The Companies Act (Audit Exemption) Regulations, published on the 17th May 2019, provides an exemption to the general rule that companies incorporated in Malta must have the financial statements audited by independent auditors.
In terms of the aforementioned regulation, companies that satisfy the following conditions are exempted from having their annual accounts audited in respect of the first accounting periods:
- annual turnover of less than €80,000;
- all shareholders of the company being qualifying shareholders – i.e. an individual who has completed his/her educational studies at least at MQF Level 3 or an equivalent level as recognised by the Malta Qualifications Recognition Information Centre, and who have completed such studies on a date being not earlier than 3 years from the date of the registration of the company and
- a duly completed application form is submitted to the Registrar of Companies within 6 months from the end of the relevant accounting period.