Maltese companies are required to maintain accounting records, according to the the Companies Act. Accounting records are meant to explain a company’s transactions and facilitate the preparation of the Maltese company’s financial statements. All records of accounts will usually be kept at the company’s registered office. For companies with certain total revenue, the preparation of financial statements can follow the regulations established by the General Accounting Principles for Smaller Entities (GAPSE) in Malta. The Maltese Companies Act also states that company’s directors are required to present to the shareholders the business’ financial records annually. Financial statements must contain a balance sheet and the profits and losses for a certain period of time.
In Malta, companies usually request the accounting services of specialists.
Accounting principles in Malta are based on the International Financial Reporting Standards (IFRS) and the Accounting Regulation no. 1606/2002. Maltese companies falling under the regulations of GAPSE must meet the following criteria for a consecutive period of two years:
According to the Commercial Law, every company in Malta must maintain a waste book, a journal, an inventory book, a cash book and a ledger. The bookkeeping must contain records of receipts and expenditures, sales and purchases, assets and liabilities. Also, every company will issue tax invoices whenever selling a good or a service.
Maltese companies are required to nominate independent auditors registered with the local Accountancy Board. Maltese auditors must comply with the International Standards of Auditing (ISA). Auditors may also attend the company’s general meetings and are required to report to the shareholders. The auditor must declare whether the accounts comply with the Companies Act and the IFR standards and whether the accounting statements provide a true image of the company’s results.
Companies are required to submit a copy of their annual financial statements with the Maltese Companies Register within 42 days from the submission of the statements with the annual general meeting. Depending on the type of company, the period is ten months after the end of accounting period for private companies and seven months for public companies in Malta.
For accounting and auditing services, please contact our company formation agents in Malta.