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UK-Justice
UK-Justice, Barrister
Category: Law
Satisfied Customers: 16193
Experience:  Called to the Bar in 2007
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We currently bill a UK limited company for services from our

Customer Question

We currently bill a UK limited company for services from our UK limited company. The company has said we now have to invoice their new Maltese Limited company. What are the implications of doing this and should we consider setting up our own Maltese Limited company and what the pros and cons of this approach?
Submitted: 3 years ago.
Category: Law
Expert:  UK-Justice replied 3 years ago.
Thanks for your question, I will do whatever I can to help you. Please remember to rate my answer SMILEY FACE OR ABOVE.

Is there any contract between the parties?
Customer: replied 3 years ago.

Can I just confirm you got the additional information I sent over as it does not appear in this thread of conversation.

Expert:  UK-Justice replied 3 years ago.
No - perhaps you can send it to me again
Customer: replied 3 years ago.

There is a contract in place that is rather old, but which is biased in our favor slightly. Not keen to change this to be honest, but believe this reassignment maybe part of why they want to chan ge me to a new company.

 

I had planned to send the following letter to them to be signed by us and their two companies when I thought the new company was in the UK not Malta.

 

This letter confirms that MyCompany Limited consent for the existing agreement between MyCompany Limited and TheirUKCompany Limited to be assigned to TheirNewCompany Limited with effect from 1st February 2012. It also confirms TheirUKCompany Limited will be responsible for all existing invoices raised up to and including 31st January 2013 and will provide indemnity for MyCompany in the event of TheirNewCompany Limited being unable to pay their invoices from 1st February 2013. TheirNewCompany Limited agrees to be bound by the terms of the existing agreement between MyCompany Limited and TheirUKCompany Limited.

I understand that there are a numbers of benefits of having a company in Malta which is why I am thinking that this could be one way to get some benefit from this move.

The company we are dealing with is a gambling company. We are an internet services company.

 

Expert:  UK-Justice replied 3 years ago.
Where does it say disputes are governed - which law?
Customer: replied 3 years ago.

I cannot get my hands on the original but I believe this is the clause from another customer.


 


General
(a) This Agreement shall be governed by and construed in
accordance with English law without regard to conflict
of law principles. Regardless of any statute or law to
the contrary, any claim or cause of action arising out of
or related to use of the Services must
be filed within one (1) year after such claim or cause of
action arose or be forever barred.
(b) If any provision of this Agreement shall be held invalid
in a court of law, the remaining provisions shall be
construed as if the invalid provision were not included
in this Agreement.


 


but I cannot be sure until Monday.


 


 

Expert:  UK-Justice replied 3 years ago.
If the new agreement (assuming there is one) is governed by UK law then you have nothing to worry about.

It can simply be a new agreement. As such any disputes can be resolved in the UK.

If the new agreement (or there is no agreement) does not say UK law, then do not sign it.

This is because cross border disputes and litigation if things go wrong can be very expensive.

In short - if they agree to UK law applying then you dont need to worry.

I hope this helps.



Please remember to click *** OK SERVICE *** or above so that I am credited for my time. The question does not close and you can ask follow ups.

Important: If you feel the need to rate as one of the lower two scores, it counts as negative feedback so please reply to me via the REPLY with any further questions you may have. I will be happy to assist you further.
Customer: replied 3 years ago.

Hi


 


I am not disappointed with the service but I was hoping for a hint on the use of Malta as a place to run my business interacting with theirs. Would both companies being based in Malta preclude the use of UK law for disputes? It would help to give me a better picture of my options.


 


thanks


 

Expert:  UK-Justice replied 3 years ago.
You have posted this as UK law question and I am a UK Barrister.

It would be wrong of me to tell you about anything to do with Malta, because I do not know.

If the agreement said that it was governed by laws of UK then no, both companies being in Malta it would mean you would have to litigate in the UK, not there.

I am sorry I can not assist for questions outside of the UK but hope the clarification helps.


Please remember to click *** OK SERVICE *** or above so that I am credited for my time. The question does not close and you can ask follow ups.

Important: If you feel the need to rate as one of the lower two scores, it counts as negative feedback so please reply to me via the REPLY with any further questions you may have. I will be happy to assist you further.
UK-Justice, Barrister
Category: Law
Satisfied Customers: 16193
Experience: Called to the Bar in 2007
UK-Justice and 3 other Law Specialists are ready to help you
Expert:  UK-Justice replied 3 years ago.
I'm just following up with you to see how everything is going. Did my answer help?

UK-Justice
Customer: replied 3 years ago.

The answer was fine and tied up with what I was being told. The issue of Malta and the EU in general is more complicated than I hoped but the point about UK Law should provide me with the first level of assurance.


 

Expert:  UK-Justice replied 3 years ago.
Thanks for the feedback

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