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
 
CLOSING A BUSINESS OF A 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.
 
 
NON-REGISTERED PARTNERSHIPS
 
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.
 
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.
 
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;
Or
·         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;
Or
·         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:
          PE Registration
          PE De-Activation
          PE Re-Activation
          VAT Change in Register Type
          VAT Change, Add, Remove Economic Activity
 
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 Department.
 
Tax Account Closure
Kindly contact the Commissioner for Revenue.
 
Residency Card
Kindly contact Identity Malta – Expatriates Unit.
 
LEGAL TEXTS
 
CONTACT INFORMATION
 
Business First
Tel:                  144 or +356 25422020
email:             info@businessfirst.com.mt
 
or visit Business First Office at:
Ċentru Joseph Grech
2nd Floor, Cobalt House
Notabile Road
Mrieħel, B'Kara, BKR3000
 
Jobsplus
Jobsplus Resources (forms) Note: In order to access the online applications, one is required to login on the Jobsplus portal first.
 
Malta Business Registry
 
Commissioner for Revenue
 
Social Security Department
 
 
 
                                                                                                          last updated June 2020