MT
START-UP FINANCE REGULATIONS
Table of Provisions (9)
Statutory Text (9 Articles)
START-UP FINANCE
SUBSIDIARY LEGISLATION 463.32
START-UP FINANCE REGULATIONS
1 st January, 2020
LEGAL NOTICE 335 of 2019, as amended by Legal Notices 296 of
2020 and 19 of 2023.
The title of these regulations is Start-up Finance
Regulations.
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 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
classified as a small-start-up undertaking as prescribed within the
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 if it is, or shall be engaged in one (1) of the activities
defined in the Guidelines.
START-UP FINANCE
A project may be considered as eligible for assistance if
it 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 may support eligible undertakings by
providing the following funding as further prescribed in the
guidelines
(a)
wage costs;
(b)
working capital;
(c)
costs of machinery, equipment and intangible
assets; and, or
(d)
increase in equity or funds raised through private
equity and, or crowdfunding campaigns.
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 2023.