Internationally mobile clients who need to set up a corporate structure to carry out an international business are being serviced by a Maltese-owned company, Portman International Ltd.
Managing director David M. Marinelli told The Sunday Times last week that the company's client base, mainly from Europe, is made up of other professional firms: lawyers, accountants, trustees and fiduciary firms. Yet the end client would typically need taxation, accounting, auditing, legal, international company formation and related services in the United Kingdom, Ireland and Malta.
"We are experts in these three jurisdictions. Typically, the ultimate client - the clients of our clients - would be an internationally mobile person who would wish to set up a corporate structure to carry out an international business.
"In today's global economy, a businessman can decide whether to set up a company in the UK, for example, and carry out the business from there or to set it up in Ireland, or to set it up in Malta or any another country."
Portman was set up in 1986 in London, offering its services in the UK. The business grew and, in 1997, when it had 25 employees, it decided to open a back office in Malta to perform administrative services - before offshoring and outsourcing became all the rage.
"In the past 10 years we grew from strength to strength," Mr Marinelli said. "What was the administration office became the head office. We now have 50 people employed here in Malta.
"The business is run from Malta and is now a totally Maltese-owned business. Having an office here, we also promote Maltese companies and Maltese products."
"We have an office in the City of London and we have two full-time employees there. We still offer the core services we offered when we started off. These are international company formation and corporate services, client accounting and taxation, trading and banking support services, trustee and nominee services, and even audit services."
Although the company's roots in the City of London give it an edge, since the operations moved to Malta the company has worked to substantially improve its services and has focused on its in-depth knowledge as its main competitive edge.
"We have experts in all the fields where we offer services; we are approachable, up to management level - only a phone call away; and, being multi-cultural, we normally come across as being friendly because we understand European and other cultures well," Mr Marinelli said.
Malta's membership of the European Union has helped to improve the island's credibility and, since it has retained its attractive tax regime for international business, this has been a positive development for the company.
Portman International's business is divided into five departments: corporate services; client accounting and taxation; trading and banking support; client acceptance and compliance; and its own accounts department.
Corporate Services is responsible for the incorporation of companies in the different jurisdictions and their maintenance, such as filings with the company registry in the various countries. It also carries out any statutory changes that are necessary and gives advice on such matters.
Client accounting and taxation prepare the statutory annual accounts for clients, handle any VAT registrations and returns, tax returns and advice, and all the communication with the tax authorities of the different countries.
"Clearly, we have experts in taxation and company law in the different countries in order to give that service," Mr Marinelli said. "We also have very good contacts with European banks because our clients may also require us to assist them in opening bank accounts in different countries in the world.
"Clients sometimes also require support in their trading activity and with trade finance. This work is carried our by our trading and banking support section.
"Compliance with money laundering regulations and ongoing vetting of our clients' activity has become an essential part of being an operator in the financial services industry. We however view compliance broadly and our client acceptance and compliance section manages our risk management policy of which AML is only a small part.
"Last but not least is our own accounts department that keeps me well informed on the on-going performance of the business and importantly controls the amounts due to the company from all our international clients."
As a knowledge-based company, Mr Marinelli said Portman International's service depended on being highly focused on staff training and education. "At the end of the day it is our trained staff who deliver the service to our clients. We have various educational schemes in the company to encourage staff to study and obtain qualifications, and we also assist them and motivate them in this endeavour."
Portman International employs fully qualified accountants, auditors, lawyers and other graduates. More recently the focus has been on employing people who are interested in improving their skills and education.
There were two major developments last year: the company became a member of The International Accounting Group, a worldwide network of accountants; and became accredited by the Association of Chartered Certified Accountants as a training office.
"The TIAG® network is still just outside the top 25 networks in the world by network size," Mr Marinelli said. "However, it is growing monthly with members joining from different countries and it is envisaged that within a year or two it will join the ranks of the top world 25 networks.
"This gives us access to professionals in virtually every country in the world. They are just a phone call away and, being members of the network, you have an assurance of quality and integrity".
The ACCA accreditation "means that the training and conditions that we give our staff are recommended by the ACCA, and they perform regular visits to check that we maintain our standards of work and training".
In the coming 12 months Mr Marinelli said Portman International intends to open an office in Ireland enabling the company to have a Dublin location to promote its corporate services there. Initially, it will be in partnership with an Irish service provider, manned by Irish staff.
"Then, hopefully, we will manage to grow the business and take it from there," he said.