| Maltese law is broadly structured on the continental civil-law structure, but most administrative, financial and fiscal legislation is based on British law. The courts are divided into three principal jurisdictions namely civil (including commercial matters), criminal and voluntary (mainly dealing with family matters). Precedents have persuasive and not binding value before the Maltese courts, and therefore a previous court decision does not affect the court’s freedom to decide disputes in whatever way it considers appropriate.”
In keeping with the reduction of the government’s involvement in the private sector, several bodies have been set up for the purposes of regulating specific sectors. Examples include the Malta Resources Authority (MRA ) with responsibility for energy, water and mineral resources, the Malta Communications Authority (MCA) with responsibility for telecommunications, the Malta Financial Services Authority (MFSA) who regulate the financial services sector, and the Malta Lotteries & Gaming Authority (LGA) who regulate the gaming industry. These regulatory bodies seek to limit the government’s role to the regulatory and licensing function, although certain monopolies in the energy and water services sector are still government owned and run.
The MFSA’s premises also house the Registry of Companies, which is responsible for all matters relating to the registration and maintenance of Maltese companies, the redomiciliation of overseas companies from recognised jurisdictions to Malta and the registration of branches of overseas companies establishing themselves in Malta. All Maltese companies are required to submit independently audited annual reports to the Registry of Companies.
All companies in Malta are required to file audited accounts with the Registry of Companies within 42 days after the 10 th month following the end of the company’s financial year-end.
Companies, however, who satisfy certain requirements and are classified as “small companies” may submit an abridged version of their audited accounts, to include an abridged profit and loss account, abridged balance sheet and abridged notes to the accounts. Small companies are defined by Article 185 (1) (a) of the Companies Act as companies which on the balance sheet date do not exceed the limits of two of the following three criteria:
1. balance sheet total: one million one hundred thousand liri;
2. turnover: two million two hundred thousand liri;
3. average number of employees during the accounting period: fifty.
Article 185(1)(b) of the Companies Act 1995 exempts private companies from the requirement to audit the accounts, which on their balance sheet dates do not exceed the limits of two of the three following criteria:
1. balance sheet total: twenty thousand liri;
2. turnover: forty thousand liri;
3. average number of employees during the accounting period: two
Additionally, small companies that also qualify as “exempt companies” in terms of Article 211 of the Companies Act and in this case may take advantage of their exempt status and submit accounts consisting of an abridged balance sheet only.
Public liability companies, insurance companies and financial institutions are obliged to file full financial statements within 42 days after the 7 th month following the end of the company’s financial year-end.
The most common public information of legal entities available at the Registry of Companies includes the company’s registered address, details of directors, shareholders and company secretary and details of nominal, issued and paid up capital. Accounts and Annual Returns are to be submitted for registration on an annual basis.
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