16-year-olds can now open companies under new legal framework
Government launches Intrapriża16, allowing youths aged 16 and 17 to set up limited liability companies with mentoring support
Sixteen-year-olds can now open their own companies under a new legal framework announced by the government on Thursday.
Prime Minister Robert Abela unveiled the initiative, called Intrapriża16, alongside Economy Minister Silvio Schembri and Junior Minister for Youth and Research Keith Azzopardi Tanti during an event held at Junior College.
The prime minister said the reform builds on earlier measures aimed at increasing youth participation in public life.
“We introduced Vote 16 so people could become deputy mayors or mayors, but they couldn’t open up their own business,” Abela said. “We didn’t think that made sense, so we decided to take this on.”
The framework will allow 16- and 17-year-olds who have completed compulsory education to set up a youth enterprise structured as a limited liability company.
The framework is intended to bridge the gap faced by young entrepreneurs who are unable to formally register a company until they turn 18, unless they get special permission to do so, which is a lengthy process.
Under the scheme, youths will be able to register a Youth Enterprise (YE), which will function as a limited liability company.
Each member must contribute a minimum share capital of €100, while the maximum contribution is capped at €20,000. All members will have equal voting rights regardless of their financial contribution.
Companies registered under the scheme must include the term Youth Enterprise or YE in their official name.
A Youth Enterprise may operate under this framework until the last member of the team turns 18.
However, certain restrictions apply. The enterprises will not be allowed to employ staff, and members will not be considered employees of the company.
Participants will also be assigned a mentor who will guide them during the early stages of developing their business.
The mentor will not hold an executive role within the company but will provide advice and support throughout the process.
Students taking part in Intrapriża16 will still be eligible to receive a maintenance grant while participating in the programme.
“With Intrapriża16, we are not only showing that we believe in their ideas, but we are also giving them the key to overcome the fear of failure and build strong businesses. In this way, we are opening new doors and preparing, from today, those who will be the driving force of our country’s economy tomorrow,” stated Minister Schembri.
The initiative is being supported by the Malta Business Registry, Aġenzija Żgħażagħ, and JA Malta.
“Through this legal framework and the professional support of Aġenzija Żgħażagħ, we are giving our young people the tools to turn their ideas into reality with responsibility, integrity, and courage,” said Azzopardi Tanti.