Companies Act (Audit Exemption) Regulations, 2019

Suppliment tal-Gazzetta tal-Gvern ta’ Malta Nru. 20,190, 17 ta’ Mejju, 2019 B 693

L.N. 101 of 2019

COMPANIES ACT

(CAP. 386)

Companies Act (Audit Exemption) Regulations, 2019

IN EXERCISE of the powers conferred by article 425(1)(oa) of

the Companies Act, the Parliamentary Secretary for Financial

Services, Digital Economy and Innovation, has made the following

regulations:-

(1) The title of these regulations is Companies Act (Audit Citation and

Commencement

Exemption) Regulations, 2019.

.

(2) These regulations shall come into force on such date as the

Parliamentary Secretary for Financial Services, Digital Economy and

Innovation may by notice in the Gazette establish.

(3) These regulations shall be applicable to companies

registered under Part V of the Act, the shareholders of which are all

qualifying shareholders.

Application in terms of regulation 3

To the Registrar of Companies

Re : ………………….....………………… (Name of company)

..…………………………………….(Registration number)

The undersigned …………………………………….. as director

of the above-mentioned company hereby declares that

(a)

All shareholders

of

the company are qualifying

shareholders, as

is

evidenced by the attached

documentation;

(b)

annual turnover of the company does not exceed euro

80,000 or, if the relevant accounting period is a period

other than twelve months, a pro-rata of such amount; and

(c)

the company is not opting for any other exemption issued

by the Commissioner of Inland Revenue with regards to

audited accounts.

………………………

<Name and Surname> (Director)

Dated this …….. day of …..……………… of the year ..…........

This application must be completed in typed form.

B

€0.18

In these regulations, unless the context otherwise requires

Interpretation.

''Act'' means the Companies Act;

''Commissioner'' means the Commissioner for Revenue

appointed in terms of article 3 of Commissioner for Revenue Cap. 517.

Act;

''qualifying shareholder'' means 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 as established by the Mutual

Recognition of Qualifications Act, and who have completed such Cap. 451.

studies on a date being not earlier than three years from the date

of the registration of the company.

A company shall be exempted from the requirement of Exemption.

having its annual accounts audited in respect of its first two accounting

periods if the following criteria are satisfied

(a) annual turnover of the company does not exceed

eighty-thousand euro (€80,000) or a pro-rata amount if the

relevant accounting period is a period other than twelve months;

(b) all shareholders of the company are qualifying

shareholders;

(c) an application in the form set out in the First

Schedule to these regulations is made to the Registrar within six

months from of the end of the relevant accounting period

Provided that this exemption shall no longer be applicable

if there is a change in the shareholding of the company as a result of

which the shareholders of the company will not all be qualifying

shareholders.

The Registrar shall inform the Commissioner of any

application made in terms of these regulations.