A:Companies and other forms of commercial partnerships are formed by agreement between shareholders/members and must be registered at the Malta Business Registry.

A limited liability company is one of the vehicles which may be chosen for conducting a business activity. Alternatively, one can also choose to trade in one’s own name (as a sole trader) or else form a partnership en nom collectif or en commandite, with at least one other person.

An important advantage of the limited liability company is that the liability of the shareholders is limited to the amount which remains unpaid on their shares. Like the other types of partnerships, a company is a legal person distinct from its shareholders and the assets and liabilities of the company are separate from those of its shareholders.

A company may be formed by one shareholder only (single member company), who may also be the sole director and secretary of the company.