Company Act in Malta in 2023
The Company Act is essential for investors looking to set up businesses in Malta as it provides a stable legal framework and a predictable business environment.
It also enables foreign investors to establish companies in Malta with ease and benefit from various tax incentives and advantages provided by
the Maltese government. The objective of the Act is to create a transparent and efficient business environment in Malta and to ensure that companies operate in compliance with legal and ethical standards.
In short, the Company Act is an essential tool for ensuring the growth and development of businesses that are established in Malta. However, the Company Law in Malta provides rules and guidelines for the incorporation of various types of companies, including private and public companies, and sets out their respective obligations and requirements.
The Act also covers topics such as share capital, directors and officers, shareholders’ rights, and company meetings.
Through this article, we will be going to feed you with a details overview of the Company Act in Malta. Let’s go right to the point if you want to learn more.
Importance of Company Act for businesses in Malta
Company Law in Malta provides guidelines for company building, function, and annulment. It provides a clear legal framework for companies to operate in, ensuring that businesses operate in a transparent and accountable manner.
The Act offers many benefits to businesses operating in Malta, including reduced taxation rates, ease of setting up a company and streamline corporate governance procedures. By complying with the Company Act, businesses can build a good reputation and trust with their clients and stakeholders, while also having access to legal recourse in case of disputes.
Additionally, the Company Act provides businesses with access to the European Union’s Single Market, which offers numerous opportunities for growth and expansion. This can be particularly advantageous for businesses seeking to build an existence in the EU.
The Company Law in Malta is an essential consideration for businesses operating in the country. It provides a stable and secure legal framework for companies to operate in, enabling them to focus on their core business activities while adhering to the laws and regulations set forth by the Maltese government.
Types of Companies that fall under the Company Act of Malta
The Company Law in Malta provides for various types of companies that can be registered, depending on the specific needs and requirements of the business. The most common types of companies registered under the Company Act in Malta include public and private limited liability companies, partnerships, and sole proprietorships.
Public and private limited liability companies are popular among businesses with multiple shareholders, as they offer a clear legal framework for management, ownership, and liability.
Partnerships are commonly used by businesses that are owned and operated by two or more people, while sole proprietorships are popular among individual entrepreneurs who want to start a business.
In addition to these types of companies, the Company Law in Malta also allows other types of entities, such as trusts, foundations, and associations, which are often used for charitable, philanthropic, or non-profit activities.
By providing a range of options for company registration, the Company Act in Malta enables businesses of all types and sizes to thrive and grow in a secure and transparent legal environment.
Registering a Company in Malta as per Company Act
To register a company in Malta under the Company Act, the necessary steps need to be taken:
- Choose a name for the firm and conduct a name search to confirm that the name is obtainable.
- Draft the Memorandum and Articles of Association of the company, which must comply with the requirements.
- Obtain a VAT registration number from the Maltese VAT department, if applicable.
- Enlist the firm with the Registrar of Companies and submit the required copies and the registration fee.
- Get a tax identification number from the Inland Revenue Department.
- Open a bank account for the company and submit the mandated stake funds.
- Register for social security contributions and obtain a business license, if applicable.
- Apply for any necessary permits and licenses, relying on the type of the company.
Documentation Required for Company Registration under Company Act in Malta
The documentation required for company registration under the Company Act in Malta may vary based on the type of company being registered.
Generally, the necessary documents are mandated:
- Memorandum of Association & Articles of Association
- The identification documents of the company’s directors and shareholders, such as passport copies, are typically required.
- The firm should offer an enlisted office address in Malta.
- Before registering the business, the firm name should be reserved with the Malta Business Registry.
- A registration fee is needed for firm registration.
It is important to note that specific documentation requirements may vary based on the type of company being registered, such as a private limited company, public limited company, or branch of a foreign company.
Maintaining a Company under Company Act in Malta
Maintaining a company in Malta requires compliance with various legal obligations and regulatory requirements under the Company Act.
Some of the key obligations include:
Filing of Annual Returns: Every firm registered in Malta is required to file a yearly return with the Malta Business Registry within 42 days from the establishment date of its incorporation.
Filing of Financial Statements: Companies are required to prepare and file financial statements with the Malta Business Registry annually.
Holding of Annual General Meetings: All companies must hold an annual general meeting of shareholders to approve the financial statements and appoint directors.
Maintaining Statutory Registers: Companies must maintain various statutory registers, including a register of members, directors, and charges.
Paying Annual Fees: Companies are required to pay an annual fee to the Malta Business Registry to maintain their registration.
Features of the Company Act in Malta
The Company Act of Malta sets out the legal framework for the incorporation, operation, and regulation of companies in Malta.
A few of the fundamental features of the Company Act in Malta contain:
The Company Act in Malta provides for limited liability, which means that the private acquisitions of the stakeholders are covered in the instances of company failure or bankruptcy.
Memorandum and Articles of Association
Companies are required to possess a memorandum and articles of association, which outline the objectives, management, and ownership of the firm.
Stakeholders and Directors
Companies are required to have at least 1 stakeholder & 1 director. The stakeholder possesses the ability to hire and terminate the directors.
All companies are required to be registered with the Registrar of Companies, which maintains a public register of all companies in Malta.
Firms are instructed to possess an accurate financial history and preserve the yearly financial accounts.
Companies must comply with all relevant laws and regulations, including tax laws, employment laws, and health and safety regulations.
The Company Law in Malta provides a clear and transparent legal framework for the incorporation and operation of companies, which enables businesses to operate in a secure and stable environment.
The Company Act is an important consideration for businesses operating in Malta, as it provides a legal framework that is designed to encourage and support business development. It outlines the requirements and obligations that businesses must adhere to, including accounting and reporting standards, to ensure transparency and accountability.
By adhering to the regulations set out in the Company Act, companies can operate with confidence and security, knowing that they are part of a legal system that prioritizes transparency, accountability, and fair play.
It is recommended to seek the advice of a legal professional like Odint Consultancy to ensure that all necessary documentation is submitted for company registration in Malta under the company act.
A listing of legal documents related to the law that governs the registration, creation, incorporation as well as dissolution of a company is managed and controlled.
One shareholder is needed to set up a firm under the Company Act in Malta.
Firms registered under the Company Act in Malta are mandated to file an annual return and to maintain proper books and records.
Businesses registered under the Company Act in Malta are subject to a corporate tax rate of 35% but may be eligible for various tax incentives and exemptions.
The least share capital needed to establish a firm under the Company Act in Malta is EUR 1,165.