8/8/2019 Roadmap booklet English
http://slidepdf.com/reader/full/roadmap-booklet-english 2/33
Published by M alta Enterprise
© Malt a Enterprise 2004
Roadmap for starting a
NEW BUSINESS
8/8/2019 Roadmap booklet English
http://slidepdf.com/reader/full/roadmap-booklet-english 3/33
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
8/8/2019 Roadmap booklet English
http://slidepdf.com/reader/full/roadmap-booklet-english 4/33
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
8/8/2019 Roadmap booklet English
http://slidepdf.com/reader/full/roadmap-booklet-english 5/33
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
8/8/2019 Roadmap booklet English
http://slidepdf.com/reader/full/roadmap-booklet-english 6/33
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
8/8/2019 Roadmap booklet English
http://slidepdf.com/reader/full/roadmap-booklet-english 7/33
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.
8/8/2019 Roadmap booklet English
http://slidepdf.com/reader/full/roadmap-booklet-english 8/33
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
8/8/2019 Roadmap booklet English
http://slidepdf.com/reader/full/roadmap-booklet-english 9/33
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
8/8/2019 Roadmap booklet English
http://slidepdf.com/reader/full/roadmap-booklet-english 10/33
!
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
!
8/8/2019 Roadmap booklet English
http://slidepdf.com/reader/full/roadmap-booklet-english 11/33
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.
8/8/2019 Roadmap booklet English
http://slidepdf.com/reader/full/roadmap-booklet-english 12/33
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.
8/8/2019 Roadmap booklet English
http://slidepdf.com/reader/full/roadmap-booklet-english 13/33
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’.
8/8/2019 Roadmap booklet English
http://slidepdf.com/reader/full/roadmap-booklet-english 14/33
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.
8/8/2019 Roadmap booklet English
http://slidepdf.com/reader/full/roadmap-booklet-english 15/33
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
Inland Revenue Department
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
8/8/2019 Roadmap booklet English
http://slidepdf.com/reader/full/roadmap-booklet-english 16/33
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.
8/8/2019 Roadmap booklet English
http://slidepdf.com/reader/full/roadmap-booklet-english 17/33
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
8/8/2019 Roadmap booklet English
http://slidepdf.com/reader/full/roadmap-booklet-english 18/33
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
8/8/2019 Roadmap booklet English
http://slidepdf.com/reader/full/roadmap-booklet-english 19/33
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
8/8/2019 Roadmap booklet English
http://slidepdf.com/reader/full/roadmap-booklet-english 20/33
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).
8/8/2019 Roadmap booklet English
http://slidepdf.com/reader/full/roadmap-booklet-english 21/33
!
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
8/8/2019 Roadmap booklet English
http://slidepdf.com/reader/full/roadmap-booklet-english 22/33
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 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 ).
8/8/2019 Roadmap booklet English
http://slidepdf.com/reader/full/roadmap-booklet-english 23/33
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.
8/8/2019 Roadmap booklet English
http://slidepdf.com/reader/full/roadmap-booklet-english 24/33
!
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.
8/8/2019 Roadmap booklet English
http://slidepdf.com/reader/full/roadmap-booklet-english 25/33
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
8/8/2019 Roadmap booklet English
http://slidepdf.com/reader/full/roadmap-booklet-english 26/33
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
Inland Revenue Department
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
8/8/2019 Roadmap booklet English
http://slidepdf.com/reader/full/roadmap-booklet-english 27/33
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
8/8/2019 Roadmap booklet English
http://slidepdf.com/reader/full/roadmap-booklet-english 28/33
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
8/8/2019 Roadmap booklet English
http://slidepdf.com/reader/full/roadmap-booklet-english 29/33
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
8/8/2019 Roadmap booklet English
http://slidepdf.com/reader/full/roadmap-booklet-english 30/33
* 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.
8/8/2019 Roadmap booklet English
http://slidepdf.com/reader/full/roadmap-booklet-english 31/33
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.
8/8/2019 Roadmap booklet English
http://slidepdf.com/reader/full/roadmap-booklet-english 32/33
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
Recommended