Malta Enterprise continues to improve support to business and start-ups – Kurt Farrugia,

Budget 2023 looks exciting for Malta Enterprise, especially its constant efforts on start-ups and the leading ecosystem.

“The financial package that Malta Enterprise offers to start-ups is one of the most attractive in Europe, having the possibility to cater for financial costs in relation to operations, capital, relocation and salaries as well as non-dilutive equity elements.”

Start-ups have been at the centre of ME policy for the last years. The establishing of the startinmalta portal which serves as the one point of communication for start-up needs, has led to the Start-up Festival in 2021 and 2022, the constant updating of start-up schemes, the support towards the first edition of Sharktank Malta, and for the global accelerator Plug n Play to land in Sliema, as well as the most recent launch of the Start-up Residency Progamme in collaboration with the Residency Malta Agency.

Reaping this fruit will surely not stop here and Budget 2023 brings on various proposal to continue addressing the needs of start-ups, both local and foreign. The financial package that Malta Enterprise offers to start-ups is one of the most attractive in Europe, having the possibility to cater for financial costs in relation to operations, capital, relocation and salaries as well as non-dilutive equity elements. This makes the Unique Selling Proposition of Malta very attractive to start-ups whose needs are of specific nature and require special attention at the start of a business. The Start-up Residency Programme offers the possibility to third country nationals such as UK, USA, Israel and beyond, to found their start-ups in Malta while applying for residency of three years in Malta which could be extended to an additional five years. This also applies to immediate family members.

Start-ups opting to relocate their key employees would also allow them to apply for the three-year residency programme which could then be extended by an additional three years.

“The Residency Programme is very much at heart for us at Malta Enterprise. We take this process seriously and the fact that we are doing this in collaboration with the Malta Residency Agency enhances our competences,” explains Malta Enterprise Chief Executive Officer Kurt Farrugia.

This paves the way to our next milestones starting with the Start-up Framework which is also a manifesto measure with full Government backing. The Framework reaffirms the attractiveness of our country to start-ups as it offers various different regimes through which highly skilled, technical, tech and knowledgebased start-ups could operate in a friendlier environment, in Malta.

Our aim is to create the best possible conditions for innovative companies to start and grow in Malta. This framework is advanced stages and shall be launched in the coming months, again signalling our collaboration with other stakeholders within the start-up ecosystem in Malta led by Malta Enterprise.

As we have just held the second edition of Start-up Festival on the 13th and 14th October, we received amazing feedback from the attendees, the speakers, the foreign panellists and visitors. This shows that the Festival, as an event is itself leaves a mark. It marks the role of the ecosystem in or country, bringing efforts forward and reaching new heights.

Malta Enterprise, which manages the Kordin Business Incubation Centre, will be developing a new Business Incubation Centre through European funds, equipped to be a top quality touch down facility for innovative Startups that are continuing to diversify the local economy.

SUPPORTING SMART AND SUSTAINABLE ENTERPRISES

Apart from start-ups, Malta Enterprise will not lose the focus on the already established businesses. Through this Budget announcement the scheme assisting family businesses when transferring ownership to next generations via the reduction in stamp duty from 5 percent to 1.5 percent has been extended.

“The Micro Invest scheme will be extended to social enterprises. Through this measure, social enterprises will be eligible for a tax credit that can reach €70,000 spread over three years."

The Rent Subsidy Scheme will now be able to support the businesses with a 50,000 eur per year up to a maximum of 150,000 eur on a period of six years, whereas before it was confined to three years. This is also double the maximum caping per project avialbale currently. The scheme has also been widened in the sense of the different industrial sectors that are eligible within it. This is the result of constant open channels of communication with our partners such as the Malta Chamber as well the entrepreneurs themselves.

The Smart and Sustainable Investment grant will be improved by doubling the financial assistance for all Maltese companies that invest in digital and sustainable projects. In fact, the grant will now be covering 50 percent of the eligible investment, up to a maximum of €100,000. The tax credit will also be doubled up to a maximum of €40,000.

The Micro Invest scheme will be extended to social enterprises. Through this measure, social enterprises will be eligible for a tax credit that can reach €70,000 spread over three years.

Malta Enterprise will be also be developing guidelines for companies to obtain ESG (environmental, social and governance) credentials. This process will also be extended in the form of technical support for SME’s in collaboration with European countries that want to spur their businesses to make this leap in quality.

Malta Enterprise will once again be coordinating Malta’s participation in the World Expo which will be held in Osaka in 2025. Malta will be among 150 other countries showcasing their economy, technology and tourism. n