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ARTICLE · 12 DECEMBER 2025

Simplified Liquidation Procedure

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Act No. XVIII of 2025, the Companies (Amendment) Act(the "Act"), was recently published on the 11th of July 2025, although its provisions are yet to come into force.

MaltaCorporate/Commercial Law
Kurt Hyzler
Kurt Hyzler
Krista Farrugia
Krista Farrugia
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Act No. XVIII of 2025, the Companies (Amendment) Act(the "Act"), was recently published on the 11th of July 2025, although its provisions are yet to come into force. The Act includes several significant reforms, including a simplified dissolution process that aims to streamline and modernise the existing corporate liquidation framework.

Rationale behind Procedure

The underlying rationale for introducing the new procedure is to provide companies that have ceased trading, or that never commenced trading, with an expedited mechanism for strike off from the Registry of Companies. The reform appears intended to equip private limited liability companies with a level of procedural flexibility particularly for entities that have remained inactive for a considerable period and that are neither public limited companies nor regulated entities.

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