About Malta
Malta has an excellent business infrastructure with good telecommunications, extremely well-equipped ports and Freeport, a well-developed manufacturing infrastructure, and has a relatively sophisticated, European business environment.
Malta: the tax heaven
Over the past decade, Malta has completed a programme of reforming all its finance sector legislation in line with international best practice and was one of the first six countries in the world to reach an advanced accord on fiscal matters with the OECD. As a result of this agreement Malta is not considered as a tax haven.
The Malta Financial Services Authority (MFSA) was established by law on 23 July 2002. It is a fully autonomous public institution and reports to Parliament on an annual basis. The MFSA has taken over supervisory functions previously carried out by the Central Bank of Malta, the Malta Stock Exchange and the Malta Financial Services Centre and is the single regulator for financial services. The sector incorporates all financial activity including banking, investment and insurance. The MFSA also manages the Registry of Companies and has also taken over responsibility as the Listing Authority.
Over the past decade, Malta has moved from being an offshore to an onshore jurisdiction. It has completed a programme of reforming all its finance sector legislation in line with international best practice and was one of the first six countries in the world to reach an advanced accord on fiscal matters with the Organisation for Economic Co-operation and Development (OECD). As a result of this agreement Malta is NOT considered as a tax haven. It is actively involved with the OECD, the EU and the Commonwealth in modelling global regulatory policy.
Malta’s finance industry has benefited significantly from the country’s national policy of moving to the mainstream. Financial services is the fastest growing sector of the Maltese economy and one of the most important employers of trained professional staff.
Although the financial services sector is dominated by banking, the investment and fund management industry is becoming more of a draw for foreign companies together with the registration of online gaming companies.
Companies are considered resident in Malta if incorporated in Malta or if control and management are exercised in Malta. Malta's Companies Act, 1996 allows limited liability companies, general partnerships, and limited partnerships.
A general partnership is called a 'partnership en nom collectif' and a limited partnership is called a 'partnership en commandite'. Maltese Companies may either be trading companies or holding companies. Holding Companies are Maltese registered companies that hold assets, shares or investments and qualify for the participation exemption. After recent amendments, a Maltese Company may operate as both a holding company and also a trading company at the same time.
The Insurance Business Act, 1998, and the Insurance Brokers and Other Intermediaries Act, 1998 regulate the insurance sector. The Banking Act, 1994 and the Financial Institutions Act, 1994 regulate the provision of banking and financial services.
Under the Prevention of Money Laundering Act, Malta established a financial intelligence analysis unit (FIAU), which reports to the Attorney General. Malta is gradually abolishing bearer accounts.
The island, as of 1st May 2004, is a member of the European Union. The total area is a mere 316 square km with the longest distance being 27 km in length and 14.5 km width. The population is approximately 400,000 that make Malta one of the most densely populated countries in world.
Malta has a history that is the envy of many. There are very little places in the world where one can find archaeological sites (some dating to 3500 BC) cultural monuments and architecture that span the centuries. Malta is almost a museum in itself, from Valletta, its capital city built by the knights of St John, Mdina, the old Citadel built by the Arabs and modified by many over the years, the natural grand harbour, sought after by many old empires and its pretty village cores.
The people are known for their hospitality and are by and large bi-lingual.