Assistance to Business Start Regulations

The Government of Malta has by means of Legal Notice 49 of 2024 published the above-mentioned rules which are applicable as from 1^st January 2024.

Where Malta Enterprise Corporation is satisfied that the undertaking is an eligible undertaking as prescribed within the Guidelines published by the same Corporation, it  may provide assistance to such undertakings in accordance with the terms and conditions as set out in the said Guidelines.

Early seed funding for small start-ups

Malta Enterprise have relaunched the Business Start Scheme (hereinafter, the ‘Scheme’) intended to support small start-up undertakings that have a viable business concept to develop their business proposal before seeking further funding or third-party equity.

Definition of start-up undertakings

Start-up undertakings are defined in the Scheme Guidelines as:

i) Unlisted small enterprises up to five years following registration, which meet a set of cumulative conditions laid out in the Scheme guidelines; and which

ii) At time of application, must employ less than 50 full time equivalent employees and have an annual turnover or annual balance sheet total not exceeding Eur10 million.

Where an undertaking has a parent/subsidiary relationship with another undertaking, all entities within the structure must meet the above criteria to be considered a start-up undertaking.

Eligible start-up undertakings

In order to be eligible for support under this Scheme, start-up undertakings shall:

i) Be registered as a business entity such as a self-employed, co-operative or limited liability company- businesses not yet established may still apply, however support would be made available after formal establishment;

ii) Request support under the Scheme within 36 months from date of establishment, whilst still qualifying as a small start-up undertaking at time of application;

iii) Ensure that activities are intrinsically linked to the knowledge and/or experience of the key persons; and

iv) Be engaged in one of the following activities, whilst proposing products or services that have the potential of generating income from various geographical locations:

a. Manufacturing;
b. Software development;
c. Industrial services analogous to manufacturing;
d. Health, Biotechnology, Pharmaceuticals and Life Sciences; or
e. Other innovative economic activities.

Start-up undertakings will not be eligible for support under this Scheme if controlled by owners of:

i) Existing businesses or other undertakings that operate in or have interests exceeding 25% in other undertakings in the same or related sector; or

ii) An undertaking operative in the same or related sector that had closed down in the 12 months preceding the start-up’s establishment date.

Type of support

The Scheme provides an initial seed fund of up to Eur10,000 to support eligible start-ups which have a developed business concept, to formulate an implementation and growth business plan. Funding would be provided in three stages, as follows:

i. A grant of Eur3,000 would be disbursed within three months of signed Letter of Approval, provided start-up employs at least one employee resident in Malta, on a full-time or part-time basis;

ii. Second tranche of Eur3,500 would be disbursed at least after two months from first tranche and within six months of signed Letter of Approval, provided start-up has retained employment of at least one full-time or part-time employee, and submits a Business Plan on template provided; and

iii. Final tranche of Eur3,500 would be disbursed within three months of approval of submitted Business Plan, provided start-up has retained employment of at least one full-time or part-time employee, and provides evidence of a business address from where activity will be undertaken.

Applications for assistance to support eligible undertakings under these regulations shall reach the Corporation by not later than 30^th October 2026. No assistance under these regulations shall be awarded by the Corporation after 31^st December 2026.

If you need any help or assistance with the above-mentioned, please do not hesitate to contact us on [email protected]