Must Follow: Rules and Procedures of Company Formation

When anyone decides to open a company it is necessary to follow the rules and regulation regarding the formation of the company. Often the rules regarding formation of company may vary according to the country in which it is set up.

Like most of the countries, the process of Malta company formation as well as Malta company incorporation is laid by the Companies Act of Malta. The act is modeled on its UK counterpart. The businessman in Mala can enjoy a straightforward and simple company incorporation procedure. After a business is formed, the company can be registered within a day of receiving all the valid documents, funds, information from the Registry of Companies in Malta.

The minimum share capital that is required for Malta company formation is euro one thousand, one hundred and sixty five and the paid up capital can be approximately 20%. There is no restriction on the currency of share capital and it can be in any currency. A share certificate needs to be issued to all the shareholders and also provide them with dividend warrant when dividend is paid. All the companies must also keep record of all the personal details of all directors, shareholders and company secretary together with dates of appointments, resignation and share transfers too. A company in Malta may operate an office in Malta and employ skilled as well as professional expatriates in Malta

There are lots of operational and financial benefits associated with registering a business in Malta. There is no restriction on the residency and nationality of the directors and the shareholders of a Maltese business or that of company secretary. There is also no restrict on the activities that can be carried out by the business houses provided the business operations in question is legal. Some of the businesses may however be regulated by the local authorities such as Malta Lotteries and Gaming Authority (LGA) of Malta Financial Services Authority (MFSA).

When a company is formed in Malta there has to be at least one director of the company who may also act as the company secretary in some cases. Though a body corporate can also act as the director, the role of company secretary must be filled only by an individual. As per business law of Malta, an individual can be both shareholder as well as a company director.

In order to form a company successfully in Malta, there should be at least two shareholders either in the form of an individual or in the form of corporate bodies. In certain special cases and upon fulfillment of certain conditions the company can also be formed with the help of only one shareholder. Also it is possible for a Malta company shares be held by an authorized fiduciary so as to hide the identity of the beneficial owners. Annual general meetings need to be held each year by a Maltese company. Not only this company also need to submit an annual return to the Registrar of companies and get the financial statements of the company audited.

Setting up a company is a very straightforward process in Malta. All that is required is to follow the rules and regulations that are set by the regulatory body of the country.