The Business Development Scheme published by the Malta Enterprise has the scope of facilitating value-added projects, including new business initiatives, start-up, expansions and transformation activities that shall contribute to the regional development of Malta.
Supported initiatives should lead to new business opportunities, creation of skilled and highly skilled employment, increased competitiveness or widening market reach. Such projects must commence within 12 months from approval and be implemented within 36 months from the date of support approval.
Eligibility
The eligible activities supported by Malta Enterprise are as follows:
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Setting-up, expansion and modernisation
The setting up, expansion and modernisation of facilities for carrying out the following activities:
- manufacturing;
- industrial service analogous to manufacturing;
- maintenance repair and overhaul of electromechanical equipment, aircraft and sea going vessels.
- software development (including video game development);
- the development and/or provision of digital solutions intended for an international market;
- waste recycling;
- product development and design;
- activities related to development and manufacture of pharmaceuticals and medical devices
- filming, recording and editing of audio and visual content
- research and development;
Projects to improve environmental protection and performance. Such projects shall result in a positive environmental outcome such as the minimisation of waste, a reduction in carbon footprint, an increase in recycling and reuse, or the remediation of advanced human activities. Project should be supported by an independent report compiled by an expert advisor, indicating the objectives of the project and the envisaged environmental gains.
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Innovative New Businesses
The setting up of new business operations (by start-ups or established undertakings) that provide products or services which are not readily available in the local market and can demonstrate through a business plan, a drive towards international growth in the forthcoming three years.
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Facilitating Employment of Workers with Disabilities
Projects approved by the CRPD that facilitate the integration of disabled persons in the workplace, that extend beyond the requirements imposed by the applicable legislation.
Projects submitted by business associations (irrespective of their legal form) that lead to solutions of common benefit to multiple undertakings (such as coordinated employee transport, industrial zone surveillance, or consolidated warehousing etc) shall be considered for support in the form of cash grants or tax credits.
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Upgrading of Facilities (Industrial Sites and Hotels)
Projects for the upgrading of industrial facilities and hotels (having a valid and active MTA licence) that result in an improvement in the services provided from the facility / establishment and that are not considered to be part of the upkeep of the facility / establishment.
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Establishing and upgrading of artisan facilities
Projects for establishing and upgrading facilities that incorporate artisan and design workshops.
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Business Re-engineering and Digital Transformation
The carrying out of a review of business processes and re-engineering projects leading to enhanced use of digital technology. Enterprises implementing such projects shall be expected to achieve higher efficiency by adopting technological solutions in their business.
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Access to Markets and Certification
Projects leading to recognised certifications that are beyond the legal requirements of the applicant enterprise and are intended to achieve further economic development, business growth or enhanced environmental protection.
Ineligibility
The measure does not apply to enterprises that generate revenue:
- directly or indirectly through gambling activities;
- the sale of real estate as a business activity;
- wholesale or retail activities (unless of this activity is incidental to the other activities of the enterprise, such as the sale of goods manufactured or designed by the enterprise or goods that are directly linked with products and services of the enterprise) or
- the provision of financial services.
This exclusion does not include technology providers who may generate revenue by servicing directly or indirectly enterprises engaged in the above activities. The measure also does not apply to enterprise excluded by the applicable State Aid regulations. The Corporation shall refuse applications from undertakings that have dues in relation to VAT, Income Tax, and Social Security payments that in total exceed €1,000, unless the applicant has a repayment agreement to settle any dues that is being honoured, with potential exceptions at the discretion of Malta Enterprise.
Eligible Costs
The approved financing shall be directly related to the operation and development of an eligible economic activity and limited to the following costs:
Wage costs with respect to employees located in, employed and resident in Malta, and registered with Jobsplus, limited to:
a) full-time employees (including employees engaged as full-time but working reduced hours) ;
b) full-time students that are following a post-graduate degree at a tertiary education institution in Malta.
The eligible wage costs do not include any additional costs such as bonuses, allowances, overtime, and insurances. The value deducted from the employee's wage as national insurance is part of the eligible wage.
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Lease and Rental of industrial and non-residential properties
The cost covering the leasing or renting of an industrial or non-residential property required for establishing a new business activity, the expansion of business activities or as part of a re-engineering exercise. Support may be approved on the basis of estimated costs established, yet they may only be awarded in respect of property leased from unrelated third parties under market conditions.
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Shared industrial or business facilities
Costs for shared office and industrial facilities, including costs for the use of temporary office space.
Advisory services provided by an unrelated external expert advisor (or advisory firms that engage an expert advisor as part of the team delivering the service) in relation to services having clearly defined deliverables that are related to an eligible project.
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Procurement of Tangible and Intangible Assets
Costs for the procurement of tangible assets required to carry out the operations of the undertaking. Support shall only be provided on equipment and machinery that is new or first used in Malta. When the procured equipment is not new, a declaration by a competent professional that the equipment is compliant with the latest environmental and regulatory provisions must be presented. Intangible Assets such as patents, licences, know-how or other intellectual property may be supported through this measure as long as they are purchased under market conditions from third parties unrelated to the buyer.
Procurement of software solutions, including licences and services (such as Software as a Service – SaaS solutions, participation in send boxes or similar solutions), provided that licences and recurring services costs may only be covered for a period not exceeding two years.
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Construction and related services
Services and materials required for the construction and upgrading of industrial sites, hotels and artisanal workshops.
The cost covering the rental for a period of three months, a flight to Malta and shipping of personal assets to Malta incurred for relocating personnel may be supported.
Maximum support
The maximum support per application shall be capped at €300,000 per Single Undertaking over a rolling period of three years. Support shall not exceed 75% of the costs approved.
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