Companies and Trusts

Companies

Companies registered in Malta must have a minimum share capital of €1,165 of which at least 20% must be paid up.  Every company must register a Memorandum of Association which inter alia must give the following information:

1.      Its full name which must end with the wording Limited, Ltd. or plc.
2.      Registered office
3.      Objects – the object clauses must be clear and such phrases as ‘trade in general’ would not be acceptable
4.      Share capital showing authorised and issued capital
5.      Shareholders (they may be held under trust by a licensed company)
6.      Directors
7.      Secretary
8.      Legal and judicial representation

The Memorandum of Association is usually accompanied by the Articles.  Both documents must be signed by the shareholders or their authorised representatives.

There is no distinction between resident and non resident shareholders.  All companies pay tax at the rate of 35% and following the imputation system in operation in Malta since 1948, certain refunds may become due to the shareholders on the filing of the relative returns by them.

Trusts

Trusts legislation in Malta is today governed by the Trusts and Trustees Act, Chapter 331 of the Laws of Malta. The Act reflects a number of changes and additions to what the previous Act provided and incorporates notions of English law on trusts with our Civil law. This piece of legislation is backed by the Recognition of Trusts Act, Chapter 374 of the Laws of Malta, which enabled Malta to ratify the Convention on the Law Applicable to Trusts and their Recognition, as well as other provisions of law introduced into various legislation, making the trust a useful and available tool to both Maltese and foreigners alike.

Through these amendments, Malta accomplishes in its legal system an enhanced level of competence and flexibility and thus higher standards of accountability. Trust law in Malta now addresses the law of property, the law of obligations, private foundations and the regulation of trustees.

The Malta trust law is based on the Jersey model but is now closer to classical English law on Trusts rather than to models found in offshore jurisdictions. The law caters for a detailed regulatory regime which makes Malta an ideal jurisdiction for trust administration, just as it provides for a good location for other international business.