Business Start Up Scheme

Updated: July 30, 2020 | 3 minute read

Interested in our services? Our team is here to help.

Contact us

Introduction

Small start-ups in Malta can now start benefiting from a scheme launched and administered by the Malta Enterprise, called the B-Start. Businesses can now receive a cash grant of up to €25,000. This seed funding is a measure to better support and assist small start-up undertakings with viable business concepts at early ages of development

Eligibility for the Business Start Up Scheme

This incentive is applicable for start-ups who have been operating for less than 5 years, have not formed through a merger and have not yet distributed profits. Apart from being a start-up, the entity has to either:

  • Propose a new and innovative product/service to the local market which has the potential to be marketed internationally; or

  • Produce products in a new or more efficient way.

An undertaking is classified as a small start-up if it has:

  • < 50 full-time equivalent employees turnover 

  • A balance sheet total < €10 million

The 5-year eligibility period shall begin as follows: 

Limited Liability Companies
  • Date of registration with the Malta Financial Services Authority (MFSA)
Partnerships
  • Date of agreement between partners
Co-operatives
  • Date of registration with the Co-operatives Board
Self-employed
  • Date when registered with ETC
Entities not subject to registration
  • Date when the entity becomes liable to tax

 

Furthermore, to be eligible, the Malta Enterprise is looking primarily at entities engaged in:

  • Manufacturing;

  • Information and communication;

  • Electricity, gas, steam, and air conditioning supply;

  • Water supply, sewerage, waste management and remediation activities;

  • Transportation and storage;

  • Professional, scientific and technical activities;

  • Administrative and support service activities;

  • Human health and social work activities;

  • Arts, entertainment and recreation; or

  • Other service activities.

Incentive for the Business Start Up Scheme

Upon project approval, the beneficiary receives a cash injection of up to €10,000. The amount to be received as a cash grant is determined through the evaluation of a number of factors.

Further assistance can be claimed periodically, with a claim of further aid submitted at least quarterly up to a year from the initial payment. Important to note that, in total, the start-up can receive a maximum of €25,000. This further assistance is calculated at:

€1,500 X number of full-time employees engaged one month prior to the end of the quarter.

 

Application Process for the Business Start Up Scheme

To apply for the Business Start Scheme incentive, an electronic-completed application form has to be submitted to the Malta Enterprise, together with other documents, as follows:

  • A business plan which includes a clear description of the proposed idea;

  • A SWOT analysis; and

  • A clear business model highlighting the potential revenue and costs to be incurred.

Once submitted, the proposed idea will be evaluated against certain criteria. If satisfied, the beneficiary will receive an Incentive Entitlement Certificate confirming eligibility to the incentive.

The total budget for this scheme is €5,000,000. Hence, applications will be processed on a first-come-first-served basis until the budget allocated for this measure is fully utilized. The scheme is open till 30 October 2020.

We're here to help

Our team will help you deliver results whilst working to the highest professional standards. Nexia BT your reliable partner in Malta.

Get in touch