Due diligence in Malta is a crucial step when establishing a business or conducting significant transactions. Often mandated by Maltese and EU law, it involves a thorough investigation and verification of all relevant information to ensure compliance and mitigate risks. This comprehensive guide, coupled with a detailed due diligence checklist, will navigate you through the intricacies of this process, particularly concerning Malta company formation.

Understanding Due Diligence

Due diligence is essential for transparency and legal compliance in business operations. It helps businesses understand potential risks associated with investments, partnerships, or acquisitions. In Malta, due diligence is often required for various activities, including setting up a company, acquiring real estate, or applying for licenses.

Navigating the Due Diligence Process in Malta with Contact Advisory Services Ltd.

While the due diligence process can be complex and time-consuming, Contact Advisory Services Ltd. strives to make the process as frictionless as possible for clients. Our team of experts guides clients through every step, ensuring that all necessary documentation is gathered and verified efficiently. We provide a comprehensive due diligence checklist that outlines the specific requirements based on your entity type and individual circumstances. This checklist, along with our expert guidance, helps you avoid delays and ensures a smooth and compliant company formation process. 

General Requirements for Document Submission

• Original and Certified Copies: All documents must be original or certified true copies. 
• Translation: Documents not in English require an original certified translation. 
• Certification Authority: The certifier must be a certified accountant, notary, or lawyer. 
• Certification Details: Certified copies must include the certifier’s full name, designation, address, contact details, and date. 
• Certification Format: The certification text must follow the prescribed format, including the certifier’s signature, profession, and contact details. 
• Multi-page Documents: Certification can be on each page or the first page with the total number of pages indicated. 

Specific Requirements Based on Entity Type

1. New Company

• Holding Company: Completed Holding Company Profile. (form provided by Contact Advisory Services) 
• Operating Company: Completed Operating Company Profile. (form provided by Contact Advisory Services)

2. Existing Company

• Company Identification: Certificate of Registration showing company name, incorporation date, and registered office address. 
• Governing Documents: Memorandum and Articles of Association or equivalent. 
• Company Status: Certificate of Good Standing. 
• Ownership and Management: Document showing current shareholders and directors (dated within the last 3 months). 
• Financial History: Bank statements for the last 6 months (3 years for MGA applicants) and audited financial statements (if applicable). 
• References: Bank reference, professional reference, or Certificate of Legal Existence. 
• Company Profile: Completed Company Profile (provided by Contact Advisory Services). 
• Previous Service Provider: Confirmation of Termination of Business Relationship. 

3. Individuals (Shareholders, Directors, etc.)

• Identification: Valid passport and/or identity card. 
• Proof of Address: Utility bills, bank statements, or official correspondence (within the last 3 months). 
• Bank Reference: Reference from a bank with at least 2 years of client history. 
• Professional Reference: Reference from a lawyer, notary, or accountant. 
• Curriculum Vitae: Updated CV. 
• Criminal Record: Criminal conduct certificate. 
• Additional Requirements (MGA applicants): Birth certificate, completed ‘Applicant Questionnaire’. 

4. Corporate Shareholders

• Company Identification: Certificate of Registration showing company name, incorporation date, and registered office address. 
• Governing Documents: Memorandum and Articles of Association or equivalent. 
• Company Status: Certificate of Good Standing. 
• Ownership and Management: Document showing current shareholders and directors (dated within the last 3 months). 
• Financial History: Bank statements for the last 6 months (3 years for MGA applicants) and audited financial statements (if applicable). 
• References: Bank reference, professional reference, or Certificate of Legal Existence. 

5. Nominee/Fiduciary Setups

• Fiduciary Agreement: Fiduciary Agreement and any Amendment Deeds. 
• Declaration of Services: Declaration of fiduciary services signed by the fiduciary. 
• Service Provider Identification: Certificate of Registration for the nominee/fiduciary service provider. 
• Provider’s Governing Documents: Memorandum and Articles of Association. 
• Provider’s Status: Certificate of Good Standing. 
• Provider’s Ownership and Management: Document showing current shareholders and directors. 
• Provider’s References: Bank reference, professional reference, or Certificate of Legal Existence. 
• License/Authorization: Copy of license authorizing fiduciary/nominee services. 

6. Trusts

• Trust Deed: Trust deed with details of the trust, settlor, beneficiaries, protector, and trustee. 
• Amendments: Any amendment deeds to the trust deed. 
• Declaration of Trust: Declaration signed by the trustees. 
• Registration: Certificate of Registration if the trust is registered. 
• Settlor, Beneficiary, and Trustee Information: Similar to individual requirements, including identification, proof of address, references, CV, etc. 

Additional Considerations for a Smooth Process

• Verification: Ensure all documents are authentic and valid. 
• Timeliness: Submit documents promptly to avoid delays. 
• Confidentiality: Protect sensitive information and comply with data protection regulations. 

By following this comprehensive Malta Due Diligence checklist and seeking expert guidance from Contact Advisory Services Ltd., you can navigate the process efficiently and ensure compliance with Maltese regulations. Remember that this checklist provides a general overview, and consulting with legal professionals is crucial for addressing specific requirements and ensuring compliance with the latest regulations.