The Malta FSA (Financial Services Authority) publishes guidelines for companies on how to convert share capital from Malta Lira into Euro when the latter becomes the sole legal tender in Malta. The conversion exercise is applicable to all limited liability companies as well as the en commandite partnerships, while companies listed on the stock exchange must follow any additional guidelines issued by the listing authority.
Malta is classified as an advanced economy together with 32 other countries according to the International Monetary Fund (IMF). Until 1800 Malta depended on cotton, tobacco and its shipyards for exports. Once under British control, they came to depend on Malta Dockyard for support of the Royal Navy, especially during the Crimean war of 1854. The military base benefited craftsmen and all those who served the military.
In 1869, the opening of the Suez Canal gave Malta’s economy a great boost, as there was a massive increase in the shipping which entered the port. Ships stopping at Malta’s docks for refuelling helped the Entrepôt trade, which brought additional benefits to the island.
However, towards the end of the 19th century the economy began declining, and by the 1940s Malta’s economy was in serious crisis. One factor was the longer range of newer merchant ships that required less frequent refuelling stops.
Currently, Malta’s major resources are limestone, a favourable geographic location and a productive labour force. Malta produces only about 20% of its food needs, has limited freshwater supplies because of the drought in the summer and has no domestic energy sources, aside from the potential for solar energy from its plentiful sunlight. The economy is dependent on foreign trade (serving as a freight trans-shipment point), manufacturing (especially electronics and textiles) and tourism.
Film production is a growing contributor to the Maltese economy. The first film was shot in Malta in 1925 (Sons of the Sea); over 100 feature films have been entirely or partially filmed in the country since then[citation needed]. Malta has served as a “double” for a wide variety of locations and historic periods including Ancient Greece, Ancient and Modern Rome, Iraq, the Middle East and many more. The Maltese government introduced financial incentives for filmmakers in 2005. The current financial incentives to foreign productions currently[when?] stand at 25% with an additional 2% if Malta stands in as Malta; meaning a production can get up to 27% back on their eligible spending incurred in Malta
The government is investing heavily in education, including college.
In preparation for Malta’s membership in the European Union, which it joined on 1 May 2004, it privatised some state-controlled firms and liberalised markets. For example, the government announced on 8 January 2007 that it was selling its 40% stake in MaltaPost, to complete a privatisation process which has been ongoing for the past five years. In 2010, Malta managed to privatise telecommunications, postal services, shipyards and shipbuilding.
Malta FSA has taken important and substantial steps to establish itself as a global player in the cross-border fund administration business. Competing against countries like Ireland and Luxembourg, Malta has a unique combination of a multi-lingual workforce and a strong legal system. Malta has a mixed reputation for transparency and a DAW Index score of 6, although both are expected to improve as Malta increasingly adopts more comprehensive legislative framework for financial services. Malta has a regulator, the MFSA, with a strong business development mindset, and the country has been successful in attracting gaming businesses, aircraft and ship registration, credit-card issuing banking licences and also fund administration. Service providers to these industries, including fiduciary and trustee business, are a core part of the growth strategy of the Island. Malta has made strong headway in implementing EU Financial Services Directives including UCITs IV and soon AIFMD. As a base for alternative asset managers who must comply with new directives, Malta has attracted a number of key players including IDS, Iconic Funds, Apex Fund Services and TMF/Customs House.
Malta and Tunisia are currently discussing the commercial exploitation of the continental shelf between their countries, particularly for petroleum exploration. These discussions are also undergoing between Malta and Libya for similar arrangements.
Malta FSA does not have a property tax. Its property market, especially around the harbour area, has been in constant boom, with the prices of apartments in some towns like Sliema and Gzira skyrocketing.
According to Eurostat data, Maltese GDP per capita stood at 86 per cent of the EU average in 2010 with €21,000
Malta FSA Banking and finance
The two largest commercial banks are Bank of Valletta and HSBC Bank Malta, both of which can trace their origins back to the 19th century.
The Central Bank of Malta (Bank Ċentrali ta’ Malta) has two key areas of responsibility: the formulation and implementation of monetary policy and the promotion of a sound and efficient financial system. It was established by the Central Bank of Malta Act on 17 April 1968. The Maltese government entered ERM II on 4 May 2005, and adopted the euro as the country’s currency on 1 January 2008.
Malta FSA is the quasi-governmental organisation tasked with marketing and educating business leaders in coming to Malta and runs seminars and events around the world highlighting the emerging strength of Malta as a jurisdiction for banking and finance and insurance.
Photo credit: neilalderney123 via Visualhunt.com / CC BY-NC
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