Family Business in Malta
Family-owned businesses form the backbone of Maltese societies, with 75% of companies falling under this category. But, the dynamics of a family business can vary significantly between one company and another. Each family-owned business faces a set of unique challenges but also benefits from their unique strengths. Values play a pivotal role in maintaining a family business, and generational transitions can be difficult to navigate at times.
Qualifying as a Family Business in Malta
There are several incentives aimed at supporting family businesses in Malta, given that a company meets the criteria set out in the Family Business Act. To qualify as a Family Business, the business must be established in Malta. For public limited liability companies, the majority of the shares must be held by at least two members of the same family. For limited liability companies, all of the shares must be held by at least two owners from the same family, with at least one owner being involved in the general governance of the company. In the case of partnerships, the full capital contribution to the partnership must have been made by at least two owners from the same family, who will receive the majority of the distributable profits and hold the majority of the decision-making rights.
The incentives that are offered to Family Businesses in Malta include benefits related to bank financing, transfer of immovable property, transfer of shares interest, advisory services, micro-investment, education and training, micro-loan guarantees, and arbitration.
As a family-owned business, DFK Malta understands the requirements needed to successfully run this type of business. Our team of professionals will work to assist you with all the business planning requirements for your family business, from availing from government initiatives to succession planning.
Get in touch to find out more about the services we offer to Family Businesses.