Foundations are organizations “consisting of a universality of things constituted in writing” through wills, according the Maltese legislation. The founders have the right to establish the purpose of the assets of a foundation.
Foundations fall under the regulations of the Maltese Civil Code or Chapter 16 and the Voluntary Organization Act that is part of the recently enacted Maltese Law on Foundations. The Maltese Law on Foundations was adopted in 2008 and is part of the legislation that also regulates trusts and fiduciary obligations.
According to the legislation, foundations may be established by natural persons or corporations in Malta. The law recognizes two types of foundations in Malta:
A Maltese foundation can be established by public deed or by will. Foundations established by public deeds must be published by a notary and must also be registered with Public Register in Malta. The conditions to set up a foundation in Malta are:
The following information must be provided when setting up a foundation in Malta:
Foreign corporations or individuals must appoint Maltese local agents who will represent the foundation. When setting up a foundation in Malta, the duration of the establishment must also be declared. The maximum validity term for foundations is 100 years, except for Maltese collective investment companies for which the validity term may vary.
You can ask our company incorporation agents in Malta about the registration of collective investment schemes as foundations.
In order to establish a private foundation in Malta, the name of the beneficiaries must be written in the deed of foundation. If the beneficiaries have not been mentioned in the deed, a declaration that the foundation is constituted for the benefit of others must be drawn. In this case, the beneficiaries must be indicated in other documents signed by the founder or founders and addressed to the foundation’s administrators. In case of private foundations, the beneficiary statement may not be filed, the legal person being registered in its stead with the Maltese Companies Registrar.
For complete information about setting up a public or private foundation, you can contact our Maltese agents in company registration.