Investment funds and collective investment schemes have continued to grow in Malta, despite the international financial crisis, with a combined net asset value of €9.3 billion in November 2008.
This growth within the past few years shows the continued confidence in Malta as an attractive fund domicile. Malta has also catered to the needs of foreign investors by developing a dynamic fund administration and management sector.
Benefits of a Malta Fund Company:
Growth prospects: The regulator in this sector is the Malta Financial Services Authority which is confident that business will continue to grow in this sector.
The Malta Financial Services Authority (MFSA) is the single regulator for banking, investment and insurance business in Malta and also houses the country’s Companies Registry.
Any person wanting to provide an investment service in Malta must provide a valid investment license which will be granted by the Malta Financial Services Authority, being the competent authority in granting such a license. Investors can therefore be sure of receiving professional and competent investment advice when receiving such advice from a Malta company in possession of a Malta Investment Services License.
Maltese Investment Services License Holders, could benefit from the use of the Malta Company as the corporate vehicle wherein they are subject to a corporate tax of 35% but non-resident shareholders would then benefit from a 6/7ths of the Malta tax paid, ending up in a net tax leakage of 5%.
Malta is known for its excellent accounting and legal services and for its strong, robust and efficient banking service and for its professional individuals involved in these sectors.
The costs of incorporating a Malta Company and also of acquiring an investment license in Malta are relatively low, especially when compared to other financial centres in Europe.
A Malta Company which is in possession of a valid investment license issued by the Malta Financial Services Authority may operate in any other EU country either directly or through the establishment of branch.