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Open Investment Companies in Malta
Updated on Thursday 15th July 2021 Rate this article
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Investment companies in Malta can be established by experienced entrepreneurs, but it is not a general rule. Even a businessman at the beginning of the path in this field can join the benefits of an investment company, guided by a specialist in the field. Find out in this article the key attributes of an investment company in Malta, plus information about how to establish one, helped by our company formation agents in Malta.What is the definition of an investment company?
Investment companies in Malta can run under the rules of a limited company, partnership, business trust, or corporation. Such a company deals with money investments collected from different types of investors, and the performance of securities will reflect if the business idea is prolific or not. Mutual funds, closed-ended funds, and unit investment funds (UITs) are three important categories of investment companies. Here are the main attributes of investment companies that can be easily established in Malta:
- • Mutual funds are known as open-end companies. Alongside UITs, such funds have specific particularities when selling the shares to a broker who acts for the trust or fund.
- • Closed-ended funds are not redeemable. The sale of shares can be made on secondary markets to other investors.
- • Private investment funds with 100 investors are not considered investment companies in Malta.
- • Malta Financial Services Authority or MFSA regulates the investment companies in the country. The same authority issues the required fund licenses.
Information about mutual funds
Mutual funds are open-end investment companies that attract money from varied investors. Such sums are then invested in bonds, stocks, securities, and other instruments available on the market. It is important to note that mutual funds or open-end companies in Malta, and particularly the investment portfolios can be managed by experienced investment advisors. Stock funds, money market funds, and bond funds represent a few of the mutual funds that enter the attention of financiers with experience in the field.
Unfortunately, investment frauds might occur, so protection against crimes like Ponzi Scheme, affinity fraud, or internet and media fraud should enter your concern. You can discuss all the aspects with one of our specialists. We have a dedicated team who can help you open an investment company in Malta.
Short facts about closed-ended funds
Close-ended funds can sell a predetermined number of shares in the first place. This kind of fund can be traded on the market after its initial public offering. Moreover, prices of closed-ended funds are determined by the market, with the mention that such prices can be greater or less than the net asset value (NAV) of the shares. In the case prices are higher, the sale of such shares is considered to have premium status. Close-ended investment companies can be established in Malta with the help and guidance of our experts.
Attributes of Unit Investment Trusts
Another type of investment company in Malta involves UITs. The target of such a company is quite clear and refers to the invested money with a one-time public offering and a determined stock portfolio. UITs have redeemable units, can be maintained on a secondary market, and can be sold or bought at the prices established on the market. One should note that there is no need for an investment advisor or a board of managers when creating investment companies in Malta.
Reasons to invest in Malta
Malta is a small insular state that hosts a large number of companies established with foreign capital. The business environment is quite generous and allows international entrepreneurs to start any kind of activity as long as it is not restricted. Besides a favorable investment legislation, the tax regime, a series of beneficial programs that can be easily accessed by foreign entrepreneurs, the simplified business formalities, and the qualified English-speaking workforce represent key advantages of the business climate of Malta. Here are some noteworthy facts and figures that highlight a part of the economy of Malta:
- Around USD 206 billion was the total FDI stock for Malta in 2019.
- The World Bank through the 2020 Doing Business report ranked Malta 88th out of 190 worldwide economies for simplified business formalities and more.
- The pro-investment policies implemented by the Maltese government proved successful in recent years.
- The financial and insurance activities absorb most of the FDIs in Malta.
If you would like to open an investment company in Malta, we invite you to contact our company formation agents in Malta and benefit from our complete services, tailored to your needs. We assist foreigners to start a business in Malta in a fast and reliable manner.
Meet us in Valletta
Call us now at +356 21 376 686 to set up an appointment with our specialists in company formation in Valletta, Malta. You can incorporate your company without traveling to Malta.
As a Ciantar Associates client, you will beneficiate from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in Malta.
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