Malta is a prime jurisdiction for obtaining an insurance license in the EU through its implementation of European Union legislation, such as the Insurance Distribution Directive transposed through the Insurance Distribution Act. The sector is also regulated by the Insurance Business Act, along with the Insurance Mediation Directive and the Reinsurance Directive. The Malta Financial Services Authority (MFSA) is the sole regulator of the insurance sector, which grants licenses and supervises licensed insurance entities. The MFSA provides a stable approach whereby it encourages communication with potential and licensed insurances businesses to ensure the growth of the market while upkeeping the law. A key benefit of obtaining a license in Malta is that the insurance license can be passported to other jurisdictions with the European Union and the European Economic Area.
The Insurance Business Act classifies insurance business into long term business and general business.
Long term business consists of the following classes:
General business includes:
Composition of Insurance Companies can be structured as a Limited liability company, a Protected Cell Company or an Incorporated Cell Company, through a flexible regulatory regime. The application procedure for a license takes around six months, with the application fee structure being as follows:
|Long term business||General business|
|Fee per class||€3,500||€300|
|Minimum own funds||€3.7 million||€2.5 million / €3.7 million (depending on the class of business)|
Nexia BT forms part of the Nexia International which allows us to offer local & global expertise as a result of a very well connected tax practice.
We provide enterprise support functions to assist clients in the formation of companies and their legal requirements.
We combine in-depth industry experience with a risk-based approach to minimise strategic & operational risks without hindering the growth.