The Youth Enterprise Act makes it legal for 16–17 year olds in Malta to register and run a real company. Here’s everything you need to know to get started.
Start your own business before you're 18.
Are you eligible?
Check these four things before you do anything else; you'll need all of them to qualify.
You must be 16 or 17 and living in Malta
All members of your Youth Enterprise (YE) must meet this age requirement and be Maltese residents. Everyone gets an equal vote; no matter how much each person invested.
Company Name
Your name must end with "Youth Enterprise" or "YE". This tells people it's a youth-run business.
Share capital
Minimum €100 total (€100 paid per member). Maximum you can raise is €20,000.
VAT status
Must qualify as a small enterprise under the VAT Act; this means your annual turnover stays below the threshold. Most YEs qualify automatically.
Step-by-step: setting up your YE
The process is more straightforward than it looks. Follow these steps in order and you'll be registered in no time.
Find your team (or go in solo) and idea
Find a registered mentor
Choose your company name
Complete the registration forms and pay the registation fees
Submit to the Registrar
Things that help you along the way
You won't be doing this alone, there are built-in supports to help your YE succeed.
Your mentor
Think of your mentor as a coach, not a boss. They advise and supervise but can't make decisions for you or take an executive role. The business is yours to run.
Mandatory training
Each member completes 20 hours of training per year on business basics, finances, and compliance. Your mentor verifies hours; logs submitted every 6 months.
What you can and can't do
A few rules specific to Youth Enterprises
Fine to do
Fine to do
Not allowed
NOT ALLOWED
Transferring shares
Share transfers between members or to outside parties are not permitted while the YE is active.
CHECK FIRST
Licensed activities
Some activities need a professional licence. Check whether that licence can legally be granted to someone under 18 in Malta.
What happens when members turn 18?
When all members reach 18, you'll have two clear options with a simple process for both.
Convert to a standard company
If your business is going well, apply to convert the YE into a regular commercial partnership. Your business continues just under a new legal structure. This route is recommended if you want to keep trading
Wind it down
Ready to close? There's a simplified dissolution process designed specifically for YEs. It is quicker and involves less paperwork than closing a standard company.
Frequently Asked Questions
Quick answers to things you might be wondering about.
Do I need a bank account to register a YE?
Yes, you'll need a business bank account to hold your share capital. Some Maltese banks offer accounts for minors with parental consent, so check with your bank early in the process. In fact, your share capital should be deposited in a bank account before your incorporation documents are submitted to the Registrar.
What if one member turns 18 before the others?
The YE can continue operating until all members turn 18. The conversion or dissolution process only kicks in once the last member reaches 18.
Can I run a YE on my own, without other members?
Yes, a Youth Enterprise can be set up with a single member, as long as you meet all the eligibility requirements including having a registered mentor.
Will this affect my schooling or exams, or my stipend?
Running a YE is entirely separate from your education. There's no formal link between the two. Your student stipend will also not be affected. Time management is something to plan for, but there are no restrictions on studying while running a YE.