The number of foundations, usually referred to as non-profit organizations (NGOs), has increased substantially in Malta during the last several years. This development was possible thanks to the good regulatory regime comprised in the Civil Law and in the Voluntary Organizations Act. To be more precise, the whole Chapter 16 in the Civil Law is dedicated to the types of foundations and the regulations related to their establishment in Malta.
You can obtain more information on this subject from our law firm in Malta. Our attorneys can also offer a complete definition of the foundation.
Types of foundations available in Malta
Both individuals and companies in Malta are allowed to set up NGOs. The following types of foundations are available for registration in Malta:
- – the private association;
- – the public association.
The main difference between the two types of Maltese foundations is the purpose they are established for. While the public NGO will be set up for a social (charitable) purpose or for the benefit of others, the private association will be created for the purpose of private individuals, called beneficiaries. The private foundation represents one of the best estate planning tools in Malta.
Registering a foundation in Malta
No matter who decides to create a foundation in Malta, they must register it with the Legal Persons Register which is a distinct authority from the Commercial Registrar. The foundation will have a legal personality, just like a Maltese company and will be set up based on a public deed, in the case of public NGOs, or a testament in the case of a private foundation.
The assets held by a foundation must also have a certain value:
- – 1,165 euros in the case of the private foundation;
- – 233 euros in the case of a charity or public foundation.
Compared to other European countries, Malta requires some of the lowest amounts when it comes to the creation of a foundation which is why it is a preferred destination for setting up this type of structure. Also, the duration of a foundation in Malta is 100 years.
For full information on the requirements related to setting up a NGO in Malta, please contact us. Our attorneys in Malta can also assist with the preparation of documents related to the establishment of the association.