Many foreign companies interested in doing business in Malta seek to create partnerships with local ones in order to enter the market faster. The government also encourages these partnerships and allows foreign companies to enter into various agreements with Maltese ones. One of the preferred options is the joint venture.
Companies can enter into joint ventures by registering a new company in Malta or by signing an agreement which allows them to cooperate on temporary projects. Our company formation agents in Malta can assist with the drafting of joint venture agreements.
The main law providing for the establishment of joint ventures is the Commercial Code in Malta which allows for the registration of this type of entities. Foreign companies can choose between limited liability companies and partnerships when setting up a joint venture in Malta.
Once registered, joint ventures must also comply with the Competition Law, with the Control of Concentration Rules and the Consumer Affairs Authority Law.
The joint venture is considered an autonomous entity even if Maltese companies or foreign companies sign a cooperation agreement, which is why they must comply with the same regulations imposed to local businesses.
If set up as separate entity, the joint venture must be recorded with the Companies Registrar in Malta. In this case, the companies entering the joint venture must follow all the company formation procedure steps in Malta. This type of entity will bear the name corporate joint venture.
If the project the companies entering the joint venture is a short-term one, the drafting of a joint venture agreement will suffice. The contract must be drafted by a public notary in Malta.
The main reason for setting up a joint venture in Malta is the investment possibilities this country offers to foreign investors who have the option of finding local partners who know the market. Apart from that, the law and many governmental institutions encourage partnerships between foreign and local companies and agree with the establishment of joint ventures. The possibility of choosing between several types of business forms is another advantage of creating a Maltese joint venture.
If you are interested in opening a joint venture, do not hesitate to contact our Maltese company formation agents for assistance.