Malta is a well regulated and leading international financial services centre located in southern Europe and is a member of the European Union, the Council of Europe, The United Nations and the Commonwealth. With good transport links into many cities in Europe, a good telecommunications infrastructure, and with English being one of the main languages, Malta is well positioned to attract international business.

Banking

The Banking & Finance industry underwent a number of changes in the past years as global and regional consolidations of business and financial markets, and increased regulatory requirements shaped the industry along the years. The integration of the Maltese national market with its wider European counterpart has proven to be a game changer for the Maltese banking & finance industry and has significantly changed the financial frameworks through which companies can operate.

Banks offer: syndicated loans, bank lending, acquisition finance (including leveraged finance), project finance, real estate finance, asset finance, Islamic finance and financial services regulation.

Investments Funds

In the past couple of decades, Malta has established itself as a fund domicile of choice for fund managers seeking to set up in a reputable EU jurisdiction which is still cost-effective. Since it became an EU member in 2004, Malta has incorporated a number of EU fund regimes, most notably the Alternative Investment Fund (AIF) and the Undertakings for the Collective Investment in Transferable Securities (UCITS) regimes, but has still kept its popular hedge fund regime, the Professional Investor Fund. Recently, Malta has also introduced an offshoot of the AIF regime which it dubbed the Notified Alternative Investment Fund (NAIF) which allows funds to be promoted within just 10 days while remaining fully EU law compliant and benefiting from EU passporting. Malta Investment Funds

There are various factors which contributed to Malta’s success in Investment Funds such as:

• sound and sensible regulation which takes into account the needs of businesses whilst safeguarding the interest of investors,
• low costs and favourable fiscal base which renders business models feasible where they would be unworkable elsewhere,
• an approachable regulator, willing to discuss innovative ideas whilst requiring compliance to the highest standards,
• ease of access to the European market for investment,
• quick application turnaround times,
• flexibility as to the choice of service providers, e.g. local fund administrators not being required,
• Availability of self-managed structures,
• Sub-fund (protected cell company) legislation, permitting the creation of ring faced pockets of assets and liabilities within the same legal entity.

Funds and Fund Managers

Over the last two decades, Malta has established itself as an innovative and reliable financial services centre, hosting a variety of financial services businesses and structures. Dubbed as Europe’s favoured fund domicile in Hedge Fund Review’s 2013 and 2014 (Service Provider Rankings), Malta funds and fund managers are operating in a flourishing environment which has retained its popular Professional Investors Fund (PIF) regime, and introduced a newer regime for Alternative Investment Funds (AIFs). Maltese legislation also provides for the setting up of Undertakings for Collective Investment in Transferable Securities (UCISTs) as well as non-UCITS retail funds. Matters related to Funds and Fund Managers are regulated by the Investment Services Act.

Insurance

Malta’s regulatory environment, its EU membership, its English speaking and professional human resources, its favourable tax regime, and comprehensive insurance law, amongst other factors, have prompted several insurance companies to conduct insurance business in Malta and utilise it as a base to write insurance into Europe.

The insurance sector is consistently growing both in number of companies and volume of business. The Maltese insurance sector has evolved from a handful of domestic insurance companies into an industry which operates across all the EU Member States. The Insurance sector comprises commercial insurance companies carrying out both general and long-term business, subsidiaries of major international insurance and reinsurance undertakings, Affiliated Insurance Companies (Captives) and Insurance Management Companies.

Capital Markets

Malta’s capital markets are steadily growing in size as well as liquidity and the jurisdiction’s financial markets are remarkably sophisticated. While relatively small, the Malta Stock Exchange operates to a high standard, provides effective facilities for the trading, settlement and registration of securities and thus enjoys a sound reputation internationally.

The Malta Stock Exchange commenced its trading operations in 1992, following the enactment of the Malta Stock Exchange Act, 1990. The Malta Stock exchange now plays host to numerous equity and debt transactions, providing facilities by means of which securities can be admitted to trading and subsequently traded over a secure, well-regulated secondary market. The Malta Stock Exchange is linked to Clearstream to facilitate international access. The Malta Stock Exchange also provides various back office services through its in-house Central Securities Depository.

The key features of a Malta Company Registration are:  

• The privacy protection is one of the highest
• The standard share capital for a Malta company formation is 1200 euro, all companies will have this capital 20% of the share capital should be paid up
• A requirement of 1 Shareholder, 1 Director and 1 Secretary is needed in a company, they can be the same person
• There are no residency requirements in Malta for the Director
• Malta company formation can be a tax efficient corporate structure
• Malta companies are subject to a flat rate of income tax of 35% on their profits
• Malta company registrations are completed remotely, no visit is required
• A Secretary is a requirement in a Malta company, this must be an individual person 

Malta Offshore Company Formation

• The corporate tax rate is 35% however due to the imputation system this can be reduced considerably, typically to around 5%.
• There are no withholding taxes on dividends paid to a non-resident shareholders.
• The VAT rate is one of the lowest in Europe at 18% which can be reduced further for yacht leasing structures.
• Stable and sophisticated banking system
• It has a robust legal, fiscal and regulatory framework in place.
• The main languages are both English and Maltese.
• On the OECD ‘white list’