Company liquidation in Malta

Suspending an entity’s operation is a complex course of action which demands cautious consideration to legislative regulations and laws. There are three ways of doing this. The first one is voluntary, when an organization is closed down because of the members’ decision. The next one implies the lenders’ initiation. And there remains a compulsory way, when the fact of shutting down the entity is set up by the court because of certain reasons.

It is principal to comprehend the concept of closing down the organization, mainly in the boundaries of the country in question. This guide will help you to sort out all nuances and complicated details regarding the topic in case you plan to liquidate a company in Malta.

Company dissolution and liquidation in Malta: Overview

The Companies Act contains a provision for the shutting down of a firm. An organization under this law can do so voluntarily or by the court order. Ideally, in winding up a venture on its own, it can be done by a process set in motion by the members or that by the lenders.

In member-initiated closure, the owners must make an announcement that the firm will pay off all its debts in the boundaries of one year. This normally occurs when the company is still financially sound but is no longer required or is redundant either due to organizational reformation or the retirement of its owner. The possessors will then pass a resolution for the commencement of the process and the appointment of an official assignee. In default of such appointment, the owners shall apply to the court for the appointment.

The reason for lender-initiated closure may be that the firm will not be able to discharge its debts, since owners cannot validate the bankruptcy of the company. Therefore, lenders call for the closure of the organization. The owners also pass a resolution for commencing the closing process and appointing a receiver. The right of attendance at meetings is, however, conceded to the lenders, who also have a power of replacement in regard to the receiver nominated by the owners. If no receiver has been nominated by either party, the possessors must apply to the court for the engagement of one.

The court can also order the dissolution of a firm on an involuntary basis, provided that an application for that reason is made by petitioning shareholders, directors, or any other aggrieved person. The court will then appoint an official receiver who will take it upon himself to investigate the affairs of the organization and report back to the court. He would look into their assets and all the debts owed by the organization, and the causes that had landed the company into any difficult financial situation. Once he gets an idea of it all, he then takes up the responsibilities of the process and ensures safeguarding the interests of those to whom that money is due.

Taking account of the legal structure is mandatory for entities considering closure or lenders looking to launch proceedings related to liquidation and reorganisation processes in Malta. It is also compulsory to prepare all necessary papers, which are vital for provision of an effortless course of action.

Main Considerations

Several key factors must be carefully considered to ensure abidance by legal obligations and protection of owners’ interests:

1. Appointment of an Official Assignee: This person is hired to oversee the company’s closure. This individual is responsible for managing the company’s affairs during the winding-up process;
2. Financial Obligations: It’s essential to fulfill all fiscal commitments, including submitting final tax returns and obtaining clearance from the tax authorities before the company is removed from the register;
3. Legal Documentation and Filings: Proper documentation must be prepared and filed with the MBR within specified timeframes;
4. Settling of Debts: The firm must address all outstanding debts and obligations. In cases where debts exceed resources, a creditors’ voluntary winding-up may be necessary, involving creditors in the course of action;
5. Final General Assembly: After completing the winding-up course, a final general meeting is held to approve the winding-up accounts and the scheme of allocation;
6. Publication of Announcement: An announcement is published in the Government Gazette regarding the company’s intended removal from the register. If no objections are raised within three months, the firm is struck off. 

Navigating these considerations requires meticulous planning and adherence to legal procedures. 

Our support and services

Specialists of Eternity Law International company are always ready to assist you in the whole course of closing the enterprise, because it is sometimes difficult to sort out all the nuances without professional help.

Lawyers of our firm have unparalleled understanding of operational nuances across numerous international jurisdictions. We elaborate solutions which are contingent on the inspection of law-making and develop forward-thinking approaches, examining feasible alterations in the rules of various regions.

Contact us, and we will guide you through the whole plan of action in case you strive to know how to close a company in Malta.

Why choose us 

Our specialists are able to help you to register or shutdown your enterprise in the country selected by you. We abide by confidentiality, data secure, legality, deadlines and provide an individualized approach to each customer, which is based on the personal circumstances.

The experts of our firm provide clients with legally compliant and effective options for their specific case, forewarn customers about feasible outcomes of the decisions in advance, and maintain strict confidentiality of client information.