Incorporation today, is less about optimal tax, and more about the suitability of a jurisdiction’s international standing, legislation, and quality of client-focused corporate management and banking support. A client; be it an entrepreneur, family-office, or established international company; should carefully select its Malta corporate manager, on the basis of its capability to provide the right expertise, people and systems beyond incorporation; specifically able to secure the immediate project-requirements, and in-build dynamics capable of managing the challenges of evolving risk, market and key person or counterparty changes, safeguarding and developing its assets, potential and ambitions.

          Since 2021, as part of Malta’s FATF approved secure compliance framework; only MFSA licensed corporate service providers such as CREDAL International Ltd. can provide incorporation, and company services such as directorship, company-secretary, registered office and banking support.

After almost twenty years of successful client development; CREDAL’s multi-disciplinary team continues to focus on assisting select clients to carefully plan and build individual corporate platforms within a strong risk-managed governance and international operations framework.  We research, build and manage in collaboration with in-house as well as client-advisors and experts from the various jurisdictions of past, present and intended business activity jurisdictions, testing how best can the Malta company securely conduct, innovate, develop and consolidate viable low to medium risk multi-jurisdictional operations.

          Under Maltese law, a shareholder can also act as a director of the company or be appointed company-secretary, or both in the case of a private exempt company. It is important to note that Maltese law puts no restrictions in terms of nationality – any person of good standing can be an officer of the company. The minimum initial share capital required for a private company is €1,165, of which at least 20% must be paid up. The company’s scope and rules must be clearly stated in its Memorandum & Articles, which will then be incorporated via submission to the Malta Business Registry, together with payment of the relevant registration fee, which is pre-determined according to the initial authorised share capital of the company. Private companies can be established with two or more shareholders up to a maximum of 50. Furthermore, Maltese law allows situations where only one person will be a shareholder and such ‘private exempt company’ is known as a ‘single member company’.

          – Quality due diligence & fiduciary shareholding – 

          Depending on the clarity of the necessary KYC documentation, it is possible to complete the process within weeks from receipt of docs, data, mandate and funds, however today’s unprecedented levels of obligatory AML, PEP, Sanctions & Bank monitoring, demand rigorous and ongoing screening, risk-mitigation, quality record-keeping and reporting in terms of CRS, FATCA, and tax; necessary to secure the all-important peace of mind. This involves careful GDPR-based management of client, project, transaction, and counter-party data in relation to Regulators, Banks, and Tax- authorities as a part of each trust or company’s legal and operations frame.

          As part of the Island’s strong regime to actively prevent, detect and deal with the risks of Money Laundering and Financing Terrorism, the Beneficial-Ownership of all Maltese companies is rigorously maintained via an up-to-date public Register at the Malta Business Registry. Whilst such additional level of governance brings with it additional operational costs; these are offset by the peace of mind of having dedicated systems and experienced managers responsible secure  proper implementation of prevention of money-laundering and of terrorism-financing procedures, including pre-transaction screening to ensure no involvement of sanctioned individuals, counter-parties, jurisdictions or banks.

          – Process & strategic consideration – 

          Although registration of a Malta company is a fairly straightforward process, thanks to excellent models (Companies Act schedules) and clear guidelines from the Malta Business Registry (MBR), nevertheless there are key aspects such as shareholder classes, agreements, powers of representation, governance and compliance rules, including beneficial ownership disclosure requirements, VAT and tax registration and ongoing fulfilment (including appropriate minute and financial record-keeping), where professional guidance is appropriate to achieve and sustain smooth start-up and effective day-to-day governance.

          Since the European Court of Justice’s 22-Nov-22 decision protecting data privacy as a fundamental right; the Maltese Register of Beneficial Owners is now duly restricted to competent authorities and subject persons such as CREDAL, thus enabling incorporation and holding of shares in a Malta company via the confidentiality and compliance safeguard of a fiduciary or nominee shareholder.

          Too often, entrepreneurs place more emphasis on optimistic forecasts rather than objective cashflow, under-estimating the operational significance of appropriate KYC and finance / project / counter-party / AML risk filters, which are today essential to start and sustain an EU project with a reasonable level of resilience and capacities for growth and challenge. Similarly, many clients are so caught up in day-to-day business challenges that other matters such as quality of operations governance and record-keeping and compliance may not be given the appropriate attention at the right time. We thus advocate integrating regulatory and functional compliance, and risk management reviews as an essential part of securing company good standing, shareholder value, as well as regulatory compliance.

          As expected; certain specialised companies and projects require the preparation of high-level business plans and risk-management strategies, as well as finance plans and financial projections, which is where our expert guidance brings to the table; qualitative value whether your project is a start-up or an established business seeking next level transition, or simply relocating some or all of its operations and team to Malta, or downsizing to a more manageable pace to enjoy more family in a safe sunny European environment. Our intrinsic approach of teaming up with the client’s advisors; ensures a framework of capacities fit for objective purpose as well as the demands of the market and regulatory requirements. 

          As the company and markets evolve; the CREDAL foundation is further consolidated via transparent and trustworthy governance, and operations risk management. In parallel, our independent local and international advisors ensure the maintenance of sound tax policy and our appropriate implementation thereof. To build and sustain such a relationship-driven long-term rapport, a client needs to be comfortable with and committed to prioritizing EU-compliance, as well as that of the all-important good standing with third parties be they banks, auditors or counterparties. To best achieve this; our engagement should be treated as if a Joint-Venture-Service-Partner, integrating diverse strengths and respective opportunities, creating value fortified by an in-built ability to adjust as and when circumstances require.