The number of companies registered in Malta has now topped the 70,000 mark, the Finance Ministry has said.

"Around 30% of these have been registered in the last five years alone, with an average annual increase in registrations of around 12% during these years. This, in itself, can be seen as a success of the Companies Act, and it seems reasonable to say that businesses feel comfortable to set-up companies which are regulated by the Act's provisions," Finance Minister Edward Scicluna said during a half-day conference organised by the Malta Law Academy, the Chamber of Advocates and the Department of Commercial Law of the University of Malta at the University's Valletta campus to mark the 20th anniversary of the Companies Act 1995.

Minister Scicluna hailed the recent legislation on company service providers as a step in the right direction in this regard, pointing out that the benefit of limited liability for shareholders brings with it the legal obligations of disclosure by companies. He mentioned the ongoing work to transpose the EU's Single Accounting Directive in Malta's laws, with a focus of finding an appropriate accounting framework for the smaller entities, keeping in mind Malta's market and business realities. 

"This reality also brings its own challenges. The Maltese Registry of Companies, together with the Courts of Malta, will be dealing with more cases in the foreseeable future. The importance of the Companies Act cannot be underestimated," Minister Scicluna said. "A large proportion of the commercial activity in our community is carried out through the medium of the limited liability company. We continuously deal with companies in our daily lives even if we may not think too much about this reality. That is enough reason why we should make sure that the Companies Act is regularly upgraded and modernised so as to keep it in line with the needs of the business sector and those who provide finance and credit to companies."