Case Study Malta Ltd.
Malta Company Structure for a webshop business.Carl recently turned 30 and had been operating his business for three years, a successful web shop that operates nationally in his Scandinavian homeland when it suddenly hit him :
“Why don’t I take my successful business to the next level, penetrate the international marketplace not only Scandinavia?”.
From National to International
Overnight Carl said good-bye to the idea of selling his pre-designed templates for websites just to the local market. He immediately commenced translating his web-shop into several languages and this alone dramatically increased his internet traffic.
Carl’s motivation to expand internationally was not just for personal gain, but he felt strongly to make his product available to more customers whose needs were not being met by the existing international product choice.
“Many people do not like pre-designed templates as they are restrictive. On the other hand, there are those who do not like tailored templates as they are far too complicated. And then there are those who prefer a mixture of both. Therefore we have concentrated our efforts on providing editable pre-designed tailored webpage templates in the best way possible.”
Building a successful StratagyCarl’s philosophy on a web shop for web designed templates is seemingly paying off:
- His website,is now translated into 7 languages, which has opened doors to new markets
- He has a members’ site with over 10,000 members.
Fast Growth in New MarketsCarl still experiences problems that are related to large international growth in a short time span. The first language section of his site was launched almost 9 months ago whilst 4 out of the 7 remaining sections were opened in the last 2 months!
“There has been a high level of growth lately” says Carl. “Handling sales from many new markets is a challenge”.
Carl contacted Verdun Group for support in structuring his platform for online international commerce.
“We send invoices to all corners of the earth and we have customer service in all 7 languages. Information is being sent in all directions, in an organised fashion but still in all directions”.
The Solution Quick Grouping
For Carl, good communication is his business ethos, internally with employees, externally with customers and within his business community as a whole. It is understandable that perhaps one of Carl’s greatest challenges occurred when he was forced to comply with an EU directive regarding online commerce. This included organising sales for the coordination of VAT and adapting the different tax rates that exist whilst simultaneously, when it came to sales to different jurisdictions, trying to keep his own taxation as low as possible. After discussing this with a Verdun consultant Carl quickly learnt that the best thing to do was to make all sales from a single tax jurisdiction.
“Utilizing the Malta structure that Verdun Group offers has really helped me achieve my business objectives in a more efficient and organised manner”.
Thus the key learning point here is that it is important to make certain that you can engage in commerce from one jurisdiction to avoid tax complications between countries.
Verdun Group recommended having the IT infrastructure in Malta to satisfy the statutory criteria that the ‘Place of Actual Management’ is in Malta. As of today he has a ‘server park' operating from Malta. To ensure any problems can be solved swiftly it has support 24/7 and is maintained by a local IT Maltese company. This provides Carl with piece of mind that his operation is fully supported.
”It is very important to me that all my online services operate efficiently and consistently, this leaves me with more time to focus on my businesses and spend my time developing new products and services”.
“Without Malta and its low taxes that enable my company to develop as it does, I don’t know what I would have done”.
There are other benefits for Carl moving his business operations to Malta he now enjoys visiting the Island which is only a 3.5 hour flight with his family, they enjoy many of the Maltese historic attractions and of course the beach which they visit regularly due to the favourable Mediterranean climate. In fact Carl is considering buying a house in Malta.
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