{"id":650,"date":"2023-10-27T10:22:13","date_gmt":"2023-10-27T10:22:13","guid":{"rendered":"https:\/\/companyincorporationmalta.com\/?p=650"},"modified":"2023-10-27T10:22:15","modified_gmt":"2023-10-27T10:22:15","slug":"insolvency-legislation-in-malta","status":"publish","type":"post","link":"https:\/\/companyincorporationmalta.com\/insolvency-legislation-in-malta\/","title":{"rendered":"Insolvency Legislation in Malta"},"content":{"rendered":"\n<p>There are situations in which companies cannot keep up with the requirements of the business climate and the conditions imposed by the market. Facing financial problems might lead to<strong>\u00a0insolvency in Malta<\/strong>, but before that, the company must adopt any solution which can save the business and the operations in a reliable manner, for example, the\u00a0<strong>financial restructuring<\/strong>. The legislation regarding<strong>\u00a0insolvency in Malta<\/strong>\u00a0observes particular conditions that need to be fully understood before making any movement. If you need support in this sense or in\u00a0<strong>company incorporation<\/strong>, we suggest you address to our\u00a0<a href=\"https:\/\/www.companyincorporationmalta.com\/about-us\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>company formation agents in Malta<\/strong><\/a>.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #002e5b;color:#002e5b\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #002e5b;color:#002e5b\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/companyincorporationmalta.com\/insolvency-legislation-in-malta\/#details-about-the-insolvency-law-in-malta\" title=\"Details about the Insolvency Law in Malta\">Details about the Insolvency Law in Malta<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/companyincorporationmalta.com\/insolvency-legislation-in-malta\/#how-the-insolvency-process-is-made-in-malta\" title=\"How the insolvency process is made in Malta\">How the insolvency process is made in Malta<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/companyincorporationmalta.com\/insolvency-legislation-in-malta\/#the-results-of-insolvency-in-malta\" title=\"The results of insolvency in Malta\">The results of insolvency in Malta<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"details-about-the-insolvency-law-in-malta\"><\/span><strong>Details about the Insolvency Law in Malta<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Financial difficulties might find a company in a continuous struggle for avoiding&nbsp;<strong>insolvency<\/strong>. If there is no proper solution in this direction, the company must&nbsp;<strong>declare the insolvency<\/strong>. The&nbsp;<strong>Commercial Code in Malta<\/strong>&nbsp;also comprises the&nbsp;<strong>Insolvency Law<\/strong>&nbsp;which was recently revised by the authorities.&nbsp;<a href=\"https:\/\/www.companyincorporationmalta.com\/open-a-restaurant-in-malta\"><strong>Businesses in Malta<\/strong><\/a>&nbsp;which cannot pay the debts must respect the conditions imposed by the<strong>&nbsp;Insolvency Law<\/strong>&nbsp;and the related provisions. For instance, a proper solution is to restructure the company from a financial point of view but not limited to this. Furthermore, if it is the case, the&nbsp;<strong>liquidation of a company<\/strong>&nbsp;may enter in the discussion. One should bear in mind that the&nbsp;<strong>insolvency procedure<\/strong>&nbsp;starts with a complete investigation of the company\u2019s financial status. The creditors will be immediately announced that the business can no longer take care of the financial liabilities as mentioned by the signed contracts.&nbsp;<\/p>\n\n\n\n<p>Foreign entrepreneurs can enter the Maltese market and establish companies in a fast and reliable manner. The&nbsp;<a href=\"https:\/\/www.companyincorporationmalta.com\/register-company-malta\"><strong>company formation in Malta<\/strong><\/a>&nbsp;is an easy process which can be entirely supervised by our consultants.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"how-the-insolvency-process-is-made-in-malta\"><\/span><strong>How the insolvency process is made in Malta<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Any decision regarding the<strong>&nbsp;insolvency procedure<\/strong>&nbsp;is taken by the&nbsp;<strong>board of director<\/strong>&nbsp;in complete agreement with the owners of the company. The next step is to inform the&nbsp;<a href=\"https:\/\/www.companyincorporationmalta.com\/trade-register-in-malta\"><strong>Trade Register in Malta<\/strong><\/a>&nbsp;about any decision made in your company and the stages involved in the<strong>&nbsp;insolvency procedure<\/strong>. A list of assets and the financial records of the company must be provided to the authorities in charge when declaring the&nbsp;<strong>insolvency<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"the-results-of-insolvency-in-malta\"><\/span><strong>The results of insolvency in Malta<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>One should know that the<strong>&nbsp;process of insolvency in Malta<\/strong>&nbsp;has two important players: the liquidator responsible for the&nbsp;<a href=\"https:\/\/www.companyincorporationmalta.com\/company-management-in-malta\"><strong>management<\/strong><\/a>&nbsp;of assets in a company, and the official receiver who performs in default of the liquidator. Once the<strong>&nbsp;insolvency<\/strong>&nbsp;has been declared, the transfer of shares and the release of securities will, in this stage, be canceled. If the creditors do not agree on the<strong>&nbsp;insolvency of the company&nbsp;<\/strong>and they wish to recover the debts in a legal manner, they can do so in the&nbsp;<strong>court of law in Malta<\/strong>.<\/p>\n\n\n\n<p>Please consider our support in&nbsp;<strong>company formation in Malta<\/strong>&nbsp;and the conditions involved. You may&nbsp;<a href=\"https:\/\/www.companyincorporationmalta.com\/contact-us\"><strong>contact<\/strong><\/a>&nbsp;our&nbsp;<strong>team of company formation specialists in Malta<\/strong>&nbsp;at any time.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There are situations in which companies cannot keep up with the requirements of the business climate and the conditions imposed by the market. Facing financial problems might lead to\u00a0insolvency in Malta, but before that, the company must adopt any solution which can save the business and the operations in a reliable manner, for example, the\u00a0financial [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":153,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[326,422,98,18,16],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Insolvency Legislation in Malta<\/title>\n<meta name=\"description\" content=\"Companies in Malta can declare the insolvency if no other methods helped the business. 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