A shelf company in Malta is also known as an aged Maltese company. An old Maltese company is a company that has been dormant for a while. Such a company is characterized by inactive shareholders who are willing to offload it as a shelf company. In layman’s language, the company was formed and placed on a “shelf” to age. A shelf company is sold to someone who wants to buy an aged company rather than registering a company in Malta.
Business Environment for Shelf Companies in Malta
In the recent years, Malta has experienced tremendous economic growth, in first the half of last year (2019) the country’s economy grew by 4,7%. It is one of the countries that are recording exceptional financial results in the European Union. In a recent classification by the World Bank and the International Monetary Fund, the country was classified as having an excellent economy. Due to its fantastic business environment, the country has continued to attract foreign investors. Furthermore, Malta has undergone extraordinary changes to achieve a flourishing economy and the Government of Malta has taken serious measures to attract foreign direct investments. The Individual Investor Programme (IIP) is specifically intended to attract foreign investors to relocate to Malta.
Maltese sturdy economy can be traced to its taxation system, strategic location, financial muscles, IT industry, tourism, sale of shelf company Malta and multilingual workforce, among others.
Malta maintains unbent business ties with EU countries and other influential states outside the European Union. These countries have played a critical role in Malta on matters concerning foreign investments. The country leadership comprehensively understands the essentiality of foreign investment in steering economic growth. Maltese government employs unique schemes and programs to make it more convenient for foreign entrepreneurs to invest in the country. They do this through tax deductions and issuing incentives to make it easier to set up and run a business in the country.
Reasons Why Buy A Shelf Company in Malta
In some cases, setting up a company can be a murky journey that takes a lot of time and resources. It even becomes harder to market the company to potential customers. Therefore, some investors prefer buying an existing company in order to save time.
At the same time, an existing company has the upper hand when bidding for contracts. People in business are more inclined to working with businesses that have been operating for a while. Also, some state laws require a company to be in operation for a specific duration to have this ability.
The other reason why people prefer buying an aged Malta company is for the organization to look like it has existed for a longer time. This improves both consumer and investor confidence.
Buying a Shelf Company vs Registering a Company in Malta
There are hardly any differences between a shelf and a traditional company. Therefore, it all narrows down to your preferences. If you want to start the production process quickly, then buying a shelf company might be the best option for you. Incorporating a new company involves a series of activities that might prolong the waiting process, such as, the company formation, opening a bank account, registering for social participation, applying for licenses and permits and acquiring a seal to mention a few.
Advantages of Shelf Companies
The main question is, should you register a new business or buy an existing one? We will be inscribing information that will help you make a just choice.
A shelf company is a well-established company that has been registered with the authorities (MBR). This means that the company is already compliant, which is a significant advantage. After buying such a company, you will take some time to transfer the ownership of the organization into your name. You will also be required to erect a new management team.
However, it takes less time to transfer shareholdings compared to erecting a new company. This saves time and enables you to start operating right away. With a shelf company, you can quickly build loyalty and assure your clients to offer nothing but the best. Adapting an existing company can go a long way in boosting your sales. Besides, it is relatively easier to build strong business relationships with other organizations such as suppliers, chambers of commerce and banks to mention a few.
When buying a shelf company, it is prudent to confirm that the company has no existing debt or liabilities. This will protect you from inheriting complex issues that might be difficult to handle. You should also go on and request the company documents so that you can have extensive information about the previous directors and shareholders. Company documents should be delivered to you when you decide to buy the company.
For more assistance, contact us to make sure you make the right choice.
Purchasing A Shelf Company in Malta
The process of buying a shelf company is seamless. As stated earlier, the new owner must sign a contract to show that he or she agrees to purchase the company. After signing the sales agreement, the shares of the organization will be transferred to the purchasing party. This means that the new party is in full control of the company.
The new owner can decide to change the company name or even make some changes in the management team. According to the local jurisdiction, a Maltese shelf company should be accompanied by a memorandum of the articles of association, a registration number, a registered office and a certificate of incorporation.
Professional assistance for Buying a Maltese Aged/Shelf Company with Welcome Center Malta
If you would like to start the process of buying your shelf company in Malta, contact us by filling out our contact form or reaching us through the provided contact information.