Government Launches ‘intrapriża 16,’ Allowing 16-year-olds To Set Up And Run Youth Enterprises

A new legal framework titled ‘Intrapriża 16,’ will allow young people aged 16 to 18 who have completed compulsory education to set up and run their own youth enterprises, removing previous legal barriers that prevented minors from running their own enterprise.

Government on Thursday launched the initiative, which introduces a new type of company known as a Youth Enterprise (YE), designed to remove legal barriers that previously prevented minors from formally incorporating businesses.

Speaking during the launch, Prime Minister Robert Abela said that the reform was prompted by feedback from young people who highlighted how existing legislation prevented them from turning entrepreneurial ideas into formal businesses.

“Young people told us that there was a limitation preventing them from running their own enterprise, and that anomaly needed to be addressed,” Abela said.

He explained that the government launched a process to remove those obstacles, resulting in the new framework being introduced.

Abela said the initiative was designed to complement education rather than replace it, ensuring that young people can gain entrepreneurial experience while continuing their studies.

“It would not make sense that we introduced voting at 16 and allow a 16-year-old to contest local council elections and get elected Mayor, yet young people who want to start a business would still face legal obstacles,” he said.

The Prime Minister said the initiative forms part of wider efforts to empower young people and strengthen Malta’s entrepreneurial ecosystem.

“This reform creates a new concept with its own regulations and a clear transition to a private company once the members reach the age of 18,” Abela said.

Malta Business Registry CEO and Registrar Geraldine Spiteri Lucas explained that the new legislation seeks to bridge the gap between students who develop business ideas and the legal framework needed to formally establish a company.

Previously, minors wishing to open a company had to go through a lengthy emancipation process through Court, creating a barrier for young entrepreneurs.

“The goal is to remove the legal restrictions on business incorporation for minors,” Spiteri Lucas said.

The new framework introduces 21 regulations and six annexes, allowing youth enterprises to be registered entirely online through standardised digital templates.

Each youth enterprise will carry the YE suffix, and all members enjoy equal voting rights regardless of their financial contribution.

Under the framework, the minimum share capital is a €100 contribution, while the maximum capital allowed for a youth enterprise is €20,000.

A number of safeguards were also included in the legislation, Spiteri Luzas said.

She said that youth enterprises cannot employ staff, and members are not considered employees, ensuring that the initiative remains focused on learning and entrepreneurial experience.

Participation in a youth enterprise will not affect students’ maintenance grants or their studies, Spiteri Lucas said. Certain regulated sectors, including financial services, will also remain excluded from youth enterprise activities.

Each youth enterprise will be required to have a mentor with at least five years of professional business experience, who will provide guidance and supervision to the youths.

Spiteri Lucas said that the mentor will only have an advisory role, meaning they cannot manage the company’s daily operations or take executive decisions.

She said that mentors may only vote to break a deadlock in decision-making, and only if authorised to do so.

The scheme also introduces mandatory training, requiring each youth enterprise member to complete 20 hours of training annually in areas such as life skills, financial literacy, compliance and business management.

Spiteri Lucas said that training logs will be submitted to the Malta Business Registry every six months as part of the monitoring process.

She said the initiative aims to encourage learning through experience, including learning from failure.

Spiteri Lucas said that consultations during the drafting of the law identified practical challenges faced by young entrepreneurs, including difficulties in opening bank accounts and handling administrative procedures.

She said that the Malta Business Registry therefore worked with banks and other stakeholders to ensure the legislation would facilitate youth enterprises’ access to financial services.

The entire process will be carried out digitally, including online submission of documents, digital signatures and legally binding contracts, Spiteri Lucas said.

She said that the MBR will act as the regulatory authority overseeing youth enterprises, while certain information, including members’ names, the registered address, email contact and mentor name, will remain publicly available to balance transparency and GDPR requirements.

Aġenzija Żgħażagħ Senior Manager Jason Zammit said that the initiative offers young people the opportunity to participate in the economy while continuing their studies.

“This allows young people to take part not only in the society of the future but also in the economy of today,” he said.

Youth enterprises will be able to transition into full private companies once members reach the age of 18, at which point the mentorship framework will cease, Zammit said.

Zammit said that the framework was designed so that young entrepreneurs can gain experience without facing the full financial risks typically associated with business failure.

He said that youth enterprises cannot be declared bankrupt, with the structure instead aimed at encouraging experimentation and learning.

Zammit said that failure should be seen as part of the learning process, allowing young people to understand the realities of running a business while being supported by mentors and training programmes.

JA Malta Foundation CEO Matthew Caruana said the organisation had long advocated for such a framework after witnessing the entrepreneurial potential of young people participating in its programmes.

“Young Enterprise changed my life, and I have seen the potential young people have when they are given the opportunity to work on their ideas,” he said.

Caruana encouraged young people to maintain curiosity and initiative, noting that Malta’s startup ecosystem has improved significantly, with growing support available to aspiring entrepreneurs.

Economy Minister Silvio Schembri said the initiative forms part of the government’s Vision Malta 2050 strategy, which focuses on equipping young people with the tools needed to succeed in the economy.

Schembri said the programme will give young people hands-on experience in business while continuing their education, while also strengthening their understanding of financial literacy and entrepreneurship.

Parliamentary Secretary Keith Azzopardi Tanti said that similar youth enterprise initiatives were introduced in countries such as Spain, Greece and Cyprus, often as a response to youth unemployment.

Malta, he said, has one of the lowest youth unemployment rates in Europe, and the initiative aims to give young people additional opportunities to develop entrepreneurial skills.

“This is a clear declaration of the government’s confidence in the youth of today and tomorrow,” he said.