– This is because Malta is part of the EU and therefore it can passport its Malta registered funds to other EU countries which gains Maltese funds instant access to the EU market. Being that the financial services sector is well regulated and also offers tax advantages, Malta is attractive as a financial services sector hub.
2) Are Malta funds regulated?
– Yes these are regulated by MFSA which is the only regulator for financial services in Malta. The Investment Services Act Chapter 370 of the Laws of Malta controls investment services, collective investments funds and any investment fund having a license in Malta.
3) What type of funds may be established in Malta?
– The MFSA Investment Services Rules provide for the below type of funds:
o Retail funds: including Maltese non-UCITS AND UCITS schemes
o Non-Retail Funds: including Alternative Investment Funds (AIF) and Professional Investments Funds (PIFs)
4) What are the tax incentives of establishing a fund in Malta?
– Funds registered in Malta are not subject to Malta tax. The benefits include:
o No income or company tax is imposed on hedge funds having more than 85% of their underlying assets situated outside Malta
o No tax on the Net Asset Value of the fund;
o No withholding tax on dividends paid to non-residents;
o No taxation on capital gains on the sale of units by non-residents;
o No stamp duty on issues or transfers of units.
5) What forms of funds are available in Malta?
– An investment company formed by means of the M & A in the form of SICAV or INVCO
– A commercial partnership formed through partnership deed
– A unit trust formed through trust deed between a management company and a licensed trustee
– A mutual fund formed by means of a contract
6) How are the assets of a Maltese fund managed?
– Through an external fund manager
– A self-managed fund
7) What are the minimum capital requirements for the different funds that exist?
– In the case of a self-managed fund the NAV must not be less than €125,000 for PIFs and €300,000 for AIFs or the equivalent on an on-going basis.
8) How long does the licensing process usually take?
– Usually 3 to 6 months provided all information given is in order.
GCB Malta communicated with us within 12 hrs and efficiently set up our company and dealt with all documentations, VAT, Bank... Our client is very happy with the work and so are we! Thanks...
Viviane Patsinos 15/04/2015
"For the last two years, GCB has assisted my small business with a range of financial services, including income tax preparation, VAT filings, and NI payments. In my experience, GCB provides its clients with comprehensive, personalized service at a reasonable price, and with attention to detail."