Foundations.
We help founders set up foundations and we further act as administrators of a foundation to ensure that it is managed in accordance with its statue and the wishes of its founder.

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Set Up

We help prospective founders set up foundations in Malta according to their wishes and objectives. The founders to be must first establish the foundation’s name, its purpose or objectives, the property and funds being endowed, and whether they shall use their own address or our registered address service. They must further establish its type which may either be a purpose foundation or a private foundation. In the case of a private foundation, the founders must specify the beneficiaries to be and may also determine its period. The founders must also specify who shall be the first administrators and legal representatives of the foundation and may further identify a supervisory council or a protector. In the case where all of the administrators are non-residents, then the founders must further specify who shall be the local judicial representative of the foundation. These key details are formalised by drafting a deed of foundation and is then registered with the public foundation registrar. For a purpose foundation we further coordinate with a public notary the publication of the deed of foundation. For these requirements, we offer our clients the following services:

Following the entire set up process, the administrators must register the foundation for tax. They must elect whether the foundation shall be treated as a company or a trust for tax purposes. The administrators must further open a bank account for the foundation and keep its funds separate from their personal accounts. For these scenarios, in addition to the above, we offer these services:

If the administrators elect to have the foundation treated as a company for tax purposes, non-resident beneficiaries who wish to benefit from the tax refund system must further register themselves. For this requirement we offer the Application for Tax Refund Shareholder Registration service.

We further help administrators by handling other matters related to insurance, financial support and protection of intellectual property:

Administration

The administrator of a private foundation must be a licensed person authorised to act in such a capacity. The founders may opt to use our Administrator Service such that we are appointed to act as the administrator of the foundation. We administer the affairs of a foundation in accordance with its deed and the directives of the founders.

Ongoing Compliance

The administrators of a foundation must on its behalf keep records, file annual audited accounts, file the foundation’s tax return and have the foundation’s tax statement settled. We provide a comprehensive list of services that address such requirements:

The administrators of a foundation are further responsible for notifying the public foundation registrar with any changes to it, such as receipt of additional endowments, name changes and the replacement of an administrator. For such requirements, we provide comprehensive Secretarial services to our clients.

For foundations that intend to employ personnel and pay them salaries we further handle their FSS (final settlement system) requirements and offer a payroll service:

All administrators and beneficiaries that are natural persons are further responsible for their personal tax affairs. If they are resident, they must pay their annual tax and SSC (social security contribution) through the self-assessment system. Foreigners taking up residence in Malta are further bound to obtain a tax and social security number as well as a residence permit. Foreign administrators must instead obtain an employment license. In addition to the above, we provide these services to such administrators and beneficiaries:

Where the administrators have elected to have the foundation treated as a company for tax purposes, non-resident beneficiaries must make a claim to benefit from the tax refund system. For this requirement we offer the Application for Tax Refund Claim service.

We also provide Advisory services to help administrators make well-informed decisions when faced with nontrivial matters.

Dissolution

A private foundation can be struck-off from the public foundation registrar in many ways. For instance, the procedure to be dissolved may be triggered by the expiration of the foundation period. On the other hand, a purpose foundation may only be dissolved by the court. If the circumstances so require, we offer the Liquidation of Foundation service such that we may be appointed to act as the liquidator to wind-up the foundation’s affairs, liquidate any outstanding debts and have any surplus distributed according to the deed of foundation.

Prior to being struck-off, the above-mentioned compliance obligations must be fulfilled. Following the settlement of all outstanding FSS and tax statements, the registrations can be deactivated. Moreover, the foundation’s bank account must be closed. In addition to the above-mentioned compliance services, we further handle such deactivations on our client’s behalf:

Transfer

We assist clients with property transfers. Depending on the nature of the transaction, the seller might be liable to pay capital gains tax (CGT) and the buyer might be liable to pay stamp duty (SD). In any case, an agreement must be drafted between the seller and the buyer detailing such property transfer. In addition to the above, we offer these services:

If added protection is required for the property transfer we also offer the following escrow services:

Further Information

If you would like to receive more information and detail about our services, fees and applicable reimbursements, kindly get in touch with us through our Contact page or send us an email to ps.enquiries@busuttil.mt.

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