The partnership is an appreciated type of structure in Malta because it is considered a tax transparent entity and it is easy to establish. The Commercial Code acknowledges three types of partnerships in Malta:
Another advantage of the partnership is that it can be used as an investment fund vehicle in Malta. The limited partnership is more suitable for investors seeking to establish investment funds in Malta. Our attorneys in Malta can explain the provisions of the Commercial Law on partnerships.
The general and the limited partnership are similar entities in terms of structures, as they both must have at least two participants called partners. The only difference is that in a limited partnership one of the participants is a general partner, while the others are limited partners. In terms of liability, the general partners will be fully liable for the company’s debts and obligations, while the limited partner will have, as the name says, a limited responsibility. Also, the general partner will be general manager in a Maltese limited partnership, while the limited partner may not intervene in the management of the company.
Our lawyers in Malta can help foreign investors seeking to open any type of partnership.
The participants in a limited partnership in Malta can be individuals or companies, according to the Commercial Code. There is no minimum share capital when opening a limited partnership in Malta, unless the entity is used as an investment fund vehicle, case in which the capital depends of the type of fund to be established.
The Maltese limited partnership will be set up through a partnership agreement which must be notarized and then submitted with the Trade Register. If the partnership is used as an investment company, an authorization from the Financial Services Authority is required. The limited partnership has a distinct legal personality than its owners once it is registered.
For full information on how to register a limited partnership or for assistance in setting one up, please contact our law firm in Malta.
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