Ranked among the most prosperous countries in the European Union and classified as an advanced economy by the International Monetary Fund and the World Bank, Malta has become more and more attractive for foreign investors.
Since its accession to the European Union, Malta has undergone significant changes to become competitive.
Types of companies in Malta
- limited liability companies,
- limited partnerships,
- general partnerships.
Features of a Maltese Company
- The minimum authorised share capital is €1,164.69 of which 20% must be paid up or the equivalent in any foreign currency.
- A Maltese company may have different types or classes of shares
- The personal details of a Maltese company’s shareholders are public information
- A Maltese company must have at least one director. The director need not be a Maltese national and can be a corporate body.
- A Maltese company must have a secretary. The secretary must be an individual and need not be a Maltese national.
Malta Company Creation
New company registrations in Malta are constituted by Memorandum & Articles of Association (M&A) that are subscribed to by the shareholder/s and a certificate of registration that is issued by the Malta Registrar of Companies. The M&A would state the name of the company; the name, address and official identification of the subscribers; whether the company is a private company or a public company; the registered office address of the company in Malta; the activities of the company; details regarding the authorised, issued and paid-up share capital; the number of directors and their particulars, the number of company secretaries and their particulars, and the manner in which the legal and judicial representation of the company is to be vested.
Every Private Limited Company must have, at least, one shareholder who may either be an individual or a corporate entity.
Every company must have a registered office address situated in Malta.
Taxation & Double Tax Treaties
Malta is currently signatory to almost 70 Double Tax Treaties. Corporate tax in Malta is calculated at a flat-rate of 35% on the gross profits based on the audited financial statements of the company. However, through the availability of a tax refund system granted to shareholders of Malta-registered companies, the overall net effective tax rate could be reduced to 0% in the case of holding company structures, and 5% in the case of trading companies. In either case, there are specific legal requirements that must be satisfied for shareholders to benefit from such tax refunds.
Types of Funds in Luxembourg
Luxembourg is the leading global centre for investment fund for a number of reasons.
(i) Undertakings for collective investments (UCIs)
UCIs are fund dedicated to professional investors and can be set up as:
- specialized investment funds (SIFs)
- common investment funds (FCPs)
- companies with fixed capital (SICAVs)
- companies with variable capital (SICAFs)
- companies with risk capital investments (SICARs)
(ii) Retail funds, which can be open-ended or closed-ended
Both types of retail funds can be marketed to professional and retail investors.
Open-ended fund: The first step to set up an open-ended retail fund is to select the suitable type of company, or better said investment vehicle, and then register it with the Trade Register.
Closed-ended fund: In order to establish a closed-ended retail fund in Luxembourg, one can must choose between the following types of investment companies:
- companies with variable capital
- companies with fixed capital
- common investment funds (FCP)
(iii) Hedge funds
Hedge funds are alternative investment vehicles that rely on capital pooled from different investors and have different strategies for investment. They are managed by a professional management firm and these business structures can be used to invest in broad range of markets.
(iv) Alternative investment funds
These include: Hedge funds, real estate funds, private equity funds, thematic funds (Investing in specific segments such as environment, investing in intangible assets such as patents.
(v) Traditional Investment Fund
These include: equity funds, bond funds, money market funds (MMF), mixed funds, multiple-asset class investment funds
In Mauritius, you can have access to local bonds such as treasury bills and government bonds and international bonds such as sovereign funds, supranational funds and INR-denominated bond with a USD-INR Cross Currency Swap.
We also have structured bonds which are divided into capital protected and non-protected bonds.