Setting up a company requires ample planning and seeking advice in advance to ensure that it is incorporated according to national regulations. Respecting regulations and filing documentation within their stipulated timeframes will ensure that the company will be set up and run smoothly.

As much as it is important for companies to fulfil all necessary steps when incorporating a company, it is also important to comply with obligations set out in the Companies Act (Chapter 386 of the Laws of Malta) throughout the company’s lifetime to ensure that all requirements to file statutory documentation are respected. Failure to adhere to such regulations, will see the enforcement of penalties as imposed by the Companies Act in accordance with the provisions of Article 401 (3) to (17).

Penalties are found in the Eleventh Schedule, providing a list and descriptions of infringements together with the fee related to such penalties and the maximum daily default penalty, where applicable. These are given for various reasons such as when partners fail to keep accounting records for ten years, or when a company and its officers fail to keep in a separate account money received from applicants in pursuance of a prospectus. Penalties are also allocated when an office fails to disclose commissions, discounts, etc, on issues of shares.

This is why it is of utmost importance to have a reliable Corporate Services Provider that can can guide you through all obligations outlined in the Act, such as annual filings to ensure that the company meets all obligations in time and saves time and money.

All this is closely monitored by the Malta Business Registry (MBR), the national body responsible for the registration of new commercial partnerships, issuing of certified documentation, reservation of company names, and investigations of companies, among other responsibilities.

From time to time, MBR also issues additional notifications, providing general updates to companies in accordance to local legal notices and EU legislation. Such information varies from how to use electronic signatures to information about disqualification of Directors.

Companies can seek assistance from Fairwinds Management Limited, a Corporate Services Provider providing services such as company incorporation and day-to-day running of the business.

The in-house professional team at Fairwinds Management ensures that all obligations and important deadlines are met, and the company runs smoothly without being fined any penalties for not respecting deadlines. For further information, we invite you to get in touch with one of the directors, Ms Joceline Caruana M.Acc, MIA, Cert.Tax, CPA on jcaruana@fairwindsmanagement.net