� Company Matters

  ►   General Information re COMPANIES IN MALTA

In Malta, the registration and regulation of companies and partnerships is governed by the COMPANIES ACT (Act no.XXV of 1995) which replaced the Partnerships Ordinance of 1965. It is considered by many in the field to be one of the most progressive and modern pieces of commercial legislation, certainly in the Mediterranean and arguably throughout Europe. All company registration and activity is regulated by the Malta Financial Services Authority (MFSA).

Particular interest has been expressed by many foreign corporations, companies and business persons regarding Malta's progressive laws that enable and regulate the setting up of International Holding Companies (IHC's)  and International Trading Companies (ITC's) because of the highly attractive fiscal benefits they provide to the foreign shareholders.

These advantages go beyond the mere repatriation of share-capital and/or profits. Whilst the Maltese party does not obtain similar fiscal benefits, still, he/she benefits from the increased opportunity to establish strategic alliances and share in the inward investment possibilities that such forms of international partnerships provide.

  ►   International Holding Companies & International Trading companies

IHC's and ITC's are not offshore companies properly speaking. They are deemed Maltese companies for registration and regulation purposes and are governed by formation rules quite similar to 'domestic' companies. There are certain safeguards and exceptions such that they cannot trade inside Malta but can trade from Malta and can make joint-ventures with Maltese Companies, maintain accounts in any currency (including Euros), and obtain 'resident' status for their overseas directors. Foreign shareholders in such Companies can get an advance revenue ruling from the Inland Revenue Department as to their tax status, subject to certain rules as to how dividends are paid and distributed.

Bearing in mind that Malta has double-taxation agreements with some 31 countries*, the prospects for foreign investors in such Companies are excellent.

* Australia, Austria, Belgium, Bulgaria, Canada, China, Croatia, Cyprus, Czech Republic, Finland, France, Germany, Hungary, India, Italy, Korea (Rep of), Libya, Luxembourg, Malaysia, Netherlands, Norway, Pakistan, Poland, Romania, Slovakia, South Africa, Sweden, Switzerland, Tunisia, United Kingdom and the United States of America.

  ►   INFORMATION AND ADVICE

Dr J R Pace LL.D & Partners provide information & advice in connection with the setting up or registration and/or management of: 

Æ Limited Liability Companies ('anonym')

Æ  International Holding Companies (IHC's)

Æ International Trading companies (ITC's)

Æ Partnerships 'en comandite' or a 'nom collectif'

Æ Partnerships 'en participation'.

►Advice and registration procedures for all kinds of new Companies can be taken in hand at short notice◄