The Family Business Act has been enacted, as a result of the recognition of the importance of such businesses for Malta’s economic sustenance and growth.
This Act applies to businesses established in Malta which are:
- i) listed companies and whose majority of shares are held by at least two persons who are members of the same family or;
- ii) limited liability companies whose shares are all held by at least two persons who are members of the same family and at least one of such family member is formally involved in the company’s governance, administration, and management;
iii) limited and general partnerships whose full contribution shall be attributed to at least two persons who are members of the same family, having also the right to receive the majority of the profits of the partnership and at least one of which is the person who has the decision making rights;
- iv) companies or partnerships whose shares or interests are being held under trust established by written instrument for the benefit of the beneficiaries who are all members of the same family;
- v) partnerships which are not established in the form of general or limited partnerships, whose business and assets are controlled by at least two persons who are members of the same family;
The Act creates a system of registration of family businesses, from which registration arise a number of benefits which will be set up specifically for family businesses including: tax credits under the Micro Invest Scheme; support for services such as legal, accountancy and arbitration under the Business Advisory Incentive Guidelines (Advisory Services) of the Malta Enterprise Corporation; and training vouchers up to €1,000 per annum.
For further details please email email@example.com