|
Introduction to Malta Companies
The Maltese Islands form part of an archipelago strategically situated at the centre of the Mediterranean. This strategic position has, since prehistoric times, been conducive to the conduct of international business. Membership of the European Union, which took place in May 2004, has further strengthened Malta's standing and given fresh impetus to the financial services sector.
As a result of the influence of the British system at a time when Malta was a British colony, Malta has a written constitution based on the British Westminster model. Parliament, elected by universal suffrage, is unicameral in set up and is headed by a Cabinet of Ministers who is responsible thereto. The Prime Minister heads the Cabinet of Ministers. General elections, based on the proportional representation system, are held at least once every five years. The head of state is the President who is elected by Parliament. The office of the President is essentially ceremonial.
Administrative law and practice follows closely British law and practice. Indeed, the government civil service is broadly organised on the UK model. In 1964, Malta became an independent state and a full member of the United Nations. Malta became a Republic in 1974. Maltese and English are the official languages and all legislation is drafted and published in both languages.
In 1988, Malta embarked on, and has thereafter sought, to create and develop a comprehensive legislative and regulatory framework for financial services activities and international business. This is an ongoing process, which has seen developments in three major areas as follows:
- Laws which establish sophisticated rules and appropriate safeguards for the development of Malta as an international financial and business centre;
- The creation of a professional regulatory and licensing authority operating to the highest standards;
- Substantial improvements to fiscal and financial legislation including reforms in domestic and international taxation and in the administration and collection of tax.
Most of the recently implemented laws in Malta, including the various financial services legislation adopted in 1994 as further developed in 2003, as well as the relevant legislation which has been updated so as to be in conformity with European Union Directives, have further strengthened Malta's financial services' position. The World Economic Forum, in its Lisbon Review 2004 – An Assessment of Policies and Reforms in Europe, confirmed that Malta is outperforming a number of EU countries in terms of adherence to directives relating to the financial services sector, including banking, property rights, local equity market access and the regulation of securities exchanges.
As of 2008, Malta has adopted the Euro as its official currency and legal tender. The main advantages of Malta having adopted the Euro, include, amongst others, the elimination of exchange rate risk, lower transaction costs, greater price transparency, access to a large liquid market, lower interest rates, strengthened fiscal discipline, an enhanced credit rating as well as a reduced risk premium amongst other benefits. |
