Liquidating a company in Malta

Liquidating a company in Malta involves meticulous navigation through the pre-liquidation and post-liquidation stages. Despite the established legal frameworks, attention to detail is crucial to avoid legal, financial and reputational issues. The liquidation process may present various challenges and pitfalls that necessitate a diligent approach throughout the process.

Should the company’s obligations not be met in a timely manner, a number of pitfalls can arise during the pre-liquidation stage. Insufficient preparation and/or rushed decision-making can lead to overlooked obligations, whereas failure to properly address financial obligations as well as any other compliance obligations (especially in the event of a licensed entity) arising during the pre-liquidation stage can prolong the process and increase costs. Furthermore, delays in meeting statutory deadlines can also lead to penalties.

In the post-liquidation stage, a number of challenges also arise, including delayed strike-off due to incomplete filings with Maltese authorities and the delay in the execution of the Scheme of Distribution. This will result in unnecessary penalties and reputational exposure. Additionally, inadequate record keeping can lead to complications with authorities or in legal proceedings. 

Various repercussions may also be applicable in the event that a voluntary liquidation is not carried out in an appropriate manner. An example of which could be when the company would have to be re-instated by order of the Maltese courts following its’ strike off by the Malta Business Registrar, due to pending matters not having been addressed and properly executed prior to the striking off of the company.