Sciberras Advocates launches TCN Malta

TCN Malta

Sciberras Advocates has launched a new Facebook page: TCN Malta. Through this setup, the law firm focused on immigration and employment law, amongst others, wants to create a support group for all Third Country Nationals (TCNs) residing and working in Malta with the aim to raise awareness on common immigration and employment issues in Malta, and assist and support on any immigration and employment matters. 

Third Country Nationals in Malta are individuals who are citizens of countries outside of the European Union (EU), the European Economic Area (EEA), and Switzerland. TCNs who wish to work, reside or study in Malta must obtain the necessary permits and visas before entering the country.

In Malta, Identity Malta Agency (IMA), established in 2013, and which falls under the Ministry for Home Affairs and National Security, is responsible for processing TCN applications for residence and work permits.

TCNs who wish to work in Malta must obtain a Single Permit (employment and residence permit), which is issued by Jobsplus, a public employment service agency. The work permit is issued for a specific job with a specific employer and is valid for the duration of the employment contract but needs to be renewed on a yearly basis with IMA. TCNs who wish to change jobs must obtain a new work permit.

TCNs who wish to study in Malta must obtain a student visa, which is issued by the Maltese embassy or consulate in their home country. The visa is usually issued for the duration of the course of study and can be renewed upon application.

It is important to note that TCNs may also be subject to immigration control and enforcement measures, such as deportation or removal, if they are found to be in breach of their permit conditions or Maltese immigration laws.

The Maltese are generally welcoming to foreigners, however TCNs face a range of difficulties and challenges, particularly when it comes to housing, legal and administrative procedures, language, and other services in Malta.

Overall, as TCNs in Malta face many challenges in obtaining the necessary permits and visas to reside, work or study in this country, and maintain a healthy and decent life in Malta, with proper knowledge, planning and preparation, it is possible to navigate the system successfully, and this is what TCN Malta aims to provide thanks to Sciberras Advocates and associates.

Эта статья предназначена только для информационных целей и не должна рассматриваться как юридическая консультация.

Статья написана г-жой Шарлин Шиберрас, бакалавром гуманитарных наук (с отличием), приглашенным автором, специалистом по маркетингу и деловому администрированию с особым вниманием к корпоративным, бухгалтерским и юридическим вопросам.

Sciberras Advocates, основанная доктором Эдрианом Сциберрасом, — юридическая фирма, расположенная на Мальте. Фирма гордится тем, что является междисциплинарной, инновационной и гибкой, чтобы соответствовать меняющимся временам и любым вызовам в местном и международном правовом поле. Независимо от того, какие сложные частные или корпоративные требования предъявляются, Sciberras Advocates предлагает практичные и экономически эффективные юридические решения для достижения желаемых вами результатов. Вы можете связаться с Sciberras Advocates по телефону +35627795222или по электронной почте на [email protected].

Notification: Cannabis Clubs in Malta

Cannabis law Malta

Notification date: February 2023

We would like to notify all interested parties in cannabis clubs in Malta that the Authority for the Responsible Use of Cannabis (ARUC) has published the official licensing guidelines for setting up cannabis clubs in Malta.

The cannabis clubs which will be formed in Malta will be known as Cannabis Harm Reduction Associations, and as already indicated previously the cannabis associations will be non-profit making. The sole purpose will be to cultivate and distribute cannabis to adult members only. The full regulations can be read here: https://aruc.mt/licensing-guidelines/.

The applications to form clubs will be available on the 28th February 2023, so we urge all interested parties to contact us after this date on [email protected] or directly to Dr Sciberras on [email protected].  

Эта статья предназначена только для информационных целей и не должна рассматриваться как юридическая консультация.

Sciberras Advocates, основанная доктором Эдрианом Сциберрасом, — юридическая фирма, расположенная на Мальте. Фирма гордится тем, что является междисциплинарной, инновационной и гибкой, чтобы соответствовать меняющимся временам и любым вызовам в местном и международном правовом поле. Независимо от того, какие сложные частные или корпоративные требования предъявляются, Sciberras Advocates предлагает практичные и экономически эффективные юридические решения для достижения желаемых вами результатов. Вы можете связаться с Sciberras Advocates по телефону +35627795222или по электронной почте на [email protected].

Case Study: Employment & Immigration Case

Employment Malta

Background Case

Our client, a Third Country National from Nepal, had relocated to Malta back in 2021 through a Single Work Permit that was granted on a job title of ‘waitress’ with a local restaurant in Malta. The job title and job specifications were written within the Position Description document of Identity Malta Agency as part of the work permit application documents, and this was signed by the director of the restaurant. Our client had moved to Malta and started working as a waitress after obtaining her Maltese residence permit.

Employment Issue

At one point the employer requested our client a change in role, requesting to move into the kitchen and work as a dishwasher, to which, our client refused since her work permit specified the job title of waitress. As our client was not reporting to work due to this issue, the employer decided to terminate her without any notice, meaning that the employer fired her unfairly without even informing her and thus nullifying the work residence permit from the date of termination. Meanwhile, our client had found another job to which she applied; however the Single Work Permit was refused by Identity Malta Agency since she was then found to be in an irregular position due to the fact the her previous employer terminated her without any sort of notice. This meant our client was illegally residing in Malta.

The Result

Client resorted to Sciberras Advocate to regularise her position with immigration. However, upon reviewing the full employment case, our lawyer found that the restaurant owner committed various breaches of employment law by not correctly paying the wages as per Wage Regulations Order and not paying the full National Insurance due. Following various legal efforts and appeals, and thanks to the assistance of the Department For Industrial and Employment Relations (DIER), a settlement was found, and our client obtained the necessary permission to re-apply for a new job again in Malta. A private settlement was also reach with the employer’s lawyer to correct past mistakes in payroll.

This was another successful case for Sciberras Advocates.

Эта статья предназначена только для информационных целей и не должна рассматриваться как юридическая консультация.

Статья написана г-жой Шарлин Шиберрас, бакалавром гуманитарных наук (с отличием), приглашенным автором, специалистом по маркетингу и деловому администрированию с особым вниманием к корпоративным, бухгалтерским и юридическим вопросам.

Sciberras Advocates, основанная доктором Эдрианом Сциберрасом, — юридическая фирма, расположенная на Мальте. Фирма гордится тем, что является междисциплинарной, инновационной и гибкой, чтобы соответствовать меняющимся временам и любым вызовам в местном и международном правовом поле. Независимо от того, какие сложные частные или корпоративные требования предъявляются, Sciberras Advocates предлагает практичные и экономически эффективные юридические решения для достижения желаемых вами результатов. Вы можете связаться с Sciberras Advocates по телефону +35627795222или по электронной почте на [email protected].

EU Nationals: Self-Employment & Residence in Malta

Residence Malta

Sciberras Advocates has designed a simple yet efficient way for an EU national to relocate to Malta on a self-employment basis and obtain the resident permits. If you are an EU national, there are several advantages to settle here in Malta, and these are not only related to tax benefits but include good standard of living, a great network of skilled locals and expats to mingle with, various co-working spaces and more.

Through Sciberras Advocates, the firm can assist you to relocate your self-employment business to Malta. This program is designed for individuals who have working contracts on a freelance basis or self-employment basis and want to choose Malta as their base for invoicing. This setup is open to everyone, but we recommend it to those whose income does not exceed €70,000 per year.

To obtaining residence and self-employment in Malta, all you need is you provide Sciberras Advocates with your passport bio page, your current residence/identity card, and with an address where you will be residing in Malta.

What you will obtain by applying:

•             Jobsplus Registration

•             Social Security Number

•             Tax Number

•             VAT Number

•             VAT Certificate

•             Residence Card Number Application

•             Residence Card

You will need to physically be present in Malta to attend at Identity Malta Agency offices to do the biometrics for the residence card and subsequently for the collection. Our office will assist and guide you through the full process.

After you obtain the card and settle here in Malta, through our tax accountants, we can provide you with assistance to computing VAT returns, pay Social Security Contributions and file income tax returns on a yearly basis, essentially fulfilling all your needs with the Commissioner for Revenue in Malta.

For more information and a quote, do not hesitate to contact us on [email protected].

Эта статья предназначена только для информационных целей и не должна рассматриваться как юридическая консультация.

Sciberras Advocates, основанная доктором Эдрианом Сциберрасом, — юридическая фирма, расположенная на Мальте. Фирма гордится тем, что является междисциплинарной, инновационной и гибкой, чтобы соответствовать меняющимся временам и любым вызовам в местном и международном правовом поле. Независимо от того, какие сложные частные или корпоративные требования предъявляются, Sciberras Advocates предлагает практичные и экономически эффективные юридические решения для достижения желаемых вами результатов. Вы можете связаться с Sciberras Advocates по телефону +35627795222или по электронной почте на [email protected].

Fees payable to the Immigration Appeals Board

immigration appeals board Malta

Notification: New government fees payable to the Immigration Appeals Board

Immigration Amendment Regulations, 2023 – L.N. 1 of 2023

Notification date: January 2023

We would like to notify about an amendment issued to the Immigration Act (CAP. 217), Immigration (Amendment) Regulations, 2023 whereby, Regulation 19 of the principal regulations has been substituted by the following new regulation, having fees payable to the Immigration Appeals Board:

(1)  Any person who feels aggrieved by any decision of  the  Principal  Immigration  Officer  or  by decisions  with  respect  to  the  issuance  of  residence permits, the issuance of visas or matters of carrier liability may appeal to the Board as provided for in article 25A of the Act.

(2)  The fees payable in respect of appeals shall be taxed in accordance with the scales of fees stipulated in the Schedule annexed to these regulations and shall in all cases be levied by the Board.”.

Новые сборы, уплачиваемые Регистратору Апелляционного совета по иммиграционным вопросам, следующие:

• For the filing of an application of an appeal from decisions on the issuance of residence permits – €45
• For the filing of an application of an appeal from decisions on the issuance of visas – €120
• For the filing of an application of an appeal from decisions on matters of carrier liability – €120

If you require our assistance for any type of appeal, please get in touch by email on [email protected] and visit our dedicated webpage for more information or the Часто задаваемые вопросы по иммиграции для граждан третьих стран.

Эта статья предназначена только для информационных целей и не должна рассматриваться как юридическая консультация.

Sciberras Advocates, основанная доктором Эдрианом Сциберрасом, — юридическая фирма, расположенная на Мальте. Фирма гордится тем, что является междисциплинарной, инновационной и гибкой, чтобы соответствовать меняющимся временам и любым вызовам в местном и международном правовом поле. Независимо от того, какие сложные частные или корпоративные требования предъявляются, Sciberras Advocates предлагает практичные и экономически эффективные юридические решения для достижения желаемых вами результатов. Вы можете связаться с Sciberras Advocates по телефону +35627795222или по электронной почте на [email protected].

Notice to Appellants

Immigration lawyer Malta

Notification date: January 2023

When we submit an appeal application on your behalf, our engagement with you terminates as soon as the application is lodged, and an application reference is received.

The Application reference will be in a format similar as follows:

For Single Permit Appeal: IAB/SP/1234/2023

For VISA Refusal Appeal: IAB/VISA/1234/23

For IPAT Appeal: IPAT1234

If you would like to check the status of your application, you are requested to send an email as follows:

For Single Permit Appeal: [email protected]

For VISA Refusal Appeal: [email protected]

For IPAT Appeal: [email protected]

Or you can personally visit the Appeals offices on Monday/Tuesday/Thursday/Friday between 8am and 12pm, at the following location:

15, 1st Floor, City Gates Building,

Ordinance Street,

Valletta, VLT 1020

(Directions: on top of Burger King, first floor to the right)

Typically appeals take between 6 months to 1 year to get a result, the reason is that the appeal needs to be sent to all the respective stakeholders for their comments after which they are passed on to the Board for their final decision. It is important that you personally go to the Board at least every two months so that you renew your interest in the appeal.

If you would like the office to request an update on your behalf there is a fee chargeable for every update. Should you require this service, please contact us on [email protected].

Эта статья предназначена только для информационных целей и не должна рассматриваться как юридическая консультация.

Sciberras Advocates, основанная доктором Эдрианом Сциберрасом, — юридическая фирма, расположенная на Мальте. Фирма гордится тем, что является междисциплинарной, инновационной и гибкой, чтобы соответствовать меняющимся временам и любым вызовам в местном и международном правовом поле. Независимо от того, какие сложные частные или корпоративные требования предъявляются, Sciberras Advocates предлагает практичные и экономически эффективные юридические решения для достижения желаемых вами результатов. Вы можете связаться с Sciberras Advocates по телефону +35627795222или по электронной почте на [email protected].

‘Approval in Principle’ letter explained

Work Permit Malta

“This letter is in response to your application, dated DD/MM/YY, requesting a residence permit for the purpose of employment in Malta.

Your application, as the holder of passport number XXXXXXX was submitted under the Single Permit procedure, as provided for in Subsidiary Legislation 217.17 of the Laws of Malta.

“Please be informed that your request has been granted in principle, but this letter is NOT your work permit.”

This is the introduction of an Approval in Principle letter issued by Identity Malta Agency, Expatriates Unit, in response for a residence permit for the purpose of employment in Malta – Still Abroad Application. The letter goes on stating that the approval to a third country national is without prejudice to:

“- any further approval that may be required by the Maltese Health Authorities to proceed to Malta (as per Legal Notices 244, 255, 280 and 290 of 2020, and/or any subsequent related LN which maybe issued by the Health Authorities)

– any visa requirements especially if you reside in those third countries where there is yet no facilitation for the issue of visa;

– any restrictions regarding travelling to Malta imposed by states through which you would need to transit in order to reach Malta.”

The procedures instructions and rules follow, such as the need to present a Visa application form and other supporting documents to the relevant Embassy or Maltese Consulate within 180 days of receipt of the letter. If there is no Embassy or Consul present in an applicant’s country of residence, one needs to obtain the necessary authorisation to apply for a visa at the nearest operational Maltese Embassy. Failing to do so within the said 180-day period the letter becomes invalid.

It’s important to know that any letter by Identity Malta Agency has a unique QR Code, a link and a unique code number to verify the integrity of the document. When you click on the link, it will ask you to input the unique code found on the letter to verify the document. Beware of any fake letter.

A note is also added that the issuing of a Schengen visa is without prejudice to any decision by border control authorities to refuse entry into the Schengen territory for failing to fulfil all the conditions of entry or where the intention of travelling to Malta is not for the purpose of the authorisation that has been granted to you.

Once a visa is obtained and one arrives in Malta, the next step is to obtain the work and residence permit (single permit). An appointment needs to be fixed with Identity Malta Agency to present original documents and have the biometric data and photo taken. This procedure must be carried out within 90 days of arrival to Malta. Failure to do so the letter becomes invalid. It is also important to note that failure to attend the appointment without explanation will also results in the nullification of application.

For this appointment one needs to present a set of documents:

  • Valid passport
  • Copy of the entry visa and passport page showing date of entry stamp
  • ‘Still Abroad Part 2’ application duly filled and signed
  • Insurance policy showing coverage for medical assistance
  • Rental agreement
  • Copy of approval letter given to landlord by the Housing Authority
  • Health screening evidence

Additional documents must be submitted if one will be working in the following industry:

Catering: Food handling certificate

Security: Police licence and security tag

Drivers: European driving license and Malta driver tag

If you are an employer looking to employ Third Country Nationals, and you have difficulty with the procedure and paper works, Sciberras Advocates can handle the work permit, visa and residency process for you. Furthermore, if any of your new employees have been denied a work permit or a visa to relocate to Malta, we can file appeals with the relevant departments. For more information about immigrations, appeals and work permits, please follow these links: https://sciberras.legal/practice-areas/immigration-law/ and https://sciberras.legal/practice-areas/work-permits-residency/.

Эта статья предназначена только для информационных целей и не должна рассматриваться как юридическая консультация.

Статья написана г-жой Шарлин Шиберрас, бакалавром гуманитарных наук (с отличием), приглашенным автором, специалистом по маркетингу и деловому администрированию с особым вниманием к корпоративным, бухгалтерским и юридическим вопросам.

Sciberras Advocates, основанная доктором Эдрианом Сциберрасом, — юридическая фирма, расположенная на Мальте. Фирма гордится тем, что является междисциплинарной, инновационной и гибкой, чтобы соответствовать меняющимся временам и любым вызовам в местном и международном правовом поле. Независимо от того, какие сложные частные или корпоративные требования предъявляются, Sciberras Advocates предлагает практичные и экономически эффективные юридические решения для достижения желаемых вами результатов. Вы можете связаться с Sciberras Advocates по телефону +35627795222или по электронной почте на [email protected].

The most asked questions we receive from TCNs

Immigration Malta

As a law firm working in the fields of immigration and employment law, we are often asked questions and see many similar scenarios on the topic of immigration, work permits problems, visa refusals, unjustly terminations and more. Therefore, we have come up with a set of Frequently Asked Question revolving around these topics to assist any TCNs with all their queries.

In this article we are pinpointing the top FAQs. To read all the FAQs in full please go to this page: https://sciberras.legal/practice-areas/immigration-law/immigration-faqs-for-third-country-nationals

До вашего прибытия на Мальту

My employer is requesting money to employ me. Do I pay him?

Никогда не соглашайтесь на работу, за которую вас просят заплатить. Это противоречит фундаментальным правам человека на труд и равносильно торговле людьми. Вы не должны принимать никакой работы, за которую вас просят заплатить.

What is the procedure to apply for the Single Work Permit?

The procedure to apply for work in Malta for TCNs is called the Single Work Permit application.

The employer or agency will apply for you on a ‘still abroad’ basis. The application is straightforward and you need to fill the form and attach all relevant documents. Normally the employer will prepare the form with your input and submit to obtain an Approval in Principle letter.

Сколько времени занимает получение разрешения на работу?

Typically, from the day of submission with Identity Malta, it usually takes 30-60 days to get approved. Following this, you have six months’ time to travel to Malta, subject to visa clearance.

Что мне делать, если мое заявление на работу не приняли?

If you or your employer receive an email by Identity Malta Agency stating that your application cannot be processed, you have a right to appeal with the Immigration Appeals Board. You must consult an immigration specialist law firm like Sciberras Advocates who can understand the case and guide you accordingly. Similarly, if you receive a refusal letter you have three days’ time to appeal at the Immigration Appeals Board.

Что происходит, когда в визе отказано?

If a visa for work permit is refused, you have a right to appeal within 15 days with the Immigration Appeals Board. Appeals can also be sent via email. It is advisable to consult an immigration specialist law firm like Sciberras Advocates who can understand the case and guide you accordingly.

Сколько времени занимает рассмотрение апелляции?

Appeals in Malta are done in writing. Once the appeal is submitted, the Appellant is given another 15 days to submit any further documentation to substantiate his appeal. At the same time, the various stakeholders (Identity Malta, Jobsplus, Immigration Police, Central Visa Unit) are asked to give their feedback depending on the type of appeal. Typically appeals take between 6 to 9 months to get a final definite answer.

Прибытие на Мальту

Что происходит, когда я прибываю на Мальту?

Оказавшись на Мальте, вам необходимо выполнить последние шаги для выполнения условий подачи заявления на получение разрешения на работу и получения вида на жительство Мальты. Разрешение на работу и вид на жительство будут действительны в течение одного года. Важно, чтобы в течение первых недель на Мальте и в дальнейшем вы убедились, что:

  1. You are correctly registered with Jobsplus
  2. You are getting a payslip every month
  3. You ensure that your National Insurance contributions are being paid by your employer
  4. You are getting the correct amount of leave and overtime rates
  5. You are being given an FS3 (your annual statement of earnings)
  6. You are not terminated without being informed or not given advance notice to find a new job.

Что, если меня остановят на рабочем месте или остановит полиция?

Не о чем беспокоиться, если вы всегда носите с собой свою карту резидента, проблем быть не должно. Важно, чтобы, если ваше разрешение на работу охватывает конкретную должность у конкретного работодателя, вы это делали. Незаконная работа подлежит задержанию и депортации, и оспорить это в суде будет очень сложно.

Смена работы на Мальте

Что произойдет, если я буду недоволен своей работой?

Remember the contract that you signed before coming to Malta and remember the important clauses. You still have an opportunity to leave however it is advisable that first you have found another job. When changing jobs, you only have a 10-day window to apply between termination and application. Furthermore, when you apply for a new job, it does not automatically mean you can start working straight away. You need to get a new employment license and approval from Identity Malta Agency, and this takes some time. Whilst you can legally reside in Malta when changing jobs, the application does not give you automatic rights to work.

Что, если мой работодатель уволил меня, не уведомив об этом?

It is not the first time that employers terminate employees, send the Jobsplus termination form a month late and back date it. This would put you in an automatic overstay position and make you irregular in Malta. In that case you need to speak to an immigration and employment lawyer specialist such as Sciberras Advocates to see if there is a chance of redress.

For assistance on immigration law and any type of work permit appeal, visa appeal or return order appeal, please contact us on [email protected].

Эта статья предназначена только для информационных целей и не должна рассматриваться как юридическая консультация.

Статья написана г-жой Шарлин Шиберрас, бакалавром гуманитарных наук (с отличием), приглашенным автором, специалистом по маркетингу и деловому администрированию с особым вниманием к корпоративным, бухгалтерским и юридическим вопросам.

Sciberras Advocates, основанная доктором Эдрианом Сциберрасом, — юридическая фирма, расположенная на Мальте. Фирма гордится тем, что является междисциплинарной, инновационной и гибкой, чтобы соответствовать меняющимся временам и любым вызовам в местном и международном правовом поле. Независимо от того, какие сложные частные или корпоративные требования предъявляются, Sciberras Advocates предлагает практичные и экономически эффективные юридические решения для достижения желаемых вами результатов. Вы можете связаться с Sciberras Advocates по телефону +35627795222или по электронной почте на [email protected].

Just launched: Malta Startup Residency Programme

Startup Malta

Startups are affluential to generate new economy and contribute to the growth of a country, and Malta has recognised this opportunity as in the most recent years it has unrolled to various innovative startups and attracted FDI with the aim to create new opportunities for everyone and generate to the country’s GDP. Foreigners view Malta as a good jurisdiction to kick start a new business, thanks to great business ethics, stability, English speaking and access to the European Union market.

The newly launched Malta Startup Residency Programme is another step by the Government that shows its openness to foreign startups that want to build their presence in Malta. The Malta Startup Residence Programme grants a 3-year residence permit, extendable for an additional 5 years (once Malta Enterprise and Residency Malta confirm that the startup is still ongoing and still meets the eligibility criteria), to the founders and/or co-founders, core employees and immediate family members, and is intended for non-EU nationals. It’s important to note that beneficiaries of this programme need to have a tangible presence in Malta by living and paying taxes locally.

The eligibility criteria, amongst others include concrete intention to develop and/or expand business in Malta, a solid business plan, to live and pay taxes in Malta, to have sufficient financial resourced to support themselves and other dependants, to have no criminal records or pending criminal charges, and to have health insurance covering risks in Malta. The incorporated startup in Malta is required to place a tangible investment and/or pay up a share capital of not less than €25,000.

The startup activities to be eligible for the Malta Startup Residency Programme are:

  • Manufacturing
  • software development
  • Industrial services analogous to manufacturing
  • Health, biotechnology, pharmaceuticals and life sciences
  • Eco startups involved in the blue, green and sustainable industries
  • Other innovative economic activities which are enabled through knowledge and
  • Technology providing services or products which are currently not readily available in the relevant market or which shall be provided through a process which is novel.

Also, eligible business projects must meet at least two of the following criteria:

  • Propose products and/or services that have the potential to generate income from various geographical markets
  • Produce products and/or services which are new, innovative or substantially improved compared to complementary products on the market
  • Utilise process which are new or substantially improved compared to those adopted in current complementary activities.

If you would like more info on the eligibility criteria and quote to apply for such a programme, please email us on [email protected]. Our business administration team and lawyers will be able to assist you in guide in every step from the business plan to application stages and in obtaining the necessary residency permits once approval is given.

Эта статья предназначена только для информационных целей и не должна рассматриваться как юридическая консультация.

Статья написана г-жой Шарлин Шиберрас, бакалавром гуманитарных наук (с отличием), приглашенным автором, специалистом по маркетингу и деловому администрированию с особым вниманием к корпоративным, бухгалтерским и юридическим вопросам.

Sciberras Advocates, основанная доктором Эдрианом Сциберрасом, — юридическая фирма, расположенная на Мальте. Фирма гордится тем, что является междисциплинарной, инновационной и гибкой, чтобы соответствовать меняющимся временам и любым вызовам в местном и международном правовом поле. Независимо от того, какие сложные частные или корпоративные требования предъявляются, Sciberras Advocates предлагает практичные и экономически эффективные юридические решения для достижения желаемых вами результатов. Вы можете связаться с Sciberras Advocates по телефону +35627795222или по электронной почте на [email protected].

Franchising contracts explained

Franchise Contract Malta

A franchising contract or franchising agreement is a contract under which the franchisor, being the owner of a business or brand, grants the franchisee the rights to operate a business, (or sell, or distribute goods or services) identified or associated with the franchisor’s trademark.

Becoming a franchisee means, an individual or business buys into the original company by purchasing the right to sell the franchisor’s goods or services under the existing business model and trademark name.

For example, an Italian shirt company, named SHIRTS owns 20 shops in the north part of Italy. They would like to expand their business in Italy and in other European countries. So, they create a business franchising model to be able to partner with other businesses to expand their number of shops named SHIRTS. In this type of contractual business model or relationship, SHIRTS, known as the franchisor, allows an independent business owner, called the franchisee, to use the branding, business model, and other intellectual property of SHIRTS, to sell such clothing in other shops in different locations and different countries, also called SHIRTS.

The franchising industry is very versatile offering different types of franchise arrangements, options, and investment ranges. The typical duration of a franchise agreement is usually 10 years, and such contract will spell out the conditions under which the franchise can be sold to someone else, which can be stringent to ensure that any future franchisee is qualified enough to run the business.

Generally, the franchisee makes a one-time initial fee payment to the franchisor upon signing of the contract, as an entry fee. Besides, the franchisee might pay royalties on sales, marketing and advertising assistance fees, or equipment and supplies for the shops. The franchise agreement will also stipulate that the franchisee may only operate the franchise in an assigned territory or country and may also limit the right of the franchisee to sell online.

It’s important to note that the franchise agreement should outline the rights and obligations of both the franchisor and the franchisee. The main purpose of this contract is to protect the intellectual property and products or services of the franchisor. It will also hold certain obligation so that each franchisee operates the franchise consistently. It’s good to know that a franchisor is responsible for the overall brand reputation management, whereas the franchisees are responsible for marketing their businesses in their assigned market areas. However, the franchisees are partners and they also play an important role in protecting and fostering the brand’s image.

If you are thinking to expand your business by creating a franchising model, or you are interested in starting a new business as a franchisee, our lawyers will be able to guide you legally and commercially on anything related to franchising. Contact Dr Adrian Sciberras on [email protected]

Эта статья предназначена только для информационных целей и не должна рассматриваться как юридическая консультация.

Статья написана г-жой Шарлин Шиберрас, бакалавром гуманитарных наук (с отличием), приглашенным автором, специалистом по маркетингу и деловому администрированию с особым вниманием к корпоративным, бухгалтерским и юридическим вопросам.

Sciberras Advocates, основанная доктором Эдрианом Сциберрасом, — юридическая фирма, расположенная на Мальте. Фирма гордится тем, что является междисциплинарной, инновационной и гибкой, чтобы соответствовать меняющимся временам и любым вызовам в местном и международном правовом поле. Независимо от того, какие сложные частные или корпоративные требования предъявляются, Sciberras Advocates предлагает практичные и экономически эффективные юридические решения для достижения желаемых вами результатов. Вы можете связаться с Sciberras Advocates по телефону +35627795222или по электронной почте на [email protected].