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.