ECommerce continues to grow and it is no surprise that it is expanding at a much faster rate than traditional brick and mortar business. eCommerce is significantly changing the way people do business and in most cases, is hugely involved in all areas of economic activity in one way or another.

According to Forrester Research (Market research company), eCommerce sales are expected to grow to $414B by 2018 compared to $294B in 2014. The Internet keeps on providing what it does best: a gate to a huge assortment of products at affordable prices alongside having the option to even customize certain products upon purchase.

[b]Overview of the eCommerce activities in Malta[/b]

A report conducted by Malta Communications Authority (MCA) on “Insights into Consumer Buying Behaviour Attitudes” shows that 70% of internet users (eCommerce Malta National Strategy 2014-2020) check the web first before purchasing a product. Another trend based on the report highlights that 63% of consumers who use social media platforms follow their favorite brands. The Honourable Parliamentary Secretary, Silvio Schembri, shared that a number of micro-business owners are actively interacting with their customers through Facebook. Data collected in July 2016 among approximately 800 customers by MCA shows millennials (66%) and Gen Y (51%) are most likely to use mobile devices to compare products and prices instead of a physical bricks and mortar shop.

In October 2017, The Honourable Parliamentary Secretary, Silvio Schembri addressed local firms at an event outlining the importance of Alibaba to Malta's e-commerce strategy. Influential General Manager of Alibaba Cloud International, Yeming Wang, also explained how Alibaba, the world’s biggest online eCommerce company sees Malta as a unique eCommerce hub due to the fact the country has a high-level IT infrastructure, is continually innovating and offers a number of viable solutions for all sizes of eCommerce businesses to operate on a global scale.

[b]Malta as an eCommerce business hub[/b]

Why should you start an eCommerce business in Malta? Malta is a very attractive European country to set up a base for e-commerce activities and operations owing to the fact it has a strong regulatory framework, advanced technological infrastructure and a well-educated and experienced workforce. E-Commerce businesses also benefit from an attractive tax system in Malta and double taxation treaties with over 70 countries in the world. Maltese legislation allows for a possible 6/7th refund to shareholders on the tax paid for online trading profits and thus bringing the effective tax rate down to a possible 5%.

[b]ECommerce company formation in Malta[/b]

When choosing a jurisdiction to form an [b]international business company[/b], entrepreneurs and investors have a viable alternative to an offshore jurisdiction – Malta, a small European Mediterranean island that has become a real alternative to top financial services jurisdictions such as Ireland, Luxembourg, and Jersey. Malta is a popular choice as a centralized business hub for a European business that trades in a number of EU member states owing to its convenient location in the Mediterranean and its close proximity with all major European cities and business districts. Importantly Malta is also offering an important entry point for large American and Asian firms that have e-commerce activities and need to register for VAT in a European Member state.

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https://www.wesrch.com/business/paper-details/press-paper-BU187Q000LZBA-starting-an-ecommerce-business