Maltese investment funds can be established with complete support provided by our company registration agents in Malta who can offer information on each type of funds available in this country. In this sense, we can assist both with the setup of funds as well as adjacent company formations. Below you can find information about Maltese hedge funds, and also about professional investor funds in Malta.
| Quick Facts | |
|---|---|
| Who can set up investment funds in Malta? | Experienced and qualified investors, whether local or from abroad |
Who regulates Maltese investment funds? | Malta Financial Services Authority (MFSA) |
Legislation applicable | – Investment Services Act, – EU legislation |
| Types of investment funds in Malta | – Professional Investor Funds (PIFs), – Alternative Investment Funds (AIFs), – Undertakings for Collective Investment Schemes (UCITs) |
| Formalities to set up AIFs in Malta | – appointing a custodian and a manager, – obtain authorization and license from MFSA, – submit investment funds of minimum EUR 100,000 |
| Required documents for investment fund registration | – prospectus, – portfolio manager, – detailed CV of the members of the investment group, – copy of IDs or passports |
| Requirement for appointing a fund manager in Malta | He/ she can be local or foreign. |
| Minimum capital for PIFs in Malta | Minimum investment of EUR 100,000 |
| Minimum capital for AIFs in Malta | Minimum investment of EUR 100,000 |
| Minimum capital for UCITs in Malta | Minimum investment of EUR 125,000 |
| Access to European markets (YES/NO) | Yes |
| Tax exemptions for funds in Malta | Licensed funds are not subject to income tax and capital gains tax. |
| Listing on the Maltese Stock Exchange (YES/NO) | Yes |
| Advantages of investment funds in Malta | – great taxation system, – available investment strategies, – fast registration |
| Why choose our local agents for establishing an investment fund in Malta | – We have experience in investment fund industry and can help foreign entrepreneurs establish such fund. – We have an extended client porfolio. – Complete services at affordable prices |
| SICAVs in Malta | SICAVs (Société d’investissement à Capital Variable) can be incorporated as an umbrella or multi-fund structure. Each sub-fund can be a different class of shares in the company and designated with a different currency. |
Setting up a fund as a limited partnership in Malta | Permitted for one or more general and limited partners who can establish an investment fund. |
Fund promoters in Malta | Must apply to MFSA to get a license. |
| Types of PIFs in Malta | Private or public |
| PIFs also qualify as | Alternative investment funds |
| Investment strategies for PIFs in Malta | – real estate, – commodities, – foreign exchange market, – private equity, and more |
| Having a Maltese administrator for investment funds | Not imposed, but recommended for his/her experience and quality services provided. You can benefit from the services of our local team. |
| Capital gains and stamp duty are exempt for | Companies listing securities on the Malta Stock Exchange |
| We offer support with the license application process with the MFSA (YES/NO) | YES |
| Listing application process with the Malta Stock Exchange | With the help of our Maltese agents |
| Administration services for investment funds in Malta | Provided for our local and foreign customers |
| Cyber security and related protection measures | These can be implemented when an investment fund is established in Malta. |
| Executive recruitment services | For appointing directors/managers of an investment fund |
| Fit and proper requirements | Imposed by MFSA for directors and members of an investment fund. |
| Costs for managing/administrating funds in Malta | Our local agents can offer information in this sense, depending on the type of investment. |
Table of Contents
How to set up an investment fund in Malta
The first step to open an investment fund in Malta requires the investor to select the type of company to be used to trade. The legal structures approved by the Company Act are:
- investment companies with fixed or variable capital;
- incorporated cell companies;
- limited liability partnerships.
Once the type of structure has been determined and registered with the Maltese Companies Registrar, the investor must apply for the financial license with the MFSA. The following documents will be required by the MFSA:
- a key investor information document (KIID);
- the registration documents;
- the agreement signed with the service provider;
- the fund’s prospectus.
Depending on whether the investment fund will be listed on the Maltese Stock Exchange, other requirements may apply.
The main legislation providing for the establishment of investment funds in Malta is the Investment Services Act. According to this law, all Maltese investment funds are subject to applying for an investment services license prior to starting issuing financial instruments. The law also provides for several types of investment funds one can set up in Malta.
The three major categories of investment funds to be set up in Malta are:
- Professional Investor Funds (PIFs);
- Alternative Investment Funds (AIFs);
- Undertakings for Collective Investment Schemes (UCITS).
Our company registration agents in Malta can assist foreign investors who want to set up any of the types of funds mentioned above. We are here to help you open a company in Malta and also set up varied investment funds, like SICAV in Malta. You can also read the following infographic on this subject:
Opening an investment fund through a limited partnership in Malta
Local and foreign entrepreneurs have the opportunity to open investment funds in Malta through a limited partnership. This structure is called partnership en commandite, and the legislation that must be respected to open such a fund is mentioned by the Companies Act in Malta, 10th Schedule. Flexibility is one of the characteristics of this investment fund, but here are other interesting aspects:
- One or more general partners are accepted, as well as one or more limited partners for such Maltese funds.
- Limited partners should agree on the capital of the investment fund in Malta.
- All partners must comply with MFSA legislation and demonstrate that they are qualified to open Maltese funds.
We invite you to learn more about investment funds in Malta, as well as the legislation in force, by getting in touch with our specialists. You can watch the video presentation below with information on this topic:
Who can establish Maltese funds?
While the Maltese investment funds industry is quite profitable, it is also highly regulated. The law provides for the following categories of investors who can open Maltese funds:
- experienced investors who have at least 2 years of experience and who have carried out transactions worth at least 50,000 euros;
- qualifying investors with net assets worth at least 750,000 euros;
- extraordinary investors with net assets worth a minimum of 7.5 million euros.
The last two categories of professional investor funds (PIFs) can also be Maltese companies or trusts.
PIFs in Malta
Professional Investment Funds are investment funds dedicated to qualified and experienced investors coming to Malta, as their name states. These types of funds are also categorized into:
- PIFs for qualifying investors who must invest at least 100,000 euros in the fund;
- PIFs for extraordinary investors are required to invest a minimum of 750,000 euros in the fund.
The main advantage of this type of Maltese fund is the lack of restrictions on the investments and the swift approval procedure.
Alternative investment funds in Malta
Other types of investment funds to be established in Malta are the well-known AIFs. These types of funds are non-UCITS funds that can acquire capital from a large number of investors through a well-defined strategy. Maltese hedge funds and real estate funds can be set up as AIFs in Malta.
In order to set up such type of fund, an investor needs at least EUR 100,000. The fund must be managed by an AIF manager. Those self-managing the AIF must have an initial capital of 300,000 euros. Our Maltese company formation consultants can offer more information on the requirements for this type of fund.
UCITS funds in Malta
UCITS are investment funds constituted in an EU country that can operate throughout the European Union, therefore an UCITS fund can obtain a license in Malta and based on a specific notification process can market its products in other member states. UCITS funds are usually known as retail funds in Malta. Just like in the case of AIFs, the minimum capital requirement to set up a UCITS fund is around EUR 300,000.
Start-up hedge funds in Malta
Early-stage investors can opt for start-up hedge funds in Malta due to the benefits offered. Thus, a Maltese hedge fund that falls into the category of PIFs is advantageous in terms of costs, development climate, and flexible regulation. As the financial sector in Malta is extremely developed and highly appreciated worldwide, a Maltese hedge fund can be the ideal solution in this sense. As in the case of other types of funds, the MFSA is the authority that regulates this type of Maltese funds. Among the formalities for registering a start-up hedge fund in Malta, we mention:
- A license is required, according to the Investment Services Act 1994, and where applicable, exceptions to this rule will apply.
- Those interested in the Maltese hedge fund must prove that they have the necessary knowledge in the field and that they are qualifying shareholders. They must pass the “fit and proper” test.
- It will be necessary to appoint a bottom manager in this direction, and here it is not mandatory for him/her to have a residence in Malta.
In addition to the above aspects, you should know that this type of investment fund can be promoted in the relevant jurisdiction, taking into account certain guidelines. But for more information in this regard, we invite you to contact our local agents. We can tell you more about professional investor funds in Malta.
Setting up Notified Alternative Investment Funds or NAIFs
Interested in professional investor funds in Malta? You might be interested in Notified Alternative Investment Funds or, more briefly, NAIFs. This type of fund provides rapid access to funding managers seeking to promote their fund throughout the countries of the European Union, the regime also allows the Alternative Investment Fund manager to undertake full accountability for the NAIF and for the completion of its responsibilities.
As such, the AIF functions with a simple announcement to the supervisor. Once the respective notification of the AIF falls within the responsibility of this kind of administration, access to the market can be achieved quite fast, in about 10 days if the MFSA is convinced that the credentials offered with respect to the conditions and obligations imposed.
It can be said that NAIFs are adaptable financial instruments that can also be used to market securitization strategies and more. We invite you to contact us to discover more information about NAIFs in Malta. We are here to offer you the right solutions for the establishment of professional investor funds in Malta.
What are contractual funds in Malta?
Contractual funds or CIS are mutual funds in Malta, as specified in the Investment Services Act and Regulations of 2011. A contractual fund can be registered by a fund manager and depositary fund, without legal personality, following the execution of a constitution deed. Moreover, the MFSA is the authority that approves the establishment of a contractual fund, either an open-ended or closed-ended scheme. We remind you of the support of our experts in investment funds in Malta, so do not hesitate to ask questions. We can tell you more about contractual funds, and also about SICAV in Malta.
Do Maltese funds need resident directors?
Certain Maltese funds require at least one resident director. However, it is not an obligation to have a local manager/administrator of the fund. On the other hand, many prefer to appoint the Maltese administrator of a fund in order to offer quality services.
We also invite our clients to discover information about SICAV in Malta and registration formalities.
Some of the advantages of Maltese investment funds
Those interested in Maltese investment funds can enjoy a number of benefits in this regard, and among them, we list the most important ones:
- The tax system is a favorable one, and Malta is among the countries that offer such an advantage, within the framework of the establishment of Maltese investment funds.
- Access to European markets is easy, having in the portfolio an investment fund opened in Malta.
- There are a number of investment strategies available to fund managers. Thus, the investment instruments can make a difference depending on the fund chosen for the development of the portfolio and not only that.
- It is good to know that there are no restrictions regarding the manager of an investment fund, in the sense that he does not have to be from Malta. Thus, professional investor funds in Malta can be managed by foreign citizens, regardless of their country of origin.
- And last but not least, the legislation is permissive regarding the establishment of Maltese investment funds and also offers protection to those interested in such financial instruments.
For assistance in opening an investment fund, please feel free to contact our Maltese company formation representatives.