|
BACKGROUND
Geographical Location
The Republic of Malta is situated in southern Europe, islands in the Mediterranean Sea, south of Sicily (Italy).
Malta is an archipelago consisting of three Islands - Malta, Gozo and Comino. The Maltese Islands are situated
in the middle of the Mediterranean sea, about 100km south of Italy. The total area of the Islands is 320 sq. km.
Climate: Mediterranean with mild, rainy winters and hot, dry summers.
Population
The population of the Islands is approximately 381,603 (July 1999 est.). Maltese society is homogeneous, having
its own identity and language. The natural population growth in recent years has been supplemented by a net inflow
of Maltese who had previously emigrated to America, Canada, Australia and the United Kingdom.
Religions: Roman Catholic 98%.
Political Structure
Malta is a democratic republic based on work and respect for the fundamental rights of freedom of the individual.
The country became a sovereign independent nation when it attained its independence from British rule in 1964.
The President is the head of the Executive, but the administrative powers are in practice vested in the Prime Minister
and his cabinet. Parliament is composed of 65 representatives elected every five years. the Judiciary enjoys full
independence from the Executive and from Parliament, and a system of separation of powers, typical of the United
Kingdom constitutional system is operative.
Relationship with the European Union
Malta has applied for full membership of the European Union, and the present Government is actively pursuing
this aim. The economic, social and fiscal laws have in their majority been harmonised with the directives issued
by the European Union from time to time, and although the party in opposition does not agree with full membership,
it does state that it was to have a special relationship with the United Kingdom, should it be elected to power.
Infrastructure and Economy
Malta has invested in one of Europe's most advanced telecommunications systems, including a full satellite
direct dialling system connecting Malta with most parts of the World. Moreover mobile cellular communication has
been established, and cable TV is also available on the Island.
Considerable resources have been dedicated to the building of a new power station and water production to serve
the Country's own needs. A new air terminal building has been erected in the last few years to ensure comfort and
efficiency for the ever increasing number of incoming and outgoing business travellers and tourists.
Housing standards are high, and good quality office space is available. First class hotel accommodation is abundant.
Malta has established its own Freeport zone for transhipment/bunkering. Tourism has reached unprecedented peaks
of around 800,000 tourists per year. It has established an important host centre for International Agencies such
as Regional Oil Competing Centre, the International Ocean Institute and the Foundation for International Studies
amongst others. It also still maintains its traditional ship repairing and renowned Ship repair docks and Shipbuilding
Yards.
Language
The official language of Malta is the Maltese language which is of Semitic origin. English is spoken by almost
practically every Maltese citizen, and a good percentage of the population commands good knowledge of other European
languages, mainly Italian, French and German.
Currency
The Unit of Currency is the Maltese Lira, which is equivalent to approximately GB £1.70.
Exchange Control
The original restrictive exchange control regulations have been gratefully relaxed and progressively the Government
is working forward the complete removal of any form of Exchange Control in consequence of the gradual increase
of the financial services in the Country.
Type of Law
The private law rules are derived from Roman Law. Most of the Commercial and Financial Laws have been imported
from the Common Law countries - primarily the United Kingdom and this reduces problems of interpretation.
Principal Corporate Legislation
The Commercial Partnership Ordinance 1962, the Companies Act 1995 and the Malta Financial Services Act 1988.
KEY FEATURES TABLE
| General |
| Political Stability |
Good |
| British Based Legal System |
Yes |
| Type of Company |
IBC |
| Disclosure of Beneficial Owner |
Yes |
| Migration of Domicile Permitted |
Yes |
| Tax on Offshore Profits |
Varies |
| Non-English Language Names Allowed |
Yes |
| Corporate Requirements |
| Minimum Number of Shareholders |
Two |
| Minimum Number of Directors |
One |
| Bearer Shares Allowed |
No |
| Corporate Directors Permitted |
Yes |
| Secretary Required |
Yes |
| Standard Authorised Share Capital |
US$5,600 |
| Local Requirements |
| Registered Office/Agent |
Yes |
| Company Secretary |
No |
| Local Directors |
No |
| Local Meetings |
No |
| Government Register of Directors |
Yes |
| Government Register of Shareholders |
Yes |
| Annual Requirements |
| Annual Return |
Yes |
| Audited Accounts |
No |
| Recurring Government Costs |
| Annual Tax/Licence Fee |
|
| Annual Return Filing Fee |
Nil |
COMPANY FORMATION
Type of Company for International Trade and Investment
International Trading Company
Procedure to Incorporate
The Memorandum and Articles of Association are drawn up, and are submitted with the relevant forms to the Commissioner
of Inland Revenue - where application - for the imposition of stamp duty and then filed with the Registrar of Partnerships.
Companies with Non-Resident shareholders are submitted to the Malta Financial Services Centre for vetting.
Restrictions on Trading
A number of activities such as Banking, Insurance and Investments require the appropriate licence from the
authorities concerned. Otherwise there are practically no restrictions with regard to Private Companies.
Powers of Company
A Company incorporated in Malta has the same powers as a Natural Person.
Language of legislation and corporate documents
English
Shelf Companies available
No
Time Scale to Incorporate
Two to Three weeks.
Name Restrictions
Any name which is identical or similar to an existing Company. Any name which in the opinion of the Registrar
is offensive or otherwise undesirable.
Language of Name
Can be expressed in any language using the Latin alphabet.
Names requiring Consent or a Licence
"Bank", "Insurance", "Assurance" or "Nominee"
Suffixes to denote Limited Liability
Limited or Ltd.
Disclosure of Beneficial Ownership to Authorities
Yes, but the Authorities are bound by stringent professional secrecy regulations.
SHARE CAPITAL, TAXATION, LICENCE FEES AND COMPLIANCE MATTERS
Authorised Share Capital
Cannot be less than 500 Maltese Lira. Normally between 2,000 to 5,000 Maltese Lira.
Classes of Shares Permitted
- Registered Shares
- Preference Shares
- Redeemable Shares
- Shares with or without voting rights
Bearer Shares Permitted
Private Companies - No.
Taxation
With the advent of the new legislation, International Trading Companies will pay according to the status of
the shareholder. A non-resident shareholder of an international trading Company would probably only pay tax 4%
to 5%, a non-resident shareholder of an International Holding Company with participating shareholdings in non-Maltese
companies can apply for tax exempt status.
Double Taxation Agreements
Malta has extensive range of Double Taxation Agreements with over 20 countries, including Australia, Austria,
Belgium, Bulgaria, Canada, China, Cyprus, Finland, France, Germany, Hungary, Italy, Netherlands, Norway, Pakistan,
Sweden, Switzerland, United Kingdom and the United States of America.
Licence Fees
A resident Company will pay 110 Maltese Lira on incorporation. An Off-shore non trading Company pays 500 Maltese
Lira on registration and thereafter yearly as an annual fee.
Financial Statement Requirements
A Company is required by law to maintain Financial Statements.
STRUCTURE OF MANAGEMENT
DIRECTORS
Minimum number of Directors
One
COMPANY SECRETARY
Company Secretary Required
Yes
SHAREHOLDERS
Minimum number of Shareholders
Two
|
