The Maltese Corporate Market – Hell or Heaven?

[Italkcash News]

This little island in the Mediterranean can be a great business hub for a company’s activities. However it all depends what do you want out of your business. Do you need punctuality, fast pace, tons of due diligence procedures, security, on time debt payments, contracts and clarity? If so I doubt Malta is the place for you to be. The slow paced, chaotic corporate life in Malta surprises a vast majority of foreign investors (Western European investors).

So let’s start from the beginning. Malta is a EU member so a company does enjoy all the EU perks available out there. The country falls under EU trade law, financial law and up to some extent human rights law – so one is all safe in these areas. Opening a company in Malta does not take more than in any other European country – application to MFSA, bank account, a minimum deposit and there you go, all set and ready to conquer the island with your great idea. However, are you expecting to find developed e-commerce and all kinds of online services, normally available in all other European countries? You are up for a surprise, the ‘online’ is something rather futuristic within the Maltese corporate market – submitting and accepting documents online? The answer is a long, blank stare from the woman behind the desk. So efficiency – Goodbye. Internet service is available and to my great surprise much better than the one available in the UK, but hey it cannot all be black, isn’t it? The Maltese business scene does not want to incorporate e-commerce practices because they are afraid of each other. The belief amongst them is that if they take out their products and prices online, all their competitors will copy and beat them?!?!?!?!

Dealing with the banks there:

Do not be surprised if you have to stay on the phone for hours discussing why are your cheques bouncing, although you have loaded your account three days ago and the money is definitely in there. In the end you just got to drag yourself down to your branch and discuss it personally with your account manager until they find the broken link. Do not be surprised if they open you a savings and a current account and they have no idea where is your money going and what is actually happening. People in the bank know you by your name and it I all very personal though, if that is what you are after, do not be surprised if you are drinking coffee together after a couple of ‘meetings’.

Debit/Credit Issues:

Malta has the longest debt collection within the entire EU . On your invoice might be written 30 days, but ,hey, one year later you are still calling, threatening to sue the company and you still have not gotten your money. Do not panic! Just start taking coffee with your debtors, as well, until they do not pay you. Would that be in durable goods.

Opening times:

Banks cash cheques until 12 pm. If you are not a 60 year old grandma, whose highlight of the day is to go to the bank and chat with the cashier for an hour, that’s too bad. Business banking is open for a long, long time – until 2 pm. If we have to be precise most government institutions are open until 12-1-2 pm. With the lacking online services you just have to wait until tomorrow, trust me nothing is too urgent.

General:

All people on the island pet each other on the back, and refer to each other as ‘siehbi’ translated to ‘my friend’. They use excessively the word ‘mela’ when they are confused, which means every forth word in the conversation. If do want to achieve something fast and accurate there I can just wish you good luck.

[Italkcash News]

However if you want a place where almost everything goes with little or no consequences, well you have found the dream island...

[MalcomWagon]

That's a good place for great business hub for a company’s activities.