The principal piece of corporate law in Malta is the Companies Act, 1995. Maltese companies are useful, flexible vehicles which allow rapid formation of companies, capital requirements are low, bank accounts can be held in third countries and business can be conducted internationally.
Company Law and Corporate Law fall within our main areas of specialisation. The firm provides both on-going company law advice and compliance services as well as advice on more complex matters such as mergers, divisions, take-overs and re-structuring.
The firm also advises its clients on the setting up of appropriate corporate structures for particular business ventures or transactions, whether regulated or not, and on the most tax efficient structures to be adopted in particular cases. Our services in this regard include advice on the appropriate structure, incorporation of the chosen corporate structure, whether in Malta or overseas, as well as assistance in connection with corporate administration and compliance with legal obligations.
The firm also assists clients wishing to set up commercial partnerships in Malta and provides all required support services to such partnerships.
Limited Liability Companies
The most popular form of corporate vehicle in Malta is the limited liability company (LTD). This is formed by means of capital divided into shares which are held by its members. The liability of the members is limited to the amount, if any, unpaid on the shares respectively held by each of them. Furthermore, a limited liability company may be constituted either as a public or as a private company. There are no restrictions on the nationality or residence of shareholders or directors of Maltese limited liability companies. Shareholders or directors of Maltese limited liability companies can be individuals or corporate bodies registered in Malta or abroad. It is also possible to set up single member companies in Malta, subject to certain requirements being met.
Limited liability companies may be set up with a minimum share capital of under Euro 1200 (USD 1500 approximately), whereas there is no maximum share capital requirement.
Corporate taxation in Malta is levied at 35 % at the end of the financial year, and foreign shareholding owners are entitled to a refund system which will see a refund of approximately 30 % of the paid tax. There is no tax on withdrawal of dividends.