Effective management is where key commercial decisions are made necessary for the conduct of the organisation’s business.
The claim that a company is effectively managed and controlled in Malta may be substantiated by ensuring that all board meetings and general meetings are held on the Maltese islands and that management decisions are taken in Malta (and not anywhere else). The company’s records should be maintained in Malta in order to reflect the company’s effective management in Malta.
Further substance may be established by appointing Maltese resident directors. Other connecting factors may include running an operating office and taking on employees in Malta.
An overseas company which may have branch operations in Malta would be registered in terms of the Malta Companies Act of 1995, as this is necessary to ensure the recognition and taxation of branches in Malta.