Malta is one of the countries that have extended the application of adopted ifrs to all limited liability companies registered in malta 3 except for entities that are permitted to, and apply gapse. Another important piece of legislation within maltas shipping legislative framework is the companies act chapter 386 of the laws of malta, which regulates the creation, operation and. The governing legislation for corporate secretarial services in malta is the company service providers act, which provides a statutory basis for the registration of persons who provide company services. The continuation of a foreign company to malta or the continuation of a maltese company outside malta is made. The principal piece of corporate law in malta is the companies act, 1995. With the registered office of every maltese company having to be in malta, this determines its nationality and domicile, and insofar that the effective management and control is retained in malta, then the maltese company shall also be subject, from an income tax perspective, to the laws of malta. Setting up a company in malta is straightforward, efficient and inexpensive. Registered office the registered office of the company shall be at ground floor, palace court, church. Like its predecessor the commercial partnerships ordinance, the companies act has its roots in english, french, italian and european law. Second is the opening of it development functions, or an it branch in malta by international companies.
If you want to open a company in malta and need information about the legal requirements, you can refer to our law firm. The country also championed the introduction of innovative structures such as protected and incorporated cell companies. A subsidiary can run under the rules of private limited liability company which can be established by at least 2 shareholders, and which needs to have at least one manager and one company secretary. The acr annual general meeting will be held on saturday 21 march 2020 at ncw centre, pope pius xii, flat 4, mountbatten street, blata lbajda, hamrun hmr 1579, malta.
The introduction of gapsme had also led to changes in the companies act chapter 386 of the laws of malta. Chemic was established in 1990 as chemic industrial consultants, actively involved in the start up of new companies mainly in the food and detergent sectors. The process of company formation and incorporation in malta is set out by the malta companies act which is modelled on its uk counterpart. The maltese companies act is broadly based on common law principles, but is also inline with the relevant eu directives. Today, forming part of a group of companies of around 150 people, we offer our products and services to some of the largest entities on the island, as. The company act in malta regulates the limited liability companies private or public, offshore companies, partnerships limited or general, and sole proprietorships. Corporate and business registration department home.
Download brochure new reporting obligations in the directors report. Management and control the income tax act does not define the concept of management and control within context maltese tax system. Gapsme and related changes to the maltese companies act. The maltese companies act and the mfsa listing rules have been amended to. Business registers in member states malta european ejustice. Altern limited is an engineering company based in malta, working within the sustainability sector. Companies act companies actchapter 386 laws of malta. Price club holdings limited pch was the holding company of the group. A maltese company is required to have a board of directors that must be comprised of the chairman, nonexecutive and executive directors. Gapsme and related changes to the maltese companies act emd. It mainly concerns civil matters rather than common law. The wording now refers to borrowing costs incurred by a person for the.
Note on section 340 of the act section 340 of the act states that every formeract company shall within two years after the commencement date of the act i. You will find below the key extracts from the malta companies act along with the full act. The malta digital innovation authority act mdia act, innovative technology arrangements and services act itas act, and virtual financial assets act vfa act in combination aim to provide a robust legislative and regulatory framework, yet one that does not negatively affect the growth of technology companies that use dlt. The companies act prescribes two ways in which such decisions may be carried out by a maltese company either at a meeting duly convened or by means of a. In terms of the companies act, chapter 386 of the laws of malta, aside from an obligation to keep i a register of members. The 1995 companies act, chapter 386 of the laws of malta, is the. It services companies, which most developers aggregate to, tend to be set up in one of three ways. Pch had a number 1 a director is bound to act in accordance with the duties set out in companies act, chapter 386 of the laws of malta, article 6a. Malta has made significant strides to the international insurance market in attracting worldclass companies to its shores. According to the company act in malta, most types of companies are required to have a certain management structure. The register is a part of the malta financial services authority. Companies amendment act 1966 act 231966 companies amendment act 1969 act a21 borrowing companies act 1969 act 6.
In addition to a booming gaming industry, it departments in financial services companies, as well as specialised it services companies heavily. The office is the sole place where one may obtain information about these entities. The company act in malta company formation in malta. There are many benefital reasons why owners would consider moving to malta including the attractive and unique tax system, maltas memebership to the eu, ease of travel and many more reasons. In this act, unless the context otherwise requires beneficiary means any person who is. Companies act investment companies with variable share capital as retirement schemes or retirement. Companies act chapter 386, laws of malta frankcassarandmiriamattard keepingofaccountingrecords. All companies incorporated in malta, are required by the maltese companies act, 1995 to maintain the accurate and up to date books of accounts, which should reflect the true and correct position of the companies affairs, its financial performance, and cash flows. Malta is an extremely attractive jurisdiction to consider having your company set up in or moving your business to. The accounting directive transposed into the companies act.
A list of legal documents pertaining to the legislation under which the formation, registration or incorporation, governance, and. This involves the implementation of the provisions of national legislation with regards to the eu nationals freedom of movement and other regulations concerning thirdcountry nationals residence documentation. The article which governs the deduction of interest incurred in the production of the income article 141a of the ita has been reworded to be aligned with the interest limitation rule which was recently introduced through the antitax avoidance directive atad 1. Ms notice 32 registration in terms of section 85 of the merchant shipping act of companies wishing to own or operate exempted ships 32 10031999. Firstly, a number of local companies that were set up in malta expand their function through international operations. The companies act replaced the commercial partnerships ordinance of 1962 which had originally introduced modern company law principles into maltese law. Chemic was registered as a limited liability company in 1995 in compliance with maltas companies act. Shareholders are entitled to a 67ths refund, reducing their effective tax. Using the companies act 1995 as the main source of company law, it provides the legal background to the various possible stages a company can go through in its lifetime. Branches of foreign companies and other entities in terms of the act bodies corporate constituted outside malta may establish a branch or place of business in malta. Malta company formation in lieu of companies act malta. Application of act to insurance, banking, electricity supply and other companies governed by special acts.
Malta offers a highly efficient fiscal regime that avoids double taxation on taxed company profits distributed as dividends. Recordkeeping obligations for maltaregistered companies companies act. Malta companies benefit from a relatively swift incorporation process which takes between 3 to 5 days once all information, receipt of due diligence documents and remittance of funds have been has. The principal authority for day to day matters relating to companies in malta is the maltese registry of companies, which is housed under the auspices.
Malta companies are taxed at a rate of 35 per cent. The first company act in malta was called the commercial partnerships ordinance and it was replaced in 1995 with the new legislation. The company formation in malta is made under the rules of maltese company act. Companies in malta had to transform their structures according to the new company act in malta and register with. Malta financial services authority act to establish an authority for financial services from within malta, to regulate such activities and to provide for matters ancillary or incidental thereto or connected therewith. Using the companies act 1995 as the main source of company law, it provides the legal background to the various possible stages a company can go through in its lifetime, from beginning to end. Eu passporting rights and competitive operating costs are key attractions of locating in malta. The budget measures implementation act, 2020 kpmg malta. Register offshore company in malta open a ltd company in malta. Company directors are nominated by the owners or shareholders of the company. Register offshore company in malta open a ltd company in.
The companies act supports the establishment of the following company categories. Establish a subsidiary in malta company formation in malta. Applicability of the companies act to offshore companies formed and registered under the commercial partnerships ordinance and the malta financial services authority act order. Updates to maltas banking act and financial institutions act. Welcome to the malta business registry the malta business registry mbr, established under subsidiary legislation 497. Companies licensed in terms of the malta freeports act section 11 of this act are now also business promotion act bpa qualifying companies.
The company act in malta is actually based on the company law of the united kingdom. Companies which are not incorporated in malta are considered to be resident in malta when their management and control is shifted to malta. In the case of private exempt company malta, a sole director may also act as the company secretary. The bpa is the name given to the industrial development act, which applies mainly to manufacturing companies. The information technology it industry in malta has long been on the rise, having peaked with the increasing number of gaming companies setting up shop in malta and opening a number of gaming vacancies in malta over the past few years. View companies act from fema 5587 at university of malta. Disclaimer in terms of the company service providers act, 20, persons who are in possession of a warrant or equivalent to carry out the profession of advocate, notary public, legal procurator or certified public accountant are not required to apply for registration to the mfsa in order to provide company services in or from malta.
Under gapsme, companies would only be required to determine whether they fall under the smallmedium classification. There is a charge for downloading documents on individual companies from the website. The expatriates unit is involved in the legal migration process and caters for the processing and issuing of residence documentation. Malta trading companies are onshore business companies that are registered under the maltese companies act, which are taxable on a worldwide basis at the normal corporate tax rate of 35%. One of the most important chapters of the maltese company law is the business promotion act, also known as chapter 325 of. Software development companies in malta including birkirkara, and more.
Maltese business owners can therefore enjoy a simple, straightforward malta company incorporation procedure. The companies act 1965, in its current form 15 august 2007, consists of 12 parts containing 374 sections. A letter of confirmation or certificate issued by the citizenship unit as proof of being a maltese citizen. Recital 3 of the ias regulation clarifies that the aim of the ias regulation is to supplement the legal framework applicable to publicly traded. The identity card unit icu is the authority responsible for the issuing of electronic identity cards to maltese citizens and the registration of eid virtual accounts for both individuals and organisations. Maltas tax system has been deemed by the european commission to be compliant with eu nondiscrimination principles and has also gained approval from the oecd. The short title of this act is the malta enterprise act. An act to reform company law and restate the greater part of the enactments relating to companies. Financial markets act and includes a maltese regulated market.
Name the name of the company is moralltach global p. Malta companies act, 1995 limited liability company. Corporate governance and directors duties in malta. The corporate and business registration department has the following main functions. Fact sheets learn all about malta with our fact sheets our fact sheets provide you with all the information about our company, jurisdictions, and services we provide to our clients. Oversea companies which establish a branch or place of business within malta must submit the following documents to the registrar of companies within one month of the establishment. The companies act 1995 regulates the three types of commercial partnerships, namely. The it industry in malta recruitment and jobs in malta. It administers the companies act 2001, the business registration act 2002, the insolvency act 2009,the limited partnerships act 2011 and the foundations act 2012. This course explores the key principles and concepts behind the legal founding and management of companies in malta. Companies act european economic interest grouping regulations. The maltese companies act defines a director as being any person occupying the position of director of a company by whatever name he may be called carrying out substantially the same functions in relation to the direction of the company as those carried out by a director. Ms notice 29 home port and national colours of maltese ships 29 07051998. Considering that the malta company register boasts over 40,000 companies incorporated in malta and the number is increasing rapidly each year, it is advisable that an applicant kicks off the incorporation process by reserving the proposed company name.
The directors or managers of companies are the most important part of a company as they have decisive power and voting right on important matters. Ms notice 22 new us malta reciprocal agreement on exemption from tax on transportation income 22 18041997. The chairman leads the board of directors, make sure the board receives all information in due time and will also act as a communication channel between the company and the shareholders. Akta syarikat 1965, is a malaysian law which relates to companies. The continuation of companies regulations legal notice 344 of 2002 as amended by legal notice 352 of 2003, 181 and 186 of 2006 and 425 of 2007 provide for. For any of the abovementioned types of businesses, our team of advisors in malta can offer assistance at the time of incorporation and related services for a fast and proper.
The principal documentation of compamy law in malta is the malta companies act. Companies act 1995 for limited liability companies public limited liability companies form b1 notice of resolution for dissolution and consequential winding upform b2 declaration of solvencyform f notice to registrar to exercise his power to appoint an auditorform f1 notice of the removal of an auditorform f2 notification by partnershipcompany of the resignation. The withdrawal of the option of preparing abridged accounts. Chapter 372 income tax management act laws of malta. Software development companies in malta company list. Malta companies act, 1995 limited liability company moralltach global p. In malta securitisation has enjoyed the support of successive maltese governments and local authorities. Briefly, the structure of the group of companies involved was as follows. Malta companies act focus business services malta limited strand towers floor 2 36 the strand sliema, slm 1022 p o box 84 malta t. Malta companies benefit from a relatively swift incorporation process which takes between 3 to 5 days once all information, receipt of due diligence documents and remittance of funds have been has been provided.