One of the most widespread and most preferred company types in Malta is the limited liability entity. This is attributed majorly to the increased level of flexibility and numerous tax benefits that this company type brings to non-residential investors. It’s also the most ideal legal structure for foreign companies who want to establish subsidiary branches in Malta.
The provisions of the Maltese Commercial Law stipulates that there are two kinds of limited liability companies in Malta:
- Private limited liability companies;
- Public limited liability companies.
Understanding the legal framework of Public Limited Liability companies in Malta
Unlike the private limited liability company, which is mostly implemented by entrepreneurs establishing small-sized to medium-sized enterprises, the public limited liability company, is better suited for entrepreneurs with big visions — those who wish to form a much bigger enterprise in Malta. The major distinguishing features of a public limited liability company from a private one is that:
- Such a company can trade on the stock market;
- A minimum of two shareholders are required for registration to occur;
- A minimum of two directors and a secretary are needed as crucial requisites for registration as well;
- At least 46 600 euros in share capital is mandatory for a public limited liability company to be successfully registred;
- Not less than 25% of the stated share capital must be compulsorily deposited on registering the company
- The approved name of the public limited liability entity is required to consist of the abbreviation PLC.
Malta’s public limited liability company structure is typically recognized as a joint stock entity in other nations. This entity is mostly utilised by large investors who are not residents of the EU—as a way of obtaining admission into capital markets in the European Union (EU).
Although Malta is quite a friendly country, you wouldn’t want to cross it’s laws and regulations. It is mandatory that you meet all the aforementioned requirements and governing laws. You should keep this in mind when drafting the memorandum and articles of association.
After completion of the articles of association, you should authenticate them with a public notary and file them with the Companies Registrar in Malta. Your application will be carefully evaluated and if all is well, you will be issued a certificate of registration for the public limited liability company.
For more details, get in touch with our team of attorneys, accountants and consultants at SIGTAX. Our expert team will help you with the preparation of all the necessary public limited liability company registration documentation and with the subsequent filing of documents with the Trade Register. Note that we are not only limited to help with the formation of Public limited companies, we also offer valuable assistance on all the legal entities in Malta.