Companies exempted from exchange control regulations

Following the amendments to the Exchange Control Act, Cap. 233 of the Laws of Malta, which has been re-named ‘External Transactions Act’, the exemption from exchange control regulations which was previously given to international trading companies upon application to the Malta Financial Services Authority (MFSA) as agent of the Central Bank of Malta, is now automatically given by law to international trading/holding companies which are wholly nonresident owned. These changes came into effect on 1st January 2004 by means of Legal Notice 427 of 2003.

This measure in practice means that a company which restricts its activities to “activities with persons outside Malta who are not resident in Malta”, has the objects clause in its Memorandum of Association so restricted and whose shares are wholly non-resident owned, is exempt by law from exchange control restrictions and no exemption letter need be issued by MFSA.

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