Set Up an Investment Fund in Malta

The main legislation providing for the establishment of investment funds in Malta is the Investment Services Act, while the main authority governing and supervising them is the Malta Financial Services Authority (MFSA). Establishing an investment fund is also subject to the Maltese Company Law which provides for the type of structures that can be used in register the fund.

Our company registration agents in Malta can offer information on the types of investment funds one can establish in this country.

Who can establish investment funds in Malta?

The Maltese investment funds industry is one of the most profitable because it is highly regulated at local and EU level. The law provides for the following categories of investors who can open investment funds in Malta:

• -          experienced investors who have at least 2 years of experience and who have carried out transactions worth at least 50,000 euros;
• -          qualifying investors with net assets worth at least 750,000 euros;
• -          extraordinary investors with net assets worth a minimum of 7.5 million euros.

The last two categories of professional investors funds (PIFs) can also be Maltese companies or trusts.

How to establish an investment fund in Malta

The first step to open an investment fund in Malta, the PIF must select the type of company to be used to trade. The legal structures approved by the Company Act are:

• -          investment companies with fixed or variable capital;
• -          incorporated cell companies;
• -          limited liability partnerships.

Maltese investment funds can also be established as unit trusts and contractual funds.

Registering the Maltese investment fund

Once the type of structure has been determined and registered with the Maltese Companies Registrar, the investor must apply for the financial license with the MFSA. The following documents will be required by the MFSA:

• -          a key investor information document (KIID);
• -          the registration documents;
• -          the agreement signed with the service provider;
• -          the fund’s prospectus.

Depending on whether the investment fund will be listed on the Maltese Stock Exchange, other requirements may apply.

For assistance in opening an investment fund, please feel free to contact our Maltese company formation representatives.