There are several types of companies foreign enterprisers can set up in Malta, each and every one of them will be subject to different requirements, according to the local legislation. The main law providing for company registration is the Maltese Company Law which also establishes the number of shareholders a business must have. The shareholders are the founders or the owners of a company in whose names the share certificates are issued upon the registration of the business. A Maltese company must have at least two shareholders.
The Commercial Code provides for the following types of companies:
- – private limited liability companies which must have a maximum number of 50 shareholders;
- – public companies with an unlimited number of companies.
Who can act as shareholder in a Maltese company?
The law allows both local and foreign citizens, as well as local and foreign companies act as shareholders in Maltese companies. When a company in registered with the Maltese Companies Registrar, the shareholders are required to provide the following information:
- – their names and addresses;
- – their nationality;
- – the marital status;
- – their ID or passport numbers.
In the case of companies acting as shareholders in another Maltese company, these must also submit information about the company and appoint a legal representative to act on their behalf. Our Maltese lawyers can help you submit all the required documents with the Trade Register.
The rights of Maltese shareholders
As shareholder of a Maltese company, one will have certain rights, but also obligations related to the activity of the business. The main rights a Maltese shareholder has are:
- – to make decisions with respect to the company’s activities and status;
- – to receive a part of the company’s profits;
- – to receive information about the company’s status;
- – to appoint the company’s managers or directors.
Shareholders may have additional rights as established by the company’s Articles of Association, or through shareholders’ agreements.
The obligations of shareholders in Malta
With respect to the obligations of shareholders in a Maltese company, these are:
- – to pay the minimum capital for company registration, as required by the law;
- – to cover the company’s losses proportionally to their contributions, if required;
- – to alter the company’s share capital, if needed.
For complete information about shareholders’ rights and obligations, please contact our law firm in Malta.