The Minister of Economy announced new incentives for family business which represent a great number of the companies registered in Malta. The Family Business Survey which was recently launched showed how important businesses run by families in Malta are for the economy. If you want to open a company here, you can rely on the services offered by our law firm in Malta.
At the end of November, the Ministry of Economy released the 2016 Family Business Survey which has reached its eighth edition. The report shows just how important are these types of businesses are. According to it, 80% of the family companies here have registered a significant growth in their annual turnover. Considering 98% of the total number of companies in Malta are small and medium-sized entities, most of them are also family-run businesses. The survey also took into account the fact the 80% of the workforce is hired by these companies which makes family companies weigh even more in the Government’s decision to offer more incentives to these businesses. Most of the income of these entities come from overseas markets. Figures show that 60% of the companies have generated around 24% of the income from products and services sold or supplied abroad.
Based on the facts mentioned above, the Government wants to amend the Family Business Act so that this kind of companies benefit from more support in the future. The current law encourages succession and so will the new 2017 Budget which provides for a cut in the business transfer tax. The new tax was set at 1.5%.
The new Family Business Act will also contain new incentives related to:
The new legislation will also cover aspects like the possibility of expanding these types of businesses abroad. Family businesses will benefit from guidance on how draft strategies which will help them tap into new markets.
Our lawyers in Malta can offer more information on the current legislation related to family businesses. You can also contact us for assistance in setting up any type of company in Malta.
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