Type of companies
There may be two types of Limited Liability Companies being :
- Private Limited Liability Company
- Public Limited Liability Company
A Private Company is restricted to the transfer of its shares, is limited to not more then 50 members and prohibits any invitation to the public to subscribe to any of its shares. It must have at least 1 director at any time and at least 1 shareholder. A private company will be designated a name which will be followed by the word “Limited” or “Ltd.”
A Public Company may offer its shares to the general public. It must have at least 2 directors at any time and at least 2 shareholders. There is no restriction on the number of shareholders in a Public Limited Liability Company. Such a company will be designated a name which will be followed by the words “Public Limited Company” or “p.l.c”.
In both cases, the company name will be one of your choice, but this will have to be approved by the Registry of Companies.
The minimum Authorised Share Capital of a Private Company is EUR 1,165 of which at least 20% must be paid up. That of a Public Company is EUR 46,588 of which at least 25% must be paid up.
The length of time required to incorporate a company depends on the type of company and on whether all the necessary information and documentation is in order and available. Once the registrar has all the necessary information, it is usually processed within 24 hours.
A limited liability company is validly constituted through the Memorandum & Articles of Association.
The Memorandum of Association is basically a document which defines the external aspects of the constitution of a company and contains information such as the name of the company, whether it is a private or public company, its registered office in Malta, its objects, its share capital and the amount paid up in respect of each share, the name and address of each subscriber, the details of the directors and company secretary and the duration of the company if it is incorporated for a fixed period.
The Articles of Association is a document which define the matters of the internal organisation and which are primarily of interest to its members and officers.