The European Business Handbook for Young ... - MCAST

The European Business Handbook 

for Young Entrepreneurs 

A Socrates Comenius School Project 

featuring 

Malta - The Netherlands - Norway and Sweden 

as a participating partner 

2005-2007

The European Handbook for Young Entrepreneurs 

This Handbook, which is intended for use by young entrepreneurs, covers 

the topics concerning Culture, Administration, Marketing and 

Finance referable to the setting up of a business in Malta, the 

Netherlands, Norway and Sweden. These topics are indispensable 

when planning and actually writing a Business Plan and are particularly 

useful when one is not familiar with the local customs and practices 

where the business is intended to operate. 

All topics are dealt with from a practical aspect and from a young entrepreneur’s 

perspective in order to enable a budding entrepreneur to 

move around with confidence in setting up his/her venture in a country 

still unfamiliar to him/her. However please note that the information supplied 

is not exhaustive of all that is available. Further details are to be 

obtained from the relative websites indicated throughout this work. 

It is envisaged that in future all the other EU countries will add the comparable 

information concerning them in order to make this work a complete 

one but always in keeping with the European `United in Diversity` 

spirit.

The European Community Programme SOCRATES in accordance with 

the provision of the European Parliament and Council Decision No. 

253/2000EC and more specifically COMENIUS 1: SCHOOL PARTNER- 

SHIPS (Decentralised Action) through COMENIUS Action has provided 

the financial support to the four participating Schools in this two year 

Project, namely from Malta - the Malta College of Arts, Science and 

Technology – Institute of Business and Commerce together with the 

Institute of Tourism Studies, from the Netherlands – Roc Friese Poort and 

from Norway – the Glemmen Videregående Skole. The Uddevalla 

Gymnasieskola from Sweden joined in this Project through its own 

funds. 

DISCLAIMER 

This Handbook provides information in furtherance to the Comenius 

School Project above mentioned. Although the intent is to provide accurate 

and up-to-date information, the European Commission, the publisher 

and the participants in this Project are not responsible for, and expressly 

disclaim all liability for, damages of any kind arising out of use, reference 

to, or reliance on any information contained in this Handbook. No 

guarantee is given that the information provided in this Handbook is 

correct, complete, and up-to-date. 

Although the Handbook includes links providing access to other Internet 

resources, including websites, the European Commission, the publisher 

and the participants in this Project have not participated in the development 

of those other sites and do not exert any editorial or other control 

over those sites. Such entities or persons are not responsible for the 

accuracy or content of information contained in these sites. 

Any person or entity who relies on information contained herein does so 

at his or her own risk.

The European Business Handbook 

for Young Entrepreneurs 

A Socrates Comenius School Project 

featuring 

Malta - The Netherlands - Norway and Sweden 

as a participating partner 

2005-2007 

1

The European Business Handbook for Young Entrepreneurs 

Publisher : A joint Socrates Comenius School Project 

by the listed Participating Scools 

Participating Schools: Malta MCAST Institute of Business and 

Commerce . Institute of Tourism Studies 

Netherlands Roc Friese Poort 

Norway Glemmen Videregående Skole 

Sweden Uddevalla Gymnasieskola 

Project Coordinator: Henk Hoekstra 

Subject Coordinators: Culture Ivan Cauchi 

Administration Jan Arild Strømstad 

Marketing Herbert Groenevelt 

Finance Ragnar Josefsson 

National Coordinators: Malta Tonio Farrugia 

Netherlands Cor Weidema 

Norway Mette Kristin Østlie 

Sweden Ragnar Josefsson / Staffan Lundholm 

Graphics and pre-press: Glemmen V.G.S. 

Cover: Glemmen V.G.S. 

This publication is also being posted on the Participating Schools` web-sites. 

The Participants thank their respective Heads of Schools, Assistants and 

Administration Staff as well as their respective International Office 

Coordinators and National Agencies for the help and support given 

to them regarding this Comenius School Project. 

Printing: Glemmen V.G.S. 

(c) European Communities, 2007. 

2

Table of contents 

Foreward...................................................................... 5 

Culture......................................................................... 7 

1. Malta the country............................................... 8 

2. The People........................................................ 10 

3. Language ......................................................... 11 

4. Economic Environment........................................ 11 

5. Working Environment ....................................... 13 

6. Netherland the country .....................................18 


8. Language ......................................................... 19 



11. Norway the country ..................................... 23 


13. Language ......................................................... 25 



16. Sweden the country ..................................... 31 


18. Language ......................................................... 33 



Administration 

1. Malta, Business enterprise .................................. 39 

2. Business requirements ........................................ 41 

3. Special Conditions, and more ............................ 44 - 51 

1. Netherland, Business enterprise .......................... 52 



1. Norway, Business enterprise ............................... 64 



1. Sweden, Business enterprise ............................... 75 



3

Marketing 

Malta, Marketing considerations - 

Applicable to all participating countries ............. 89 

Unique characteristics ...................................... 95 

Marketing planning and research ....................... 98 

Netherland, 



Norway, 



Sweden, 

Marketing considerations .................................. 116 



Finance 

Malta, Capital requirements for starting a business 122 

Ways to finance a business ............................... 122 

Export finance .................................................. 128 

Practical advice ................................................ 129 

Netherland, Capital requirements for starting a b.. 131 




Norway, Capital requirements for starting a busi... 138 




Sweden, Capital requirements for starting a busin. 145 




Details of Participants .................................................... 152 

4

Foreword 

Socrates Comenius School Projects promote transnational co-operation 

between schools. They give students and teachers from at least three 

participating countries an opportunity to work together on one or more 

topics of mutual interest. This co-operation enables participants to 

exchange experiences, explore different aspects of European cultural, 

social and economic diversity, increase their general knowledge and 

learn to understand and appreciate each other’s views. 

All students attending a school, which is involved in a project, may participate 

in project activities. Ideally, students should participate actively 

in all phases of the project, including the planning, organisation and 

evaluation of the activities. The primary focus of Socrates Comenius 

School Projects is the cooperation process itself - the carrying out of a 

project with a number of partners from other European countries. 

However, projects will usually also produce tangible or intangible end 

products such as project diaries, booklets, objects, artistic performances, 

web sites, CD-ROMs and so on. 

Socrates Comenius is open to participants from the following countries: 

• The twenty-seven Member States of the European Union: 

Belgium, Bulgaria, the Czech Republic, Denmark, Germany, 

Greece, Estonia, Spain, France, Ireland, Italy, Cyprus, Latvia, 

Lithuania, Luxembourg, Hungary, Malta, the Netherlands, 

Austria, Poland, Portugal, Romania, Slovenia, the Slovak 

Republic, Finland, Sweden and the United Kingdom; 

• the EFTA/EEA countries: Iceland, Liechtenstein, Norway; 

• and since April 2004 Turkey 

In 2004 two post secondary schools from Malta, and one each from the 

Netherlands, Norway and Sweden explored the possibility of starting a 

Socrates Comenius School Project whereby students from such schools 

would provide the pertinent information applicable to their country as 

an initial contribution to European Business Handbook for Young 

Entrepreneurs. Their work would then be followed by students of other 

5

member states` schools so that eventually all EU states would be covered, 

making it easier for prospective young entrepreneurs to start a 

business in any such participating country. 

Throughout 2005 and 2006, all the students and teachers involved in 

this Socrates Comenius School Project have put in their effort for the correct 

compilation of up-to-date data, which has been included in this 

Handbook. We hope that our effort will prove useful to budding young 

entrepreneurs and that in the near future the other eligible schools will 

complete the work that we have started. 

(c) Tonio 

Farrugia 

Some of the participants involved in the compilation of this handbook. 

6

Culture 

1. The Country 

2. The People 

3. Language 

4. Economic Environment 

5. Working Environment 

6. Opportunities in FDI 

7. Investment Incentives 

8. Business Culture..... and Etiquette 

9. Tips for Effective Communication 

10. Basic ..... Phrases 

7 

Culture

Malta 

The Country 

Historical Background: Malta boasts of a history that stretches over 

seven millennia. Mysterious megalithic temples date back to 3600BC 

and reveal great skill and capabilities of these earliest inhabitants. In 

fact, the beautiful golden limestone gives Malta its name - MELITA, the 

Island of Honey. 

(c) Oliver Pace 

Malta has a strategic position in the middle of the Mediterranean. 

Phoenicians, Carthaginians and Romans, all left their traces, to be followed 

by Arabs and Normans. The Knights of the Order of St. John 

made the island their headquarters from the 16th century and built great 

fortifications, palaces and public buildings. 

8 

Culture


The Knights’ successful defence of the islands halted Ottoman expansion 

in the Mediterranean. This bravery was repeated four centuries later by 

the Maltese resistance under British rule during World War II. Our 

courage earned us the ‘George Cross’ - the only time an entire country 

was given such an honour. 


Independent since 1964, Malta is now a full member of the E.U. 

9 

Culture

The People 

Friendly: Maltese people are friendly, helpful, loudly cheerful, colourful 

(in many ways), expressive, humble, compassionate, able, intelligent 

and shrewd. 


10 

Culture

Opinionated: Be prepared for lively discussions over topics ranging from 

soccer to party politics. 

Catholic: Roman Catholics make up 98% of the population. 

Family-orientated: 

Maltese life is sharply focused on the extended family where parents are 

revered and children are passionately loved. 

Language 

Official language: Maltese is a member of the Semitic language group. 

Some people consider it a direct descendant of the language spoken by 

the Phoenicians, but linguists believe it is related to the Arabic dialects 

of western North Africa. 

English: widely spoken across the island, it is considered our second language. 

Did you know...? 

• Pre-dating the pyramids of Egypt by more 

than 500 years, the megalithic temples of 

Malta are the oldest freestanding stone 

structures in the world. 

• Warner Brothers’ epic film «Troy», was 

partly filmed in Malta, at Fort Ricasoli. 

• The Maltese love football. They have 

the largest Manchester United supporters’ 

club outside the UK! 

Economic Environment 

• Over the past few years, the structure of the economy 

has gradually evolved to become more service oriented. 

• Apart from the presence of over 200 foreign-owned 

export-oriented companies, the Maltese manufacturing 

industry is largely characterised by the prevalence of 

locally owned SMEs. 

11 

Culture


• Tourism and related industry has always been an important contributor 

to our balance of payments especially when it comes to the generation 

of foreign exchange earnings. 


12 

Culture

Working Environment 

• The willpower of our people is the only resource that Malta can 

deploy. Maltese labour force is still competitively priced but our major 

strength is in the flexibility we offer, and the fact that the Maltese are in 

their majority, multilingual, highly skilled and well educated. 


• Malta’s small size and modern infrastructure makes it an ideal location 

for manufacture of electronics, precision engineering, health care, 

communications and the maritime sector. 

• Malta works well both for large-scale international firms, as well as for 

those companies producing short runs of complex high-value-added 

items that need to change certain specifications from client to client in a 

very short time. 

13 

Culture

Opportunities in FDI 

• Malta’s optimal geographic location between the southern and northern 

shores of the Mediterranean, offers good potential to serve as a 

Hub. 

• Through its Freeport - a customs-free zone located around a development 

harbour in the southern part of the island, Malta serves as a convenient 

and cost-effective platform for European, Asian and North 

American companies to penetrate North African markets. 


• The following is a list of special sectors targeted by Malta and some 

of the benefits attainable through Malta: 

Information/Communication Technology: Proximity to mainland Europe and 

equivalent time zone and an ideal test bed for new technologies. 

Training and Education: Malta is an Ideal base for a Regional training centre 

targeting students from North Africa, Europe and the Middle East. 

Electronics: Reputation for quality and reliability and proven success in 

custom-manufacturing (most locally established companies are large 

enough to cope with substantial orders, yet small and flexible enough to 

14 

Culture

cater to their clients individually, with short lead times and quick deliveries). 

Knowledge Centre / Back Office Services: Range of high quality support 

services available in Information Communication and Technology, Legal 

and Financial Consultancy, Marketing, Secretarial / Translation, 

Printing and Publishing and Training. 

Generic Pharmaceuticals and Health Care: World Health Organisation 

ranked Malta’s Health Care system amongst top 5 in the world. 

Moreover, proximity to Europe, North Africa and Middle East makes 

Malta an ideal location for a regional health centre. 

Film: Unique cultural heritage, architectural legacy, natural locations, all 

in close proximity. A Mediterranean setting with ideal climate and filmspecific 

water tanks. 

Investment Incentives 

• The Business Promotion Act provides incentives for those industries 

demonstrating growth and employment potential. 

• The support available to foreign and local companies also includes a 

range of overseas promotional activities and participation in Business 

Missions and Trade Fairs abroad, together. 

• Moreover, in order to promote Malta as an international business centre 

the government has enacted legislation to regulate the provision of 

financial services from Malta and to provide a favourable fiscal framework 

for the provision of such services. 

Business Culture......and Etiquette 

• Although first names are used in day-to-day business, it is usual to use 

more formal addressing (Mr, Mrs) for those in senior positions and on 

formal occasions. A good rule of thumb is to ask how your contact 

would prefer to be addressed. 

• Punctuality is expected and appreciated and business dress should be 

smart. 

• Use of business cards is important and exchanges are always made 

on first meeting. 

• Maltese are skilled negotiators. They quite enjoy a bargain. 

• Meetings are often interrupted. Several people may speak at the same 

time. 

• Maltese will deviate from agendas. They view agendas as starting 

15 

Culture

points for discussions and will then follow the discussion to the next logical 

place. 

• There are no special issues regarding women in business. 


Tips for effective Communication 

1. Be clear and concise 

• Use, short, simple sentences. 

• Use an active rather than passive voice. 

• Don’t use idioms or irony in your conversation. 

2. Speak more slowly 

• Communicate your message one point at a time and pause regularly... 

• ...but maintain a natural rhythm and stress pattern. 

3. Reinforce your message 

• Maintain eye contact as much as possible. 

• Help your audience understand by getting LOUDER on key words and 

using intonation to communicate meaning. 

• Repeat the same idea more than once in slightly different ways. 

16 

Culture

4. Make presentations effective 

• Adapt your message to the audience in advance. 

• Use appropriate graphics and handouts to enhance communications. 

• Highlight your main points and summarise at the end. 


Basic Maltese Phrases 

The positive impression you will make by learning to speak a few basic 

Maltese phrases cannot be overestimated. Below are some commonly 

used phrases: 

Hello Merhba 

Good morning Bongu 

Good evening Bonswa 

Goodbye Sahha 

Yes / no Iva/Le 

Please Jekk Joghgbok 

Thank you Grazzi 

17 

Culture

Netherland 


The Netherlands is a small nation located in Western Europe, bordered 

by the North Sea, Belgium and Germany. The provinces of North and 

South Holland contain land that has partially been reclaimed from the 

sea, and much of the remaining lands are at or below sea level. 

Perhaps the most familiar aspect of the landscape in Holland is the presence 

of windmills and tulip gardens, which are spread throughout the 

country. 

Netherlands is also one of the densely populated countries of the world 

incredibly popular for its capital city, Amsterdam. Amsterdam is the 

largest city of the region and is breathtakingly beautiful with some timeless 

attractions such as its museums. 

Reflecting over the past of Netherlands we find that around 1st century 

BC the Roman forces had captured the area. The prosperous Roman 

rule remained for 250 years after which Germans invaded the country. 

Around 800 Charlemagne came to power after which the Scandinavian 

Vikings conquered the region. The Vikings raided many areas and built 

many towns. 

During the Middle Ages Netherlands, like other Low Countries belonged 

to the Holy Roman Empire. During the 16th century these countries combined 

under the Habsburg rule. 

Philip II turned out to be an atrocious ruler and instigated the Dutch to 

wage a war of independence. Soon after 

achieving independence, the Netherlands 

experienced a Golden Age in the early 

part of the seventeenth century. Artists such 

as Rembrandt and Jan Vermeer were very 

prominent. 

Since the collapse of Napoleon's empire in 

1814, the Netherlands has taken a neutral 

stance throughout most of the world's conflicts. 

Its neutrality combined with its tradition 

of liberalism and tolerance has made 

the Netherlands the logical choice for the 

establishment of the International Court of 

Justice, which is situated in The Hague. 

18 

Culture


Pragmatic: As a nation, the Dutch have a liberal image which stems from 

pragmatism and a 'live and let live' attitude. 

Religion: Roman Catholics make up 30% of the population. 21% of the 

population is Protestant, 7% Muslim and 42% are unaffiliated. 

Ethnic Minorities: Dutch 83%, other 17% (of which 9% are non- Western 

origin mainly Turkish, Moroccan, Antillean, Surinam and Indonesian. 

Family: The Dutch people see the family as the foundation of the social 

structure. Families tend to be small, often with only one or two children. 

Language 

Official language: 

The official language is Dutch, which is spoken 

by practically all inhabitants. Most Dutch people 

speak a foreign language as well as Dutch. 

Frisian: Another official language is Frisian, 

which is spoken in the northern province of 

Friesland. 

Did you know…? 

• Holland has the highest 

concentration of museums in the 

world, with 42 in Amsterdam alone. 

• Every Dutch person has a bike and there 

are twice as many bikes as cars 

• Holland still has around a thousand old-fashioned working 

windmills 

• One-quarter of Holland is below sea level. 


• The Netherlands has a prosperous and open economy, which 

depends heavily on foreign trade. 

• The Economy is noted for stable industrial relations, moderate 

unemployment and inflation, and a sizable current account 

surplus, and an important role as a European transportation hub. 

• The service sector has expanded into the biggest economic sector 

in the past few years. Trade is the mainstay, followed by transport 

and communications, construction, business services, 

19 

Culture

anking and insurance. 

• More than half of Holland's imports and exports consists of food, 

chemical products and machinery, in particular computers and 

computer components. Its main markets are Germany, France, 

Belgium, the United Kingdom and the United States 

• The Netherlands, along with 11 of its EU partners, began circulating 

the euro currency on 1 January 2002. The country continues 

to be one of the leading European nations for attracting foreign 

direct investment. 


• Dutch workers are plentiful, highly efficient and possess a strong 

work ethic. Their available skills cover a wide range of 

capabilities from entry level to senior executive. One of every 

ten works for a foreign employer. 

• The Dutch are also flexible and 

accustomed to temporary contracts, 

whether long or short-term. 

With 40% employed part-time, 

businesses can choose from a 

large pool of trained profession 

als available during working 

hours that suit employers. Flexible 

contracts are easy to negotiate 

compared with those in other 

European countries. Wages and bene 

fits are reasonable. 

• Unlike some other European countries, the Dutch emphasise 

practicality and business skills in their system of higher education 

there are approximately 85 Institutes of Higher Professional 

Education as opposed to 10 strictly academic universities. 

• The Dutch are highly motivated, with a working attitude that is 

considered excellent among European nations. They're 

constructive, hands-on, pragmatic, cooperative and pro-active. 

20 

Culture


• The Netherlands, long Europe's trading crossroads, is an obvious 

choice to locate a pan-European operation, whether it is a 

European headquarters, a Shared Services Centre, a Customer 

Care Centre, a distribution and logistics operation, or an R&D 

facility. 

• The country's pro-business environment creates a gateway to 

Europe that helps international companies succeed throughout the 

continent. An international outlook and openness to foreign investment 

is firmly engrained in the Dutch culture, and this has yielded 

a wealth of world-class business partners who know how to deal 

with global business challenges in today's economy. 

• The central geographical position of the Netherlands combined 

with a good accessibility and excellent infrastructure are only 

some of the reasons why numerous European, American and 

Asian companies have established their facilities in the 

Netherlands. 

• The Netherlands is with the port of Rotterdam, still ranked as the 

world's largest seaport while Schiphol Airport is recognised as 

one of the major business hubs in Europe and has claimed over 

100 international awards over the last years. 

• The Netherlands is also classified as one of the most 'wired' countries 

in the world, a dynamic force in electronic commerce, communications 

and outsourcing. More than a decade of investment 

in high-speed Internet, cable and digital communication systems, 

have created an ideal base for companies seeking to take advantage 

of modern technology. 


• Regional incentives are available in the form of cash grants, lowinterest 

loans, government capital participation, and export guarantees 

for selected areas. 

• Loans and share capital for investments are the major financing 

incentives and there is a tax-favourable environment for holding 

and finance companies. 

Business Culture … and Etiquette 

• Many Dutch are familiar with doing business with foreigners since 

21 

Culture

the Netherlands has a long experience in International trade. 

• The Business community is very close and most senior level people 

know each other. 

• The Dutch are hospitable, yet this is often reserved for family and 

friends. In business they tend to be reserved and formal. They prefer 

to get down to business quickly and engage in relatively little 

small talk. 

• Punctuality for meetings is taken extremely seriously. Being late 

may mark you as untrustworthy and someone who may not meet 

other deadlines. 

• Business is conducted slowly. The Dutch are detail-oriented and 

want to understand every implication before coming to 

anagreement. 

Tips for effective Communication 

• The Dutch are extremely direct in their communication. They may 

sound blunt if you come from a culture where communication is 

more indirect and context driven. 

• They expect to be told 'Yes' or 'No' in clear words. 

• Maintain direct eye contact while speaking. 

• Use facts and figures to confirm your statements and make sure 

your arguments are rational as opposed too emotional. 

Basic Dutch Phrases 

Below are some commonly used phrases: 

Hello Hallo 

Good morning Goede morgen 

Good evening Goede avond 

Goodbye Tot ziens 

Yes/no Ja/Nee 

Please Alstublieft 

Thank you Bedankt 

Source of the culture pictures: 

www.jachthavens-nederland.nl 

www.blueba.de 

www.mainportdelta.org 

www.zederik.nl 

22 

Culture

Norway 


Historical Background: The Viking period (9th to 11th centuries) was 

one of national unification and expansion in Norway. The Norwegian 

royal line died out in 1387, and the country entered a period of union 

with Denmark. By 1586, Norway had become part of the Danish 

Kingdom. In 1814, as a result of the Napoleonic wars, Norway was 

separated from Denmark and combined with Sweden. The union persisted 

until 1905, when Sweden recognised Norwegian independence. 

The Norwegian Government offered the throne of Norway to Danish 

Prince Carl in 1905. The Parliament unanimously elected him king. He 

took the name of Haakon VII, after the kings of independent Norway. 

Haakon died in 1957 and was succeeded by his son, Olav V, who 

died in January 1991. Upon Olav’s death, his son Harald was crowned 

as King Harald V. 

Norway was neutral during World War I, but as a result of the German 

invasion and occupation during World War II, Norwegians turned 

instead to collective security. Norway was one of the signers of the 

North Atlantic Treaty in 1949 and was a founding member of the 

United Nations. 

Photo: R.M.Sørensen/visitflam.com 

23 

Culture

Situated on the northern edge of Europe, bordering the North Sea and 

the North Atlantic Ocean, the Kingdom of Norway is nowadays one of 

the most beautiful and independent countries - with the highest standard 

of living in the world. 


Humble: Norwegians try to see all people as being on equal footing. 

Modesty is demonstrated in most people’s refusal to criticize others. 

They do not show off their wealth or financial achievements and look 

sideways at those who do. 

Sports and adventure: 

Norwegian love for nature is a vital ingredient in the country’s national 

identity. Over half of the population have ready access to a cabin, the 

schools arrange annual obligatory ski days, and most postcards produced 

by the tourist industry depict nature scenes. 

24 

Photo: 

Ute foto/Innovasjon 

Norge 

Culture

Book lovers: Norway is in the top rank of nations in the number of books 

printed per capita, even though Norwegian is one of the world’s smallest 

language groups. 

Language 

Official language: The majority of Norwegians speak one of the two official 

Norwegian languages of the country: Bokmal (about 80%) and 

Nynorsk (about 17.5%). As far as national minorities are concerned, 

they speak Same (previously called Lapon), Roma, or Finnish. 

Photo: Johan Wildhagen/Innovasjon Norge 

Business language: Norwegian and English. 

Did you know...? 

• Henrik Johan Ibsen, was a major Norwegian playwright. It is 

said that Ibsen is the most frequently performed classical 

dramatist in the world after Shakespeare. 

• Erik Rotheim, a Norwegian engineer, invented the ‘Spray 

Can’. It was the very first aerosol can and valve that held and 

dispensed products and propellant system. 

• The paper clip is also a Norwegian invention. 

• A rock carving from North Norway called «the Rødøy Man» is 

assumed to depict a Norwegian skiing already 4000 years ago. 

25 

Culture



• Norway is one of the world’s richest countries in per capita terms. It 

has an important stake in promoting a liberal environment for foreign 

trade. Its large shipping fleet is one of the most modern among maritime 

nations. Metals, pulp and paper products, chemicals, shipbuilding, 

and fishing are the most significant traditional industries. 

• Norway’s emergence as a major oil and gas producer in the mid- 

1970s transformed the economy. The growth of the petroleum sector 

has contributed significantly to Norwegian economic vitality. 

• Current petroleum production capacity is more than 3 million barrels 

per day. Production has increased rapidly during the past several 

years as new fields were opened. The influx of oil revenue permitted 

Norway to expand an already extensive social welfare system. 

Unemployment remains currently low (3%-4% range), and the 

prospects for economic growth are encouraging. 

• Hydropower provides nearly all of Norway’s electricity, and all of the 

gas and most of the oil produced is exported. Production increased 

significantly in the 1990s as new fields come on stream. 

26 

Culture

• Norway voted against joining the European Union (EU). With the 

exception of the agricultural and fisheries sectors, however, Norway 

enjoys free trade with the EU under the framework of the European 

Economic Area. This agreement aims to apply the four freedoms of 

the EU’s internal market (goods, persons, services, and capital) to 

Norway. As a result, Norway normally adopts and implements most 

EU directives. 


27 

Culture


• A large proportion of the workforce is female. This is largely due to 

the excellent, state subsidised childcare schemes. 

• There is no legal minimum wage in Norway although wages tend to 

be higher than the EU average. 

• The petroleum industry attracts skilled foreign workers, mostly from the 

EU and the USA. The healthcare sector also recruits many qualified 

foreign medical staff to work in hospitals. 

• Norway has an extensive range of welfare benefits. All Norwegian 

citizens and residents have access to welfare benefits and healthcare. 

At present, around half the labour force has an occupational pension 

scheme. 


• The Norwegian government welcomes foreign investors. There are, 

however, no incentives directed specifically at foreign investors. The 

tax system is neutral toward foreign/local investments. An industrial 

production facility placed in an underdeveloped area would be 

favoured by local and central governmental bodies. 

• The tax system is neutral toward foreign investments. 

• The attitude of labour toward foreign investment is neutral. Because of 

strong trade unions and a labour environment regulated in 

detail, there is little difference between employment by a locally 

owned and a foreign-owned enterprise. 


• No special treatment is given to foreign investors. Basically, Norway 

offers no tax incentives for either domestic or foreign investors. 

• Several non-tax incentives are available to foreign investors; for 

example, in the form of cheaply available developed industrial sites. 

• Because of the government’s desire for reduced dependency on the oil 

and gas industry, any manufacturing/production facility placed outside 

the pressure areas would be welcomed and would receive 

favourable treatment both centrally and locally. 

28 

Culture

Business Culture......and Etiquette 

• Greetings are casual and follow no practice. A handshake, eye con- 

tact and a smile are enough when doing business in Norway. 

• Although Norwegians are relatively informal they will often introduce 

themselves using their surnames. 

• When presenting oneself be sure not to appear too over confident or 

self-promoting. Jante’s Law teaches Norwegians to be modest and 

humble. This is seen through most people’s refusal to criticise others 

and an awareness not to show off their wealth or financial achievements. 

• Punctuality is very important when doing business in Norway. If 

delayed always call ahead to warn people. 

• Business meetings will have a small amount of small talk but quickly 

get down to the business at hand. 

• If making a presentation, make sure you back up arguments or concepts 

with concrete facts and figures neatly organised in charts. 

Norwegians are analytical thinkers and this helps them reach 

conclusions easily. 


29 

Culture

Tips for Effective Communication 

• If one were to sum up the Norwegian communication style it would be 

informal, transactional and direct. 

• On the whole people are generally easy going and informal in business 

dealings and communication. However, it is important to always 

remain polite and respectful when doing business in Norway. 

• Although business is transactional in nature, there is still the need to 

build trust and confidence. This is achieved through building relationships 

but at the same time providing lots on background information 

on yourself, experience, qualifications and that of your company. 

Relationships develop slowly. 

• Norwegians are straight-talkers and not very emotive. They have no 

difficulty disagreeing with people or speaking their minds. Criticisms 

are more often than not based on facts rather than opinion. 

• They are scrupulous about honesty in communication, often to the 

point of pointing out the negatives in their own proposals in greater 

detail than the positives. 

Basic Norwegian Phrases 

Below are some commonly used phrases: 

Good morning God Morgen 

Good evening God Kveld 

What is your name? Hva heter du? 

How are You? Hvordan har du det? 

Yes / no Ja / Nei 

Please Vær så snill 

Thank you Takk 

30 

Culture 

Photo: 

Nancy Bundt/Innovasjon 

Norge

Sweden 

Swedish culture 

The country 

Sweden today is a rich country in many ways. 

Our people can live safe. We are a relative small 

people with a large area of land. Even though 

we have many larger cities you can always take 

you to the countryside or to the coast. It is very 

common to rent a weekend cottage outside the 

cities during the holiday. 

Nature and the right of common access 

In Sweden, everyone has the right to be out in the countryside— visitors 

from abroad as well as Swedish citizens. We call this «the right of public 

access». It is a benefit not found in many other countries. One may 

also look upon the right of public access as a great freedom. But our 

freedom in the countryside must not infringe upon the freedom of others. 

Sweden’s nature is multifaceted. You can find beaches along the coast 

and dense forests; you don’t have to travel very far to get to these 

places. Agriculture is one of the things we live on. What we can’t get 

from our own country we import from other countries. Tourists enjoy 

Sweden and our beautiful landscape. The coast where you can relax in 

the summer sun, and in the forests where you can camp! If you would 

like to spend you’re time on luxurious hotels with shopping and party, 

you can always visit one of our bigger cities like Stockholm, Malmö or 

Gothenburg. More and more tourists are drawn to Sweden from many 

different countries. 

Swedish and tourism 

Sweden is a large country with a various landscape. 

In the south with flat landscape and up 

in the north you will meet high mountains that in 

wintertime often are crowded with skiers, both 

downhill and country skiers. As Sweden has 

right of common access there is lot of people 

who pick berries and mushroom in the autumn. 

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Culture

The westside of Sweden is occupied in summer with a lot of tourists from 

everywhere; you can here languages from different countries. On the 

sun hot clips in the west we often have tourists from our neighbor 

Norway mixed up with people from the north of Sweden and many 

people from Holland, Germany and England also visit Sweden during 

the summer. 

The right of public access requires consideration, 

responsibility and good judgement. We 

must not damage the landscape or animal life, 

and we must show consideration for both 

landowners and for others who are out in the 

countryside. The essence of the right of public 

access is concisely expressed by the phrase, 

«Do not disturb, and do not destroy». 

Where to live? 

Sweden is one of the countries who have most area to every inhabitant 

but most people live in the south of Sweden. You can choose to live in a 

town or in the countryside. Since year 2000 has about 200 Dutch families 

bought houses in the landscape Värmland near the Norwegian border. 

They found Sweden attractive for its nature with clear lakes and 

opportunity to live in a country where they are allowed to use and take 

what the nature can bring to them. 

Leisure time 

In Sweden there are many separate interests. But sport is probably the 

biggest, both summer and winter sports. Who don’t remember Ingemar 

Stenmark, Björn Borg, Ralph Edström etc. their success and good sportsmanship 

has increased and helped many clubs in Sweden to extend in 

number of members and users. Football, 

tennis, ice hockey and skiing are sports 

that have extended most until now. 

Education 

In Sweden we have good opportunities for 

education, ten years are compulsory. After 

that you can choose three years upper sec- 

32 

Culture

ondary education, almost students are doing these three years, and it’s 

very difficult to get any employment if you don’t have that education. 

Further you can keep on studying on higher levels, (university) and get 

better paid employment. We are proud that we can offer so good 

opportunities to education. 

Religion 

Biggest part of Sweden is Christianity, but since there 

are so many nationalities living in Sweden you can 

find several religions that have there own churches. 

Family-orientated 

The family is important for us, the children and parents 

live together until the children are grown up and move away from 

their family. This often happens in the age of 18-20. If the parents 

would get a divorce we want the child to be able to have a normal connection 

to both their parents. 

Language 

Official language: 

Swedish, Lappish, Finnish, tornedalfinnish, Romany and jiddish are official 

minority language. That Swedish language forms together with the 

Danish, Norwegian, Icelandic and Faeroese that Nordic field of that 

Germanic language group. 

English: It is compulsory under small seven years, then eligible to read 

more courses during upper secondary school time 

Economic environments 

Under a century Sweden has developed from an agriculture economy to 

a high-developed communitywith a dominating element of service job. 

Important nourishment to the finance is telephone-, paper-, steel- and 

medical industry 

The industry is dependence of foreign supplier and a big part of production 

sells abroad. 

In increase extent own Swedish industry of foreign company. At the 

same time establish the Swedishcompany abroad 

Swedish tourism is important nourishment as under many year show a 

33 

Culture

steady growth. The country witch dominate that foreign visit current to 

Sweden is the Nordic neighbour country, Deutschland, Great Britain 

and Netherlands. 

Working environments 

The Swedish Work Environment Authority was formed in 2001, through 

the amalgamation of the ten districts of the Labour Inspectorate and the 

National Board of Occupational Safety and Health. 

The Authority’s paramount objective is to reduce the risks of ill-health 

and accidents in the workplace and to 

improve the work environment in a holistic 

perspective, i.e. from the physical, mental, 

social and organisational viewpoints. 


In Sweden could any body start a company? 

In Sweden demands in principle no registering. 

But you could protect your name if you 

choose to start a private company. If you start a trade company or a 

joint-stock company you have to register it. In Sweden could you apply 

for a contribution when you start your company? 

A variety of business opportunities 

• Business services (logistics, contact centers, shared service 

centers, regional HQ’s) 

• Venture capital 

• Life sciences 

• Information and communication technologies 

• Automotive and intelligent vehicle safety systems 

• Wood, paper and packaging 

• Real estate 

• Oil and petrochemicals 

Sweden’s status as the largest market in the region and its geographical 

location between the other Nordic countries is an important advantage. 

The venture capital market in Sweden is now the third largest in the 

world, according to this report from the Invest in Sweden Agency. With 

success stories such as Ericsson at centre stage, much has been done to 

34 

Culture

make this transformation possible. 

Sweden, the country of the Nobel Prize, has a long tradition of strong 

research, innovation and product development. The 

strong growth of the pharmaceutical and biotechnology 

industries in Sweden is the result of unique cooperation 

between academic research and industry. 

New technology in bioscience and IT is now being 

commercialised by new firms backed by venture 

capital, as well as by large corporations, universities 

and research institutions. 

Many new trends and factors have made these 

developments possible: 

• The internet 

• The success of Ericsson 

• Sweden’s status as a qualified market, 

with many ‘early adopters’, making it the perfect test market 

and entry point to Europe 

• Sweden’s EU membership creates a perfect entry point into the 

European market for start-up companies 

• Institutional money pouring into venture capital 

• Many new service companies being established to support 

start-up firms, creating an increasingly better infrastructure for 

new ventures 

• A new breed of business angels 

• A well-educated workforce 

• Sweden’s status as a world leader in internet and PC usage 

(the number one world leader, according to IDC) 

• A new Swedish mind-set, prompting many entrepreneurs to 

spin off on their own after working for large companies 

The Invest in Sweden Agency is a government agency assisting foreign 

companies interested in investing in Sweden. It offers a wide range of 

services free of charge, including information about local conditions, 

contacts, facts and data that can facilitate an establishment in Sweden. 

35 

Culture

Did you know? 

The famous writer Astrid Lindgren wrote, among many other stories, 

«Pippi Long stocking». That has been translated into almost every language 

spoken in the world 

IKEA was created by Ingvar Kamprad. IKEA ´s successes here in 

Sweden and in many other countries are enormous. He’s motto are: To 

offer a wide assortment by shape and functionally home furnishings articles 

at sow low prices that so many as possible can afford to by them. 

Business culture and etiquette 

Between Swedish businessmen is group feelings and unanimous very 

important. 

Between people in Sweden the business communication pattern is very 

flexible. 

Swedish businessmen show consideration and respect for their colleague. 

Most of the Swedish companies has flat organisation structure were hierarchy 

thinking doesn’t matter 

Swedish businessmen 

The Swedish People goes usually straight in the 

subject. 

The businessmen often learn to know each 

other and then they learn to trust each other 

The Swedish People hold a low profile and 

gives a humble and reserved impression 

The People are often well prepared and have 

read on in front of the 

meeting. Our People are good to listening to 

other people when they talk and they don’t use 

to terminate them. 

We use to have a different kind of clothes and 

hairstyle towards other cultures 

36 

Culture

Differences between Traditional international organisations and typical Swedish 

way to organise 

Traditional international organization 

• Strict clothes 

• Controlled work 

• Hierarchy 

• Social difference 

Swedish»Flat» Organisation 

• Available clothes 

• Weak hierarchy 

• Independent work 

Sources and links 

www.allemansratten.se 

www.altassets.net/casefor/countries/2001/nz3291.php 

www.europeiska.se 

www.landgaiden.se 

www.sweaguiden.com/affarskultur-svensk-affarskultur.htm 

Basic Swedish phrases 

You can make impress by learning a few basic Swedish words. 

Hello Hej 

Good morning God morgon 

Good evening God kväll 

Goodbye Hej då 

Yes / no Ja/nej 

Please snälla 

Thank you Tack 

Förlåt Sorry 

37 

Culture

Administration 

1. Business enterprise 

1.1 Types 

1.2 Registration 

2. Business requirements 

2.1 Forms (Applications / Registrations) 

2.2 Documentations (Records) 

2.3 Staff (Employment) 

3. Special Conditions 

3.1 Diplomas 

3.2 Licences 

3.3 Others 

4. Useful Contacts 

5. Fee for Registration 

6. Tax Regulations 

6.1 Personal / Company tax 

6.2 VAT 

6.3 Customs duty from non EU 

7. Business Premises 

7.1 Building regulations 

7.2 Environmental regulations 

7.3 Health and Safety regulations 

7.4 Others 

38 

Administration

Malta 

1. Business Enterprise 

1.1 Types The business enterprise you can 

start in Malta may be one of the 

following types: 

• Sole Trader 

• Partnership: en nom collectif / en com 

mandite or limited partnership 

• Private Limited Liability Company 

• Association en participation 

• Cooperative 

Further information may be obtained from: 

• The Malta Enterprise website which may 

be assessed on: 

http://www.maltaenterprise.com/ 


1.2 Registration 

1.2.1 Sole traders: 

Sole traders need to register with the Department of Inland Revenue as 

self-employed. Sole traders can start trading as soon as they have the 

required permits and registrations. They are solely responsible for controlling 

the business. If the business fails, they are also fully responsible 

for all the business debts. 

Sole traders need a trading licence to start trading. There are 6 categories 

of licences to choose from, each having separate types of activities 

that can be undertaken as a business each having a different code: 

I: Processing, Manufacturing and Sale of Food Products and Beverages 

II : Manufacturing Activities 

III: Wholesale and Retail Trade 

IV: Construction Services 

V: Professional and Business Services 

VI: Social and Personal Services 

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Administration

The Trade Services Directorate of the Department of Commerce is responsible 

for the issue of such licences. Its website which may be assessed on: 

http://www.gov.mt/frame.asp?l=2&url=http://www.mcmp.gov.mt/commerce_trade06.asp 

1.2.2 Partnerships 

Partners in a Partnership need to register with the Department of Inland 

Revenue as self-employed. They share responsibility for controlling the 

business. If the business fails, then the partners (not being limited partners) 

are fully responsible for all the business debts. The partners must 

register their Deed of Partnership at the Registry of Companies whose 

website may be assessed on: http://registry.mfsa.com.mt. A trading 

licence has also to be obtained. (See: Sole Traders for website of Trade 

Services Directorate). 

1.2.3 Companies 

A Company is a legal entity in its own right. Companies need to follow 

a predefined process of registration and set-up. A company must have a 

Memorandum of Association and Articles of Association which are to be 

registered at the Registry of Companies (See Partnerships for website). 

The business is controlled by the Board of Directors who are held personally 

responsible for its management. The shareholders` personal 

assets are protected if the business fails and can only lose what they 

have put in the business. A trading licence has also to be obtained. 

(See: Sole Traders for website of Trade Services Directorate). 

1.2.4 Cooperatives 

A Co-operative is similar to a Company, but its employees, or a large 

percentage of them, own the Company. It is a legal entity in its own 

right. It cannot just start operating but needs to follow a predefined 

process of registration and set-up with the 

Co-operative Board whose website may be 

assessed on: http://www.coopsbord.org. 


40 

Administration


2.1 Forms 

The following are the Departments with whom the forms needed to start 

these business enterprises are to be obtained and filed: 

2.1.1 Sole traders: 

a. Register with Inland Revenue Department as self-employed taxpayer 

b. Register with the Department of Social Security as self-occupied con 

tributor 

c. Register with the Employment and Training Corporation as selfemployed 

workerd. Register with VAT Department for issue of VAT 

number for particular trade engaged 

e. Apply at the Malta Environment and Planning Authority for trading 

licences / business development permit 

f. Apply at the Department of Commerce - Trade Services Directorate 

for the issue of the required permit or licence 

2.1.2 Partnerships: 

a. The partners have to individually register as per a, b and c of sole 

traders. 

b. The partnership has to register or apply as per d, e and f of sole 

traders. 

c. The partnership has to register with the Inland Revenue Department to 

be provided with its Income Tax number and in case it intends to 

employ people to be provided with its PE number. 

2.1.3 Companies: 

Companies have to register or apply as per b and c of partnerships. 

2.1.4 Cooperatives: 

a. The members have to individually register as per a, b and c of sole 

traders. 

b. The Cooperative has to register or apply as per d, e and f of sole 

traders. 

c. The Cooperative has to register with the Inland Revenue Department 

to be provided with its Income Tax number and in case it intends to 

employ people to be provided with its PE number. 

Where you can get these forms: 

Most of the forms mentioned above are available from the Local Council 

Offices and also at Police Stations found all over Malta. However they 

are available directly from the Departments or Authorities concerned 

41 

Administration

and in most cases even on-line from their web-sites. 

Details of main offices: 

a. Inland Revenue Department http://www.ird.gov.mt/default.aspx 

b. Department of Social Security 

http://www.gov.mt/frame.asp?l=2&url=http://www.msp.gov.mt 

c. Employment and Training Corporation http://www.etc.gov.mt/ 

d. Value Added Tax Department http://www.vat.gov.mt 

e. Malta Environment and Planning Authority http://www.mepa.org.mt/ 

f. Department of Commerce - Trade Services 

http://www.gov.mt/frame.asp?l=2&url=http://www.mcmp.gov.mt/commerce_trade.asp 

Through the European Charter for SMEs, the Maltese Government has 

committed itself to enable all those wanting to set up a business to be 

able to do so with the least expense and in the most efficient manner, 

i.e. «Cheaper and faster start-up». The new trading licensing system as 

well as the eLicences initiative are examples of how Government is 

achieving this. 

The services offered in relation to the licences through the website: 

http://www.licences.gov.mt/about.asp include: 

a. General information on the types of licences offered, as well as the 

procedures in relation to new applications, renewals, transfers, and cancellations; 

b. Downloadable application forms; 

c. On-line renewal payment system. 

In the near future this website will also cater for licences issued by the 

other authorities. 

Other offices: 

Further information may be obtained from the 

Department of Information http://www.doi.gov.mt/ 

2.2 Documentation 

All businesses have to comply with various financial regulations in force, 

such as the regular sending of fiscal reports to the VAT Department 

regarding the VAT collected from sales or for refunds of VAT paid on purchases. 

Limited Liability Companies need to prepare accounts and yearly finan- 

42 

Administration

cial statements that must comply with the current accounting standards. 

The reporting to the Inland Revenue must comply with its tax reporting 

structure, the «TIFD» format. 

If you have a loan or overdraft facilities, the banks will also need to regularly 

know how your business is performing through your annual audited 

financial statements. Such up-to-date financial information is in any 

case important for good business management. 

In order to be certain that you have correct financial information for the 

purposes of Tax, VAT, Banks etc, the services of an Accountant are desirable. 

Whether these are required on a part-time or a full time basis 

depends on the size of your business. 

2.3 Staff 

If you are going to employ persons, then you have to submit an 

‘Employer Registration Form’ to the Inland Revenue Department 

(http://www.ird.gov.mt/default.aspx). You will be given an employer`s 

‘PE number’ which you should quote on all FS4, FS5, FS3 and FS7 

forms when you send such forms to the Inland Revenue Department. 

When you then employ the staff you must fill the Declaration of 

Commencement of Employment for every new person employed and 

send it to the Employment and Training Corporation 

(http://www.etc.gov.mt/) for registration. Employment forms can be sent 

in electronic format but to use this service you need to first register by 

filling in the registration form in the Membership section. 

As an employer you are required to deduct FSS tax and Social Security 

Contributions from the employees` wages or salaries. When you employ 

someone you are required to immediately send to the Inland Revenue 

Department an FS4 form for each person that you are employing. When 

you then deduct FSS tax and Social Security Contributions you need to 

submit the amounts due to the Department together with the FS5 form by 

the end of the following month. 

The main legislation which you should be aware of regarding staff 

rights and responsibilities is the Employment and Industrial Relations Act, 

Chapter 452 of the Laws of Malta. 

43 

Administration

3. Special Conditions 

3.1 Licences 

As already seen in 1 (b) all businesses need to apply for a Trading 

Licence from the Trade Services Directorate. 

However certain types of businesses, such as manufacturing and engineering 

works need special permits and have to comply with specific 

regulations relating to environmental and waste control before they are 

issued with a Trading Licence. Further details are available from such 

Directorate. 

The importation / exportation of certain 

goods is subject to an authorisation or 

import licence in accordance with the 

Importation Control Regulations, 2004 / 

Exportation Control Regulations, 2004. 

Further details are available from the Import 

/ Export Licensing Unit of the Trade Services 

Directorate. 


3.2 Others 

Limitation of age to start enterprise 

The minimum age requirement in Malta to trade is eighteen years of 

age. However a minor who has attained the age of sixteen years may 

trade if authorised by his/her parents by means of a public deed registered 

in the First Hall of the Civil Court or in their absence by a Judge of 

such Court. A summary of the deed or Court Decree is to be published 

by means of a notice in the Exchange, in the Government Gazette and 

in another newspaper. 

Foreign citizens 

All EU citizens may open up a business in Malta provided they satisfy 

the requirements set down for that particular business. This does not 

apply to non-EU citizens where restrictions apply. 

Other Limitations 

Bodies Corporate already constituted outside Malta that want to establish 

a branch or a place of business within Malta are to follow the 

requirements set out in the Companies Act. Further details may be 

44 

Administration

obtained from the Registry of Companies. (Vide details in Types of 

Business Enterprise above) 

4. Useful Contacts 

4.1 Mentors 

A reliable advisor who is capable of giving the right advice and assistance 

is desirable. When selecting a mentor you would probably be 

best served by someone who is: 

a. Business Mentor / Advisor or 

b. An Accountant or 

c. A Lawyer. 

There are various firms as well as qualified 

individuals in Malta who can provide advice 

and mentoring when you are starting a new 

business. Your choice will be determined by 

the size of your business, the level of service 


you require and the budget you have allocated for such service. 

You can contact the following organisations through their respective 

web-sites to help you in the selection of suitable business advisory services: 

Small Business Unit: 

http://www.gov.mt/frame.asp?l=2&url=http://www.mcmp.gov.mt/ 

commerce_smllbusiness.asp 

Malta Enterprise: 

http://www.maltaenterprise.com/index.asp 

The Malta Enterprise, whose mission as government’s exclusive agency is 

focused on attracting inward investment and supporting enterprise in 

Malta, provides a comprehensive package of assistance and advisory 

services to international companies and investors considering operations 

in Malta. These include professional pre-investment advice and support, 

start-up assistance as well as a suite of post investment services and 

aftercare facilities. 

Malta Enterprise is also dedicated to finding solutions to the particular 

business needs of international companies and does so by delivering a 

range of tailor-made services which include professional pre-investment 

45 

Administration

advice and support, start-up assistance as well as a suite of post-investment 

services and aftercare facilities. 

Malta Enterprise also offers a range of trade promotion services aimed 

at introducing foreign companies to suitable manufacturers, service 

providers, suppliers and potential strategic partners in Malta. 

4.2 Network building 

Once you have decided to set up a business in Malta, you have also to 

examine whether it will be possible for you to build a local network and 

who can help you build it. 

Membership in The Malta Chamber of Commerce and Enterprise is a 

good option. There you will be able to meet members of the local business 

community and get in touch with the people who most count to 

you, besides enjoying the following benefits: 

a. Your Company entry in the Malta Trade Directory 

b. Chamber weekly newsletter 

c. Bi-monthly magazine- Commercial Courier 

d. Representation of views to decision makers 

e. Help and advice at the end of a telephone 

f. Membership of sector-specific Economic Groups and Trade Sections 

g. «Ask the Chamber» helpline 

h. Networking and Social Events 

i. Business Education Courses at special rates for members and staff 

j. Use of the Chamber Reception and Meeting facilities at special rates . 

Membership in The General Retailers and Traders Union is also a road 

to explore. It is Malta’s national organisation of independent private 

businesses. Established in 1948 originally as a shop-owners union, 

today GRTU represents the widest cross section of proprietor managed 

enterprises in Malta. With over 7,000 members GRTU is the voice of 

smaller entrepreneurs. The GRTU’s policies are geared towards encouraging 

and supporting small and medium-sized enterprises within the 

framework of a functioning advanced market economy. 

46 

Administration

You can get help to build a network from: 

The Malta Chamber of Commerce and Enterprise at 

http://www.chamber.org.mt/ and 

the General Retailers and Traders Union`s at 

http://www.targetltd.com/grtu/default.asp 

Other contacts: 

The Malta Employers` Association (http://www.maltaemployers.com/) is 

a constituted body, which brings together employers from all sectors of 

industry and commerce in Malta. It is, in effect a trade union of employers. 

It is an association dedicated to the promotion of healthy industrial 

relations by providing members with a range of advisory services 

enabling them to be better informed about their rights and obligations of 

their employees. 

5. Fee for Registration 

Since these tend to vary from time to time, it is best if you contact the 

relative Department or Registration office for the latest rates of fees 

chargeable. 

At the moment the fees for registering a Private Limited Liability 

Company are as follows: 

Authorised Share Capital Fee Payable 

Up to Lm2,000 - Lm150. 

Over Lm2,000 but not exceeding Lm5,000 - Lm150 plus Lm10 for each 

Lm1,000 or part thereof in excess of Lm2,000. 

Over Lm5,000 but not exceeding Lm25,000 

Lm180 plus Lm5 for each Lm1,000 or part thereof in excess of Lm5,000 

Over Lm25,000 but not exceeding Lm100,000 Lm280 plus Lm5 for 

every Lm5,000 or part thereof exceeding 

Lm25,000 Over Lm100,000 Lm355 plus Lm5 

for every Lm5,000 or part thereof exceeding 

Lm100,000 provided that a maximum fee 

does not exceed Lm750. 

If a company subsequently increases its authorised 

share capital, the difference in registration 

fees will be levied. 

47 


Administration

6. Tax Regulations 

6.1 Personal / Company Tax 

The scope of income tax in Malta depends largely on the individual’s 

residence and domicile. Income, including capital gains, subject to tax 

in may is categorised under 4 main headings: 

• Trade and business: The profits from a trade or a business, after taking 

into account tax-deductible expense, are subject to income tax. At the 

moment the company rate tax is 35% of the chargeable income. 

• Employment: Any income from employment, including the receipt of 

benefits in kind, is taxable and the tax is withheld at source by the 

employer under the final settlement system (FSS). 

• Other income: Other income subject to tax includes interest, rents, dividends, 

pensions, annuities, annual payments and any other income not 

falling under these categories. 

• Capital gains: The gains from the transfer of capital assets consisting of 

immovable property and securities are taxable as part of a 

taxpayer`s total income. Certain exemptions 

apply. 


More information on this topic may be had 

from the Inland Revenue Department website: 

http://www.ird.gov.mt/default.aspx 

6.2 VAT 

All entities, including Partnerships, Companies or individuals must register 

with the VAT office to conform with the Maltese Value Added Tax legislation 

within 30 days from when you start your business activity. 

When you go to register with the VAT Office you will need: 

All those registering for VAT: 

A legal identification document (I.D. card / passport) 

• An outline of your new business and what activities you plan 

to undertake 

• The date when business activities started or will start 

• The planned turnover of the business. 

48 

Administration

Partnerships: 

You will need also to have the ‘Particulars of Partners Form’ filled in 

prior to applying at the VAT office. 

Limited Liability Companies: 

• You will need also a copy of the Articles of Association 

• The Inland Revenue ‘Company Number’ 

A business is allowed to opt for registration as an exempt person when 

the turnover is below the thresholds established by law. 

Individuals or entities that are VAT registered have to regularly send in a 

VAT return that includes the total sales, purchases and VAT credit or 

payable amounts. This declaration normally has to be sent in every 4 

months unless indicated otherwise by the VAT office. 

Further details may be found in the VAT Department website: 

http://www.vat.gov.mt 

6.3 Customs duty from non EU 

All imports from non-EU countries are subject to Customs duty. More 

information on the documentation required may be obtained from the 

Department of Customs website: 

http://mfin.gov.mt/page.aspx?site=CUST&page=default 



The Malta Environment and Planning Authority (MEPA) issues the planning 

permits depending on the type of operation that a business 

engages itself in. These may range from «change of use» for existing 

premises to permits for new sites. Before issuing these permits, such 

Authority takes into account various factors including environmental 

issues and parking facilities available. 

A new business needs planning permits when: 

• Changing the function of the building 

• Carrying out structural changes to the premises which may 

also include the façade 

• Changing the use of the premises (e.g. from a residence to an 

office or from a garage to a warehouse) 

• Building new premises such as new offices, a warehouse or a 

49 

Administration

factory. 

Planning permits are also required if the business: 

• Creates commercial waste 

• Creates chemical waste 

• Creates dangerous by-products 

• Has an impact on the environment through various other types 

of pollution such as : 

• Plant fumes (e.g. engine exhaust) 

• Dangerous fumes (e.g. toxic gas, sawdust, flour dust, engine 

exhaust) 

• Sound (e.g. noise, machinery) 

• Light (e.g. welding, area lighting) 

The Malta Environment and Planning Authority (MEPA) website is: 

http://www.mepa.org.mt/ 


Whatever the nature of your new business you will need to comply with 

the Environmental and Planning regulations such as: 

• Building Planning Regulations 

• Integrated Pollution Prevention and 

Control Regulations 

• Waste Management Regulations 

• Protection of Waters against Pollution 


More information can be obtained from 

http://www.mepa.org.mt/ 

7.3 Health and Safety regulations 

The Occupation Health and Safety Authority is 

responsible for ensuring that the physical, psychological 

and social well being of all workers 

in all work places are promoted and for 

ensuring that the workers are safeguarded by 

whoever is so obliged to do. 

It is consequently the duty of every employer 

to ensure the health and safety at all times of 

50 

Administration

all persons who may be affected by the work being carried out for such 

employer. In particular employers are to carry out risk avoidance and 

risk control measures, identify and evaluate work associated hazards 

and also provide such information, instruction, training and supervision 

as is required to ensure occupational health and safety. 

Occupational Health and Safety Officers are empowered to enter freely 

and without previous notice in any work place at any time of day and 

night for inspection purposes apart from issuing orders, verbally or in 

writing, to safeguard occupation health and safety, which orders must 

be obeyed forthwith until such time as they are revoked by the said 

Officers or until they have been revoked by the Appeals Board. 

More information may be obtained from 

http://www.ohsa.org.mt/ 

51 

Administration

Netherland 

ADMINISTRATION 

All businesses start with an idea, most people thinks it 

is easy to start a company. But there is a lot to deal 

with before your business can make a profit. In the Netherlands you 

mostly begin with putting a business plan on paper. 

Business plan: 

First you have to make up a business plan. In this plan you write down 

all the things that you need for starting a company. It’s not obliged to 

write a business plan, but it can be very handy in a later phase. It could 

be very important, for example to clear the financial state. 

In the business plan all the strong en weak points of the employer comes 

to light. Some points that have to be included are: 

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1 Your personal data, for example the education you followed, work 

experience, and your motivation and your goal; 

2 Marketing plan: which products/services you want to sell and 

on which target group(s) you aim; 

3 Financial plan: providing insight in sales, costs and profit, which 

investments you’ve made and how these are financed; 

4 Organisation: you need to describe the organisation you want to 

start and which brand name you chose etc. 

www.startbedrijf.nl 

Starting a business 

1a Business Types: 

Legal entity: 

1 One-person business 

2 Partnership on firm 

3 Partnership 

Not legal entity: 

1 Private partnership 

2 Nameless partnership 

3 European economic cooperation 

4 European nameless partnership 

5 Cooperation 

6 Foundation 

1b Registrations: 

1 Company register (Chamber of Commerce) 

2 Tax authorities 

2 Business requirements 

2a Forms 

For both entities you must sign in for the Company register at the 

Chamber of Commerce. 

Company register 

It is necessary to sign in at the company register. When you sign this, 

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you will be legally covered when doing business. You as an entrepreneur 

will have to know whom you’re dealing with, who is authorized, 

and who is responsible. And whether or not there is a bankruptcy. All 

these things are written in the company register. 

The points that are surely included in the company register are: 

1 The size of the business 

2 All the addresses of Dutch enterprises and legal bodies 

3 The telephone number, fax number and an email address or 

the postal address 

4 The private addresses of the owner, partner, director and 

commissioner or power of attorney for the business 

5 Data of other branches 

6 Trustee with bankruptcy 

7Any possible other businesses at the same address 

With this information you could investigate the economic situation in the 

Netherlands or even per region. 

Exceptions: 

Almost every new company will have to sign in at the Chamber of 

Commerce, but there are a few exceptions to the rule, these are: 

1 One-man businesses in agriculture and in fishery 

2 Partnerships 

3 Free executive jobs for example doctors, notaries and artists 

4 Businesses of the government, for example hospitals and schools 

5 Businesses where there is only street trade in the shape of peddling 

Criteria: 

The Chamber of Commerce has developed 6 criteria that businesses 

have to pay attention to when signing in at the company register. 

These 6 criteria are: 

1 The entrepreneur is active in regular welfare work 

2 All the actions that the entrepreneur does will have to be paid 

3 The entrepreneur himself is responsible for his own accounts 

and risks 

4 The entrepreneur is open for competitive other companies 

5 The entrepreneur takes part in an economic traffic in a 

organised connection 

6 That your goal is to make profit or to save costs 

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When sign in: 

You will have to sign in at the Chamber of Commerce a week before 

you start your business or a week after you start your business. 

Business help: 

When signing in at the company register you will have to give a 

description of your starting business. In the Netherlands there is an 

organisation that will look where your business will be placed. (organisation 

is: Centraal Registratiekantoor Detailhandel-Ambacht (CKR). You 

can be put in Head Company Retail Trade or in Head Company 

Handcraft. 


www.kvk.nl 

www.ckrinfo.nl 

2b Documentation 

You as entrepreneur are responsible for the correct and current data for 

the company register. 

When you go to the Chamber of Commerce to sign in for the Company 

Register, you will have to have several things at hand. These things are: 

1 A valid identification card 

2 A bank statement of account of his/her private bank account 

3 A Register of Births, Deaths and Marriages 

The bank statement and the Register of Births, Deaths and Marriages 

may not be older then a month. If you sign in at the company register 

you will have to pay a small amount of cash to the Chamber of 

Commerce. 

2c Staff 

Keep in mind: 

1 How many people do I need? 

2 At what time do I need them? 

3 Will I work with full-timers, part-timers or stand- by employees? 

4 What do I expect from my new staff (job description)? 

Where can find: 

If you have an idea what kind of people you need, you can begin to 

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hire staff. For example with an add in the newspaper or through an 

employment exchange or through an employment agency. 

But where the entrepreneurs find the most staff is: at CWI (Centrum voor 

Werk en Inkomen) or an employment agency. 

www.cwi.nl 

www.uitzendbureau.nl 


Contracts: 

Did you find your staff? Make sure they get a solid labour contract. In 

the labour contract, items that can come up for discussion are for 

instance: 

1. The duration of the labour contract 

2 The character of your work obligations 

3 Your first working day 

4 Rules for your vacation days and unpaid leave 

5 Term of notice 

6 Working hours 

7 The collective labour agreement that the business applies 

In the Netherlands we have a law that is called the flex law. This law is 

put in operation in 1999. In this flex law the entrepreneur and the 

employee have easier rules to extend their contract or break their 

contract. 

Tax authorities and labour inspection: 

You have to tell the tax authorities which amounts you have paid and 

stopped from your employee. The labour inspection checks l the wages 

administration of the employer periodically. They judge whether or not 

the employer sticks to every law or rule about payment, vacation 

allowance and other terms of employment. 

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Sick leave of staff: 

As an employer you have to continue to pay for two years if your 

employees are sick or they become unable to work. Even if the cause of 

illness has nothing to do with work. 

You don’t want to pay for the illness of your employee as an entrepreneur 

so you purchase a social insurance to cover this for you. 


www.kluwershop.nl 

Special conditions: 

3a Diplomas: 

When you receive your senior secondary vocational school diploma for 

Retail Trade you can almost start every type of business you want. 

Licenses: 

If you would like to start a pub for instance, you must obtain a liquor 

license. There are many more licenses you could obtain like hygiene etc. 

Others: 

If you are a foreign entrepreneur in the Netherlands you will have to 

pay attention to the rules and demands in the 

Netherlands. You can always start a business 

in the Netherlands as a foreigner if you have 

the right information. There is a limitation of 

age of starting a company. When you are 18 

you can start your own company. 


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4 Useful contacts 

How do I build a network? 

You can visit entrepreneur clubs, profession grants and business meeting 

days and so get a network. 

Who can help me build a network? 

Keep visiting entrepreneur clubs, profession grants and business meeting 

days and keep expanding your contacts. So that all they people you 

know over there can help you out and solve problems. 

Who knows what people I need to get in touch with? 

How more you go to entrepreneur clubs, profession grants and business 

meeting days the more you will understand with which people you will 

have to go in touch with. 

Mentors 

These are people who will help you to obtain the same network position. 

Networking 

Keep in touch with your contacts, and try to expand your connections. 

Others 

You can visit the Chamber of Commerce or the Tax authorities for more 

help. You also can visit banks or advisors. 

How can you get help to evaluate your business? 

In the Netherlands we have to organisation that could evaluate your 

business these two organisations are: The risk identification and evaluation 

Prism safety, health and welfare policy 

Are there any business advisors available? 

There are enough business advisors available, when your company has 

more profit then it should make or if the results are not so good. You 

can find them anywhere. 

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How can you contact a business advisor? 

You can contact them via the internet or by phone. 

www.kvk.nl 

www.belastingdienst.nl 


6 Fee for registration 

Chamber of Commerce 

When you are ready to start your business you must pay administration 

costs and starting costs. 

The exact amount of cash you must pay depends on your entity or at 

which Chamber of Commerce you go. 

For the exact amounts for this year you could visit 

www.leeuwarden.kvk.nl 

Others: 

When you will be put in retail trade you must pay a certain amount of 

money to the Head Company Retail Trade. When you will be put in the 

Handcraft trade you have to pay some money to the Head Company 

Handcraft. The amount of money you have to pay depends on: 

1 Outlets or branches 

2 The handcraft 

3 Number of employee’s at the business 

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Besides all this, there is one imposition that all companies have to pay. 

And if you think that this was the last imposition you’re wrong, because 

there is another one particular to the line of business. 

Tax registrations 

6a TAX: 

When you have gone to the Chamber of Commerce the next thing you 

will encounter will be the tax authorities. If you are an entrepreneur you 

are not always an entrepreneur for the income tax. The law has certain 

demands, which entrepreneurs have to follow. 

The tax authorities will check if you as entrepreneur follow the rules. The 

rules that the tax authorities pay attention to are: 

1 Are you making profit? If yes? How much? 

2 How self-employed is your company? 

3 If your company has capital goods and capital cash 

4 How much time the entrepreneur will spend on his company 

5 What the range of the business is in terms of money and time 

6 How many costumers your business has 

7 How does the entrepreneur bring his business to the people he wants 

to reach 

8 If there is a risk for the entrepreneur 

9 If the entrepreneur is responsible for the losses he makes and his 

financial state 

If you are a self-employed for a job or a company you will surely have 

to pay VAT. 

Before you really start you company you will have to pay a visit to the 

tax authorities, for a VAT number. Some points that will say if you must 

have pay VAT and have a VAT number are: 

1 If you are self-employed for a job or company 

2 If you work in an employment and if you have other work 

3 If you run a power element or a right 

4 How much do you work self-employed 

Sometimes you don’t have to pay VAT for example: 

1 The amount you must pay is to small 

2 There is an exemption for your company 

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You can also start a business when you have a payment instead of a 

job. When you want this you will have to visit a payment authority. The 

will figure out how much you can lend. 

The tax authorities must know which legal form you are. There are two 

legal forms where you’re starting business can fit in. The first one is a 

legal form where you are fully charged for your own profits or losses. 

You can think of: 

3 One-person business 

4 Partnership on firm 

5 Partnership 

The second legal form is where you are only charged for your own 

investment in the business. This means that you don’t have to pay out of 

your private bank accounts and cash. Examples are: 

6 Private partnership 

7 Nameless partnership 

8 European economic cooperation 

9 European nameless partnership 

10 Cooperation 

11 Foundation 

The tax authorities would also like to know how you are financing your 

own business. 

You can finance your business several ways these ways are: 

1 Lend cash 

2 A donation 

3 Bring in your own money 

It is very useful to write all your expenses down, because you can 

deduct your expenses for the VAT. This can only be of use when the tax 

authorities see you as an entrepreneur. 

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6b VAT: 

You will get a VAT/Tax number from the Chamber of Commerce where 

the Tax authorities can check if everything goes well concerning the VAT 

rules. The Taxes that we pay on our goods are: 0, 6 or 19%. We pay 

0% for tobacco, 6% for daily used products and 19% for expensive 

products. The entrepreneur must keep al this data to perfection, so that 

the Tax Authorities do not have problems with checking this. 

For further information you can visit 

www.belastingdienst.nl 

www.kvk.nl 

6c Customs duty from non EU 

If you would export your goods to another country you as an entrepreneur 

don’t have to pay VAT. 

7 Business premises 

Building regulations 

When you build a building you have to consider the safety. You have 

the right to a safe and healthy work environment. 

Environmental regulations 

1 Separate paper and plastic 

2 Throw glass in the bottle bank 

3 Throw batteries in the announced place 

4 Etc. 

Health and safety regulations 

If you start a business you should pay attention to the health and safety 

regulations for example the fire regulations. Some things you should 

consider are: 

1 emergency exit 

2 fire extinguisher(s) 

3 maximum number of visitors 

4 decoration 

5 etc. 

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Others 

For all the further information: 

http://www.civiq.nl/ 

http://www.kvk.nl/sectie/sectie.asp?sectieID=59 

http://www.hulpverleningsdienstgroningen.nl/ 

Source of the administration pictures: 

Pic 1: 

http://www.elitetours.at/userimages/nl%20windmuehle%20tulpen.jpg 

Pic 2: 

http://www.popinstituut.nl/images/popup/popup.image.101854.html 

Pic 3: http://www.cwinet.nl/ 

Pic 4: http://www.omroep.nl/werkstuk/afbeeldingen/kroeg.jpg 

Pic 5: http://www.muntpost.nl/images/collecties_imag/beatrix%202005%2010%20euro%20vzkz.jpg 

Pic 6: http://www.zuivellandherenhof.nl/koeien.jpg 

Pic 7: http://www.kluwershop.nl/images/logo_shop.gif 

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Norway 

Business enterprise 

a) Types 

You have got two types of business: It is business with limited liability 

and business with unlimited liability. 

• The limited type is companies registered as an «AS»-company 

(Ltd - Limited Company) or an «ASA»-company (public limited com 

pany, PLC). Then none of the participants can decide what to do 

with the company’s obligations. 

In a limited liability company, none of the owners are responsible 

for more than the sum paid as share capital. 

The Act «On companies with limited liability» the Companies Act 

states that the share capital shall be at least 100,000 NOK. One 

might say that this is the entrance fee for establishing and running 

a business where the owners enjoy limited liability. 

• The unlimited type, is a company where all of the participants has 

unlimited liability for the company’s obligations. 

An individual or several people may own a liable company. 

Depending on the owner situation, the company is denoted: 

o Self-employed (sole proprietor) business 

o Liable company (ANS) 

o Liable company where the personal liability is limited relative 

to each participant’s share (DA) 

A liable company has at least two owners (partners), while the selfemployed 

business only has one. For both types the owner/s is/are 

responsible for the company’s debts with his/their personal assets. 

You can find more information about «Type of business enterprise» in 

English on this site: www.bedin.no 

Photo: 

R.M.Sørensen/ 

visitflam.com

) Registration 

In Norway you have to register your company in the Brønnøysund 

Register. 

The Brønnøysund Register Centre contributes greatly towards creating 

improved and more orderly conditions in business, trade and industry. It 

is convinced that openness and traceability serve to counter white-collar 

crime. Reliable, impartial information yields financial security. The 

Brønnøysund Register Centre is a government body under the 

Norwegian Ministry of Trade and Industry, and consists of several different 

national computerised registers. These registers contain information 

and key data about such matters as: 

• Liabilities and titles in mortgaged movable properties 

• More than 280 000 business enterprises 

• More than 1 300 000 annual accounts and auditor’s reports 

of limited companies 

• Bankruptcies and compulsory liquidations 

Information about actually registration of your business can be found 

here: 

www.bedin.no/php/d_emneside_eng/cf/hApp_102/hPKey_1527/hPa 

rent_17/hDKey_2 

Choosing a company name 

A company name is the official name that your business is run under. 

When your company is registered in the Brønnøysund Register Centre, 

your company name also gets added in the register of companies, and 

when this happens your company name is protected. But there are also 

requirements you have to follow when registering your company name: 

• It should not be misleading 

• The company name should be easy to pronounce 

• It is not allowed to use company names that are already 

registered 

There is also a law about company names. Here are some examples 

from the law: The business name for sole-proprietorship business enterprises 

shall include the surname of the owner. A business name must not 

be identical to a business name that is or will be registered pursuant to 

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a notification already submitted to the Register of Business Enterprises, 

unless the owner of the business name in question consents to this. You 

can find more about this law at this web page: 

www.brreg.no/english/acts/foretaksnavneloven.html 

To register your business, you have to fill out a form. The downside is 

that it only exists in Norwegian. Information about the form can be 

found here: 



Business requirements 

a) Forms 

To start a business enterprise you have to fill in a list of forms: 

• The central Coordinating Register for Legal Entities 

• The Register of Business Enterprises1 

• The VAT Registration list 

• The Employer’s part of the Employer / Employee register 

• The Business Register of the National Bureau of Statistics 

• The County Governor’s Register of Foundations 

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Photo: E.A.Vikesland/visitflam.com 

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The Coordinated Register Notification is a common form for registration 

in the Central Coordinating Register for Legal Entities, the Register of 

Business Enterprises, the VAT Registration List, the employer’s part of the 

Employer/Employee Register, the Business Register of the National 

Bureau of Statistics, and the County Governor’s Register of Foundations. 

1 Responsible for registering all enterprises in Norway. They shall 

ensure the protection of business names against third parties. They are 

also a source of correct information about participants in Norwegian 

business and industry. As long as you are going to have more than five 

persons in primary positions, you have to register there. 

You can find the form in Norwegian only at 

www.brreg.no/blanketter/samordnet.html 

The form can also be ordered by phone, Narvik Business Hotline green 

number +47 800 33 840 or you can contact the Brønnøysund Register 

Centre, tel. +47 75 00 75 00 

b) Documentations 

You can find some useful examples of business documents on this site: 

www.bedin.no/php/d_ressursomrade/cf/hApp_603/hParent_2/hDKey_1 

Most of these documents are in Norwegian only. 

c) Staff 

The employer in a private enterprise may employ whom he/she wants. 

Nevertheless, the Employees Act has some rules that must be obeyed. 

You can read more about these rules on this site: 



There shall always be a written working agreement, not depending on 

the time limit of the work. 

The Directorate of Labour Inspection can give advice and information 

regarding rules and regulation in this field. Look at this site for information: 

www.arbeidstilsynet.no/c26840/artikkel/vis.html?tid=29289 

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68 

Photo: R.M.Sørensen/visitflam.com 

Special Conditions 

a) Diplomas 

When it comes to for example 

craft studies, there are several 

to choose from, like a carpenter 

or an electrician. Either 

way, in Norway, the studies 

take four years. Two of these 

are in school, and the remaining 

two are in a business 

where you become an apprentice. 

After completing these 

four years, you get a certificate 

of completed apprenticeship, 

a craft certificate. In 

Norway we have two different 

types of craft certificates: 

Craft certificate: 

You get a craft certificate by taking a vocational training. You can take 

craft certificate training in a business, but that takes a little longer than a 

normal craft certificate. If you want to take a craft certificate in some 

categories like material administration studies you first have to go to 

school for two years then two years as an apprentice, and finally 5 

years as an apprentice in practice or relevant education. 

Master Craftsman’s certificate: 

You can get this Certificate by taking a completed vocational training in 

craft studies or a master certificate. 

If you want to start your own craft business, then you have to get the 

journeyman’s certificate. 

Information about the journeyman’s certificate you can find here: 

www.mesterbrev.no/omoss/engelsk.jsp?id=39 

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If you take this certificate, you become a master craftsman, which makes 

it easier to start your own business and running it with a quality stamp. 

You have to have the craft certificate to have apprentices in your business. 

Here craft studies is used as an example, but it can be useful to know 

that it is the same system in most of the other vocational studies in 

Norway as well, like mechanics, health, drawing and food. 

Photo: Pål Bugge/Innovasjon Norge 

b) Licenses 

You have to consider a number of aspects 

before the enterprise is a reality. 

Businesses that require special licenses 

are: 

• Driving instructors 

• Doctors 

• Physiotherapists 

• Auditors 

• Accountants 

• Lawyers 

• Stockbrokers 

• Real-estate brokers 

You will find more under the associated 

topics at www.bedin.no 

Some types of businesses require special 

licences. 

In order to run a catering business, such 

as a café or a restaurant, you must have authorization from the municipality 

where the business is located. Serving alcohol for payment 

requires a special licence from the municipal authorities. 

Authorisation as an auditor requires approved theoretical training and 

three years of varied experience. Taxi driving, ambulance driving and 

bus driving and other types of public transport require special licences. 

To run a business arranging travels, you are required to raise guaran- 

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tees consisting both of individual and collective guarantees. 

In order to run a trading business, it is required that you have obtained 

a right to trade. Trading is defined as selling goods for personal 

income. Trade is defined as sales of all types of goods, regardless of 

the goods being produced by you or bought from another source. 

In order to get the right to trade, the owners of liable companies must 

be minimum 18 years old and not in bankruptcy proceedings. 

Minimum 50% of the board members in a limited company must be residents 

of Norway. 

The same applies to the manager, if someone is appointed to such a 

position. 

You can read more about this at www.bedin.no 

c) Others 

You have to be at least 18 years old. 

You must not be under suspension from a previous bankruptcy. 

As a foreign citizen you have to apply for a personal identification number 

or D-number. If a D-number has not been allocated, the Central 

Coordinating Register for Legal Entities will order one from the 

Norwegian National Census Register (Sentralkontoret for folkeregistrering). 

Use the form «Request 

for allocation of D-number» 

(Anmodning om tildeling av Dnummer) 

and attach a clear, 

signed copy of the person’s 

passport. 

You will find the form at this 

web site: www.brreg.no/blanketter/d-nummer_last_ned.html 

Photo: Nancy Bundt/Innovasjon Norge 

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Useful Contacts 

It is important to build yourself a network when you are going to start 

an enterprise. Then you can get useful help to solve problems that may 

come up. 

A mentor can be a person from another business. He or she can guide 

you through difficulties that show up, and personal problems with leadership 

and so on. 

You can also contact NHO - Confederation of Norwegian Enterprise. 

This is the main organisation for Norwegian employers. Membership 

consists of more than 16 000 enterprises ranging from small familyowned 

businesses to large industrial enterprices.The address is NHO, 

Postboks 5250 Majorstuen, 0303 Oslo. Tel.: 23 08 80 00 

Web site: www.nho.no 

Fee for Registration 

The Norwegian Parliament has decided that the public must pay a fee 

for most of the services offered by The Brønnøysund Register Centre. 

Request for payment are sent after the order has been sent. The fees can 

vary from time to time. Please check at 

www.brreg.no/english/fees_reg/ for actual prices. 

Here is a list of the fees in 2006: 

• The register of Business Enterprises 

• Limited Company 

• Public Limited Company 

• Limited partnership 

• House building Cooperative /House Cooperating 

• Company with limited liability 

• Public cooperation 

• Other business enterprise with special legislation 

6000 NOK 

• Sole Proprietorship 

• General Partnership 

• Association / club / organization 

• Foundation 

• Savings Bank 

• Mutual Insurance Company 

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• Jointly owned shipping Company 

• Foreign entity 

2500 NOK 

• Prospectus 

2000 NOK 

72 

Photo: Jan Arild Strømstad 

Tax Regulations 

You can find information 

about the Norwegian Tax 

Regulation on this site: 

www.skatteetaten.no/ 

Templates/Brosjyre.aspx 

?id=28978&epslanguage=NO 

Here is another site giving 

information about the 

Norwegian Tax Regulation: 

http://odin.dep.no/fin/english/topics/p4500279/bn.html 

a) Company tax 

It is the duty of the local tax office to set the advance tax deduction and 

calculation of direct taxes and the premium to the National Insurance 

Scheme. 

For the time being, the local tax offices are not included in the cooperation 

of the combined register return. Hence, you have to deal directly 

with the local tax office in order to prepare for advance tax deductions 

and obtain a tax deduction card. 

How you proceed depends on the type of organisation of your business. 

Contact the local tax office to receive 

• an advance tax deduction card 

• an advance tax instalment 

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Self-employed business: Notification to the local tax office about the 

business being started is done on the form called «Information required 

for issuing tax deduction cards / tax deductions». The form may be 

obtained from Narvesen stores or from the local tax office. 

If the business is run from another municipality than the one you are living 

in, registration and all contact must be with the tax office in the 

municipality where you live. 

Companies with unlimited liability: The partners in such companies are 

private taxpayers, and the method of dealing with the local tax office is 

the same as for the self-employed business. 

Companies with limited liability: Notification on start up and further 

dealings are sent to the tax office of the municipality from where the 

business is run. 

Who collects the taxes: The chief municipal treasurer collects taxes on 

behalf of the municipality and national state. 

b) VAT 

VAT and investment taxes are paid to the Chief county tax inspector. 

There is a County Tax Office in each of the counties of Norway, except 

the counties of Oslo and Akershus that have one joint office. 

You may contact the Chief County Tax Inspector with all questions 

regarding the payment of VAT and investment taxes. 

c) Customs duty from non EU members? 

On this site you can find information about Customs duty: 

http://odin.dep.no/fin/english/topics/p4500279/p4500283/bn.html 

Business Premises 

a) Building regulations 

If you want to rent or buy a building 

you have to contact the local municipal 

to investigate if there are any building 

regulations. Is the building regulated for 

industry, trade or housing? 


Administration

) Environmental regulations 

You can read about health and safety regulations in an Act relating to 

working environment, working hours and employment protection, etc. 

(Working Environment Act)A translation into English in PDF-format can 

you find at this site: 

www.arbeidstilsynet.no/binfil/download.php?tid=28675 

c) Health and Safety regulations 

Systematic Health, Environmental and Safety Activities in Enterprises - Internal 

Control Regulations 

These regulations require enterprises to have written objectives in relation 

to health, environment and safety activities. Roles and responsibilities 

regarding health and safety issues must be clarified. Risk analysis 

and assessment must be carried out, and plans of action made and carried 

out according to assessments. 

You can read more about this in the homepage of The Norwegian 

Labour Inspection Authority. It is a governmental agency under the 

Ministry of Labour and Social Inclusion, focused on occupational safety 

and health. These and other translated Regulations can be downloaded 

in pdf from 

www.arbeidstilsynet.no/c26840/artikkel/vis.html?tid=29289#2 

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Sweden 

1. Business enterprise 

All business activity is performed in some type of 

company. Usually the choice lies between: 

• sole trader («enskild näringsidkare» or «enskild firma») 

• trading partnership or a limited partnership («handelsbolag» 

or «kommanditbolag») 

• limited company («aktiebolag») 

• economic association («ekonomisk förening») 

Which business form you should choose depends on the character of 

your business and your personal conditions. In order to get an idea 

about the best choice, you should compare the alternatives carefully. 

• What is required to start the business? 

• How many partners can you be? 

• What personal responsibility or cash investment is required? 

• Which tax rules are applicable? 

• Is the name of the company protected regionally or nationally? 

• What demands are placed on accounting? 

If you have a bank-contact you can get information about how to get 

started from them. They will provide you with relevant and correct information. 

You can also search the Internet, where you can find a lot of 

information about how to proceed. 

This chapter is based mainly on information 

from Swedish authorities and organisations 

like ALMI Business Partner, NUTEK 

(Swedish Agency for Economic and 

Regional Growth), the Swedish 

Companies Registration Office the 

Swedish Tax Agency among others. In 

most cases, the webpage mentioned in 

connection with the text is the source of 

information. 

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1.1 Sole trader 

A sole traders business is run by one person who is personally responsible 

for all the commitments of the business. If you have debts you have 

to pay them by yourself. A sole traders firm is not a legal entity. Your 

own national registration number also identifies your firm. 

«Sole Trader» means that the business activity has a name, and the 

name can be registered by the registration office. 

You do not get a real salary for your business activity. Instead you can 

use the profit for private purposes. The profit is regarded as income 

qualifying for sickness benefit. 

To be a sole trader is then the simplest solution. No starting capital is 

required apart from what is needed to run the business. But remember 

your obligations and the personal responsibility. 

1.2 Trading partnership and limited partnership 

A trading partnership means that you have at least two co-owners. The 

co-owners have unlimited joint, several, and personal responsibility. It 

means that the both of the owners is responsible for all the commitments 

of the business. If one of the owner’s can’t pay their debts, the other 

owner has to do it. 

Because the partners are supposed to work together, its advisable to 

draw up a written partnership agreement, oral agreements exists too. 

Even here you register your company at the companies’ registration 

office. 

A trading partnership can be an option if at least two persons are going 

to run a business together. No starting capital is required, apart from 

what is needed to operate the company. As always when co-operating, 

it is important that the partners agree. Do not forget the partnership 

agreement. However, no agreement can remove the personal 

responsibility. 

A limited partnership is a 

special type of trading 

partnership, where there 

are partners who are only 

responsible for the 

capital they have invested 

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in the company. Such co-owners are called limited partners. At least one 

partner, the so-called general partner, always has unlimited personal 

responsibility. 

1.3 Limited Company 

When it comes to a limited company (also known as «limited liability») 

there is a clear distinction made between the company and the owners. 

The owners can be one or more persons and, or enterprises. You must 

at least place 100 000 SEK in the company. The owners are not personally 

responsible for the company’s commitments. A limited company is a 

business form that is well regulated by legislation. A limited company is 

a legal entity, and it has a company registration number. 

You have to register your company by the Companies registration office. 

When you do that it also gives you protection of the company name in 

the whole country. 

A limited company has three important characteristics: 

• Shareholders 

• Board of directors 

• Registered or chartered accountant 

A limited company is a common business form for large enterprises, 

which often have several co-owners. However, nothing prevents a single 

entrepreneur from starting a limited company. The financial risk is limited, 

but remember that for example a personal guarantee, raises the 

risk. Due to the limited liability there are statutory provisions which lead 

to more administrative work in starting the business, as well as in running 

it. 

1.4 Economic association 

An economic association (also called 

an «incorporated association») comprises 

three members. The members 

are expected to take an active part in 

the business by contributing their 

knowledge and work. They can only 

risk losing their membership investment. 

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An economic association is a legal entity, and it is given a company 

registration number. You have to register the company at the companies’ 

registration office, and it gives the name copyright. 

An economic association has three important parts: 

• Annual general assembly 

• Executive committee 

• Auditor 

The members make a membership investment and decide at the general 

assembly on basic rules for the association. 

The aim of an economic association is to conduct different types of activities, 

for example to jointly buy or sell goods/services. Staff co-operatives 

and day-care centers are also common business areas. The members 

of an economic association are not personally responsible for more 

than their own invested capital and the required capital investment can 

be adapted to the needs of the activity. The members own an equal 

share of the association and each members vote gives the same influence. 

1.5 Registration of your business 

When you have decided which legal form to choose, contact the 

Companies Registration Office or Startlinjen for registration forms and 

further information. 

Irrespective of legal form, you must register your business by the 

Companies Registration Office. You find information about the different 

business enterprises and all documents needed at their homepage: 

www.bolagsverket.se. 

When you start your business also contact the Tax Agency to apply for 

an F-tax certificate and VAT (value-added tax) registration. Use the form 

the Application Form for Taxes and Fees. 

Homepage: www.skatteverket.se. 

1.6 Foreign in Sweden 

If you are a foreign citizen, you may require a personal permit to run a 

business in Sweden. Some rules differ depending on which citizenship 

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you have and therefore it is important 

that you contact the Swedish 

Migration Board 

(«Migrationsverket»), for further information. 

If you do not live in Sweden, you 

should contact a Swedish embassy or 

consulate to find out what applies to your particular case. If you are not 

registered in the Swedish Population Register, you must apply for at coordination 

number at the Tax Agency. This is necessary, for example, in 

order to register your company 

Homepages: www.migrationsverket.se , www.sweden.gov.se and 

www.skatteverket.se. 


2.1 Documentations 

According to the Swedish Accounting Act, all entrepreneurs must keep 

their books in good order. This applies irrespective of form of business 

enterprise and the extent of the activity. When you start your business, 

you must also start your bookkeeping. It is always your own responsibility 

as an entrepreneur to make sure that the accounting is performed 

correctly, even if you engage someone to assist you. 

You must decide, at an early stage, whether you are going to handle 

your own bookkeeping or let someone else do it for you. Perhaps you 

need to learn more about accounting by taking a course or reading a 

book. If, on the other hand, you choose to get help from a bookkeeping 

consultant, a bookkeeping agency, or somebody else, you will reduce 

your workload and get a skilled person to discuss with. Be sure to find 

out what the assistance will cost you. The better you keep your papers 

in order, the lower the cost will be. According to Swedish law, all 

accounting information should be saved for ten years. For further information 

see:www.nutek.se and www.skatteverket.se 

2.2 Staff 

2.2.1 Forms of employment 

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When you have decided to hire someone you must decide the form of 

employment. There are two main types of employment in Sweden, 

namely employment of unspecified duration (i.e. permanent employment) 

and fixed-term employment. 

A specific form fixed term employment is probation. It means that you 

can contract a person for a six months period to see if he/she is suitable 

for the job. Should you not wish the employment to continue after 

the probationary period, the employee must be notified, at the latest, by 

the date on which it expires. Various forms of contract work and hiring 

of labour is also quite common. Flexibilization is a growing trend of the 

working life. 

When it comes to salaries, you must add circa 30 % for social security 

contributions to the pre tax salary. You are also responsible for paying 

of the PAYE (Pay-As-You-Earn-Tax) for your employees to the Tax Agency 

every month. 

2.2.2 Legislation 

When you hire people you must 

pay attention to a multitude of 

statutory rules e.g. on job security, 

annual holiday entitlement for 

a minimum of 25 days, and the 

right to time off for various purposes 

like parental leave and 

study leave. One rule to pay 

specific attention to, is that the 

employer has to pay 80 % of the 

salary for the first 14 days absence if an employee falls ill. After this 

The Swedish Social Insurance Administration stands the cost. See 

www.fk.se.As an employer you have to know the Swedish labour laws. 

The most important laws are the act on security of employment (LAS), 

the working hours act, the work environment act, the act on equality 

between women and men at work, the annual leave act and the act on 

co-determination at work (MBL). There is also the specific form of regulation 

called the collective agreement, which is concluded between the 

trade union and the employer. See www.lo.se (The Swedish Trade 

Union confederation) for more information about the legislation on the 

labour market. 

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2.3 Insurance 

Before you start your business, you should have a look at your own 

safety net and the company’s need for insurance. As an entrepreneur 

you will not enjoy some of the basic insurance coverage you would 

have had as an employee. This makes it essential to extend your insurance 

coverage. Nutek gives the following recommendations about insurances. 

Business insurances which will provide the most common types of insurances 

that a newly started company needs. Premiums and conditions 

vary from one insurance company to another, and the need for insurances 

may also vary depending on line of business and activity. It may 

therefore be advisable to contact your trade association for further information. 

Remember that, even if you have a comprehensive household 

insurance, it does not include your business. Be well informed before 

you make your choice. 

Life and accident insurance is worth considering. It will compensate you 

for costs and damages in connection with work-related injury or disability, 

give insurance coverage for survivors, and may also include a disability 

pension and a certain supplementary pension. If you have 

employees and have a collective agreement or a so-called affiliated collective 

agreement with a labour union, labour market insurance is compulsory. 

Pension insurance If the profit of your 

company is low or the possibility of withdrawing 

money for a salary is limited, 

your future national basic retirement pension 

will be affected. Retirement saving 

is a way of supplementing your pension. 

Health insurance. Your income as an 

entrepreneur qualifies you for sickness 

benefit. Contact your regional social 

insurance office for further information. 

If you think that you need higher insurance coverage, you should contact 

your insurance company. 

Unemployment insurance. You should always contact your unemployment 

insurance fund before you start a business. This is especially important 

if you are receiving benefit payments from it. Certain unemployment 

insurance funds accept entrepreneurs as members, others do not. 

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In order to receive unemployment benefit as an entrepreneur, you are 

normally required to deregister your company, sell all assets and cancel 

your F-tax and VAT registration. The benefit is based on the net income 

of the company or the amount of money taken out as salary from the 

company. If you have run the business for a shorter period than twelve 

months, the benefit can be based on the income from earlier employment. 

The possibility of declaring the company dormant also exists, but 

the right is limited to one occasion only. 

Examples of insurances that may be necessary for a newly started business: 

• property insurance: compensates for damage to equipment, 

products, and valuable documents in the case of fire, burglary, 

overflowing water, etc. 

• consequential loss insurance: reimburses costs due to business 

interruption. 

• liability insurance: if you have to pay damages for personal 

injury and damage to property caused by your products or 

services. 

• legal expense insurance: covers a lawyer’s fee and court 

expenses if you happen to get into a legal dispute. 

• accident insurance: if you or your employees are injured in the 

place of work or on the way to or from it. 

Get further information by contacting insurance companies, your regional 

social insurance office, and your unemployment insurance fund. For 

more information see the section about «Types of insurance» under the 

heading «Starting a business» at www.nutek.se. 

3. Special conditions 

Depending on your activities there are different permits that you need. It 

is wise to find out at an early stage, which permits you need and what 

is required to obtain them. If you are uncertain which permits your business 

will need, you are welcome to contact «Startlinjen»(see section 4!). 

It is also be a good idea to always contact the local Business and 

Development Department.The permits are for example issued by the local 

authorities, the county administrative 

board, the government or 

the police. See also the section 

7! Here are some examples: 

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• If you want to serve wine, beer or liquors in your café or 

restaurant you need a permission from the municipality, which 

can be rather difficult to get when there are certain criterias 

connected you must fullfill. 

• For commercial traffic, car rental, security companies and certain 

environmentally hazardous activities you need permission 

from county administrative board. 

• Privately run nursing homes in health care, rehabilitation, geriatric 

care, and care of addicts are also a question for the 

county administration. 

• Public assemblies and for activities in public places need a 

permission from the police. 

• All health-care personnel, doctors, nurses, physiotherapists, 

dentists, etc. are obliged to report the start of private business 

es to the National Board of Health and Welfare 

If you want to import goods you also need licences. For textiles and 

clothing you need a licence from the National Board of Trade. For agricultural 

products you need a license from The National Board of 

Agriculture, but when it comes to food you have to contact the National 

Food Administration. The Customs Service answers questions about customs 

regulations, for example how to make a customs declaration and 

what the current tariff rates, duties and taxes are. You will find the 

Custom’s homepage at www.tullverket.se/ and links to the different 

boards of trade, agriculture etc via http://katalogen.sunet.se/cat/government/agencies. 

4. Useful contacts 

Before you get started it is a good idea to use the Start-line, 

«Startlinjen», which is a free service provided by Nutek. You can tell 

them you business ideas and ask for their opinion. You reach 

«Startlinjen» via phone +46 (0) 20-35 10 10 or via Nutek’s homepage: 

www.nutek.se. 

If you want to be successful, you have to know the right people, local 

politicians, existing enterprises and more. It’s important to have contact 

with these people, and if you don’t you have to make contact. Connect 

is one example of an organization that links entrepreneurs with the 

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financial, technical and business development resources they need to 

create and develop companies in Sweden. Homepage: 

http://www.connectsverige.se. 

There are also many examples of local networks in different branches. 

Contact the local Business and Development Department in your municipality. 

You can also get information from http://www.startaeget.se/ 

where you find information (in Swedish) on how to start. 

You may also contact the Swedish Chambers of Commerce for more 

information. There is a lot of useful information about Sweden at their 

homepage http://cci.se. 

They have circa 11 000 member companies, organised in 11 regional 

chambers, drawn from all sectors of the economy. The chambers offer 

the members practical services and are the prime business contact 

network. 

5. Fees for registration 

When you register your firm at Bolagsverket, the Companies 

Registration Office, you have to pay a fee. Today, nov 2006, the fee is 

• Sole trader SEK 1000 

• Trading partnership or a limited partnership SEK 1000 

• Limited company SEK 2000 

• Economic association SEK 1200 

6. Tax regulations 

6.1 Company tax 

The principle for taxation differs 

depending on the business form. You 

find some aspects about the different 

types below. Most of the information 

emanates from www.nutek.se. 

6.1.1 Sole trader 

For sole traders PAYE tax (Pay-As-You- 

Earn) and social security contributions 

are paid in the form of F-tax to the Tax 

Administration

agency every month. In an appendix to your income tax return form, 

you report on the years result. 

Running a firm as a sole trader may suit you if you are going to start a 

business by yourself. If you want to be able to invoice for work performed, 

you need an F-tax certificate. 

6.1.2 Trading partnership and limited partnership 

Inform the Tax agency that you are going to start a business activity in 

the form of a trading partnership just as in the case of a sole trader, no 

real salaries are paid, but the profit is shared by the partners, each of 

whom is taxed for his or her share. 

A trading partnership pays VAT every month, but may do so annually if 

the activity is not very extensive. At the end of the year, the trading partnership 

must balance the books and the partner appends a copy of the 

accounts to their own income tax returns. Normally no auditor is 

required for a trading partnership. 

6.1.3 Limited Company 

The owners of a limited company can be employed by the company. 

For all employees, social contributions and PAYE tax must be paid. 

The profit of a limited company is subject to corporation tax. After that 

the company can pay part of the profit to the shareholders in the form 

of dividends. 

You can choose to pay VAT monthly or annually. A limited company submits 

its own income tax return to the tax Agency. 

6.1.4 Economic association 

The members of an economic association can be employed by the association. 

For all employees, social contributions and PAYE tax has to be 

paid. 

The members may receive a share of the profit in the form of dividends. 

6.2 VAT 

Sweden’s VAT (Value Added Tax) is known in Swedish as «moms», 

which is short for «mervärdesskatt». The normal VAT rate is 25 percent. 

However, a reduced rate of 12 percent applies to for example food and 

hotel charges. A rate of 6 percent applies to personal transportation, 

newspapers, books and magazines, entrance fees to commercial sport 

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activities and cultural events. Certain services are exempt from VAT, 

including medical and dental care, social services, banking and financial 

services etc. 

There are four conditions that must be fulfilled for you to be liable to 

charge VAT to your customer. 

• you sell goods or services 

• the goods or services are VAT-liable 

• turnover takes place as part of a commercial activity, and 

• turnover takes place in Sweden. 

If you are to charge your customers VAT, then you are entitled to deduct 

the VAT that you pay to your suppliers. You may only deduct VAT that is 

related to your VAT-liable activity. 

For registration and more information: www.foretagsregistrering.se. 

See also www.icl-directory.com. 

The conditions can be 

illustrated using the 

“VAT Cat”. The cat must 

stand on all four legs to 

meet the tax liability 

requirements. Source: 

Riksskatteverket 



The local municipality is an important 

player when it comes to permits for your 

business. First you must check that your 

business activities are allowed in your 

premises. If the uses of the premises are 

changed you need a permit for that. 


If the business activity is connected with 

certain environmentally hazardous activities 

you must report to the Environment 

and Health Protection Department in you 

municipality. 

7.3 Health and safety regulations 

If you run a café or a restaurant the Environment 

and Health Protection Department inspects your 

premises regularly and you have to pay a specific 

fee. The fee varies, but it can be a consider- 

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able amount especially for a small business. There is also a duty to 

report so-called hygienic premises like for example a beauty parlour. 

Remember: 

Don’t forget to check with the local Business and Development 

Department (or corresponding) before you take any action. 

Appendix 1 

Information about Sweden (Source: http://www.cci.se) 

The Official Gateway to Sweden 

Information about Swedish society, economy, government, education, 

culture, nature, tourism, etc. in several languages. News, maps and 

weather reports. www.sweden.se 

Confederation of Swedish Enterprise 

The Confederation of Swedish Enterprise was founded March 2001 

after the Swedish Employers Confederation and the Federation of 

Swedish Industries successfully merged. 

www.svensktnaringsliv.se 

Invest in Sweden 

Invest in Sweden Agency is a government agency responsible for 

informing foreign investors about business opportunities in Sweden. 

Companies planning to establish or expand business operations in 

Sweden can, free of charge, obtain information and assistance. 

www.isa.se 

Swedish Trade Council 

The Swedish Trade Council has information about Swedish exports and 

exporters. Find partners and suppliers in Sweden as well as Swedish 

organizations and Sweden-related companies in your country. 

www.swedishtrade.com 

Swedish Federation of Trade 

The Swedish Federation of Trade has information about the Swedish 

market, customs, duties and trade regulations. 

www.svenskhandel.se 

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The Swedish Association of Agents 

The Swedish Association of Agents is an independent, non-political 

Swedish trade organization, which works with other Swedish organizations 

on issues of mutual interest. Three separate divisions have been set 

up for the busiest branch activities of textiles, footwear and 

electrical/electronic. www.agenturforetagen.se 

ICC Sweden 

The Swedish National Committee of the International Chambers of 

Commerce www.icc.se 

Swedish Agency for International Development Cooperation, Sida 

The Swedish Agency for International Development Cooperation, Sida, 

is a government agency under the Ministry for Foreign Affairs. Sida’s 

goal is to contribute to making it possible for poor people to improve 

their living conditions. www.sida.se 

National Board of Trade 

The National Board of Trade is a governmental agency and the central 

administrative body in Sweden dealing with foreign trade and trade policy. 

The Board provides the Government with analyses and recommendations. 

www.kommers.se 

Open Trade Gate Sweden 

Open Trade Gate Sweden works in close cooperation with a number of 

governmental agencies and private sector organisations related to international 

trade issues. www.opentradegate.se 

Swedish Companies Registration Office 

Swedish Companies Registration Office offers current information on 

Sweden’s enterprises. www.bolagsverket.se 

Trade Fairs in Sweden 

In Fairlink, the Scandinavian Trade Fair Council, you can find trade fairs 

and trade fair organizers in Sweden. www.fairlink.se 

Yellow Pages (Gula Sidorna - only in Swedish language) 

Most Swedish companies are listed in the Swedish Yellow Pages. 

www.gulasidorna.se 

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Marketing 

1. Marketing considerations - Applicable to all participating 

countries 

2. Unique characteristics 

3. Marketing planning and research 

Marketing Considerations. 

INTRODUCTION 

According to The Chartered Institute of Marketing (CIM) of the UK, marketing 

is «the management process for identifying, anticipating and satisfying 

customer requirements efficiently and profitably». 

Whether we are providing a service or producing a product or we ourselves 

are the end-users of such products and services, marketing is part 

of all of our lives and affects us in some way or another on a daily 

basis. To be successful when dealing with customers, we must not only 

be customer-driven, but customer-obsessed. The best way to achieve this 

objective is to develop sound marketing practices. Marketing means 

business and is crucial for success. Marketing is not only the production 

and distribution of products and services, but it also is concerned with 

the ethical and social responsibility issues found in the business environment 

in which we are operating. 

A very simple definition of marketing is that it is the delivery of customer 

satisfaction at a profit and therefore we must ascertain that we have the 

right combination of what is termed as the marketing mix or as it is 

more popularly known, the 4 Ps i.e. Product, Price, Promotion and 

Place. 

STRATEGIC PLANNING 

To meet changing conditions in the business environment, we need to be 

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Marketing

farsighted and visionary, and we must develop long-term strategies. 

Strategic planning involves developing a strategy to meet competition 

and ensure long-term survival and growth. The marketing function plays 

an important role in this process in that it provides information and other 

inputs to help in the preparation of the strategic plan. 

Strategic planning consists of developing a company mission (to give it 

direction), objectives and goals (to give it means and methods for 

accomplishing its mission), a business portfolio (to allow management to 

utilize all facets of the organization), and functional plans (plans to 

carry out daily operations from the different functional disciplines). 

THE MARKETING PLAN 

The Marketing Plan may be part of the Business Plan and it should contain 

a list of actions with a good strategic foundation. The Marketing 

Plan can be an action plan for a product or a service, a brand or a 

product line and it can cover one year or up to 5 years. When planning 

for 5 years the Marketing Plan should be flexible due to the company’s 

environment. 

The Marketing Plan is designed to give a blueprint of the company’s 

marketing campaign and must be a detailed action plan of how the 

company is going to offer and promote the product or service or brand. 

There are various formats of Marketing Plans and its size will vary 

according to the Marketing Campaigns planned for the period. The following 

is one of the main formats for a Marketing Plan in Malta. 

Executive Summary 

A very concise summary of the marketing plan. It should also involve a 

description of the company’s products and services to be marketed and 

what goals is the company expecting. 

Situation Analysis 

This entails analysing the current situation of the company. In order for a 

good situation analysis one should analyse the following areas: 

Macro Environment Analysis - made up from: 

Socio-Cultural Factors 

Technological Factors 

Economical Factors 

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Ecological Factors 

Political Factors 

Legal Factors 

Educational and Training Factors 

Market Analysis - mainly made up from: 

Market Definition 

Determining the Market Size 

Market Segmentation 

Brief Industry Analysis 

List of Competitors 

Competitor’s strengths and weaknesses 

Market Trends 

Consumer Analysis - mainly made up from: 

Target Audience details 

Nature of customer’s buying behaviour 

Customer’s motivation and expectations 

Loyalty segments 

Internal Audit - mainly made up from: 

Company resources: 

Financial 

Employees 

Skills and Experts 

Company Objectives: 

Mission and Vision Statement 

Corporate Objectives 

Financial Objectives 

Marketing Objectives 

S.W.O.T. Analysis 

This entails analysing the company’s external threats and opportunities 

and the internal strengths and weaknesses. These must be then compared 

and contrasted with the company’s competitors so that a competitive 

edge is established. 

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Marketing

Marketing Strategy 

The Marketing Strategy will help the company to gain competitive edge 

in the marketplace. This does not mean that by just defining the marketing 

strategy a competitive edge is gained, but it will allow the company 

to concentrate its resources on an opportunity to achieve and maintain a 

competitive advantage. 

The Marketing Strategy must be incorporated with the company’s marketing 

goals, policies and tactics into an interrelated plan. The aim of 

the Marketing Strategy is to present a groundwork from which a tactical 

plan is developed. 

The Marketing Strategy encompasses customer perception of the relationship 

between price and quality. Is the quality of the product or service 

worth the price? Is the price too low for the quality the customer 

desires? Is the price higher than the customer’s perception of quality? 

Marketing research identifies the price and quality relationship customers 

perceive to be important. 

The Marketing Strategy also includes the distribution channels for the 

product; pricing and terms of sale, promotion and advertising plan, marketing 

budgets, inventory selection and management, visual merchandising, 

customer relations and an evaluation of the marketing strategy. 

Therefore the company’s Marketing Strategy should consider the 

Marketing Mix: 

Product 

The product is the physical product or service offered to the consumer. 

The product decisions should consider the product’s advantages and 

how will they be leveraged. This part of the Marketing Mix should 

include choices regarding: 

Brand Name 

Quality 

Range of product line 

Warranty 

Packaging 

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Price 

The price does not just mean the price list, but it also includes discounts 

and allowances, financing and other options such as renting. This section 

should also include the pricing method chosen and the break-even 

analysis at various prices. 

Promotion 

The Promotion Mix is made up from Advertising, Public Relations, 

Personal Selling and Sales Promotion. The promotion decision in this 

section relates to communicating and selling the company’s product to 

the potential customers. It should also include the planned media to be 

used, the message that the company wants to deliver and the promotion 

budget for the whole period. 

Place 

The place does not only include the location of the company, but it also 

includes all the channels of distribution that serve as the means for getting 

the product to the target customers. This section should include: 

Geographical Coverage 

Distribution Methods 

Physical Distribution and Logistics 

Electronic Distribution 

Action Programmes 

This section tries to answer the following questions: 

What will be done? When will it be done? Who is responsible for 

doing it? How much will it cost? 

Financials/Budgets 

This section should include the company’s short-term and long-term 

objectives, their expected results and any special actions necessary to 

accomplish them. Forecasts of sales and profit and expenses as well as 

the result of the break-even analysis may also be included. 

Controls 

The following areas should be monitored to gauge performance: 

Revenue: monthly and annually 

Expenses: monthly and annually 

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Marketing

Customer satisfaction 

New product development 

THE MARKETING ENVIRONMENT 

In order to correctly identify opportunities and monitor threats, we must 

begin with a thorough understanding of the marketing environment in 

which we are to operate. The marketing environment consists of all the 

actors and forces outside marketing that affect our ability to develop 

and maintain successful relationships with our target customers. Though 

these factors and forces may vary depending on the specific company 

and industrial group, they can generally be divided into broad microenvironmental 

components [the company, suppliers, marketing channel 

firms (intermediaries), customer markets, competitors, and publics] and 

macroenvironmental components [demographic, economic, natural, technological, 

political, and cultural forces]. We must be aware that one 

cannot always affect environmental forces, however, one can take a 

proactive, rather than reactive, approach to the marketing environment. 

MARKETING INFORMATION 

In carrying out our marketing responsibilities, we need a great deal of 

information. Despite the importance and growing supply of information, 

decision-makers often lack enough information of the right kind or have 

too much of the wrong kind to make the critical decisions necessary to 

be successful in our highly competitive global marketplace. We don’t 

need more information, we need better information. To overcome these 

problems, we must have marketing information system in place. It is to 

be clearly understood that a commitment to an information system is not 

just a technological commitment but a corporate culture commitment as 

well. 

CONSUMER AND BUSINESS BUYER BEHAVIOUR 

We must also look at the consumer and business markets and how these 

behave differently. Markets have to be understood before marketing 

strategies can be developed. The consumer market buys goods and 

services for personal consumption. The business market contains organizations 

that buy goods and services for use in the production of other 

products and services that are sold, rented, or supplied to others (for 

example, retailing and wholesaling firms). 

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ADVERTISING, SALES PROMOTION, AND PUBLIC RELATIONS 

Modern marketing calls for more than just developing a good product, 

pricing it attractively, and making it available to target customers. We 

must also communicate with our customers and there should be controlled 

direction to those communications. Promotion provides the primary 

communication function. As one of the four major elements of the 

marketing mix, promotion uses advertising, personal selling, sales promotion, 

public relations, and direct marketing to achieve our communication 

objectives. 

SOCIAL RESPONSIBILITY AND MARKETING ETHICS 

We must also examine the social effects of private marketing practices. 

A marketing system should sense, serve, and satisfy consumer needs 

and improve the quality of consumers’ lives. In working to meet the consumer’s 

needs, we may take some actions that are not approved of by 

all the consumers or publics within the social sector. Therefore, we must 

understand the criticism that the marketing function may encounter. By 

understanding the possible criticisms, we shall be better prepared to 

respond to these potential problem areas in a proactive manner. 

http://www.cim.co.uk/ 

http://www.prenhall.com/kotler/ 

After we have taken a broad look at some marketing considerations, let 

us now zoom on the unique characteristics of each individual country 

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MALTA 

THE UNIQUE CHARACTERISTICS OF THE 

MALTESE MARKET 

Malta as a small island state and inhabited by 400, 

420 people may seem to be too small to be of any interest to be targeted 

by marketers. However, on delving 

further, one will be quite surprised to 

learn that the Maltese market in general 

is quite vibrant and consumption per 

capita is very high indeed. This probably 

is the result of Malta’s insularity surrounded 

by the Mediterranean Sea. 

Besides, since Malta joined the 

European Union on the 1st of May 

2004, it has adopted much of the EU 

practices in business, and has also con- 


formed to specific rules dealing with 

trade and commerce, such as 

Consumer Rights. Thus, a person or 

organisation wishing to start up a business in Malta will first of all need 

to be updated on European Rules and Regulations which govern the 

Marketing of a product or service. Malta is very densely populated, and 

therefore Marketing Campaigns are generally standardised for a product 

or service. As most of the Maltese firms are SMEs, Marketing 

Departments are generally part of the Sales Department, and Marketers 

more often than not carry out the functions of a Salesperson. 

Segmentation is generally unnecessary in Malta, for 2 reasons. Firstly, the 

Maltese Market is made up of a relatively small number of customers. 

Secondly, the island is not split into regions, due to its small size. This is 

not to say that segmentation should not be carried out. However, not all 

segmentation variables are applicable 

to the Maltese Market. Generally, only 

variables such as Demographic (for 

example Age), Geographic Location, 

Purchasing Power and Lifestyle are 

used. For example, Malta is a growing 


Marketing

population, and more emphasis is being placed on Baby Boomers, as a 

profitable market segment. As needs, wants and demands for every 

Maltese Consumer change, one must take a closer look at how these 

are to be fully satisfied. 

As Marketing is often considered part of the Sales Function, Maltese 

Marketers generally do not make use of all 4Ps to develop their 

Marketing Campaigns. Advertising is considered as the major Promotion 

tool used by Marketers when implementing a campaign targeting existing 

and potential customers. In fact, most Marketing Budgets are devoted 

exclusively to this Promotional tool. 

The more popular Media as a means of communication used for 

Advertising are Radio, Print and Television. Although these are quite 

popular, one must ensure to choosing the right newspapers/publications 

and the right channels/programmes at the right time to advertise, which 

will necessarily differ according to the type of product or service being 

advertised. In general the most popular publications are the Weekly 

Newspapers both in the English language and in Maltese, and the peak 

time for Television occurs in the minutes before and during the daily 

local evening News Broadcasts. Outdoor Advertising in Malta in general, 

is gaining popularity. Examples of this are Billboards and Advertising 

on Local Transportation. 

Although E-commerce is on the increase and most companies have an 

efficient Website, Maltese consumers are generally sceptical in using the 

internet for shopping especially if they are required to give out any personal 

information. Electronic Sales 

and Advertising, although steadily 

increasing, might still not be considered 

as a practical alternative 

in Malta. 

Direct Mail Advertising is also a 

very recent concept in Malta. 

Although several companies make 

use of this medium, Maltese consumers 

still rate such mail as junk 

mail, and the general consensus is 

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Marketing 

(c) Oliver Pace

to ignore leaflets and fliers, which may be posted at one’s home. 

Finally, Maltese Firms have always made use of Local Exhibitions and 

Annual Trade Fairs, as opportunities for raising awareness and selling 

their products and services. Firms generally use sales promotions and 

reduced prices, as incentives to attract consumers to their stands. 

Although Malta’s size restricts marketers, in that there are no specific 

regions to cater for, its very size also provides an advantage, in that 

products or services often do not have to be tailored to suit specific consumer 

groups. The most concentrated areas of Retail activity are found 

in Valletta (the capital city) and Sliema (the cosmopolitan tourist centre), 

although the Northern, Central and Southern parts of the island are also 

being recognised as profitable areas for retail activities. 


MARKETING PLANNING 

AND RESEARCH 

BUSINESS PLANNING IN MALTA 

When setting up a company in 

Malta it is very important that a 

Business Plan is completed. The 

Business Plan will be essential 

when turning to investors for investment 

as it would give the potential 

investors the peace of mind to feel 

comfortable about the company 

before they invest. 

The Business Plan is the foundation that will lead the business towards 

the creation and growth of new business. It is an essential tool for the 

company in order to raise capital and should be written through the 

investor’s eye so that it demonstrates that you have a clear mission and 

be acquainted with the industry the business is going to operate in. 

Investors have to be attracted to the business’s venture through the business 

plan. The Business Plan should answer all the possible concerns of 

the potential investors. 

In Malta investors are not only concerned with ideas but good management 

is essential. The Business Plan has to communicate your understanding, 

passion and commitment towards the business along with all 

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Marketing

the past experience already gained. It has to also persuade the investors 

that you know what the customer’s needs and wants are and how are 

you willing to satisfy them. The product or service offered has to be 

completely described in detail. The investors need to know the reach 

and the kind of customers that the business is going to target; therefore 

a picture of the potential customers must be drawn in the Business Plan. 

The following are some companies that could be contacted for help in 

connection with Business Planning in Malta: 

Malta Enterprise 

Malta Enterprise is government’s exclusive agency focused on attracting 

inward investment and supporting enterprise in Malta. Its role is to act 

as a single point of contact for all enterprise support in Malta and to 

provide cohesion to government policies and efforts relating to enterprise 

in this country. 

Malta Enterprise provides a comprehensive package of assistance and 

advisory services to international companies and investors considering 

operations in Malta. 

http://www.maltaenterprise.com/ 

Malta Mentoring Society 

The Maltese Mentoring Society is a non-governmental, non-political and 

non profit-making professional organisation, completely self-governing 

and self-regulating via its Statute. 

The Society was set up in 2002 by a group of people who came together 

after having successfully completed one of the two accredited intensive 

Mentoring Training Programmes. The Society was set up to promote 

mentoring and to develop ethical mentoring practices as well as the 

development of the mentoring profession in Malta. 

The Society’s members come from various businesses, commercial and 

professional sector and provide formal or informal mentoring to those 

who seek their services. The Society is an autonomous and independent 

body and it benefits from close working relationship with various entities, 

which pertain or are responsible for Employment, Education, 

Industry and Commerce 

http://www.maltesementoringsociety.com/ 

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Marketing

Employment and Training Corporation 

The Employment and Training Corporation is Malta’s Public Employment 

Service and was set up by an Act of Parliament, with the following 

objectives: 

• to provide and maintain an employment service 

• to find suitable employment and to assist employers to find 

suitable employees 

• to provide training service to clients seeking new jobs and to 

clients already on the job but wanting to improve their knowl 

edge and skills 

http://www.etc.gov.mt/ 

National Council of Women of Malta 

The National Council of Women is a co-ordinating, philanthropic body 

of women that aims to act to improve the status of women and the wellbeing 

of society; to present a broad and comprehensive view of 

women’s opinions on matters of national interest and cultural traditions 

based on human rights; and to make women more aware not only of 

their rights but also of their civic, moral, political and social responsibilities 

to society as a whole. 

http://www.ncwmalta.com/ 

MARKETING RESEARCH IN MALTA 

As Customers become more demanding, due to their increased choices, 

all Malta Based Companies are discovering that, in order to survive, 

they need a competitive edge over the other players in their industry. 

Marketing Research is a relatively new concept in Malta, especially for 

Small and Medium Enterprises. These companies often considered 

Marketing Research to be superfluous, and made no consideration for 

Research in their Marketing Budgets. Traditionally, Research was regarded 

as an ‘extra cost’, rather than the investment we know it is today. 

Maltese Companies are now realising that research helps them in that it 

gives a clear picture of the market and the industry in which they are 

planning to operate in, or in which they are already operating. 

Firms are now resorting to Market Researchers to discover relevant 

issues about their customers. Companies have also started to realise that 

there is a need for specialised direct marketing, whereby companies 

direct their effects at particular segments of the market. With the increas- 

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Marketing

ing costs of marketing and promotional campaigns, a company must 

concentrate its marketing efforts on those people who make up their target 

audience. 

Many companies have started to embrace the Marketing Research philosophy, 

believing that the more they know about their particular segment, 

the better their offering will be. 

Research is, however, an expensive and time-consuming process, and 

many Maltese SMEs lack the knowledge, the skills and the resources, 

needed to carry out a research project. 

That is where Marketing Consultancies come in. It has become the norm 

nowadays to outsource all the Company’s secondary activities, and 

Marketing Research is not an exception. 

Malta now boasts several Consultancies and Firms such as MISCO, the 

Research Bureau, and The National Statistics Office, which all offer different 

aspects of Marketing Research. There are also many other smaller 

firms, which deal in Marketing Research and Consultancy Services on 

the island. 

Up to a few years ago, research was still considered as a waste of 

money; however, attitudes towards research are changing, as companies 

are realising that knowledge is power. 

Companies can longer afford to live off their market share, but they must 

try to increase it. As opposed to a scenario where each company is 

content to have its own tiny share, the increasing level of competition 

means that the scenario today is the survival of the fittest. 

Marketing Research today is considered as a powerful tool, used to 

assess attitudes, analyse customer needs, wants and demands, and 

maintain contact with the various market players. 

As Marketing Research becomes more accepted in Malta, and as its 

importance is starting to be recognized, it is being used to present differentiated 

promotional messages to different market segments. 

The latest innovation in Marketing Research is to make use of the 

Internet, in order to collect both Qualitative and Quantitative 

Information. Although the Internet was initially being used as a source 

for Secondary Data, market researchers have started to identify the different 

benefits, which the online environment may offer. Online research 

is both faster and cheaper than traditional research, especially in the 

case of questionnaires and focus groups. 

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Marketing

Many Maltese firms already use the Internet as a source for secondary 

research, as is the case in prospecting or suppliers, or researching their 

competitors. Primary online research in Malta is still being tested, and 

many companies baulk from the idea of carrying out online interactive 

surveys. This might be due to the limitations of using such a medium, 

such as privacy issues. 

But companies should also be aware of the benefits offered by online 

primary research. Marketers are generally interested in both the qualitative 

and the quantitative aspects of research. These two types of data 

may be gathered simultaneously through the use of web cameras, as 

well as the standard questionnaire. 


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Netherland 

Unique characteristics 

The Netherlands aren’t very different from other 

countries but there are some things that are quite interesting. 

Here are a few typical characteristics of the Netherlands: 

The full name of the country is the Kingdom of the Netherlands, which 

has the city of Amsterdam as its capitol. 

The country is a constitutional monarchy of which the prime minister is 

the government leader and to enter the country you don’t need a visa. 

The complete country is 41,526 sq km or 16,033 sq miles big and has 

a population of 16,254,900. Daylight savings starts at the last Sunday 

in March and it ends at the last Sunday in October. 

The country has two official languages: the Dutch language and the 

Frisian language. The Frisian language is spoken in the northern 

province of the Netherlands: Friesland. The Dutch language is spoken in 

the whole of the Netherlands but is sometimes changed into a dialect in 

some provinces. 

In the Netherlands the weather isn’t always good. With cool winters 

and mild summers the country has a climate that changes allot. 

The biggest religion in the Netherlands is the Christian religion in which 

52% of the population believes. 

5,3% of the Dutch population is 

Muslim and a full 40% of the 

Dutch say they have no religious 

affiliation. The currency in 

Holland is the same as most of 

the countries in Europe: the 

euro. 

These are some basic characteristics 

of the Netherlands. 

One of the most important 

things, perhaps the most important, 

is the Dutch economy. 

The harbour of Rotterdam has an enormous influence on the industry. It 

is one of the biggest harbours in the world. 

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Marketing

The country also has one of the biggest airports in Europe: Schiphol 

Airport in Amsterdam. 

The major industries in the Netherlands are: service industries, banking, 

electronics, digital media, horticulture, agriculture and shipping. 

The Netherlands belongs, thanks to for example companies like Philips, 

to the top of the electronics industry. 

The trading partners of the Netherlands are countries such as Germany, 

Belgium, Luxemburg, France, the UK and the USA. 

Here are some index prices that are used in the Netherlands: 

Item Price 

Litre of Petrol Eu 1.15 

Movie ticket Eu 7.50 

Souvenir T-shirt Eu 10.00 

Local phone call Eu 0.30 

Can of soft drink Eu 0.45 

Litre of milk Eu 0.80 

Litre of bottled water Eu 0.80 

Bus/tram ticket Eu 1.60 

Glass of Heineken Eu 2.50 

Fries with mayonnaise Eu 1.75 

Bicycle lock Eu 10.00 

CD Eu 23.00 

Average hotel room prices: 

Low: Eu 15 - 50 

Mid: Eu 50 - 120 

High: Eu 120 - 200 

Deluxe:Eu 200+ 

Average meal prices: 

Low: Eu 5 - 10 

Mid: Eu 10 - 20 

High: Eu 20 - 60 

Source: www.lonelyplanet.com 2006 

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Marketing

Marketing planning and research 

Business plan 

What marketing information is important for the bank to get financing 

for your business? 

To convince the bank that your company 

will succeed, you certainly must have 

done marketing research. In the 

Netherlands a business plan is indispensable. 

A business plan consists of the following 

steps: 

• Description of the entrepreneur 

• Marketing plan 

• Description of the organisation 

• Financial plan 

Description of the entrepreneur 

To get a clear picture of yourself, you 

have to describe yourself according to a 

few regular points. Your personal background, 

working experience and present 

source of income and education is very 

important to mention. 

But the most important part is your motivation 

to start your business, and what you 

want to achieve. Next you have to give a personal analysis of your 

qualities and a description of your weak and strong points. Then you 

have a clear picture of yourself, so you can prevent annoying surprises. 

Marketing plan 

A market research is crucial for a starting business. The results of the 

market research declare if your business will be successful or not. 

Before you do a market research, you must know the following things; 

• What are you going to put on the market? 

• How are you going to differentiate your business from your 

competitors? 

• Who are your customers? 

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Marketing

When you have answered these questions, you can start your market 

research! 

Branch research 

When you’re going to start a business, 

you must choose a branch. Your specific 

branch is still a bit unknown for you, so 

you must assemble information. Important 

information is; the developments in your 

branch, turnovers, whether or not you can 

split the turnovers, who the bidders are, 

the distribution. So, you have to know 

what the developments are and what the 

expectations are for the next couple of 

years. 

Environment research 

This research will give you a clear view of 

who your customers and who your competitors 

are. 

Customers 

Find out how many potential customers 

there are, what the turnovers are. Than try to place the customers in certain 

groups. If you know which group is interested, you have to find out 

what their buying motives are. 

Competitors 

An analysis of your competitors is crucial, 

because when you know everything about 

your competitors, you know how to move 

in the 

market. 

Find out how many competitors there are, 

who your most important competitors are, 

what their turnover is, who the most threatening 

competitors are and what their 

weak and strong points are. 

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How to find this information 

There are two ways to figure out all this information; desk research and 

field research. 

Desk research is the easiest way, because you use existing researches 

and information. 

Field research is doing your own research. Talking with other branch 

organisations, potential customers take a look at your competitors and 

discover their strong and weak spots. The best way to do a real 

research is with an enquiry. 

Marketing mix 

The marketing mix will give your future business an own differentiated 

identity. For the outside world it’s very clear, and it conforms to the 

needs of your customers. 

The marketing mix consists of the 6 P’s of marketing: 

• Product: what product or service will you supply? 

• Price: What is the price of your product or service? 

Explain the working out of your price. 

• Place: where are you going to offer your product? 

Where is the business located and why? Are you going to 

work at home or will you rent an office? 

• Promotion: How do you reach your customer? 

Which means of promotion will you use? 

• Presentation: How will you offer you product? 

• Personnel: Who will work in your business? 

Business formula 

A business formula is an overview of the 

marketing mix, so you can see directly what 

the business offers and to whom, which customer 

needs they accomplish and how they 

differentiate themselves from their competitors. 

Description of the organisation 

Now you must consider the housing. Good 

insurance and licences are indispensable. 

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Marketing

The following questions have to be answered: 

• Which legal form are you going 

to choose? 

• Who will do the administration? 

• How are you going to insure your business against risks? 

• In what ways will you be available for your customers? 

• How will you split your time? How will you combine your work 

and private life? 

A balance sheet 

• Expenditure of money or 

effort for future benefits; what 

do you need to start your business? 

• Financial plan; where do you get the money? 

An exploitation budget 

• The sales volume 

• Company costs 

• Profit expectations 

A private sector specification 

Analysis of personal expenditure (and earnings) 

A clear prognosis 

An analysis of in- and outgoing money each month. 

Source: www.kvk.nl 

108 

Financial plan 

The entire plan you have 

written down till now has to 

be financed. Consider who 

will finance your business. 

A complete financial plan is 

composed of a few budgets: 

Marketing

Norway 

Unique characteristics of the 

Norwegian market 

Norway is in many ways a small country 

and companies controlled by 

Norwegians are small compared to 

companies in Scandinavia and Europe. 

One of the results of this may be that 

Norwegian businesses are bought up 

by larger international concerns. 

Because of the high-cost level in 

Norway it may also often be profitable 

for Norwegian companies to produce 

their products abroad. 

Norway is not a part of the EU, but a 

part of the EEA. Why? 

EU 

The European Union (EU) currently has 

a common single market consisting of a 

customs union, a single currency managed 

by the European Central Bank Photo: Michael Josephsen/Innovasjon Norge 

(so far adopted by 12 of the 25 

member states, by 2007 13 of the 27 member states are supposed to 

use the Euro), a Common Agricultural Policy, a Common Trade Policy 

and a Common Fisheries Policy. A Common Foreign and Security Policy 

was also established as the second of the three pillars of the European 

Union. 

Norway’s relations with Europe 

History 

Norway is territorially, politically, economically and culturally a part of 

Europe. After the Second World War, contributing to peace, stability 

and prosperity in Europe as well as in the rest of the world became a 

central concern of Norwegian foreign policy. Norway thus became one 

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of the founders of the United Nations in 1945, the Organisation for 

Economic Co-operation and Development (now the OECD) in 1948 and 

the Council of Europe and NATO in 1949. 

Yet Norwegian participation in the establishment, in the 1950s, of what 

eventually became the European Union was not considered. The reason 

was the fact that Norway’s close ally, the United Kingdom, did not take 

part. Instead, Norway together with the United Kingdom, Denmark, 

Sweden and several other states established EFTA, The European Free 

Trade Association, in 1960. Norway applied for membership of the 

EEC later on in the 1960s, but with France blocking British membership, 

Norway’s application was never dealt with. A Norwegian referendum 

held in 1972 returned a vote of 53.5 per cent against Norwegian membership 

of the EC. 

Then in 1994, 52.2 

per cent of the 

Norwegian voters 

again voted no. Thus 

the EEA Agreement, 

which had entered 

into force on the 1 of 

January 1994, continued 

to be the cornerstone 

of Norway’s 

association with the 

EU. 

Photo: Morten Rakke/visitflam.com 

Norway’s European policy 

The European Union has been the driving force behind many of the farreaching 

changes that have taken place in Europe since the Second 

World War. Aspects of the development of the EU have consequences 

for Norway. For this reason, Norway’s relations with the EU and its 

member states are a central element in its European policy, and the government 

seeks to co-operate with the EU in all areas in which EU policies 

affect Norway. It is not aiming for Norwegian EU membership, but 

pursues an active European policy to promote peace, stability and welfare 

in Europe. 

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Marketing

From «Main fields of co-operation in the EEA Agreement» 

you can read following: 

The EEA Agreement makes Norway part of the internal market, and provides 

for: 

• Free movement of goods, services, capital and persons 

• Common rules and standards for goods and services in the fields 

of health and safety, environmental protection and consumer 

protection 

• Common rules on competition and State aid to ensure equal and 

fair conditions of competition between undertakings in the entire 

European Economic Area. 

• Co-operation in other areas, especially programme co-operation in 

such areas as research, education, environmental protection, 

consumer policy, information technology, culture, social policy, 

gender equality, tourism and SME policy. 

There is a fact that the cooperation in EU is deeper and wider than in 

the EEA Agreement, and there are both advantages and disadvantages 

for Norwegians and the Norwegian market to not being a member of 

the EU. In few words we can say that Norwegians are aware of that it 

is not easy to be outside the EU, but Norway doesn’t want to be a part 

of the EU especially because we are afraid to loose control over the 

Agricultural Policy and the Fisheries Policy. It is not as simple as that, of 

course, but there is a fact that both are very important parts of the 

Norwegian market. 

If you want to know more about the Norwegian market and EU/EEA, 

you will find following websites interesting: 

Links: http://www.bedin.no/php/startside_eng/cf/hDKey2 

http://www.dep.no/europaportalen/english/policy/032141- 

130274/dok-bn!30005978.html 

Prices 

In Norway we have a high-price and high-cost level and a lot of taxes. 

This affects every entrepreneur who wants to start and run a business. 

Money is always an issue when you think about for instance housing, 

production, distribution or commercials. 

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Marketing

Products/services 

To have the right product or service is everything! Without the right idea 

you don’t make it in the business market. Norway is about to become a 

service gained nation, it is very important that you have a good product 

or service to offer if you want to make it in the Norwegian market. And 

because Norwegians are engaged in the quality of the products they 

buy, it is important that you use first class materials in your production. 

PR - influence 

When you want to sell your product it is important to make people 

aware of and interested in your product. In Norway there is a large 

market for commercials. Only one Norwegian TV- channel does not 

show commercials! So if you are willing to pay a lot of money to make 

a commercial and get it out on the television, you have a good chance 

that people are going to be interested in you product. People in 

Norway are very engaged in prices and the quality of the products they 

buy, so you have to let people know that your product is a first class 

product to the right price. 

Place (distribution) 

To get the product out to the customers is actually one of the most important 

parts in the marketing business. Because Norway is a long, narrow 

country it is both expensive and difficult to get the product out to the customers 

all over the country. You have to find out if you want to use car, 

train, boat or maybe plane to get your product out on the market. In 

Norway we still have people who live on small islands which can only 

have 16 citizens, and we have the indigenous population in Norway - 

Lapps who still live in the mountains in the north of Norway. These people 

may also want your product. How you are going to get your product 

to those possible buyers is one of your important tasks. 

Locations of the business 

To find the right location of the business is very important in Norway. 

First of all you have to decide if you want to rent or to buy the locations, 

and then you have to study the area carefully before you make a decision. 

Remember: In Norway it is not interesting to start the 10th coffee 

shop in the same street, the Norwegian market is small and the competition 

may easily be too tough for your business. 

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Marketing

Registration 

The Brønnøysund Register Centre is an administrative agency responsible 

for national control and registration schemes for business and industry. 

Even if some types of companies do not have to be registered, it is 

common to register all companies so it is safe to be both entrepreneur 

and customer in our country. 

Link: www.brreg.no/english/ 

At last: 

As mentioned earlier; it may seem difficult to be an entrepreneur in 

Norway. There are many important things to have in mind when you 

start a business. Just think about how long Norway actually is physically. 

The distance from north of Norway to the south is as long as the distance 

from Norway to Rome. Therefore it is not strange that a lot of 

entrepreneurs in Norway view this fact as an obstacle. But anyway: You 

don’t have to be Albert Einstein to be an entrepreneur in Norway, but 

you have to like challenges. 

Photo: Johan 

Wildhagen/Innovasjon Norge 

Marketing planning 

and research 

To establish a good network 

and the bank’s financing for 

your business you have to 

give good information about 

your business plan and calculations. 

This is important 

because possible partners 

and the bank need to see that you have a serious plan for the business 

and that you have a financing plan ready. 

Business plan 

The business plan is a systematic and thorough presentation of a business 

idea. The plan is also important when you communicate with other 

interested parties at a later stage. 

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Marketing

Nevertheless, you yourself are the primary user of the business plan. The 

plan should give you a better understanding of the tasks ahead. If well 

done, the business plan will both improve the prospect of a successful 

project and illuminate the risks you face in your business concept. 

Contents of the business plan 

You will find numerous forms and «recipes» for a well-composed business 

plan on the net. The typical Norwegian table of contents will 

include the following: 

1. An introductory 

2. Company - organisation 

3. Business idea 

4. Market analysis and marketing plan 

5. Products and services 

6. Budget/financial plan 

7. Operational plan 

Make sure your table of contents is well organized and free from mistakes. 

The same applies to the rest of the business plan. In particular, 

make sure you include all sections, and that the description is precise 

and to the point. 

1. An introductory: A summary of the most important things in the 

business plan. The summary is written when you are finished with the 

business plan, but you place it in the beginning to get a general idea 

of the content of the plan. 

2. Company organisation: In the business plan you should have an 

organisation map that shows who is responsible for what. 

Leader 

Economi Marketing Admin. 

114 

An example: 

3. Business idea: The busi 

ness idea tells something 

about what the business 

has to do to «survive.» 

The business idea is the 

most important part of the 

business plan. 

Marketing

The important parts of the business idea are: 

What kind of productyou want to offer (it is a good idea to do marketing 

research before you select product), what type of needs the 

product covers and the target group for the product. 

4. An analysis of the situation and marketing plan: To plan marketing 

and to stand one’s ground in the competition it is very important to 

be aware of own organization and the situation the firm is about to 

be in. When you work with the analysis of the situation it is common 

to use the so-called SWOT-analysis. This means that you look at the 

company’s Strengths and Weaknesses internally and Opportunities 

and Threats externally. The marketing plan covers goals and strategy 

of the market, the product, distribution and price. It is important to 

make a strategy to be able to reach your goals. 

5. Products and services: Here you should present the product/services, 

which needs the product/services should cover, how it should be produced, 

what demands the product/services should fulfil and expect 

ed lifetime at the market. We also talk about the main service and 

periphery services. Example: A travel by airplane: The main service 

is here the airplane travel. Serving of food and drinks on the plane 

and check-in are the periphery services. 

6. Budget/financial plan: You need budgets to be able to «look in to the 

future» for the financial part of your business. You have to use realistic 

numbers in the budget - expected costs and possible incomes. 

7. Operation plan: Make a plan over the company’s future and explain 

things that need to be done and by whom, especially when you think 

about the influence on the market. 

Photo: R.M.Sørensen/ 

visitflam.com 

Marketing

SWEDEN 

MARKETING 

Marketing considerations 

Running a company and doing business is a life-style for many people, 

full-time or part-time, alone or together with others. You have a great 

freedom to do what you want. At the same time high demands are put 

on you as an entrepreneur. You also run a financial risk, but you can 

protect yourself to some extent by making careful preparations. And the 

job will have to be done by you; nobody else can do it for you. 

Starting a business requires knowledge. Primarily it is a matter of knowing 

your customers, who they are and what they want. Plan the start. 

Discuss with others. 

Marketing is all about promoting your goods and services and trying to 

sell them. You need to draw the attention of potential customers to your 

products and services in order to convince them to purchase them and 

to turn first-time purchasers into repeat purchasers. 

Starting business costs money. Maybe it will take a few months before 

you receive any money from your first customers. In some cases your 

business requires one or more permits. Do not look upon this as a problem 

- regard it as an opportunity to learn more. 

Starting a business involves choosing which way to go. At one of the 

crossroads you choose the legal form of your business. There are several 

different types. Choose the one that suits you best. 

Starting a business requires preparation. Find out what demands are put 

on you as an entrepreneur and what your rights are. What will happen 

if anything goes wrong? 

Unique characteristics 

Background 

Aided by peace and neutrality for the whole of the 20th century, 

Sweden has achieved an enviable standard of living under a mixed system 

of high-tech capitalism and extensive welfare benefits. It has a modern 

distribution system, excellent internal and external communications, 

and a skilled labour force. Timber, hydropower, and iron ore constitute 

the resource base of an economy heavily oriented toward foreign trade. 

Privately owned firms account for about 90 % of industrial output, of 

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Marketing

which the engineering sector accounts for 50% of output and exports. 

Agriculture accounts for only 2% of GDP and of jobs. The government’s 

commitment to fiscal discipline resulted in a substantial budgetary surplus 

in 2001, which was cut by more than half in 2002, due to the 

global economic slowdown, declining revenue, and increased spending. 

The Swedish central bank (the Riksbank) focuses on price stability with 

its inflation target of 2 %. Growth remained sluggish in 2003, but 

picked up in 2004 and 2005. Presumably because of generous sickleave 

benefits, Swedish workers report in sick more often than other 

Europeans. In September 2003, Swedish voters turned down entry into 

the euro system until 1995, and waived the introduction of the euro in 

1999. 

Geography - note 

Sweden is strategic located along Danish Straits linking Baltic and 

North Seas. With a population of 9,016,596 (July 2006 est.) 

Age structure 

0-14 years: 16.7% (male 775,433/female 732,773) 

15-64 years: 65.7% (male 3,001,928/female 2,918,242) 

65 years and over: 17.6% (male 689,756/female 898,464) (2006 

est.) 

Marketing planning and research 

Develop a marketing plan 

Make a questionnaire too find out if the market is positive about your 

business idea, and find out if there are any potential customers in the 

market near you. 

• Whether it is advertising on the web, direct mail or other forms of 

offline promotion, if you want to attract new and existing customers 

you must have a solid marketing plan. 

• You need to give people a reason to return to you, such as news, 

product launches or promotions. 

• Your marketing plan should identify the target markets you plan to 

address and profile each target group so that you can pitch your 

costs and benefits at the correct level. 

• Make sure that your marketing budget is realistic and is capable of 

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Marketing

funding all of the activities you plan to undertake. 

• Equally, the cost of your plan should be justified by the levels of 

sales you expect togenerate. 

Use the most appropriate marketing techniques 

• There are various online and offline marketing techniques you can 

use - select the most appropriate ones for your particular needs. 

• Ensure that the marketing approach you use does not annoy or 

antagonise the customer - excessive spam following on from a 

purchase is a common complaint amongst e-commerce shoppers. 

Measure the effectiveness of your marketing efforts 

• You must measure the success, or otherwise, of any marketing 

initiative you undertake. This can help show what works well and 

where resources have been wasted. 

The Swedish Chambers of Commerce comprise a national network of 

accredited Chambers of Commerce, all uniquely positioned at the heart 

of every business community in Sweden. They are important links for 

contacts and networking on regional, national and inter-national levels. 

(www.chamber.se/se/omoss/e-handelskammaren) 

Municipality office 

Here you can get information about the people who live in the municipality 

you have chosen to operate in. 

-How old they are? 

-How many people live in the municipality etc. 

Local entrepreneurs in your area 

Learn from other companies how they are doing and get advice etc. 

How to do your own marketing plan 

What is the purpose of the marketing? (Example: to create and increase 

a base of regular customers) 

How can it be done? (Example: By presenting the selection of books in 

the store) 

What does the target group look like? (Example: Book buying women 

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Marketing

within a miles radius from the bookstore.) 

What kind of tools shall we use? (Example: Direct mail to the target 

group, advertising in the local newspaper and so on.) 

What is our niche? (Example: Our niche is to have the biggest selection 

for reading women in the age of 30-60.) 

What is our identity? (Example: To be warm and friendly to all our customers, 

be well informed by reading a lot, and be active in search of 

knowledge.) 

How large is the percentage share of the total budget that is spent in 

marketing? 

Evaluate the results of the marketing plan. Did we reach the goals that 

we set up? What can we do better in the future? 

Consider how your idea can be put into practice: What are you going 

to sell? 

- Who are your potential customers and how many of them will be 

yours? 

- What use or joy will the customers experience? 

- What advantages do you have compared to your competitors? 

- What are you going to do to achieve what you want? 

Structure your thoughts by drawing up a business plan that gives 

detailed answers to questions of this kind. The business plan should also 

show what you think the first stage of your business will be like and 

what goals you have for the future. It is mainly for your own sake that 

you should prepare a business plan. If, however, you are going to 

apply for a bank loan or employ someone, the plan will also be a simple 

way of describing what your business is about. 

The work involved in planning the start of your business is not simple. It 

can take anything from a few hours to several months. You may need to 

improve your knowledge. It may also be a good thing to have someone 

to discuss your plans with. 

For a lot of companies the business concept is strongly connected to its 

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Marketing

premises and location. Businesses like supermarkets, retail, restaurants, 

café and bakery, hair care, car repair shop. The location can have 

great significance for the business. How unbelievable it may seem 100 

meters could mean o lot if a business survives or not. For some businesses 

the location of the premises doesn’t have any importance at all. 

The premises are important in many aspects. You want it: 

• To be a good, pleasant and creative workplace. 

• To be appropriate to the business 

• To be approved for the business that you are going to run 

• To be located geographically correct, this is especially important to 

businesses that sell products/services direct to the consumer. 

When it is time to define where the premises are going to be situated, 

how big do they have to be and make their shape and function match 

your business? The starting point in this analysis is: 

• Who is the customer? 

• Where is the customer? 

• What kind of demands do the customers have? E.g. parking 

spaces. 

• What advantages and disadvantages can be expected if the 

premises are located on a certain place? 

Those questions will bring you knowledge and help you to find out if 

there is a possible market and enough with costumers to run your company 

and succeed with your business. Don’t forget to discuss with others. 

Links: www.nutek.se 

www.bolagsverket.se 

www.startaföretag.se 

www.skatteverket.se 

www.expowera.com 

www.nutek.se 

www.fr.se 

www.chamber.se/se/omoss/e-handelskammaren 

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Finance 

1. Capital requirements for starting a business 

2. Ways to finance a business 

3 Export finance 

2.1 Internal financing 

2.2 External financing 

2.3 Other financial institutions 

2.4 National funds 

2.5 Regional funds 

2.6 Funds from the EU 

4 Practical advice 

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Malta 

1. Capital Requirements for 

starting a business 

There are no minimum capital requirements for operating 

as a sole trader or a partnership. A private limited company must 

however have a nominal share capital of at least Lm500 of which 20% 

is to be fully paid up and issued. 

Whilst access to finance for the larger industries, as well as for capital 

intensive investment does not seem to be an issue in Malta, it is evident 

that small firms tend to be disadvantaged when it comes to raising 

funds, firstly because they are not generally organised as shareholding 

entities, and secondly because they cannot offer as much collateral 

security as larger firms when it comes to borrowing funds. 

122 

2. Ways to 

Finance your 

Company 


As such the most important 

sources of finance for 

local firms remains their 

own resources and personal 

funds together with 

internal financing (ploughing 

back profits into business 

and loans from relatives 

and friends). 



Nonetheless, the Maltese 

government is working with private capital, financial institutions as well 

as industry to seek to unleash private capital and offer external sources 

of finance as well. IT also seeks to effectively act as an information and 

bureaucratic-action broker, not only to promulgate knowledge on 

sources of finance but also to identify EU funding opportunities for SMEs 

and help them obtain such funding. These functions fall within the remit 

of Malta Enterprise. 

Finanse

As such, Malta Enterprise, as the national agency responsible for promoting 

trade, investment and industrial development, provides a comprehensive 

range of support services, including the administration of 

incentives, aimed at facilitating the successful operation of both local 

and foreign enterprises based in Malta. 

The business support available is comprehensive and includes a series 

of incentives under the Business Promotion Act. These incentives may be 

subdivided under two headings namely: 

Venture Capital/Business Angels and Loan Guarantee 

Schemes. 

2.2.1 Venture Capital/Business Angels 

Venture capital is still at an embryonic stage in Malta. However, new 

tax incentives will certainly serve as a catalyst for further developments 

of the venture capital market. Venture capitalists (also called «business 

angels») seek to finance projects at an early stage, which - given the 

right investment and planning - have the potential for rapid growth. 

The role of the venture capitalist is not usually associated with day-today 

management control of a business but rather with long-term business 

strategy. However, start-up projects can still benefit from the experience 

of venture capital executives, especially in growth strategy, which 

will ultimately increase shareholder value. 

Current regulations are mainly intended to promote funds (collective 

investment schemes) that invest in venture capital. This is done by providing 

a possible tax credit of up to 30 per cent of the investment (with 

a limit of up to Lm150,000 over three years) to unit holders who have 

fully paid up their respective investment in the fund. For further information 

refer to ‘Enterprise Support Section’ 


To qualify as a «designated venture capital fund», the regulations stipulate 

that it must satisfy the following criteria: 

It is a prescribed fund in terms of the Income Tax Act; 

Securities of the fund are listed on a recognised stock exchange (currently 

only the Malta Stock Exchange); 

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Finanse

Is designated as such by Malta Enterprise; Malta Enterprise must hold 

securities in it; It was set up with the purpose of increasing the amount 

of private investment capital available for Malta-based companies in the 

seed or early stage of business development as well as to provide 

finance for innovative processes, ideas and techniques; and 

Malta-Enterprise has confirmed to the Commissioner the relevant details 

in (a) to (e) above. 

The fund may take any corporate form, though the INVCO (investment 

company with fixed share capital) appears to be the most appropriate 

vehicle. The fund has to be licensed by the Malta Financial Services 

Authority (MFSA) and considering the level of risk associated with venture 

capital operations, it is likely that MFSA would require the fund to 

be restricted to professional or experienced investors. 

Credit will be given through a tax credit certificate, issued by the 

Commissioner upon notification that a designated venture capital fund 

has issued units to an investor (whose subscription must be fully paid). 

The tax credit certificate will grant a tax credit equivalent to 30 per cent 

of the total nominal value shown on it. 

The tax credit will indicate the name of the designated venture capital 

fund, details of the purchased units, the total nominal value of the securities 

purchased, a declaration that the certificate gives the right to a tax 

credit, and the identification of the individual or company to whom the 

tax credit certificate is issued. 

2.2.2 Loan Guarantee Schemes 

The Malta Enterprise Loan Guarantee Schemes are designed to assist 

SMEs to improve their access to finance. Malta Enterprise provides security 

to banks on behalf of SMEs that need new bank facilities to implement 

approved projects. These loan Guarantees benefit from a counterguarantee 

issued by the European Investment Fund under the European 

community’s Multi-annual Programme for Enterprise and 

Entrepreneurship and, in particular, for Small and Medium sized enterprises 

(SMEs). For further information refer to ‘Enterprise Support 

Section’ http://www.maltaenterprise.com/index.asp. 

The Malta Enterprise Loan Guarantee Schemes for SMEs support three 

measures: 

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SME Loan Guarantee Scheme 

Support under this scheme will be provided to SMEs that employ up to 

100 persons and that are undertaking capital expenditure with a view 

to achieve growth, innovate or to internationalise their products. 

Guarantees will not exceed 5 times the issued share capital of the company 

and may cover up to 50% of the bank loan required. 

Ta’ Qali Crafts Village Loan Guarantee Scheme 

Malta Enterprise will support tenants at the Ta’ Qali Crafts Village seeking 

a bank loan to finance the purchase of new workshops. Guarantees 

not exceeding Lm40,000 may be issued to cover up to 50% of the Bank 

Loan required. Applicants are expected to effect a contribution of at 

least 20% of the capital expenditure involved. Regulations of the «Ta’ 

Qali Crafts Village Loan Guarantee Scheme» apply. 

Loan Guarantee Scheme for New Entrepreneurs 

Support under this scheme will be provided to persons starting a business 

for the first time and that demonstrate an element of innovation. 

Support will not be provided to start-ups in activities, which are characterised 

by overcapacity. 

Guarantees not exceeding Lm40,000 may be issued to cover up to 50% 

of the Bank loan required for start-ups. The guarantee amount may go 

up to Lm50,000 with a guarantee cover of up to 75% for new tenants 

at the Kordin Incubation Centre or to highly innovative start-ups. 

The bank will charge a lower interest rate on the assisted loan. The rate 

shall be up to 1.75% over the base rate. 

All projects are assessed on their own merits, clients need to submit a 

sound proposal. Only viable projects will be assisted. 

Applicants must demonstrate that their project will be beneficial to the 

economy, does not lead to overcapacity and will result in one or more 

of the following: 

Job creation 

Innovation 

Improvement in the value-added 

Internationalisation 

Once Malta Enterprise agrees to support the implementation of a proj- 

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ect, a letter of intent will be issued, detailing the assistance being 

offered and the maximum amount that will be guaranteed. 

Malta Enterprise will then issue the guarantee on the basis of the sanction 

letter issued by the bank. 

2.3 Other Financial Institutions 

2.3.1 Credit Institutions Licensed under the Banking Act (1994) 

Akbank T.A.S. [2,3] Iktisat Bankasi AS2,3 

APS Bank Ltd [1] Investkredit International Bank 

Malta Ltd2,5 

Bank of Valletta plc [1] Izola Bank Ltd2,6 

Demirbank T.A.S. [2,3] Lombard Bank (Malta) plc1 

Disbank Malta Ltd [2,5] Raiffeisen Malta Bank plc2,5 

EGS Bankasi A S [2,3] Sparkasse Bank Malta plc2,5 

Erste Bank (Malta) Ltd [2,7] Turkiye Garanti Bankasi AS2,3 

Finansbank (Malta) Ltd [2,5] Volksbank Malta Ltd [2] 

First International Merchant Bank Ltd [6] 

HSBC Bank Malta plc [1,8] 

2.3.2 Financial Institutions Licensed under the Financial Institutions Act (1994) 

All Financial Services Ltd [4] Fexco(Malta)Ltd [4] 

Brittania Financial Services Ltd [4] LB Factors Ltd [2 

Change Mart Financial Services Ltd[4] 

Medarea Forex Services Ltd [4] Collins Exchange Bureau Ltd [4] 

PDK Financial Services Ltd [4] Cremona Exchange Bureau Ltd [4] 

Thomas Cook Financial Services Malta Ltd [4] 

Eurochange Co Ltd [4] W&J Coppini & Co [4] * 

2.3.3 Representative Offices 

Barclays Bank plc 

* Legend to 2.3.1 and 2.3.2 : 

[1] Deposit money bank. 

[2] Licensed to operate with non residents. 

[3] Licensed to operate as a branch. 

[4] Licensed to provide foreign exchange services. 

[5] Subsidiary of foreign bank. 

[6] Established and incorporated in Malta. 

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[7] Erste Bank (Malta) Ltd was set up on May 23, 1998 following a 

merger between First Austrian Bank Malta Ltd and GiroCredit 

Bank Malta Ltd. 

[8] Member of HSBC group. 

[9] Member of BOV group. 

2.4 National Funds 

Please refer to 2.2 above. 

2.5 Regional Funds 

Due to Malta`s small size, such Funds are not applicable. 

2.6 Funds from the EU 

The accession of Malta into the European Union in May 2004 opened 

a gateway into support programmes and assistance aimed at eligible 

small to medium sized enterprises within the Maltese islands. 

Malta Enterprise hosts the European Information Centre a service specifically 

designed to provide local companies with information on European 

matters. For Further information 

refer to http://www.eic.maltaenterprise.com/ 

Malta Enterprise is also managing 

or participating in a 

number of projects that are 

funded by the European 

Union. For instance, under the 

patronage of the European 

Regional Development Fund 

(ERDF) there are two Aid 

Schemes which enterprises can 

currently benefit from: 

Aid Scheme 1 - Market Entry & 

Internationalisation 


The objective of the market 

entry and internationalisation 

aid scheme is to improve business results and access to new markets 

through market development and internationalisation. 

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Eligible activities include: 

• Market Research; 

• Development of joint projects in specific regions; 

• Support to enterprises for the creation and establishment of 

product branding; 

• Support through company visits, group visits, establishing contacts, 

and special presentations; 

• Actions that enable enterprises to participate in overseas 

distribution networks, and 

• Encouragement of enterprises to combine their marketing efforts to 

achieve export growth. 

Aid Scheme 2 - Operations - Management and upgrade 

The objective of this scheme is to continue to support enterprises to 

upgrade their operations. 

This programme is subdivided into four eligible activities namely: 

• Technical Audits, Upgrades & E-Business 

• Quality Management 

• Product Design 

• Innovation Management and Research & Development 

3. Export finance 

The business support available to foreign and local companies through 

Malta Enterprise also includes a host of export marketing services which 

in effect allows companies to benefit from: 

• A range of overseas promotional activities 

• Participation in Business Missions and Trade Fairs abroad 

• Access to market research and business information services 

The support provided does not end here. All companies in Malta also 

benefit from a menu of enterprise services, which include: 

• Investor after-care 

• Business advisory services 

• Tailor-made assistance for SME’s (where applicable) 

For further information refer to ‘Trade Promotion Section’ 


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4. Practical Advice 

When opening a Bank Account for a Limited Liability Company, a Bank 

would typically ask for the following documents: 

1. A duly filled in Know-Your-Client (KYC) form. 

2. A completed request to open an account specifying the type of 

account, the currency and the preferred mode of payment of tax. 

3. A Copy of the Memorandum and Articles of Association together 

with a certified copy of the Certificate of Registration issued by the 

Registry of Companies once the company is registered. The bank 

may also require a description of the activities of the company and 

the past and anticipated turnover thereof. 

4. A Confirmation of the permanent address of the Directors through a 

completed identification statement certified by a Prime bank or 

Maltese Embassy in the country of residence. The bank also requires 

the authenticated identification documents for all the directors, signa 

tories, beneficial owners and secretaries. An original copy of a utility 

bill to be certified by the bank may also be required. 

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Finanse 

(c) Oliver Pace

5. Bankers’ references on all foreign directors, foreign signatories, bene 

ficial owners. The references should be issued in the personal capaci 

ty and should be addressed to the bank. Otherwise the bank will 

reserve the right to re-confirm the references with the said institutions. 

6. Where the shareholder is a trustee or other fiduciary, the bank will 

require the disclosure of the identity of the beneficial owners accom 

panied by an authenticated copy of the beneficiary`s passport. 

7. Where the ultimate beneficial owner is a listed company, the bank 

will require a declaration to this effect from the company secretary. 

8. A completed form signed by the directors of the company appointing 

the bankers. (www.mfsa.com.mt) 


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Netherland 

Finance: 

Starting a business: 

When starting a business it is important to have a good business plan. 

The business plan shows the strategy of a business. This contains many 

different factors like: 

• The product 

• The market 

• The marketing 

• The production 

• The research 

• The development 

• The finance 

• The organization 

For the finance part of a business plan several things are important. 

First of all, several budgets have to be made: 

• Investment budget: This budget shows all the things, which have to 

be bought the business. So you can see how much money is 

needed to start the business. It is an estimate of the financial needs 

of the business. 

• Results budget: How high will the produces and costs be for a 

future period? How you keep the profit? You can see this on the 

results budget. 

• Liquidity budget: This will show all the payments and financial 

requirements, which the business will have to make/receive in a 

future period. 

These budgets will show how much money the business will need. This 

can be financed by the business ‘own money’, but mostly loans also 

have to be used. 

When the business has all the money to finance, the business. it is smart 

to make a balance-sheet. On the left side you put the possessions and 

on the right the fortune of the business. 

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It is also very important to know which legal form the business will have. 

The legal form is the form in which a business will be lead and it will 

define how taxes will have to be paid and how the liability will be and 

who will have the right to make agreements. 

If you want to have more information and personal advice you can contact 

the Chamber of Commerce. 

How are loans arranged with small companies: 

With small business the risk is bigger for the bank. The bank always 

wants to know how they can recover their money. 

How about starting a company where a 

woman is the owner? 

There is no difference between a man 

are a woman who wants to start a business. 

The problem is that we got used to 

men who want to start a business. 

Fore more information: www.kvk.nl ore 

www.ondernemersplein.nl 

2a. Ways to financial a business: Internal 

There is only one way to finance internal: Your own money! If your business 

is doing well, you can always invest in your own business. 

Look for some more information: www.banken.startpagina.nl 

You can also think about leasing. You can lease a car or rent something. 

You pay a small amount every month. For more information you can 

look at: www.lease.startpagina.nl 

2b. Ways to finance a business: External 

There are several ways to finance your business. The most common way 

to financial your business is the bank: With the bank there are many 

ways to get a credit for your business. But with the 

following things the bank will finance your business a lot easier: 

• If you put your own capital in your business. 

• Good working experience. 

• Good training 

• If your business goes bankrupt, you don’t have any problems 

to find a other job. 

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Bank-credits 

Current account:, With this credit you can always have a debit balance. 

You can always be taking off money, also when you don’t need it. But if 

you have a debit balance you pay a little bit of interest, this will be 

agreed upon with the bank. 

Flex credit: You always have extra financial space. You can take the 

money at any moment. The credit depends on the turnover and has a 

maximum of Eu25000. Over the credit you will pay variable interest. 

Short-term loan: The limit and the duration is higher. You relay this loan 

within a year. 

Medium loan: This loan has duration between 1 and 10 years. The duration 

is equal to the depreciation period of the investment. 

Long-term loan:, This loan used to finance matters, company buildings. If 

you would like to have some more information: www.rabobank.nl 

2c. Loans of other financers: 

Family and friends: 

Family and friends trust you more easily than the bank. But you must 

consider that when the business goes bankrupt, the money of the family 

and friends is gone. 

Credit of suppliers: 

Example: You buy 100 T-shirts from your supplier. The supplier says: You 

pay me when you have money. The risk is for the supplier. But for new 

business a supplier doesn’t do. 

Payments of customers: 

You paid without getting something. Example: You buy a ticket for a 

sport match, you pay the ticket before you know what kind of game it 

will be. 

2d. National funds: 

The capacity funds are organized and register many business funds, but 

private funds are not connected by the FIN. The total number of funds 

have never been well mapped, the actual number is higher than 

600.For more information: www.postbus51.nl ore www.subsidieshop.nl 

There are no subsidies for starting a own business. But the bank can 

help you to use a particular regulation for the middle and small business, 

MKB credits. If you want a credit, ask your bank, the bank will 

133 

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decide if you can get a MKB credit. 

For more information: www.mkbkredieten.nl 

2e. Regional funds: 

General: 

The N.V. NOM (investment development society of the Netherlands) 

want to have a contribution to the improvement of the social-economic 

structure and the employment in the province of, Groningen, Friesland 

and Drenthe. 

The subsidies: 

• IPR 2000 • BSRI 2000 

• LPR 2002 • IS 2004 

• KITS 2000 • NIOF 2000 

• HRM 2001 • WBSO 2006 

There are a lot of subsidy’s you can get: 

Example: 

Durable concern: 

This is a subsidy that means: Bringing together of parties, bringing 

together of wishes and durable undertaking possibilities, action programmed. 

Strengthening of the business and establishing 

of climate: 

This subsidy is there to make the 

climate of establishment and the company 

stronger. 

• The spatial economic infrastruc 

ture, you can think of improve 

ments of the business locations or 

the unlocking of business locations) 

Fore more information: www.fryslan.nl ore www.nom.nl 

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2f. Funds from EU: 

There are a lot of different ways to get 

a subsidy. This is possible at the national 

government, national office for the 

European commission. 

What does the European social fund for 

employees and work in general? 

The ESP (European social fund) divides 

European money under member states 

for projects, to create more and better jobs and skills. The ESP has a 

task to prevent and fight unemployment, improve European workers and 

companies, and to prevent from t people losing the contract with the 

Labor market. Developing and preserving the correct skills of people 

plays a huge part. In the Netherlands the SZW is responsible for the 

implementation of subsidies of the European Union (ESP) 

For more information: www.szw.nl / www.equal.ecotec.co.uk 

3. Export finance: 

Are there possibilities for a starter exporter? 

PSB: (program for starters on business) 

There are several subsidies such as the programmed for starters on foreign 

markets (PSB). This programmed has entered SMES, which has 

none or little export experience, as an aim of supporting at of a new or 

practically new foreign market. The support exists of free recommendation 

at the drawing, up and implementation of an export strategy, a contribution 

in the costs of a number, or from the strategy resulting activities. 

The PSB applies to countries in the world. 

EVD: (economic information service) 

The EVD carries out the regulation and cooperate with the regional 

Chambers of Commerce, and a number of export organizations. 

For more information: www.kvk.nl are www.evd.nl 

For more information about subsidies: 

www.internationaalondernemen.nl 

www.fenedex.nl 

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You find information there about the following things: 

• Labour/employment 

• Working conditions 

• Building and living 

• Culture 

• Energy 

• Export 

• Innovation and technology 

• International cooperation 

• Agriculture 

• Environment 

• Region promotion 

• Education 

• Transport and transport logistics 

Credit insurance: 

The credit insurance takes over the risk. You pay a little bit of money to 

the credit insurance. 

Look for more information: www.kredietfactor.nl 

4. Practical advice: 

• If you start your own business and you are married, then you and 

your partner are glad to start a business. 

It determines nothing if you were married in community 

of property or not. If one of the partners 

doesn’t want that the other partner start his business, 

you won’t get credit from the bank. 

Some tips how you must dress yourself, how to act and how you make a good 

impression. 

It is very important to make a good impression on a customer. To make 

a good impression referrers to many factors: 

• Appearance: First impressions are often based on the looks. 

Therefore it is very important to look represent able. The neatest 

is: gentleman in a suit and of course shaved, and the ladies also 

in a woman-suit. 

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• Politeness: Treat a customer with respect and 

be very polite. You can do this for example by 

introducing yourself to the customer and to 

listen carefully to his/her wishes. This will give 

the customer a good feeling about you 

• Clarity: It is very important for the customer to 

know what you are talking about. He/she 

knows less about it then you do. Therefore 

you must not make things too complicated, 

Explain things so you will be a good help for the customer. 

Source of the finance pictures: 

www.auslabb.com 

www.protool.nl 

www.nos.nl 

www.stveemsmond.nl 

www.jurriaan.org 

www.woerden-sales.nl 

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Norway 

Capital requirements for starting 

a business 

The Norwegian Parliament has decided that the public 

must pay a fee for most of the services offered by The Brønnøysund 

Register Centre. Requests for payment are sent after the order has been 

sent. For more information visit www.brreg.no/english/fees_reg/ 

Ways to finance a business 

Internal financing 

Shares 

A customer that places money in a company, gets a share in that company. 

Each share has the same value. How many shares there is, 

depends on the companies 

value. 

138 

Photo: Pål 

Bugge/Innovasjon Norge 

External 

financing 

Own savings: It is 

important to have 

some capital to start 

with. If you are starting 

a public limited 

company you have to have at least 100.000NOK to be registered in 

Brønnøysundregisteret. If you are starting another type of company there 

is no claim. 

Credits from suppliers: Usually you have to pay within 30 days, but it 

depends on what provider you are using. Often you get a rebate if you 

pay cash on delivery. 

Bank loans: It is usual for company starters to obtain a bank loan. To 

get a bank loan it is very important to be well prepared. You have to 

present your idea and plans. When you are going to present your plans 

you should bring some well prepared documents that you can give to 

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them so they remember what your idea was. Show them that you have 

worked with a budget. It is an advantage if you have some capital to 

start with. It is often required that you have something you can provide 

as a guarantee. This can be your house, you car, your cabin etc. 

The banks do not demand any more from you as a young entrepreneur 

than they do from other people. They want to see a good idea being 

presented in a convincing way. 

Targeted loans: If you are starting a company in a place where there 

are few people and there is no competition, you might get a bigger 

loan. Also members of big chains and large shops often have special 

agreements with the bank. 

Other financial methods 

The European Investment Bank: The EIB is the European Union’s longterm 

lending institution, supporting projects giving practical expression 

to EU objectives in the Union and 120 other countries throughout the 

world. 

The EIB makes use of three financial instruments; 

- Individual loans for public and private sectors, including banks. 

- Global loans; made available to banks or financial institutions, which 

on lend the proceeds for small or medium-scale investment projects meeting 

the Bank’s criteria. 

- Venture capital; targeted at strengthening the equity base of high-technology 

SMEs and those with strong growth potential. 

For more information visit www.eib.europa.eu 

The Nordic Development Fund (NDF), is a Multilateral Development 

Financing Institution established by the Nordic countries. NDF is a part 

of the Nordic countries’ co-operation with the developing countries. 

NDF finances different projects: 

• high priority projects for social and economic development 

• projects in low per capita-income countries 

• in co-financing with other multilateral development organisations 

and Nordic bilateral development organisations 

• in co-operation with the Nordic resource base 

• public sector activities 

• private sector development 

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NDF credits are offered to the least developed, low and lower middle 

income countries according to OECD’s DAC classification - The DAC List 

of Aid Recipients. Priority is given to low income countries in Africa, 

Asia, Latin America and the Caribbean. 

For more information visit www.ndf.fi 

Unemployment benefit while establishing: The only financial support 

available for establishers from this authority is unemployment benefit 

while establishing. You can apply for this at your local office. If you 

receive unemployment benefit you can still receive it for a period of 3 to 

6 months while working to establish your own business. 

National funds 

Innovation Norway (IN) is the Norwegian government’s most important 

financial tool in Norwegian business development. IN shall promote 

innovation, business development and turnaround operations in 

Norway. IN’s financial tools are equity capital, low risk loans, venture 

capital loans, grants and guarantees. IN has approximately 25 financial 

tools. Most of these are aimed at projects in Norwegian enterprises, 

meeting certain specific criteria like start-up, fishery, rural development, 

business networks etc. 

In its portfolio of financial tools, IN has two internationally directed 

funds: The Investment Fund for Northwest-Russia and the Investment Fund 

for Central and Eastern Europe. The funds shall encourage business cooperation 

between Norway and Russia/Central and Eastern Europe. In 

addition to financing projects in Russia and Central and Eastern Europe, 

SND offers profound insight and access to a comprehensive network of 

experts. 

The Northwest-Russia Fund can be invested in the Murmansk and 

Arkhangelsk counties, the autonomous region of Nenets, and the 

Republic of Karelia. Priority will be given to projects that channel business 

to the Norwegian municipality of Sør-Varanger. 

The Central and Eastern Europe Fund can be utilized in all countries in 

this geographical area, including the Baltic states and those parts of 

Russia which are not covered by the Northwest-Russian fund, and the 

states of the former Soviet Union. 

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Photo: Johan Wildhagen/Innovasjon 

Norge 

Innovation Norway’s core group 

of clients are Norwegian companies, 

predominantly SMEs. As a 

consequence the information on 

their web site is only available in 

Norwegian. 

For more information visit 

www.innovasjonnorge.no 

Regional funds 

The Nordic Environment Finance 

Corporation (NEFCO) is a risk 

capital institution financing environmental 

projects in Central and 

Eastern Europe. 

NEFCO was established 1990 by 

the five Nordic countries 

(Denmark, Finland, Iceland, 

Norway and Sweden). Its purpose 

is to facilitate the implementation of environmentally beneficial projects 

in the neighbouring regions, with transboundary effects, which also benefit 

the Nordic region. Projects should be financially viable and, in the 

first instance, based on cooperation between local and Nordic enterprises. 

NEFCO is located in Helsinki, together with the Nordic Investment 

Bank (NIB). 

For more information visit www.nefco.org 

The Nordic Industrial Fund is the collaborative body for the Nordic 

countries in industrial R&D. The purpose is to stimulate, initiate and 

finance R&D in Nordic industry, thereby promoting innovation, strengthen 

competitiveness and encourage internationalisation. 

The Nordic Industrial Fund is an official Nordic institution under the 

Nordic Council of Ministers. 

The Nordic Industrial Fund operates with four types of projects: 

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- Innovation system projects: most often infrastructural development projects 

where the aim is to improve the potential for cooperation between 

the actors in the innovative systems in the Nordic countries. 

- Innovation projects: projects which involve R&D of products, processes 

and services that represent innovations in the Nordic or international 

markets. 

- Network projects: projects which contribute to the formation of a volume 

of knowledge at the Nordic level which is greater than what can 

be achieved by the individual nations working independently. This 

ensures optimal exploitation of research results, and functions as a hothouse 

for new project ideas. 

- Synergy projects: projects which have an important function of which 

is to prevent duplication of effort and to facilitate the development of 

results, achieving a synergic effect. 

The Nordic Investment Bank is the joint international financial institution 

of the Nordic countries. 

The activities of the Nordic Investment Bank are based on a treaty 

between the five Nordic member countries, and its Statutes. 

NIB can offer its customers, comprising businesses and organisations in 

both the private and public sectors, long-term loans on competitive, commercial 

terms. NIB can help to finance projects presenting adequate 

security and good risk classification, both within and outside the Nordic 

area. 

For more information visit www.nib.int 

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Photo: Johan 

Wildhagen/Innovasjon 

Norge

Funds from the EU 

The European Union has a variety of support schemes, where 

Norwegian enterprises may participate. 

The Norwegian relationship to the EU: Norway is not a member of the 

European Union, but through the EEA Agreement, Norway participates 

in most of EU’s research and development initiatives, EU’s program for 

small enterprises and a range of areas of culture, energy and environmental 

protection. 

Norway has on the other hand no access to the EU’s structural fund. The 

fishery zone and agricultural sector are outside the scope of EEA 

Agreement. 

For a structured presentation of all EU grant and loan schemes, check 

the EU’s grants and loans site. 

Export financing 

Export finance is the Norwegian Export Credit Agency - the banks’ joint 

institution whose purpose is to develop and offer financial services to the 

export industries and the municipal sector. Export financing is offered to 

foreign buyers in order to make them choose Norwegian products and 

services. Loans are also offered for different internationalisation purposes 

such as investments and acquisitions. 

Export finance also administrates the government supported export credit 

scheme. The company does fixed interest funding in NOK and USD 

for this scheme. 

The Norwegian Guarantee Institute for Export Credits (GIEK) is the central 

governmental agency responsible for furnising guarantees and insurance 

of export credits. 

The primary function of the Institute is to promote export of Norwegian 

goods and services and Norwegian investment abroad. 

GIEK offers guarantees in six different groups: 

- whole turn-over scheme 

- pre-shipment guarantee 

- investment guarantee 

- bond guarantee 

- supplier’s credit 

- buyer’s credit 

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GIEK administrates one guarantee scheme of particular interest to the 

Baltic region, the so-called CIS/Baltics scheme , for Norwegian 

investors’ projects in the Baltics. 

For more information visit www.giek.no 

Practical advice 

The best tip there is, is to really believe in your idea and be well prepared. 

There is no dress code, so you can wear whatever you feel like, 

but remember that a first impression only comes once. It is an advantage 

if you speak understandable English or Norwegian. It makes it easier 

to understand what your intention is. You should bring some documents 

of your ideas that you can leave with the bank, so that they can 

take a look on it later. You should also bring some documentation of 

your own experiences. 

Photo: E.A.Vikesland/visitflam.com 

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Sweden 

1. Capital requirements 

1.1 The business companies’ capital requirements are: 

When launching a new business there is a great need for money. In 

general, the money is needed for the following purposes: 

• The Investments capital for purchase of machines, equipment etc. 

• The Investments at market, for example publicity and printed 

matter 

• The working capital for constant expenses like salary, rental, 

telephone etc. 

2. Ways to finance your 

company 


The profitability in your company is influenced 

by how you finance your business. 

You need to check the finance regularly, 

since your capital needs, 

depends on witch development your company have. 

Ordinary ways to cover the companies capital needs are with own 

means, called the internal financing. Internal financing can be the company’s 

profits or private means. A variant is to make the company’s 

expenses as low as possible. Think about the necessary costs and what 

you can reduce or change, conclude or take away to save cost in your 

company. 

With your own means like an owner you take a high chance, because 

you can loose your own money if the business fails. But if your business 

grow and succeed you can win. That’s why we talk about «risk capital». 


If your company grows or new finance needs come up is an ordinary 

way to take external financing from financiers. With external financing 

your own influence over the activity decrease, but it makes new possibility 

to start and run a company. 

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You can get finance help from your customers or suppliers. It means that 

your company cooperates with them to get a better prospect to succeed. 

With your customers you can for example offer payment of advance, 

with that your company’s liquidity and so you better can be able to 

make the payments. To cooperate with your suppliers can be that your 

company gets more time to pay them. But this type of finance you can 

count that they want something in return, your supplier can ask for exclusive 

rights to deliver. 

Another way to get external financing is for many companies through 

bank loan, lease, hire or purchase by instalments. Venture capital business 

and business angels can also be an alternative. Public financiers, 

like EU and different authorities, give in some way offer a part of 

finance in project and business. 

146 

The most common ways, both 

external and internal, of financing 

your business are listed 

below: 

Own capital; your own money 

that you are staking. 

Credit from suppliers: for example 

through better condition of 

payment from your suppliers. 

Advance from customers: ask for an earlier payment, if you have customers 

who know you and your business very well. 

Bank loans are often the most important way to get money. Often, especially 

for new companies, the owners have to put their private things 

and capital in guarantee for the loan. The bank also offers other opportunities 

to finance, like factoring and leasing. 

Factoring is a way of invoice mortgage. You borrow from a finance 

company that takes care of your invoices and takes a profit out of it. 

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Leasing is an alternative when you need special things for your company, 

like machines, possessions and cars etc. It means that the bank or 

the finance company buys the things you need and you don’t have to tie 

capital in investments, you just pay a leasing charge, to lend it. 

Working credits in a bank: often a smaller check credit that you get 

from the bank to finance differences in the cashbox. If you some months 

don’t have cash to pay your loan, you can pay it back the next month 

when you have more money. The credit givers often demand that someone 

is standing as security for you. 

Money from venture capital business: One common problem for new 

started companies is that it can be very difficult to find investors. The 

newcomer really needs to prove that his or her idea will be successful. 

You have to find investors, companies or persons, willing to put money 

in your business. This form of capital is named venture capital. This is a 

stake that a company or person invests in your company in hope to get 

an income from that capital. The venture capital is a part of the company’s 

own capital. 

With a venture capital business on your side it is easier to get a faster 

development. They can give you resources and they may have good 

contacts that can bring you higher up in the business career. 

The fundamental in all financing is that in the first place it is the owners 

who should carry the biggest economic risk, by staking their own capital. 

And it’s often the size of that capital that decides the chances for the 

company to survive. But if you don’t have the possibility to bring that 

money, you can always turn to a financer. Wheather it’s by loan, contributions 

or something else. One thing that you also should examine is 

the opportunity to get business partners or a family member or friend to 

maybe become part owners. 

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2.3 Other financial institutions 

2.3.1 From subsidies to angels 

Start-up-subsidy: If you are over 20 years old and registered at 

«Employment service» you can get a, «start-your-own-business subsidy». 

You get money that corresponds to the compensations that you get as an 

unemployed. The approximately 325 local public employment offices in 

Sweden administer this subsidy. For more information see www.amv.se. 

ALMI Business partners - Through ALMI Business partners you can apply 

for a company loan. The company loan can cover at the most 50% of 

the capital needed, normally at the most 250 000 SEK. See 

www.almi.se. 

Business angels- A private person who invests in capital and business 

knowledge to people that want to start new a business, we call business 

angels. A business angel often has much experience and is very competent 

in business. The angels give this help, both hoping to make some 

money in the future, but also for their own pleasure. See the homepage 

of the Swedish Business Angels Network www.swedban.se. 

2.4 National funds 

Here are some examples of other funds that offer 

financing both for activities in Sweden and 

abroad: 

Swedfund International is a risk capital company 

owned by the Swedish state. Offers risk capital 

and competence for investments in Africa, Asia, 

Latin America and Eastern Europe (only non-EU 

members). See www.swedfund.se. 

Industrifonden invests in small and medium-sized production oriented 

enterprises with export-potential all over Sweden. They are also able to 

offer loan financing. Homepage: www.industrifonden.se 

Pensionfunds like the Sixth AP Fund who invest peoples earnings-related 

pension in small and middle-sized growth-companies. Homepage: 

www.apfond6.se 

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The Swedish Private Equity & Venture Capital Association 

is an independent, non-profit association supporting the interests of companies 

and persons who are interested in investments new companies. 

Entrepreneurs seeking funding to establish or develop businesses may 

contact the association via their homepage: www.vencap.se. 

CONNECT are regional networks. Within each network, people with 

experience in various areas of expertise contribute their time and knowhow. 

Examples of such people are entrepreneurs, accountants, lawyers, 

management and marketing consultants, and venture capitalists. You can 

also get help from so-called «springboards» to identify the opportunities, 

get practical help and advice. Homepage: www.connectsverige.se. 

2.5 Regional funds 

Funds via the County Administration. Sweden is divided into 21 counties, 

each of which has its own County Administration. The counties 

have capital funds at their disposal to support Swedish expansion on 

new markets. They are also supporting different projects to enhance the 

internationalization in small and mid-size companies. Learn more about 

regional funds on the website www.lst.se. 

There are also funds for companies within the Nordic countries among 

which the Nordic Investment Bank, www.nib.int, is one. 

2.6 Funds from the European Union 

Under particular circumstances can also EU, government, municipality 

and other public organizations, give support to companies. In the northern 

part of Sweden and other thinly populated areas plus areas heavily 

dependent on one industry, the development of new companies are supported 

because of regional policy reasons. There are several hundred 

programmes with different aims. The Euro Info Centre, www.euroinfo.se, 

guides you through the programmes, funds and subsidies. You can also 

contact the Swedish Trade Council in Brussels www.swedishtrade.se/eu. 

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3. Export financing 

For companies exporting goods it’s possible to get a middle or long 

term credit via the Swedish Export Credit, www.sek.se, which minimises 

the economic risk for the your company. The credit presumes a guarantee 

from the Swedish Export Credits Guarantee Board. See www.ekn.se 

4. Practical advice 

4.1 What is required to get a bank loan? 

When you apply for a loan at a bank you have to present the companies 

business plan, budget and any closure. That is because the bank 

has to estimate how big risk they have to take. 

The bank also needs some kind of safety for the 

loan. Examples of that is company mortgage, like 

machines and goods storage. You could also 

have a pledge in property and bond. Those to 

things are almost the same. A guarantor or take 

a loan against a guarantee is also an alternative. 

One thing that you have to be prepared for is 

that the bank always does a credit report to see if 

you have attended to your economy previously. 

The interest on the loan regulates by how high 

safety you got. And you can choose between two 

different kinds of interest, a fixed and a varying. 

4.2 Business plan 

It doesn’t matter which financier you choose, either way you need to 

have a description of the company and its activity. It’s very important to 

have a business plan to get suppliers and customers interested. 

A business plan can contain the 

following points: 

• Business-mission and goals Background 

• Network 

• Product/service inclusive of pricing 

• Strategy including key persons and organisations. 

• Customers, market and competitor (a market investigation is necessary) 

• Budget and liquidity and result prognosis 

• A time- and activity plan 

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4.3 Eight good pieces of advice before the bank visit 

1. Choose the right credit giver! 

Think through if you are going to the bank, finance company, ALMI 

company partner or a combination of more. 

2. Establish more bank contacts! It’s always a good advice to try to 

compare bank products, as interests, charges and service ranges. 

3. Chose the right handling officer! It’s always important to get a handling 

officer who has experience of your trade and the company form 

you have chosen. The handling officer should also have competence to 

decide in your errand. 

4. You should be prepared! You should have a well-laid business plan to 

the credit giver, it’s also important that you are prepared. 

5. Leave references! If you have friends who know you and your background, 

leave them as references. Then they can strengthen the credit 

givers impression of you as person. 

6. If you feel uncertain ask somebody you have confidence for! 

Perhaps you have a friend who knows about economic tasks and which 

you can contact before your visit at the bank. 

7. Don’t be afraid to ask! Remember that in bank connection there is a 

number of technical terms. You should ask if you don’t understand! It’s 

better if you ask one time too much then to be unknown in economic 

undertaking. 

8. Follow the actions! Be interested of what the credit giver tells thinks 

and mind. Don’t be afraid to call and leave further information or clarifications. 

The 5 biggest Swedish banks: 

FöreningsSparbanken www.foreningssparbanken.se 

Handelsbanken www.handelsbanken.se 

Nordea www.nordea.se 

SEB www.seb.se 

Östgöta Enskilda Bank www.oeb.se 

http://www.finansieringsguide.swedishtrade.se/ 

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DETAILS OF PARTICIPANTS 

Map of Europe highlighting only participating countries 

152 

Participants

Institute of Business and Commerce 

www.mcast.edu.mt/ 

The Institute of Business and Commerce is one of MCAST`s nine 

Institutes and is situated in the main campus in Paola, Malta. It offers an 

ever-increasing variety of quality vocational courses to as many students 

as possible and caters for an extensive range of abilities. It strives to 

create the right atmosphere where a spirit of dedication, innovation and 

entrepreneurship is constantly encouraged. It endeavours to provide the 

kind of education and training which are relevant both to the students` 

needs and the country`s socio-economic priorities. All students attending 

this Institute have their potential for continued development and employability 

enhanced by the various educational and training opportunities it 

provides in conjunction with the local business communities. A holistic 

education, the encouragement of life-long education and critical thinking, 

as well as the striving for excellence are high on its list of priorities. 

Courses 

The main Courses offered by IBAC are : Diploma in Financial Services, 

MCAST Certificate in Administrative and Secretarial Studies, MCAST 

Certificate in Retailing, Diploma in Insurance Studies, MCAST Certificate 

in Marketing Studies, MCAST-BTEC National Certificate in Business, 

Accounting Technician Certificate, Matriculation Certificate Course, 

MCAST Foundation Certificate in Business, MCAST Intermediate 

Certificate in Business, MCAST-BTEC Higher National Diploma in 

Business, MCAST Diploma Course for Pharmacy Technicians, MCAST- 

BTEC National Diploma in Applied Science. 

Participants in the Project: 

Students: 

Claire Casha, Jana Mercieca, 

James Mifsud, Nicholas Sammut 

Teachers: 

Ivan Cauchi, Tonio Farrugia 

153 

Participants

www.its.edu.mt/ 

The Institute of Tourism Studies is a higher and tertiary level institution 

aimed at meeting the changing needs of the Hospitality and Tourism 

Industry. The Institute was established in 1987 and consolidated by the 

Education Act No. XIII of 2006 of the Laws of Malta. The main responsibility 

of the Institute is to furnish the Tourism Sector with professional personnel 

who can guarantee an excellent standard of products and services 

within the Hospitality Industry. 

Mission Statement 

The Institute of Tourism Studies aims to provide tertiary, higher and vocational 

education in the field of Tourism. It seeks to identify and monitor 

customer needs and satisfaction and is responsible for providing the 

Hospitality Industry with personnel trained to international standards. 

Commitment to Quality 

The Institute of Tourism Studies is firmly committed to provide an educational 

structure aimed at guaranteeing excellent standards of service 

within the Hospitality Industry. Students’ progress is continuously monitored 

by tutors, review boards as well as internal and external examiners. 

The lecturing staff receives special training and guidance in methodology 

and assessment techniques. 

Courses offered 

Foundation Level: Food Preparation and Service, Restaurant Operations. 

Certificate Level: Hotel Operations, Accomodation Operations, Travel 

Agency Operations, Food & Beverage Service and Supervisory Studies, 

Food Preparation & Production and Supervisory Studies, Craft 

Certificate in Food & Beverage Service, Craft Certificate in Food 

154 

Participants

Preparation & Production, Craft Certificate in Restaurant Operations. 

Diploma Level: Hotel Operations, Accomodation Operations, Travel 

Agency Operations, Food & Beverage Service, Culinary Arts, Tour 

Guiding. 

Higher Diploma Level: Hospitality & Tourism Management, 

Extended Skill Training Scheme (ESTS-Hospitality Trades) - Food 

Preparation & Service 


Students: 

Susan Victoria Attard, Diane Azzopardi, Neal Debono, André Spiteri 

Teachers: 

Teddy Camilleri , Henry Mifsud 

155 

Participants

www.friesepoort.com/ 

Regional education centre 

ROC Friese Poort is one of about 45 Regional Educational Centres in 

the Netherlands. It functions independently in the area of Vocational 

Training and Education. Besides a large group of full-time students following 

courses as diverse as ICT, beauty therapy, media, business studies, 

several thousand part-time students attend a variety of courses, 

which range from basic education to practical training. ROC Friese 

Poort provides what is required by students following vocational training 

and is in close contact with industry and institutions. Everyone benefits 

from these links. 

Mission Statement 

ROC Friese Poort, as a Christian Regional Educational Centre, provides 

practically oriented vocational education of high quality in the provinces 

of Friesland and Flevoland. Using keywords like ‘attention’, ‘personal’ 

and ‘promising’, ROC Friese Poort offers participants an optimal professional- 

or stream qualification and a thorough personal and social education 

along the shortest possible way, beginning at their own starting 

level. 

156 

Participants

ROC Friese Poort offers: 

Vocational Education Vocational Training 

Vocational Support Flexible Learning 

Educational Clusters 

Administration Management and business studies 

Uniform professions Health Care 

Social and Community Care Hairdressing and Beauty Therapy 

Technology and Engineering General Education 


Students: 

Hendrik Bijlsma Sjoerd Dijkman Sjouke Hoeksema 

Jantine Hoekstra Anne Houtstra Petra van Hoving 

Wietske Kool Niels Lahuis Jeton Musliu 

Roeland Poelstra Daan Scharnga Maja Stiemsma 

Sergeij Bartels Roel Hoekstra Gerwin van der Meulen 

Jelle Veenstra Mark Nicolay 

Geert Willem Weidenaar Danielle van der Werff 

Teachers: 

Henk Hoekstra (project leader) Cor Weidema 

John Romkes Herbert Jan Groenevelt 

Lex Mulder Claudia Zijlstra 

157 

Participants

www.glemmen.vgs.no 

Glemmen Upper Secondary Vocational School 

is situated in Fredrikstad in Østfold County in the south-eastern part of 

Norway. 

Glemmen offers these foundation courses: 

Engineering and Mechanical Trades - Hotel and Food-Processing Trades 

Arts, Crafts and Design - Media and Communication - 

Electrical Trades - Health and Social Care. 

The school has about 1300 students in the age group 16 to 19 years. 

The school has about 300 employees. 


Students: 

Lene Jordansen Siri Linn Stuen Bekkevold 

Alexander Refsnes Jeanette Akselsen 

Rebekka Løkke 

Teachers: 

Thomas Hansen Jan Arild Strømstad 

Mette Østlie Daniel Lien 

158 

Participants

Uddevalla Gymnasieskola 

www.gymnasiet.uddevalla.se/ 

Uddevalla is a town counting 50 000 inhabitants situated on the 

Swedish West Coast in the province of Bohuslän between Gothenburg 

and Oslo. It is an educational-centre in the region. The tradition dates 

back to the 17th century when the pre runner to Agneberg, today a part 

of Uddevalla Gymnasieskola (Uddevalla Upper Secondary School), was 

accommodated in small wooden houses close to the main square. The 

school moved to the present location 150 years ago. 

Uddevalla Gymnasieskola offers 20 of the so called national programmes, 

where the social science programme, the natural science programme, 

the media programme, the business and administration programme, 

the arts programme and a rich variety of technical educations 

and handicraft are some examples. In short you can say that the school 

offers every national programme except agriculture. The school is run by 

the municipality but private alternatives are also allowed in the Swedish 

school-system. 

The number of students is approximately 3,700. The education is located 

to a number of interesting buildings like Agneberg, the oldest building 

dating back to the 1860’s, Sinclair, which is the former Tiger textile 

mill, the administration building which once was a sugar mill plus more 

modern buildings housing the technical and natural science educations. 

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Participants

Participants in the project: 

Students: 

Ann-Helen Dahl Lina Gunnarsson 

Marcus Helgen Lisa Johansson 

David Magnusson 

Annette Möller Nathalie Palm 

Sanna Quist Amir Sadiku 

Malin Westerholm Therese Wikström 

Malin Zetterman 

Teachers: 

Pia Johansson Ingbritt Johansson 

Ragnar Josefsson Eva Libardo 

Staffan Lundholm 

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Participants

The European Business Handbook for Young ... - MCAST

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