Start-up Finance Regulations, 2019

L.N. 335 of 2019

MALTA ENTERPRISE ACT

(CAP. 463)

Start-up Finance Regulations, 2019

IN EXERCISE of the powers conferred by article 5 of the Malta

Enterprise Act, the Minister for the Economy, Investment and Small

Businesses, after consultation with the Malta Enterprise Corporation,

has made the following regulations:-

(1) The title of these regulations is Start-up Finance

Regulations, 2019.

These regulations shall come into force on the 1 st January,

(2)

2020.

In these regulations, unless the context otherwise requires

"the Act" means the Malta Enterprise Act;

"the Corporation" means the Malta Enterprise Corporation

established under the Act;

"Guidelines" means such guidelines as may be published

by the Corporation from time to time in terms of the Act;

"Innovative enterprise" means an undertaking

(a) that can demonstrate, by means of an evaluation

carried out by an external expert that it will in the

foreseeable future develop products, services or processes

which are new or substantially improved compared to the

state of the art in its industry, and which carry a risk of

technological or industrial failure; or

(b) which has costs for research and development

which represent at least ten per cent (10%) of its total

operating costs in at least one of the three (3) years

preceding the granting of the aid or, in the case of a start-up

enterprise without any financial history, in the audit of its

current fiscal period, as certified by an external auditor;

"Start-up Accelerator Programme" means a fixed-term

program providing selected start-up undertakings with

connections, mentorship, training and other support that

culminate in a pitch event through which the Start-up

Undertaking may receive equity from private or institutional

investors.

"Start-up undertaking" means an unlisted small enterprise

up to five (5) years following its registration, which fulfils the

conditions listed in the Guidelines.

Where the Corporation is satisfied that the business is Assistance to

classified as a small-start-up undertaking as prescribed within the small

finance scheme.

Guidelines, the Corporation may provide assistance to such

undertakings in accordance with the terms and conditions set out in the

Guidelines.

A start-up undertaking shall be considered as eligible for Assistance to

assistance if it is, or shall be engaged in one (1) of the activities eligible

undertakings.

defined in the Guidelines.

A project may be considered as eligible for assistance if it Eligibility

criteria.

meets two (2) of the following criteria

(a) propose products and/or services that have the

potential to generate income from various geographical markets;

(b) produce products and/or service which are new or

substantially improved compared to complementary products on

the market;

(c) utilise processes which are new or substantially

improved compared to those adopted in current complementary

activities.

The Corporation shall provide the following support

Form of aid.

(a) a one-time grant to participants in a Start-Up

Accelerator Program recognised by the Corporation;

(b) a repayable advance to finance up to seventy-five per

cent (75%) of the wage costs of persons employed on a full time

contract with the Start-up Undertaking which shall be reduced to

fifty per cent (50%) if the Start-up Undertaking has been

established for more than three (3) years;

(c) a repayable advance equivalent to fifty per cent

(50%) of the increase in share capital invested in the Start-up

Undertaking;

(d) a repayable advance to finance up to seventy-five per

cent (75%) of the cost required to procurement machinery,

equipment, and intangible assets to carry out the start-up project;

(e) a repayable advance of up to fifty (50%) of the

financing of a project or equity increase to be funded through a

crowd-funding campaign.

The support provided shall not exceed four hundred

thousand euro (€400,000) which may be increased up to eight hundred

thousand euro (€800,000) if the Start-up is an Innovative Enterprise.

No assistance under these regulations shall be awarded by

the Corporation after 31st December, 2022.

€0.27