What is the process to register a charitable foundation in Malta and what reporting is required?

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To register a charitable foundation in Malta, you must create a public deed, register it with the Malta Business Registry, and enroll as a voluntary organization. The process involves submitting a set of documents and adhering to ongoing reporting and compliance regulations.​

Registration Process
Registering a charitable foundation in Malta is a two-phase process.​

Phase 1: Incorporation​
The first step is to incorporate the foundation as a legal entity. This is done by executing a foundation deed before a notary public and registering it with the Registrar for Legal Persons, a unit within the Malta Business Registry. The foundation acquires a legal personality separate from its founders and administrators upon registration. This allows the foundation to own assets and incur obligations in its own name.​

Phase 2: Enrolment as a Voluntary Organization​
To operate as a charity and conduct charitable activities, you must enroll with the Commissioner for Voluntary Organisations. This step ensures transparency and adherence to governance standards

Required Documents and Approvals
To register your foundation, you will need a comprehensive set of documents, including:​

Application for Registration (Form A): The official application form for registering an organization.​

Beneficial Owner Information (Form 1): Submission of initial beneficial owner information.​

Foundation Deed and Statute: A certified true copy of the foundation's deed and statute, prepared by a notary.​

Administrators' Consent Form: A form signed by all administrators.​

Resolution for Registration: A resolution from the board of administrators authorizing one of the administrators to register the foundation.​

Identification Documents: Certified copies of ID cards or passports for founders and administrators. A character reference is required for non-EU nationals.​

Proof of Initial Endowment: Evidence of the initial assets, such as a bank deposit slip or a copy of a cheque. The minimum initial endowment for a public benefit foundation is €232.94.​

Proof of Communication with the CVO: For non-profits, proof that the office of the Commissioner for Voluntary Organisations (CVO) has been informed about the registration process.​

Declaration from Landlord: A declaration from the property owner of the foundation's registered address authorizing its use.​

The Registrar for Legal Persons has the discretion to request further information and to approve or deny the registration.​

Timeline
The administrators must submit the required documents within three months from the date the foundation is established to avoid penalties. While a precise timeline for the entire registration process isn't specified, the requirement of various documents and approvals from different authorities suggests it's a multi-step process that can take several months to complete.​

Annual Reporting and Audits
Once registered, your foundation must comply with ongoing reporting and auditing requirements to maintain its legal standing and public trust.​

Annual Reporting:​

Annual Compliance Return: Foundations are required to submit an Annual Compliance Return.​

Financial Reports: You must submit annual financial reports to the relevant authorities.​

Register of Beneficial Owners: Foundations must maintain an internal register of their beneficial owners and report this information to the Registrar for Legal Persons.​

Inventory of Assets: An inventory or descriptive note of any new assets added to the foundation must be filed with the Registrar for Legal Persons within three months of the grant.​

Audits:​
There is no automatic requirement for annual audits. The need for an audit depends on the size of the endowment and other factors. You will also need to pay an annual registration fee based on the size of the endowment.