Closure of a Business

An entrepreneur may decide to wind up his or her business for various reasons.
Unless it involves a transfer of the business, winding up usually includes the following steps:

Notifying the body that initially registered the business to cancel the business licence or employers' entry in the register;
Complying with social security and tax obligations;
Selling off plant, stock and office equipment;
Paying off any outstanding business debts.

LEGAL OBLIGATIONS
Maltese law obliges any business owner to legally dissolve the business when closing down. There are 3 types of dissolution:

Voluntary Liquidation
Enforced Dissolution
Bankruptcy

LEGAL TEXTS
Companies Act 1995
Final Settlement System (FSS) Rules SL 372.14
Employment and Training Services Act, Chapter 343
Income Tax Act, Chapter 123
Commercial Code 2008, Chapter 13
Consumer Affairs Act 1994
Malta Standards Authority Act 2000,Chapter 419
Business Promotion Act 2001, Chapter 325
Malta Enterprise Act 2003
Competition Act 1995, Chapter 379 (1995)

Self-Employed
Non-Registered Partnership
Partnership En Nom Collectif
Partnership En Commandite
Company

CLOSING A BUSINESS: SELF-EMPLOYED
When a self-employed decides to close down the business a number of entities that he/she registered with when he/she first registered as a self-employed will need to be notified and certain deregistrations need to be effected.

Jobsplus Termination
Self-employed person on ceasing to be self-employed need to fill in this form.

VAT Deregistration
A sole trader has to deregister from VAT by using this form: VAT Deregistration (E-ID has to be activated).
In order for the application for de-registration to be processed a registered person is required to settle all pending matters with the Department.
It is pertinent to point out that if the registered persons are classified as non-exempt individuals they shall be deemed to have, immediately before the cancellation of their registration, supplied all the remaining business assets that belonged to their business. In this regard they must account for the VAT due thereon in the last VAT return.

These guidelines will assist users in:

PE Registration
PE De-Activation
PE Re-Activation
VAT Change in Register Type
VAT Change, Add, Remove Economic Activity

Deactivation of a PE number
If a Sole Trader decides to close the business and has a PE number that is still active, s/he would need to deactivate it. One has to fill in this e-form.

RELOCATING IN ANOTHER COUNTRY AFTER CLOSING A BUSINESS

Social Security Deregistration
Self-employed closing their business and relocating in another country will need to deregister from the Social Security by contacting the Social Security Departmen t.

Tax Account Closure
Kindly contact the Commissioner for Revenue.

Residency Card
Kindly contact Identity Malta – Expatriates Unit.

CLOSING A BUSINESS: NON-REGISTERED PARTNERSHIP

Jobsplus Termination
Upon closing down of a partnership, partners need to fill in the Declaration of Termination of Employment form.

Tax Deregistration
For tax deregistration of a partnership a declaration stating the closing of the partnership/ income tax number must be sent to ralph.decelis@gov.mt.

VAT Deregistration
When a partnership is dissolved, deregistration form VAT has to be effected using this form: VAT Deregistration (E-ID has to be activated).

In order for the application for de-registration to be processed all pending matters with the Department have to be settled.

These guidelines will assist users in:

PE Registration
PE De-Activation
PE Re-Activation
VAT Change in Register Type
VAT Change, Add, Remove Economic Activity

Deactivation of a PE number
If a Partnership is dissolved, deactivation of the PE number has to be effected using this e-form.

CLOSING A BUSINESS: PARTNERSHIP EN NOM COLLECTIF
In the case of partnership dissolution Form B found in this link has to be filled in. Further information can be obtained from the Malta Business Registry.

Jobsplus Termination
Upon closing down of a partnership, partners need to fill in the Declaration of Termination of Employment form.

Tax Deregistration
For tax deregistration of a partnership a declaration stating the closing of the partnership/ income tax number must be sent to ralph.decelis@gov.mt.

VAT Deregistration
When a partnership is dissolved, deregistration form VAT has to be effected using this form: VAT Deregistration (E-ID has to be activated).
In order for the application for de-registration to be processed all pending matters with the Department have to be settled.

These guidelines will assist users in:

PE Registration
PE De-Activation
PE Re-Activation
VAT Change in Register Type
VAT Change, Add, Remove Economic Activity

Deactivation of a PE number
If a Partnership is dissolved, deactivation of the PE number has to be effected using this e-form.

CLOSING A BUSINESS: PARTNERSHIP EN COMMANDITE DISSOLUTION
In the case of partnership dissolution Form B found in this link has to be filled in. Further information can be obtained from the Malta Business Registry.

Jobsplus Termination
Upon closing down of a partnership, partners need to fill in the Declaration of Termination of Employment form.

Tax Deregistration
For tax deregistration of a partnership, one is required to send a declaration stating the closing of the company/ income tax number to ralph.decelis@gov.mt.

VAT Deregistration
A partnership can deregister from VAT using the following two methods:

By means of a registered practitioner through CFR02;
The individual requires the company director/ shareholders to fill CFR 03 and once permission is granted one can then access link via assigned or delegated services and deregister the Company’s VAT number.

For the application for de-registration to be processed all pending matters with the Department have to be settled.

These guidelines will assist users in:

PE Registration
PE De-Activation
PE Re-Activation
VAT Change in Register Type
VAT Change, Add, Remove Economic Activity

Deactivation of a PE Number
If a Partnership decides to close the business and has a PE number that is still active, the latter would need to deactivate it. One has to fill in this e-form.

COMPANY DISSOLUTION
Information about company dissolution may be found in this link.
For further information contact the Malta Business Registry.
For tax deregistration of a company one requires sending a declaration stating the closing of the company/ income tax number to ralph.decelis@gov.mt.

A company can deregister from VAT using the following two methods:

By means of a registered practitioner through CFR02;
The individual requires the company director/ shareholders to fill CFR 03 and once permission is granted one can then access link via assigned or delegated services and deregister the Company’s VAT number.

DEACTIVATION OF A PE NUMBER
If a Company decides to close the business and has a PE number that is still active, this would need to be deactivated. One has to fill in this e-form.

Tax/VAT Deregistration
For the application for de-registration to be processed all pending matters with the Department have to be settled.

These guidelines will assist users in: