Malta (Onshore) The five Maltese islands-Malta, Gozo, Comino, Comminotto, and Filflawith-have a combined land area smaller than Philadelphia. Malta is located in the Mediterranean Sea, about 60 mi (97 km) south of the southeast tip of Sicily. Malta has a very high population density. Its population is ethnically diverse, a mixture of Arab, Sicilian, Norman, Spanish, Italian, and British. English and Maltese, a Semitic dialect, are the official languages, although Italian is also widely spoken. Roman Catholicism is the religion of nearly all the people. Malta has no rivers or lakes, no natural resources, and very few trees. It is, however, of great strategic value and was an important British military base until 1979. Following the withdrawal of British forces, the country faced severe unemployment; it has since made progress in diversifying its economic base. Manufacturing and tourism are now the main industries. Electronics, textiles, processed food, clothing, tobacco products, and construction materials are manufactured. Ship construction and repair, performed in state-owned dry docks, are also important. Although the soil is poor, there is some agriculture, producing potatoes, cauliflower, grapes, wheat, barley, and cut flowers. Hogs and chickens are raised. International banking and financial services are growing, and the island is developing as an offshore tax haven. Shortage of water has stimulated the building of desalination plants, which now provide more than half the country's freshwater needs. The main imports are food, petroleum, machinery, and manufactured goods; exports include textiles, clothing, and ships. Most trade is with Italy, the United Kingdom, and Germany. Malta is governed by the 1964 constitution, as revised in 1974; it is a neutral country. The prime minister, who is the head of government, and cabinet are responsible to the 65-member house of representatives. The head of state is the president, elected for a five-year term. The Labour and Nationalist parties dominate politics. Malta is a member of the Commonwealth of Nations. In September 1994, the Maltese Parliament enacted a total of twelve new laws. The whole package was designed to provide a comprehensive framework for financial services and international trade together with the appropriate structures to oversee their proper functioning. The laws are wide ranging and include acts on taxation, mutual funds, trust recognition, money laundering, professional secrecy and banking. Under these new laws the 'offshore company' has ceased to exist and therefore new Offshore Companies may only be registered up to the 31 December 1996 and will only be granted the rights and privileges attached to offshore companies until 31 December 2004. After that date they have the option of converting to an onshore company such as an International Trading Company (ITC) or International Holding Company (IHC). Company Statute: International Trading Company (ITC) Taxation: 35% (4.17% after refunding). Shareholders/Members: The minimum number of shareholders is two. Directors/Managers: The minimum number of directors is one. They may be natural persons or bodies corporate, be of any nationality and need not be resident in Malta. Company Secretary: All Maltese companies must appoint a company secretary, who may be a natural person or body corporate. It is advisable to appoint a resident company secretary. Registered Office Required: Yes. Registered Agent Required: No. Name Restrictions: Any word that the Registrar considers undesirable. Any name that is identical or similar to an existing company. Any name that implies illegal activity or implies royal or government patronage, the following words or their derivatives: asset management, asset manager, assurance, bank, banking, broker, brokerage, capital, credit, currency, custodian, custody, dealer, dealing, deposit, derivative, exchange, fiduciary, finance, financial, fund, future, insurance, lending, loan, lender, option, pension, portfolio, reserves, savings, security, stock, trust or trustees. Annual Reporting: Annual Report is required. Annual Report/Licence Fees: 300 EUR.

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