All companies registered in Malta, are required to maintain accurate books of accounts, which should reflect the true and correct position of their affairs, as well as give sufficient clarification of their activities.
In particular, correct and proper records should be kept to reflect:
- All monies received and disbursed, together with details of the related transactions;
- All sales and purchases of stock by the company;
- All company assets and liabilities.
In addition the Maltese requires that company accounts must include the following:
- A directors’ report, which should accompany the balance sheet and be submitted to the shareholders’ annual general meeting;
- An auditor’s report containing certain prescribed statutory information, unless the company is exempt from this requirement (small companies).
A company is qualified to draw up abridged accounts if, on its balance sheet, it does not exceed the limits of two (2) of the following three (3) criteria;
(i) balance sheet total: two million and five hundred and sixty three thousand Euro (€2,563,000);
(ii) turnover: five million and one hundred and twenty five thousand Euro (€5,125,000);
(iii) average number of employees during the accounting period: fifty (50);
- Full financial statements as prescribed by IFRS (International Financial Reporting Standards) and Consolidated Financial Statements in the case of parent companies (unless specifically exempted in some cases).
However, for Income tax purposes full financial statements that are audited or certified by officially authorised auditors or accountants and a declaration on the Income Tax Return – which the return agrees to the audited financial statements- are required. So, in effect, audited financial statements and an Income Tax Return are required for all companies, even companies with no taxable income and/or dormant companies.
The directors are obliged to deliver to the Registrar for registration a copy of the company’s annual accounts laid before the company in general meeting (together with a copy of the auditor’s report and the directors’ report) within forty two (42) days from the end of the period prescribed for laying of annual accounts.
Malta-Registered Branches of foreign companies are not legally bound to compile full separate branch accounts but, when taxed on the island, are obliged to do so for income tax purposes. They also have to submit accounts of the foreign company, to the Registrar of Companies.
Partnerships are exempt from any requirement to prepare audited accounts, but they are legally bound to keep proper books of account which must be available for scrutiny by individual partners.
Furthermore, all companies are required to submit an Annual Return to the Registrar of Companies, on a yearly basis. The annual return has to be signed by at least one director or the company secretary and should be filed with the Registrar for registration within forty-two (42) days from the date to which it is made up. Similar to registration expenses, the annual returns of the company are calculated in proportion to the authorised share capital of the Company, in accordance with predetermined registration brackets.
Contact one of our officers to initiate the incorporation of a Maltese registered company and start reaping the full benefits of an onshore, low-tax, EU jurisdiction. Simply fill in the contact box below or contact us by email on email@example.com or by calling at +356 2338 1500
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