From YouTubers ad streamers to app developers and online sellers, more and more young people today are building real businesses before they even finish school. Until now, however, Malta’s legal framework made it difficult for them to do this formally.
With the introduction of the Companies Act (Youth Enterprise) Regulations, 2026 – widely known as ‘Intrapriza 16’ – that is finally starting to change.
Breaking Down Old Barriers
Until recently, starting a business as a minor wasn’t easy. Young people were still under parental authority, meaning that signing contracts could require going through the courts. On top of that, banks were often reluctant to open accounts for underage individuals.
The new regulations aim to remove these barriers. They allow young entrepreneurs to set up a Youth Enterprise (“YE”) – a private limited liability company designed specifically for their needs.
In simple terms, this means young people can now take their ideas and turn them into real, recognised businesses.
What is a Youth Enterprise?
A Youth Enterprise is a fully recognised legal entity. This means it can enter into contracts, own property, and operate independently – just like any other company.
At the same time, it is designed to stay simple and manageable:
- Share capital ranges between €100 and €20,000.
- Members have equal voting rights, regardless of how much they contribute.
- The company name must clearly identify its status as a “Youth Enterprise” or “YE”.
The idea is to keep things straightforward, so young founders can focus on building their business without unnecessary complexity.
Built-in Safeguards
Given Youth Enterprises are run by minors, the framework includes important safeguards to provide support along the way.
Each Youth Enterprise must:
- obtain parental or guardian consent
- appoint a mentor with relevant commercial experience
- complete at least 20 hours of training each year
The mentor helps guide the business and keeps track of its progress, without getting involved in day-to-day decisions. This creates a balance between independence and support.
Learning While Earning
One of the biggest advantages of this model is that it allows young people to gain real business experience without affecting their education.
Members are not treated as employees, which means they can still receive student maintenance grants. At the same time, the business remains manageable by preventing the hiring of external employees, ensuring it stays founder driven.
As members turn 18, the Youth Enterprise may transition into a standard business structure, allowing it to grow and continue. If this step is not taken, members will no longer be able to remain in their role and must step down once they reach 18.
Conclusion
The introduction of Youth Enterprises marks an important step in how Malta supports its next generation of entrepreneurs. It gives young people the opportunity to test their ideas, gain experience, and build something of their own from an early stage.
While still new, the framework has the potential to shape a new wave of business leaders – individuals who start learning by doing, even before entering the workforce.
As with any legal structure, it’s important to understand the requirements before getting started.
At David Zahra & Associates, we’re here to help young entrepreneurs take their first steps, whether that’s understanding the process or setting up their very own Youth Enterprise.
