Associations

A range of extensive provisions, concerning Foundations Law and Associations Law, were introduced to the Maltese Civil Code by the 2007 Amendment. Associations are defined as agreements between three or more people who want to set up an organisation and achieve a number of defined goals or aims through the pooling of their conjoined efforts and resources.

Associations Law in Malta

According to Maltese law, an association is entitled to register itself as a legal person if desired, but there are no obligations imposed upon it to do so. Apart from that, it may also be established for a spectrum of purposes. The purpose which an association is founded for is crucial because different considerations apply depending on the scope of the association. It is important to remember that associations are being taxed at marginal rates, capped at 15-35%, depending on the objective of the association.

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Malta Association Law: purposes and tax

One of the possible purposes for establishing an association is the promotion of a private interest or a particular profession or trade. In this regard, an association will be regulated by the laws that regulate all civil partnerships as well as special laws relating to commercial partnerships, particular professions, unions and employer cooperatives or associations.

Otherwise, an association may also be established for a social purpose or for the carrying on of any lawful activity on a non-profit making basis. In this case, such associations are regulated by the Sub-Title III of the 2007 amendments, and any other special law regarding voluntary organisations.

Find out more on taxes in Malta on Personal Tax advisory and Personal Tax compliance sections

Malta Associations Law: Setting up an Association

According to the Maltese Associations Law, associations may only be established through an agreement, which is carried out in writing. An association’s statute must include a number of details, indicating the name of the association, its registered address in Malta and its aims and objects. Other details that are to be included:

• the method or process by which membership of the association is granted to applicants;
• the mode of procedure during general meetings;
• the composition of the board of administration and the names of the first administrators;
• the manner in which administrators are elected to and removed from office;
• the legal representation;
• in the case of an association, the administrators of which are non-residents of Malta, the name and the address of a person resident in Malta who has been appointed to act as the local representative of the association in Malta; and
• the term for which it is established, if any

Our Associations Law Practice

Owing to their emphasis on the objective, rather than the amalgamation of assets vested in the organisation, associations can serve as flexible investment vehicles. Our Families & Wealth team is fully aware and readily available and responsive to the needs of every individual or family seeking to invest through one of the various investment or asset-protection vehicles available under Maltese law. Our experts guide our clients through the process of establishing an association and can also fulfil the function of legal representative for our clients’ associations.

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