Start-ups face greater challenges, particularly in accessing finance for productive investment to economically exploit their ideas and sustain their survival during their early years.

This incentive seeks to support Start-ups through non-repayable Grants to part-finance investments in tangible and intangible assets contributing to potentially improve the productivity of the enterprise.

Start-up means an Enterprise which, at the time of the granting of the aid is an unlisted small enterprise up to five years following its registration, that fulfills the following cumulative conditions:

a) it has not taken over the activity of another undertaking;

b) it has not yet distributed profits;

c) it has not been formed through a merger.

The Eligible organisations are Micro and Small Enterprises. The Start-up Enhance will remain effective until 31 December 2023, subject to the availability of funds.

Maximum Grant and Aid Intensity

The Aid Intensity is set at 50% for operations in Malta and 60% for operations in Gozo with a minimum funding amount of €10,000 and a maximum funding amount of €400,000 per operation.

Implementation

Actions financed under the Start-up Enhance are to be implemented within 24 months from the date of the Grant Agreement. Extensions beyond this timeframe may be considered upon the express request of the Beneficiary when justified.

Eligible Actions and Expenditure

This Grant Scheme shall seek to support Start-ups in undertaking productive investments in tangible and intangible assets contributing to improving the productivity of the enterprise.

This Grant Scheme will support eligible enterprises to procure:

a) Equipment, Plant, and Machinery

Costs for the purchasing of the main component of the operation in terms of equipment, plant, and machinery required by the Undertaking for the operation. Equipment, machinery/plant must be maintained by the Beneficiary and remain operational for at least 3 years following the final payment to the beneficiary.

b) Equipment, Plant, and Machinery (ancillary items)

Costs for the purchasing of ancillary items to the main activity of the project. Such costs shall be capped at 10% of the eligible cost of the main component of the operation in terms of equipment, plant and machinery. For subscription-based software, the cost of a 2-year subscription will be considered as the eligible cost item.

c) Lease of private operational premises

Costs for leasing of privately owned operational premises are required for the operations of the Undertaking for the duration of 2 years. Such costs shall be capped at 20% of the eligible cost of the main component of the operation in terms of equipment, plant and machinery.

This article reflects the guidelines published by the Measures and Support Division, Ministry for Foreign and European Affairs as of 5^th June 2023.

*The objective of this summary is to outline the principal elements of the rules being summarized herein. Accordingly, it is not intended to be provided by way of comprehensive and definitive advice. Interested parties should seek professional advice by contacting DFK Malta Tax & Consultancy Limited before acting upon any information included in this document.