corporation application forms and

any supporting documents, as outlined above, should be sent to the ETC

offices in Malta or Gozo, which offices can be found at:

MALTA GOZO

Employment & Training Corporation Employment & Training Corporation

Human Resources Infor matio n Unit Mgarr Road,

PO Box 20 Victor ia

Birzebbugia BBG 01

!

When you are startin g a new bu siness you will need to inf orm t he

Employment and Training Corpor ation (ETC) of t he change in your emplo yment

status. This is done by filling in the relevant declaration form.

DECLARATION OF COMMENCEMENT OF EMPLOYMENT

For self-employed

This declaration should be filled in by any person who is starting self-employment

for the fi rst t ime or by anyone wanting to r esume self-employment.

For employeesOn employing new staff a self-employed person must fil l in the Declaration of

Commencement o f Employment for every new person empl oyed. In every case

of new employment, the engagement for m duly filled in is to be sent t o the

ETC on t he same day of commencement of employment .

FIRST TIME EMPLOYMENT

If you are being employed for the fir st t ime then you will need:

• A birth certificate from the Public Registry

• Your identity card• Forms NI 3 and NI 5 from t he Departmen t o f Social Security

(Maltese nationals only)

• A Malt ese person under 21 years of age but holding dual nationality

requires a Certificate of Nationality fro m th e Department of Citizenship

and Expatriate Aff airs

• A non-M altese national requires

i. An Employment Licence from t he Department of Citizenship and

Expatriate Af fairs

ii. A Certif icate of Exemption f rom Social Security Contribut ions by the

Department of Social Security

!

Register with the ETC

19 20

You w ill need t o ensure that the relevant application forms are sent in

to ETC prior to commencement of employment. These forms must be

received by ETC by the first date of employment.

Employment forms can be sent in electronic format through the

ETC web site at www.etc.org.mt.

To use this service you will need to first register by filling in the

registration form in the Membership Section.



REGISTERING YOURSELF

Application

If you are not registered with the Inland Revenue Department (IRD) then you

will need to apply for registration at the:

Customer Care Section

Block 8

Inland Revenue Depart ment

42 Vincenzo Dimech Street

Floriana

You will n eed to take with you:

• Your identity card, or

• Some ot her f orm of ident ifi cation, such as a passport .

Non-Maltese nationals, or tho se wit h dual nationalit y, need to t ake with them:

• A Certificate of Nationality from the Department of Citizenship and

Expatriate Affairs (if under 21 years of age)

• An employee licence from the Department of Citizenship and Expatriate

Affairs (if applicable)

Your personal Provisional Tax and Social Security Contributions

Self-empl oyed or self-o ccupied persons wi ll need to submit payment of the

Provisional Tax (PT) and your Social Security Contributions (SSC) every four

months to the IRD. Relevant rates of payment can be obtained from theDepartment’s Custom er Care Sectio n.

Register with Inland Revenue

22

Alternatively, you can also contact the:

Contributions Section

Block 3A

Inland Revenue Department

Floriana

REGISTERING YOUR COMPANY

Application

Once you register your new Company with the Registry of Companies, it willautomatically be registered with the Inland Revenue.

Therefore, while you w ill not need to register the Company with Inland

Revenue you will still need to get your ‘Company Nu mber ’ from Inland

Revenue. The relevant ‘Inland Revenue Company Number ’ which is of the

format ‘99xxxxxxxx’ can be obt ained from:

Companies Section

Block 1


Floriana

Reporting

The Inland Revenue Department has introduced a new reporting requirement

fo r Company Tax return called TIFD.

The TIFD is a tax index of financial statement information that is intended to

regulat e the reportin g requirement s for t ax purposes. It provides a new way to

collect f inancial information in a structured f ormat t hat supports electronic filing.

! If you have set up a new Company then you will need the

‘Inland Revenue Company Number’ when you go to register with

the VAT Office.

21



Having f inancial info rmation i n an ord ered format allows the Inland Revenue

Department (IRD) to p rocess retu rns more qui ckly and enhances the

development of tax policies and legislation by the Ministry of Finance.

Make sure that you account f or your f inancial informatio n in a way that is

compatible w ith t he TIFD to avoid having to rew ork your data to comply with

the new requirements.

It is advisable to speak to your accountant about how to best record your

financial informati on in line t he TIFD requirements.

EMPLOYING STAFF

Application

If you are going to employ persons, then you have to submit an ‘Employer

Registratio n Form’ to the Inland Revenue Department. This application should

be addr essed t o:

Employment Section

Block 3

Inland Revenue Depart ment

Floriana

After you have completed t his application you w ill be gi ven an employer’s ‘PE

Number ’, which you should quote on all FS4, FS5, FS3 and FS7 forms when you

are required to send such forms to the Inland Revenue Department. (please

refer also to the section on ‘ Starting your reporting ’ on page 24 ).

Employee deductions

As an employer you are requir ed t o ded uct FSS tax and Social Security

Cont ribu tio ns (SSC) fr om t he emplo yees’ wages or salaries. You w ill n eed to

get t he relevant details from th e Employment Section when you apply for

th e ‘PE Number’.

23 24

Starting your reporting

On completion of your employment registration wit h th e Inland Revenue

Department you are required to immediately send to the Inland Revenue

Department an FS4 form f or each person t hat you in tend t o employ.

When you deduct FSS tax and Social Security Contributions (SSC) you need to

submit t he amounts due to t he Department t ogether wit h the FS5 form by th e

end of the following month.

!Other reports and payments (such as Provisional Tax and FSS& SSC) are to be sent to the Inland Revenue Department at periodic

intervals. Make sure to get t he relevant details from the Department ’s

Customer Care and Employment Section w hen registering.



All ent iti es, including Partnerships, Companies or indi viduals must r egister wit h

the VAT office to comply with the local Value Added Tax legislation of 1998.

REGISTERING FOR VAT

Anyone registering for VAT

When you go t o register with the VAT off ice you w ill need:

• A legal identification document (I.D. card / passport)

• An out line of your new business and what activities you plan to und ertake

• The date when business activities started or will start• The planned turnover of the business

Registering a Partnership

• You w ill need to have the ‘Particulars of Partners Form ’ (Form 005/99) fi lled

in prior to applying at the VAT offi ce.

Registering a Limited Liability Company

• A copy of the Articles of Association may be required

• The Inland Revenue ‘Company Nu mber ’

!You must register w ith t he VAT Office wit hin 30 days from w hen you

start your business activity.

There is a penalty for those who do not register wit hin this

time period.

Register with the VAT Office

25 26

Application for VAT registrations should be made at:

MALTA GOZO

VAT Department VAT Off ice

16, Cen tre Po in t Bu il di ng Tr iq En ri co M izzi

Triq ta' Paris Victoria VCT 10

Birkirkara CMR 02

A business is allowed to opt for registration as an exempt person when the

turnover of the business is below the thresholds established by law.

The turn over of a business is the t otal value of sales, excludi ng:

• Exempt wi thout credit supplies

• The transfer of a business as a going concern

• The sale of fixed assets

• Suppl ies made to t he business and deemed t o be made by t hat b usiness

under the reverse charge provisions

The three applicable thresholds are:

• Lm 6,000 in t he case of a service provider, where the value o f t he service

has a very high content of value added, i.e. the value of t he goods

incorporated with the supply are minimal, e.g. services of an accountant

or a lawyer

• Lm 10,000 in th e case of a service provider w here t he value of th e service

includes goods which are incorporated in the value of that service, e.g. anelectrician or catering services

• Lm 15,000 in th e case of suppli ers of good s



IF YOU ARE ALREADY VAT REGISTERED

Even though you may already be VAT registered it is important that you verify

whether you need to register again for the purp ose of your new business venture.

If the new business activity is in addition to other business activities carried

out under an existing VAT number, the same number should be used for the

new activity. However, the registered person must inform the Department in

writ ing about the nature of the new business activity.

If t he new bu siness activity will be carried out under a new Limited LiabilityCompany, then a new registration is required.

REPORTING

Individuals or entities that are VAT registered have to regularly send in a VAT

Return that would include the total sales, purchases and VAT credit or payable

amounts. This declaration would normally have to be sent in every 4 months

unless ot herw ise indicated by t he VAT offi ce.

For f urther det ails on VAT reporting you should obtain a copy on how to

complete t he VAT Return f orm (Form 007/99). This is available f rom the VAT

Office itself or can be dow nloaded from t heir website at: www.vat.gov.mt

FURTHER DETAILS

There may be other factors under the VAT regulations that have direct bearing

on you as an individual or on your business. It is therefore advisable to consultthe VAT Off ice on your specific circumstances and on how you should r egister

yourself or your Company / Partnership.

Specific answers to f requent ly asked questions (FAQ) can be fo und on t he VAT

Office web site at: www.vat.gov.mt/faq_eng.asp

Alternatively please refer t o t he VAT Office publication entitled “ Answers to

Frequent ly Asked Questio ns” .

27



All b usinesses need t o appl y fo r a Trading Licence from the Trade

Licensing Directorat e.

Certain types of bu sinesses, such as manuf acturin g and eng ineering wor ks

need special permits and have to comply with specific regulations relating to

environment al and waste control bef ore t hey are issued wi th a Trading Licence.

You can get further details relating to your specific licensing needs from:

Trade Services Directorate

Commerce DivisionLascaris

Valletta

Or by visiting the relevant w eb site at:

www.mcmp.gov.mt/commerce_trade06.asp

The Directorate also produces a number of booklets and other related material,

which covers matters regarding trade licensing. These are available from the

above addr esses.

Obtain a Trading Licence

3029

If as part o f your new business you are planning t o import or export items

such as:

• Raw Materials

• Goods or Produ cts

• Machinery

• Semi-fi nished Goods

• Etc.

Then you w ill need to obtain an Import or Export Licence for t he above items

before you can proceed wit h your impor t or export activities.

You should submit the application for an Import or Export Licence as early as

possible, before you make any contractual commitment.

In certain cases special import or export authorisations are required before

obtaining the relevant licences, which authorisations are normally valid for 1 year.

You can get furt her details relating t o your specific needs from:

Trade Services Directorate

Commerce Division

Lascaris

Valletta

Or by visiting the relevant w eb site at: www.mfin.gov.mt

The Directorate also produces a number of booklets and other relatedmaterial, covering matters of interest r egarding importati on and export o f

good s. These are available fro m t he above addresses.

Import/Export Licences



Planning permit s from t he Malt a Environment and Planning Aut hority (MEPA)

relate to the type of operation that any business is engaged in. These can vary

from “ change of use” for existing premises to completely fresh permits for

new sites. These permits take into account various factors ranging from

parking facilities to environmental issues.

THE NEW BUSINESS

In the process of setting up your new business activity you may be:

• Changing the function of the building• Carrying out structural changes to the premises which may also include

the façade

• Changing the use of the premises (e.g. from a residence to an office or

from a garage to a warehouse)

• Building new premises such as new off ices, a wareho use or a f actory

Plannin g permi ts may also be req uired i f t he business:

• Creates commercial waste

• Creates chemical waste

• Creates dangerous by-prod ucts

• Has an impact on t he environment t hrough various other t ypes of

pollution such as:

- Plant f umes (e.g. engine exhaust)

- Dangerous fumes (e.g. toxic gas, sawdu st, fl our du st, engin e exhaust)

- Sound (e.g. noise, machinery)

- Light (e.g. welding, area lightin g)

Planning Permits

31 32

ENVIRONMENT AND PLANNING

Whatever the nature of your new bu siness you will need to comply wit h the

Environmental and Planning Regulations currently in force such as:

• Building Planning Regulations

• Integrated Pollution Prevention & Control Regulations

• Waste Management Regulations

• Protection of Waters against Pollution

To ensure that you comply with the Environmental and Planning Regulations,

and to verify what permits, if any, are required for your new business, it is best

that you contact the:

Malta Environment & Planning Authority

St. Fran cis Ravel in

Floriana

Another entit y that may be useful to contact, particularly in relation to

environmental issues, is:

Environmental Health UnitCivic Centre

Convent Street

Zabbar

!The need to apply for permits depends upon the specific type of

business and its location. In any event it is always a good idea to

verify w ith the Malt a Environment & Planning Authority (MEPA).



!

All b usinesses, irrespecti ve of t heir size, have to comply w it h variou s financial

regulations and requirements. For example you will have to regul arly send in

fiscal reports to the VAT Department about the VAT collected from your sales,

or fo r r efu nds of VAT paid on purchases. Even small businesseshave to compl y

with these regulations.

If you have set up your business as a Company then you will need to prepare

accounts and yearly financial statements that must comply with the current

accounting standards. Addition ally, when you come to report to the Inland

Revenue, your system must comply with the new tax reporting structure (the

‘TIFD ’ format).

If you have loan or overdraft facilities, the banks will also need to regularly

know ho w your business is performin g. Besides all t his, the need for up-t o-date

financial information is essential for good business management.

To ensure that you have the correct f inancial information for the purposesof

Tax, VAT, Banks etc. you will need the services of an accountant.

If you are starting a small business then you will probably need the

accountant ’s services only on a part-time basis. You may require these services

more regularly if you are setting up a large business.

There are various suitably qualified freelance accountants whom you can

engage. Alternatively, you may prefer to go to an accountancy firm and

request them to provide you with the required services. This depends on your

budg et and size of business.

Finding the right financial advisor is essential and Malta Enterprise can help

you wit h identif ying suitable individuals or fir ms who can provide you with

accountancy services.

Accounting Assistance

33 34

Talk to various accountants and see how you feel about them.

Then select t he one you f eel most comfortable w ith.

Remember that t his individual w ill be assisting you in a very crucial

part of your business.

In May 2002, Government enacted the Data Protection Act of 2002, which is

aimed at protecting and controlling t he use of personal informati on.

Basically, this new legislation requir es that :

• Personal information is only gathered for a specific purpose.

• The individual about w hom inf ormation is obtained knows that you are

gathering and storing in formation about him or her.

• The personal inf ormation is used only f or t he purpose for w hich it

was obtained.

• Personal info rmation is not passed on t o thi rd parties without theindividual’s consent .

• Individuals have access to the personal information retained by others.

• Use and access to personal inf ormat ion i s contro lled.

The Data Protection Act only covers information about persons and does not

cover commercial entities. However, it may still have some bearing on your

business activities as, from time to time, you may need to obtain data on

individual clients or t he staff that you may need to employ.

It is best that you seek professional advice on the question of compliance with

the Data Protection Act.

Data Protection



No business can operate eff iciently and effectively wit hout proper Info rmation

Technology (IT) and Communicatio n f acilities.

Below you w ill f ind a basic outline of what IT and Communication facilities

you may require when you set up your new business.

It is highly recommended that you acquire the services of a professional IT

advisor w ho can give you the r ight advice on t he optio ns available regarding

both hardware and soft ware requirements.

Finding the right advisor is essential and Malta Enterprise can help you withidentifying suitable companies and individuals who can provide you w ith an

unbiased professional advice in this field.

TELECOMMUNICATIONS

Telephones

To obt ain a new service or to tr ansfer an existi ng service to your n ew b usiness,

you need to apply at Maltacom’s main centre at:

One Stop Centre

St. Francis Centr e

Floriana

Or, alternatively, you may go to one of Maltacom’s branch of fices.

If your business is going to employ a number of people, then you may also

want to consider installing a small mult i-line automatic telephone switchingsystem (or what was known as a PABX). This may be purchased from all leading

telephone equipment suppliers.

IT & Communications

35 36

Mobile phones

Many b usinesses to day need t o have t heir k ey staff accessible via a mobi le

telephone. You need to consider this option and decide whether you want your

customers and suppliers to be able to contact you at any time and anywhere.

Fax

Alt houg h t here are variou s altern atives to FAX, most b usinesses stil l need t o

send and receive faxes.

The most straightf orward solution is to buy a FAX machine from one o f t he

local office equipment suppliers. There are various makes and models all withdiff erent facilities. You should look around for the right type for your specific

needs as prices can vary a lot d epending on t he feat ures available.

With FAX machines today, you have the facility of using the same telephone

line for voice as well as fax communication. If you want to operate the FAX

separately from your telephone, then you should apply f or a separate fax line

from M altacom when you apply for your telephone connection.

E-mail

E-Mail is a messaging facilit y th at all ows you t o send messages, lett ers,

documents and any o ther electronic material to practically anywhere around

the globe. At the same time e-mail provides an easy way for your customers

and suppliers to communicate wit h you at any time or day.

Depending upon your specific line of business, having an e-mail address can

be as important as having a let terbox, telephone and fax combined.

It is highly recommended t hat you get at least on e e-mail address for your new

business. Some businesses have an e-mail address for each of their key staff.

To have e-mail facilities you would also need to have an internet connection

and quite often one or more e-mail addresses are included free in the price

fo r an in tern et connectio n by t he Internet Service Provider (ISP) (see the next

section for more details ).



Internet

Mor e and mo re bu sinesses tod ay, even small o nes, are fi ndin g it essential to

have Internet browsing facilities to search for suppliers and products.

Even if you do not think you need this capability when you start your business,

you will still n eed an internet connection and account if you intend t o send

and receive internet e-mails.

To obtain an int ernet connection you w ill need to contact one of t he many

local Int ernet Service Provider s (ISPs).

OFFICE EQUIPMENT

Computers

Nowadays comput ers have become an essenti al off ice tool. They can perfor m

a large variety of tasks from letter w riting to accounts.

There are many computer brands available and there are various types of

computer s that could suit your n eeds. Always seek advice when p urchasing

computer equipment.

Printers

If you have a computer then you will need a printer to go wit h it. There are

various types of printers with a very wide range of prices. The main types are:

• Dot-matrix (for lon g reports, production data etc)

• Inkjet (for colour p rinting in small runs)

• Laser (for high qualit y single colour prin ting)• Colour Laser (for hi gh quality f ull colour print ing)

Except for the colour laser types, printers are generally not expensive to buy.

However you need to keep in mind their running costs as cartridges or

toners have to be purchased when they run out. Your local IT shop or office

equipment supplier would t o able to assist you in selecting the right printer

for you office needs.

37 38

Scanner

If you need t o convert pictu res or paper d ocuments, such as lett ers or draw ings,

into electron ic format f or use on a computer t hen you will need to buy a scanner.

Photocopier

A phot ocopier is probabl y a must f or any of fice. Small mod els have become

quit e inexpensive but you need to check their runni ng costs. Phot ocopiers need

to have their toners replaced regularly, and they also need frequent servicing.

Office applications

As in any business, you need t he necessary off ice tool s to be able t o operateeff ectively. The same can be said f or you r comput er pro grammes (Soft ware

such as word processors, spreadsheets etc.).

Business applications

You w ill also need some core ap plicatio ns for your business activi ties such as:

• Account ing system (f or you r f inancial account s and VAT)

• Payroll (if you int ended to employ people)

• Cash register or poin t-of -sales system (for retail sales)

• A quotation system (might even be a spreadsheet)

• A stock control system (for more than just a few items)

Your r equirement s wi ll depen d on your specific business.

Other useful applications

• Anti-virus soft ware• Backup system (to make copies of important information)

! If you are start ing a small business do not w orry that you are going to

need a lot of computers to run these programmes. In fact, all of the

applications mentioned above can easily run on one PC.



!

Network If you are goin g t o need to use tw o or more computers in your business then

you may need to think about how to connect these together so that you can

share letters, files and o ther i nformatio n betw een computers.

A networ k wou ld also be required if your staff are going t o use the internet

or to send and receive e-mails. It is much simpler, and possibly cheaper, to use

a network w ith a central connection t o the internet rath er than providing

each one w ith a separate connection to the int ernet.

It should be noted that today it is relatively inexpensive to set up a small

network to connect a number of computers together.

Shredder

Most people forget that their paper documents can contain confidential

informati on whi ch may be valuable or which they do not want o thers to read.

A simple solution is to buy a small shredder so that any documents containing

confidential info rmation can be destroyed before t hey are thrown away.

All the applications mentioned above do not need to cost you a lot of

money. There are programmes suitable for normal office work that are

either f ree or are very low priced. These are fully l icensed products and

NOT illegal pirated copies!

Therefore, it is important to get good advice before purchasing

computer programmes.

4039

IT administration & support

If you intend to set up more than a few PCs in your new business then you

will probably need to engage someone to take care of th e maintenance and

support of these computers as well as of the applications installed on them.

You w ill definit ely need someone available from time-to-time t o maintain t he

applications and help you solve problems when they occur.

If you are starting a small business, this does not mean that you need to

employ a f ull t ime person. You can make use of t he services of a know ledgeable

IT systems administrato r or else engage one o f t he many IT companies whoprovi de IT support services.

On the ot her hand, if you are starting a larger business then you wou ld

probably need to employ somebody for the day-to-day administration of

your computer systems.

Great care must be t aken with the administration and support of your

comput er systems. Remember t hat your IT systems administrat or w ill have

access to confidential information about your business.

! The correct administration and maintenance of your IT systems is

vitally important. Therefore, it is advisable that you seek professional

advice on this matter.



When you are starting a new business you may be planning to manufacture

a new pr oduct or launch a new brand name. You may also be planning to

provide an innovative service to your customers.

Whatever t he case, it i s essential that you protect you r ideas as well as any

trade names that you plan to use as part of your business. These all form part

of your business intellectual and/or industrial property.

You can prot ect your int ellectual o r ind ustrial property b y registering these

with the Industrial Property Registration Directorate. This office receives,

examines and p rocesses applicatio ns for the r egistratio n of Trademarks,Industrial Designs, Patents and Copyright in-line with local and international

legislation and r egulations.

There are four main areas under which you can protect your prop erty which are:

Trademarks

Registration gives protection to a sign (logo) that serves to distinguish the

goods or services of one organisation or individual from those of another.

Patents

Registration gives protection t o a new invention containing an industrial

application.

Designs

Registration gives protection t o a novel shape or pattern to be applied to a

particular object.

Copyright

Registration gives protection t o a novel idea or to non-tangible it ems or

prod ucts. This covers material such as books, publ ications, soft ware and ot her

intellectual property.

Protect Your Ideas

41 42

REGISTER YOUR INTELLECTUAL PROPERTY

All applications are to be filed on t he relevant application f orm. Power of

Attorney and Priority Documents must accompany each application where

applicable t ogether wit h t he respective registration fees.

These documents and any registration fees should be submitted to:

Industrial Property Registration Directorate

Commerce Division

LascarisValletta



Malta Enterprise

Enterprise Centr e

San Gwann Industrial Estat e

San Gwann SGN 09

Tel.: 2542 0000

Fax: 2542 3401

E-Mail: inf o@maltaent erprise.com

Website: www.maltaenterprise.com

Department of Institutional Health15, Merchant Street

Valletta CMR 02

Tel.: 2299 2421

Fax: 2299 2299

Environmental Health Unit

Civic Centre

Convent Str eet

Zabbar ZBR 03

Tel.: 2180 3222

Fax: 2180 3212

E-Mail: environ mental.healt [email protected]

Employment and Training Corporation

Head OfficeHal Far BBG 06

Tel.: 2165 4940

Fax: 2165 5396

E-Mai l: et [email protected]

Useful Addresses

43 44

Industrial Property Registration Directorate

Commerce Division

Lascaris

Valletta

Tel.: 2569 0223

Fax: 2569 0338


Commissioner of Inland Revenue

First Floor, Block 2Inland Revenue Department

Floriana

Tel.: 22962248

Fax: 21241328

Website: ww w.ird.org.mt

Maltacom p.l.c.

One Stop Centre

St. Francis Cent re

Floriana

Tel.: 2121 2121

Fax: 2125 2918

Malta Environment & Planning Authority

St. Fran cis Ravel inFloriana

P.O. Box 200

Valletta CMR01

Tel.: 2290 0000

Fax: 2290 2295

Email : enqu iri [email protected]

Website: www.mepa.org.mt



Malta Financial Services Authority

Notabile Road

Attard

Tel.: 2144 1155

Fax: 2144 1188

E-Mai l: [email protected]

Website: w ww.mfsa.com.mt

Trade Licensing Unit

Commerce DivisionLascaris

Valletta CMR 02

Tel.: 2124 3071

Fax: 2124 0516

VAT Office

Malta Office

VAT Departm ent

16, Centre Point Building

Ta' Paris Street

Birkirkara CMR 02

Tel.: 2149 9330 - 4 / 6

Fax: 2149 9365

Customer Helpline: 800 7 4404 (Freephone)E-Mai l: vat @gov.mt

Gozo Office

VAT Office

Enrico Mizzi Street

Victoria VCT 10

Tel.: 2156 0481

Fax: 2146 0482

45



Articles of Association This contains the rules for the conduct of the

Company's internal affairs.

Authorised Share Capital The total amount of capital a Company is authorised

to raise according to its Articles of Association.

Board Resolution A decision taken by the Board of Directors of a

Company.

Business Activity Any activity int ended to earn a profit or to carry out

a defined activity as part of the operations of abusiness org anisatio n.

Business Angels Entrepreneurs who provide capital in the region of

£10,000 to £250,000 in return for being part of a

growing successful business.

Capital Money or other assets used by a Company for the

tr ansaction of business.

Certified Copies Copies of the ‘Memorandum & Articles’ that have been

certified as ‘true copies’ by the Registry of Companies.

Company Secretary The secretary is responsible for ensuring that the

Company complies with the procedural rules and

regulations set dow n by law.

These include the preparation of notices and minutesof meetings; filing returns at th e Registry of

Companies; maintaining and updatin g t he

Company’s statutory books.

Current Account This is a bank account that allows you to deposit

money and effect payments as part of the day-to-day

business of the Company.

Director A person appointed to direct the business of a

Company at Board level.

Equity Ownership i n a b usiness. Oft en expressed in percentage

of ownership or shares of stock or stock options in

a Company.

Line Of Business Type of business. Other terms fo r li ne of business

include prod uct line, service line, or prod uct category.

Memorandum of Every Company has a ‘Memorandum of Association’,

Association whi ch determines its name, where its registered of fice

may be situated and what it may do (its objectives).

Paid-up Share Capital The total amount o f f unds that the shareholders of a

Company have paid t o the Company for their fully

paid shares.

Share Capital That p art of the capital of a Company that arises

from the issue of shares. Every Company must

commence wit h some share capital.

Shares Shares are small stakes in a Company. Anyone who

has shares is a joint-owner of the Company along

wit h all t he other shareholders.

Shareholder Anyone w ho h as shares in a Company or Partnership.

Seed Capital The initial or start-up capital of a Company or business.

Savings Account A Savings Account pays you int erest o n t he amoun tyou have saved and is designed for putting money

aside for some future requirement. You can use it to

either save regularly or pay into it when you have

some spare cash.

Term Account This is a bank account int o which you can deposit

money at any time but fr om which you can

withdraw only at specific periods. These are more

suited f or holding reserve funds rather t han for

operational cash.

Glossary of Terms

47 48



TIFD TIFD stands for Tax Index of Financial Data and

represents a listing of items commonly reported on

balance sheets and income statement s.

The TIFD is a structured approach for the presentation

of f inancial statement inf ormation t hat accompanies

the tax return.

Venture Capital Money provided by p rofessionals who i nvest alongside

management in young, rapidly growing companies

that have the potential to grow.

Venture Capitalists Venture capitalists oft en have experience in provid ing

funds for start-up companies. Venture capitalists are

usually active investor s. Once they invest in a start -up

Company, they take a seat on the Board of Directors

and consult regularly with the Company's senior

management as they seek to bu ild their business.

Working Capital The money available to a f irm to pay for all it s

day-to-day acti vities such as wages, raw mat erials,

bill s and so on.

49

Notes



* Optional

Contribution of:

* Name & Surname:

* e-mail Addr ess:

* Address:

Sector/Activity:

1. SkillsThis section will help you assess your understanding of what the life of a small

business owner/operator is like, and whether you have the skills, attitude and

experience to be successful.

Yes No

1. I have previously been involved in a small business.

2. The goals I set for my new business will be realistic and

achievable bot h fo r fi nancial and oth er resources needed. I am

well-organized, and I manage my time well.

3. I am always looking for other ways to make money.

4. I understand the basics of business, including f inancing,

recordkeeping, sales and marketing.

5. I have personal and business contacts I can turn to f or advice.

2. Stress ManagementStart ing and o perating a small business is a tremendous personal responsibilit y.

This section will help you determine if you're physically and psychologicallysuited to handle the hard work, the stress, the triumphs, and the disappointments.

Yes No

6. I have a lot of energy and drive. I can work long hours for

extended periods of time.

7. I rarely get tense in stressful situatio ns, I see mistakes more as

an opportunity t han as a failure, and don't worry unduly about

the consequences of my decisions.

8. I'm in good health, and I take care of myself.

Entrepreneurship -

Self Assessment Survey 3. Self-reliance

Small bu siness owner/operat ors must be conf ident in t heir abil iti es, self-reli ant

enough to go t heir own way when necessary, and optimistic that t hey will

succeed. This section w ill help yo u det ermine i f you have t hese characteri stics.

Yes No

9. I believe in myself and feel that my performance will determine

whether I will succeed or f ail. I have the courage to try new

things. I see myself as strong and in control, and I don't

hesitate to express my ideas.10. I like being independent and I can count o n myself to g et

things done. I enjoy making decisions and solving t ough problems.

11. I'm a positi ve thinker, and I can envision my business succeeding.

4. HR Skills

Small business owners are constant ly int eracting w ith o ther p eople, fro m

bankers to employees to customers. This section will help you determine if you

have the skills to eff ectively manage, lead, persuade, and communicate wit h ot hers.

Yes No

12. I get along with all kinds of people. I communicate well wit h

people, and they believe what I'm saying.

13. I like to get people's feedback on how I'm doi ng, and I don't

hesitate t o ask f or help.

14. I can manage people, including hiring, f iring, and supervisingthem.

15. I am a good judge of people's character and I'm a good listener.



5. Perseverance

Small b usiness owners aren't easily di scouraged, and they d on' t give up easily.

When thin gs get tough, t hey tend t o w ork even harder. This section will help

you assess whether you have the determination and the perseverance to succeed.

Yes No

16. I'm a doer more than a planner. I like to make things happen.

17. I am willing t o sometimes put my w ork before socializing

wit h family and friends.

18. I'm willi ng to t ake a drop in income to launch my new business.

19. I work on t hings until t hey're done or solved. I'm not a quitt er.

I believe in work ing hard to get ahead.

20. If I don't have the answer, I go out and get it . I don't try to

avoid diff icult problems or situatio ns, I tackle them head on.

6. Innovation

Small business owners are problem solvers and innovators. Tough challenges bring

out th eir creative best. This section w ill h elp you assess your creati ve potent ial.

Yes No

21. I'm a problem solver, always looking f or new and inno vative

ways of doing things. I can usually find creative solutions

when ot hers can't.

22. I'm at my best w hen facing a challenge that requires me to

use all of my personal resources. I can usually fi nd mo re th anone solution to a problem.

23. I get bored when I'm not challenged and when I'm doing the

same thing over and over. I like to continually learn new thing s.

24. Change doesn't frigh ten me. I look at change as an opport unity

to t ry new thin gs. I'm not satisfied with doing something a

certain way just because that's the way it has always been done.

7. Lifestyle

Opening a small business is not just a business decision; it's also a lifestyle decision

that will impact on all aspects of your lif e. This section will help you determine

if you have your personal house in order.

Yes No

25. My f amily suppo rts my plan to start a small business and

accepts that I will be working l ong and hard hours. My business

goals are compatible with my family and lifestyle goals.

26. My f amily understands and accepts that, at least i n t he shortterm, I likely won' t be br inging ho me a regular pay check.

27. I will be able to maintain a personal and family life, as well as

run a business.

28. My f amily life is stable enough t o wi thstand even a business

failure.

29. I am being realistic about personal and f amily finances and

living expenses.

30. I have altern ate sources of in come/savings available for livi ng

expenses until the business is established.

8. Risk Management

Successful entrep reneurs are dreamers with common sense. They are not just

risk takers, and t hey set r ealisti c business goals. This section w ill help yo u

decide if you can successful ly balance risks with realit y.

Yes No

31. I set realistic goals and work to achieve them and I'm constantl y

re-evaluating and adjusting my goals. I'm a realistic thinker

and planner and balance enthusiasm with caution.

32. I seek out and am open t o sound advice and assistance. When

I make a mistake, I admit it and make the appropriat e changes.

33. I am not a gambler. I will take moderate, acceptable risks to

help my business succeed.



9. Analysing Your Results

The more "yes" answers you gave, th e more likely you are suited to t he lif e of

a small business person.

In addition, looking at your answers in each section will help you assess your

entrepreneuri al str engt hs and w eaknesses. You can th en develop strat egies to

take advantage of your strengths and to compensate for your weaknesses.

Total Yes: Total No:

Thank you fo r fi lling in the survey.

Kindly post completed questionnaire addressed to:

Malta Enterprise

Entr epreneurship Survey

Enterprise Suppo rt & Inno vation

Industrial Estat e. San Gwan n.

Or e-mail t o:

entrep reneurship@maltaent eprise.com

Or Fax to: 25423401

