Redomiciliation of companies refers to a continuation of a company from one jurisdiction to another. According to The Continuation of Companies Regulations (Legal Notice 344 of 2002 as amended by Legal Notice 352 of 2003 and 181 and 186 of 2006), this provides for two purposes; the continuation outside Malta of a company incorporated in Malta, and the continuation in Malta of a foreign company without having to wind up the foreign business.
These foreign type of companies tend to redomicile to Malta to avail themselves of Malta’s advantageous tax system while furthering their business without any interruptions during the process. In brief, the process established by law stipulates that there should be a change in the domicile and registered address of the offshore company. This should be followed by an adoption of a local registered address.
Similarly, Malta companies that would like to continue their business in a foreign country should be knowledgable about and follow the laws of the foreign jurisdiction provided that the company in question is authorized to do so by its Memorandum and Articles of Association.
Companies that for some reason do not manage to redomicile successfully but still would like to operate from Malta, will need to be liquidated and dissolved in their country of origin, followed by a company incorporation in Malta.
In any case, our Fairwinds Management team can assist clients to ensure a smooth redomiciliation process while guiding the respective company through all the necessary steps and present the requested documentation.