Malta Foundation Formation

DeltaQuest offer comprehensive foundation services to support individuals and corporate entities in setting up and managing an offshore Malta foundation. We will support you with every stage of your Malta foundation formation, from the initial formation of the foundation, through to its efficient management and administration. Our dedicated team of consultants provide expert advice throughout the entire process of obtaining a Malta foundation, and will guide you to ensure that the foundation is fully compliant with the relevant foundation laws.

In order to proceed with the formation of the Malta international foundation, please complete our Trust Application Form.

Conditions for a Malta foundation formation

Legal form: The setting up of foundations in Malta is regulated by the Trusts and Trustees Act 2004, which includes a revised appendage for foundations (2008). Under the Act, the foundation must be constituted in writing via a public deed or a public or secret will. The foundation must also be registered with the Office of the Registrar of Legal Persons. The deed of the foundation must include detailed information relating to the powers, form of resolutions and the signing authority of the foundation. An offshore Malta foundation will last for 100 years from its establishment, though exceptions exist in certain cases. A Malta foundation operates under its own name and has the ability to sue or to be sued. It can also enter into agreements with third parties. Once the foundation is established and registered with the Registrar or Legal Persons, a new legal person is created and thus the foundation itself becomes the owner of the foundation property.

Founder: The founder is the individual or group who sets up the foundation and transfers their property into the foundation. A founder may serve as a member of the foundation council, as a beneficiary or as protector, and has the power to remove council members, beneficiaries or a protector if he desires. He can also assign these powers to another person in the foundation. Maltese law allows for more than one founder to exist for a single foundation.

Beneficiary: The beneficiary of a foundation is the person entitled to benefit from the formation of the foundation. The beneficiaries have enforcement rights against the administrators of the same foundation. The benefit under a foundation is personal to the beneficiary. Absolute confidentiality in respect of the identity of the beneficiaries of a trust is guaranteed. The founder of a foundation is also permitted to be a beneficiary.

Protector: The Trusts Law also recognizes the possibility of having a protector in the context of a Maltese foundation. Subject to the terms of the foundation, the Protector is deemed to have the powers to appoint a new or additional trustee, to remove a trustee, and to require the trustee to obtain the protector’s consent before exercising a power. The protector shall not be deemed to be a trustee.

Foundation council: The foundation council members are those who implement and supervise the foundation’s activity and purpose. Their role is to also monitor the acts of the administrators.

Share capital: The minimum capital (foundation capital) required is EUR1,164 in money or property, which must be transferred to the foundation in order for it to be validly created.

Taxation: A foundation shall be treated in the same manner as a company that is ordinarily resident and domiciled in Malta. Tax shall be payable on the profits of a foundation at the rate of 35%.

Audit and financial returns: A foundation is required to keep financial records, which should reflect the financial position of a company. The administrator of a foundation shall keep all records, submit all returns and documents and pay tax to the commissioner, as is required in the case of companies.

Registered office and local agent: A foundation must be registered with the Office of the Registrar of Legal Persons, which is an office set up for the specific purpose of undertaking the registration of legal persons.

Time needed for formation: Usually it is 2-3 working days, and we need up to 7 working days for legalization of the documents and delivery by courier.

 

 Print This Page