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L.S. 463.03 Regolamenti dwar Assistenza lil Intrapriżi Żgħar jew ta’ Daqs Medju

ASSISTANCE TO SMALL AND MEDIUM-SIZED UNDERTAKINGS [ S.L.463.03 1 SUBSIDIARY LEGISLATION 463.03 ASSISTANCE TO SMALL AND MEDIUM-SIZED UNDERTAKINGS REGULATIONS 1st January, 2008* LEGAL NOTICE 69 of 2008, as amended by Legal Notices 59 of 2009, 102 of 2013, 212, 237 and 412 of 2015 and 260 of

  2. The title of these regulations is the Assistance to Small and Medium-Sized Undertakings Regulations.
  3. In these regulations, unless the context otherwise requires: "the Act" means the Malta Enterprise Act; "the Corporation" means Malta Enterprise established under the Act; "Guidelines" means such guidelines as may be published by the Corporation from time to time in terms of the Act; "intangible assets" means the transfer of technology by the acquisition of patent rights, licences, know-how or unpatented technical knowledge; "organisational innovation" means the implementation of a new organisational method in the business practices, workplace organisation or external relations of an undertaking; "large undertaking", "medium-sized undertaking", "small undertaking" and "micro undertaking" shall have the meaning attributed to them by Annex 1 of Commission Regulation (EC) No 800/2008 of 6 August 2008 declaring certain categories of aid compatible with the common market in application of Articles 87 and 88 of the Treaty (General block exemption Regulation): Provided that as from the 1st July 2014, the definition of " l a rg e u n d e r t a k i n g " , " m e d i u m - s i z e d u n d e r t a k i n g " , " s m a l l undertaking" and "micro undertaking" shall have the meaning attributed to them by Annex I of Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty (General block exemption Regulation); "process innovation" means the implementation of a new or significantly improved production or delivery method (including significant changes in techniques, equipment and, or software); "qualifying expenditure" means that expenditure that may q u a l i f y f o r a s s i s t a n c e i n t e r m s o f t h e s e r e g u l a t i o n s an d i n accordance with the Guidelines; "start-up undertaking" means an undertaking which has been in operation for a period of less than five years; *see regulation 1

(2)of these Regulations, as originally promulgated. Citation. Interpretation. Amended by: L.N. 59 of 2009; L.N. 212 of
  1. Cap.
  2. 2 ASSISTANCE TO SMALL AND MEDIUM-SIZED UNDERTAKINGS [ S.L.463.03 "tangible assets" means fixed physical assets in relation to the creation of an undertaking, or extension of an existing undertaking, or engagement in activity involving fundamental product or production process change; "technological product innovation" means the implementation or commercialisation of a product with improved performance characteristics such as to deliver objectively new or improved services to the consumer; "undertaking" means any individual or body of persons, whether registered or not and whether having distinct personality or not, who or which carries on a qualifying activity and includes any association or other body of persons which promotes or supports the goals or objectives of such undertakings. Qualifying activities. Amended by: L.N. 59 of
  3. 3.
(1)A qualifying activity in terms of these regulations shall be an economic activity carried on or intended to be carried out by an undertaking in Malta which consists solely of (
  1. a)(
  2. i)the production, manufacture, improvement, assembly, preservation, processing of any goods, materials, commodities, equipment, plant machinery; (
  3. ii)the rendering of any industrial services analogous to the activities mentioned in subparagraph (i); or (iii) the repair, overhaul or maintenance of pleasure crafts, yachts not having more than thirty berths, aircraft, engines or equipment incorporated or used in such vessels or aircraft; (
  4. b)I.C.T. developmental activities, software development, IT enabled business services including call centres and IT business solutions as may be prescribed in the Guidelines, but excluding telecommunications service providers; (
  5. c)research and development, and innovative start-up projects as may be prescribed in the Guidelines; (
  6. d)eco-innovations, waste treatment and environmental solutions as may be prescribed in the Guidelines; (
  7. e)biotechnology, comprising the production or development of intellectual property or goods or the rendering of services resulting from, or related to, the study, research, discovery, application, modification or development of living organisms or materials derived from them; (
  8. f)the provision of facilities directly required in the development and production of feature film, television programmes or commercials as may be prescribed in the Guidelines; (
  9. g)the provision of science and technology private tertiary education as may be prescribed in the Guidelines; ASSISTANCE TO SMALL AND MEDIUM-SIZED UNDERTAKINGS [ S.L.463.03 (
  10. h)the provision of private health-care services through the setting up of new projects carrying out an investment of not less than 2.5 million euro in medical equipment, excluding land or buildings: Provided that an undertaking carrying out the activities set out in this sub-regulation shall only qualify for the benefits provided by these regulations if the project is approved by the Corporation, and, in giving its approval, the Corporation may impose such conditions as it deems fit: Provided further that an undertaking shall not qualify for any of the benefits provided by these regulations if (
  11. a)the undertaking sells by retail and, for this purpose, an undertaking shall be deemed not to sell by retail if its sales of goods or services are made to (
  12. i)a person who carries on a trade and the goods or services so sold to such person are either resold by such person or are used by such person for the purpose of his trade; or (
  13. ii)a person, other than an individual, who uses those goods or services for the purpose of trade carried on by such person; (iii) a person through e-commerce activities resulting in online transactions effected through a secure payment system; (
  14. b)the undertaking’s trade or business includes any one of the following activities: (
  15. i)dividing, sorting, packaging, mixing without changing the character of the good, drying, labelling, or other similar processes or any combination of such processes to goods which are acquired in bulk merely to prepare those goods for sale or distribution, excluding goods in respect of which the said company carries on any other activity referred to in sub-regulation
(1)(a)(i); (ii) the assembly of any goods where
  1. the final assembled good is clearly recognisable from the individual components or parts from which it is assembled without regard being had to any exterior casing of the good; and
  2. the components and parts from which the good is assembled are such that the good is nearly complete and the assembly work and the supervision of such assembly work only require the employment of almost exclusively unskilled workers, such that the assembly operation is of a spurious nature when considered in the light of manufacturing activities; 3 4 ASSISTANCE TO SMALL AND MEDIUM-SIZED UNDERTAKINGS [ S.L.463.03 (iii) without prejudice to sub-regulation
(1)(a)(i), the repair, maintenance, preservation, improvement, reconditioning, refurbishing or restoration of any good or any combination of such activities where such activities do not impose on such goods a change in their character; (iv) without prejudice to sub-regulation
(1)(a)(ii), the installation, commissioning or assembly of goods on site, where the said goods have not been manufactured by the undertaking which is installing, commissioning or assembling the goods on site: Provided that the provisions of this paragraph shall not be applicable to an undertaking which carries on only any one or more of the activities set out in subregulation
(1)(
  1. b)to (h); (
  2. c)the trade or business of an undertaking includes the preparation or production of "food in the course of catering" including (
  3. i)meals or snacks including 1. hot and cold dishes including antipasto and dessert; 2. sandwiches, toast, potato chips, sausage rolls, pizza, pastizzi, qassatat and similar snacks; 3. biscuits, cakes, confectionery and similar items but excluding those sealed in a package by the manufacturer and supplied in that original sealed package, and those items which individually weigh 500 grams or more; 4. food supplied in restaurants, cafeterias, canteens, bars and other similar establishments; 5. food prepared or produced for parties, functions, weddings and similar events; 6. food prepared or produced for consumption by persons pertaining to a particular location or organisation, including patients in hospitals or homes, residents of hotels or guest houses, workers in a particular workplace and the preparation or production of food in similar circumstances; (
  4. ii)milk, milkshake, tea, coffee and chocolate supplied in liquid form, excluding milk and milkshake supplied by the manufacturer thereof in bottles and containers for distribution to retail outlets but including any form of drink which is merely produced by adding liquid to powder or substance and where such drink is produced in ASSISTANCE TO SMALL AND MEDIUM-SIZED UNDERTAKINGS [ S.L.463.03 5 order that it may be served in a bar, restaurant, canteen, cafeteria or other establishment or place to individuals for consumption.
(2)A small or medium-sized undertaking not carrying on a qualifying activity in terms of sub-regulation
(1)may still qualify for assistance in terms of these regulations if it carries out activities or projects that lead to process, product or service innovations.
(3)A start-up undertaking not intending to carry out a qualifying activity in terms of sub-regulation
(1)may still qualify for assistance in terms of these regulations if it intends to carry out activities or projects that lead to process, product or service innovations.
(4)A small or medium-sized undertaking not carrying on a qualifying activity in terms of sub-regulation
(1)may still qualify for assistance in terms of regulations 6 and 10 provided that its activities are compatible with the State Aid rules of the European Union. 4. Where the Corporation is satisfied that a small or mediumsized start-up undertaking carrying on or intending to carry out a qualifying activity that may contribute to the economic development of Malta, requires assistance for the development of a new business, the Corporation may provide such an undertaking with a cash grant for the acquisition of tangible or intangible assets or for the procurement of services. This assistance shall not exceed - Assistance for the development of a new business by a small or mediumsized start-up undertaking. Amended by: L.N. 59 of 2009; L.N. 212 of 2015. (
  1. a)50% for small undertakings and 40% for mediumsized undertakings of the qualifying expenditure in tangible and intangible assets; (
  2. b)50% of the qualifying expenditure for the acquisition of services: Provided that applications for assistance under this regulation shall reach the Corporation by not later than the 30 th June, 2014. 5. Where the Corporation is satisfied that a small sized startup undertaking carrying on or intending to carry out a qualifying activity that may contribute to the economic development of Malta requires assistance with respect to: (
  3. a)legal, advisory, consultancy and administrative costs directly related to the setting-up of the undertaking; (
  4. b)payment of interests on external finance required in the acquisition of tangible or intangible assets; (
  5. c)energy and water costs; (
  6. d)depreciation of tangible or intangible assets; (
  7. e)payments for leasing or renting of production facilities and equipment; or (
  8. f)wage costs including compulsory national insurance payments. Assistance to small sized start-up undertakings. Amended by: L.N. 212 of 2015. 6 [ S.L.463.03 ASSISTANCE TO SMALL AND MEDIUM-SIZED UNDERTAKINGS the Corporation may provide such an undertaking with a cash grant that shall not exceed 35% of the qualifying expenditure incurred in the first three years after the creation of the enterprise and 25% of the qualifying expenditure in the two years thereafter: Provided that applications for assistance under this regulation shall reach the Corporation by not later than the 31st December, 2013. Assistance for innovation. Amended by: L.N. 59 of 2009; L.N. 212 of 2015. 6. Where the Corporation is satisfied that a small or mediumsized undertaking carrying on or intending to carry out a qualifying activity that may contribute to the economic development of Malta, requires assistance to carry out technological, product or service innovation, process innovation, eco-innovation or organisational innovation, the Corporation may provide such an undertaking with a cash grant that shall not exceed (
  9. a)50% for small undertakings and 40% for mediumsized undertakings of the qualifying expenditure in tangible and intangible assets; (
  10. b)50% of the qualifying expenditure for the acquisition of services: Provided that applications for assistance under this regulation shall reach the Corporation by not later than the 31st December, 2013. Assistance of experts. Amended by: L.N. 212 of 2015. 7. Where the Corporation is satisfied that a small or mediumsized undertaking carrying on or intending to carry out a qualifying activity that may contribute to the economic development of Malta, requires the ass istance of expe r ts in a par t i c ul a r fi e l d , t he Corporation may provide such an undertaking with a cash grant that shall not exceed 50% of the qualifying expenditure of the services of such experts: Provided that such cash grant shall not be given in respect of services which are of a continuous nature or are provided periodically and relate to the undertaking’s usual operating expenditure such as routine consultancy services or advertising: Provided also that applications for assistance under this regulation shall reach the Corporation by not later than the 30th June, 2014. Assistance to participate in fairs and exhibitions. Amended by: L.N. 212 of 2015. 8. Where the Corporation is satisfied that a small or mediumsized undertaking carrying on or intending to carry out a qualifying activity that may contribute to the economic development of Malta, requires the assistance to participate in fairs and exhibitions, the Corporation may give such an undertaking a cash grant which shall not exceed 50% of the qualifying expenditure for renting, setting up and running the stand: Provided that such cash grant may only be provided in respect of the first participation of an undertaking in a particular fair or exhibition: Provided also that applications for assistance under this regulation shall reach the Corporation by not later than the 30th ASSISTANCE TO SMALL AND MEDIUM-SIZED UNDERTAKINGS [ S.L.463.03 7 June, 2014. 9. Where the Corporation is satisfied that a small or mediumsized undertaking carrying on or intending to carry out a qualifying activity that may contribute to the economic development of Malta, requires assistance in the preparation and submission of proposals for participation in projects funded through initiatives promoted by the European Union such as the Seventh Research Framework Programme (FP7) or the Competitiveness and Innovation Framework Programme (CIP), the Corporation may provide a cash grant not exceeding 65% of the qualifying expenditure related to personnel and other services required for the preparation and submission of the proposal: Assistance in the preparation and submission of proposals for participation in projects funded by the FP7 or CIP. Amended by: L.N. 212 of 2015. Provided that applications for assistance under this regulation shall reach the Corporation by not later than the 31st August, 2013. 10. Where the Corporation is satisfied that a small or medium size undertaking carrying on or intending to carry out a qualifying activity that may contribute to the economic development of Malta requires assistance to (
  11. a)achieve a recognised quality certification related to processes, products or services; Assistance for improvement in the quality of products. Added by: L.N. 102 of 2013. Amended by: L.N. 212 of 2015. (
  12. b)achieve a recognised environmental certification; (
  13. c)adopt an operations manual or to acquire a franchise licence; (
  14. d)undertake a due diligence exercise leading to the acquisition of a licence required for participation in a value chain; (
  15. e)acquire a quality mark, the Corporation may, in accordance with the Guidelines, assist such an undertaking with a tax deduction equivalent to one hundred and fifty per cent (150%) of the eligible expenditure incurred up to a maximum expenditure of twenty thousand euro (€20,000): Provided that applications for assistance under this regulation shall reach the Corporation by not later than the 31st December, 2013. 11. Where the Corporation is satisfied that a small or mediumsized undertaking carrying on or intending to carry out a qualifying activity that may contribute to the economic development of Malta, requires assistance in developing and enhancing its business activities through the use of ICT and e-business, or through the development of ICT products or services, the Corporation may provide a cash grant not exceeding (
  16. a)50% for small undertakings and 40% for mediumsized undertakings of the qualifying expenditure in tangible and intangible assets; (
  17. b)50% of the qualifying expenditure for the acquisition of services, Assistance for the use of ICT and ebusiness. Amended by: L.N. 59 of 2009. Re-numbered by: L.N. 102 of 2013. Amended by: L.N. 212 of 2015. 8 ASSISTANCE TO SMALL AND MEDIUM-SIZED UNDERTAKINGS [ S.L.463.03 related to the ICT and e-business project: Provided that applications for assistance under this regulation shall reach the Corporation by not later than the 31st December, 2013. Assistance for a viable business concept. Added by: L.N. 237 of 2015. Amended by: L.N. 260 of 2016. 12. Where the Corporation is satisfied that a small start-up undertaking having a viable business concept which is in its early stage of development and that is economically viable as may be prescribed in the Guidelines, and that such a small start-up undertaking requires assistance, the Corporation may provide such an undertaking with a cash grant that shall not exceed the amount of twenty five thousand euro (€25,000) in accordance with the terms and conditions set out in the Guidelines. Provided that for the purposes of this regulation, a ''small start-up undertaking'' shall have the meaning attributed to it in the Guidelines: Provided also that a qualifying activity in terms of this regulation shall be an economic activity carried on or intended to be carried out by a small start-up undertaking as may be prescribed in the Guidelines: Provided further that applications for assistance under this regulation shall reach the Corporation by not later the 30th October, 2020. Assistance to small start-up undertakings in their setting up and initial growth phases. Added by: L.N. 412 of 2015. 13.
(1)Where the Corporation is satisfied that a small start-up undertaking in its setting-up and initial growth phases as may be prescribed in the Guidelines, requires assistance, the Corporation may provide such an undertaking with a repayable cash grant that shall not exceed: (
  1. a)the amount of two hundred thousand euro (€200,000) which amount shall be linked to private equity in accordance with the terms and conditions set out in the Guidelines; or (
  2. b)the amount of five hundred thousand euro (€500,000) for the acquisition of tangible assets in accordance with the terms and conditions set out in the Guidelines: Provided that in order to be eligible for this assistance, the small start-up undertaking must be an innovative undertaking or a knowledge based technology undertaking; (
  3. c)the amount of one hundred thousand euro (€100,000) which amount shall be linked to funding sought through crowd funding platforms in accordance with the terms and conditions set out in the Guidelines.
(2)For the purposes of this regulation: (
  1. a)an ''innovative undertaking: (
  2. i)undertaking'' shall mean an that can demonstrate, by means of an evaluation carried out by an external expert, that it will in ASSISTANCE TO SMALL AND MEDIUM-SIZED UNDERTAKINGS [ S.L.463.03 9 the foreseeable future develop products, services or processes which are new or substantially improved compared to the state of the art in its industry, and which carry a risk of technological or industrial failure; or (
  3. ii)the research and development costs of which represent at least 10% of its total operating costs in at least one of the three years preceding the granting of the aid or, in the case of a start-up undertaking without any financial history, in the audit of its current fiscal period, as certified by an external auditor; (
  4. b)a ''knowledge based technology undertaking'', a ''small start-up undertaking'' and ''tangible assets'' shall have the meaning attributed to them in the Guidelines; (
  5. c)a ''qualifying activity'' shall be an economic activity carried on or intended to be carried out by a small start-up undertaking as may be prescribed in the Guidelines; (
  6. d)an ''undertaking'' shall mean a limited liability company constituted under the Companies Act.
(3)Cap. 386. Assistance under this regulation shall be linked to either: (
  1. a)co-investment linked to private equity; or (
  2. b)the procurement of tangible assets; or (
  3. c)crowd funding campaigns.
(4)(
  1. a)Assistance that may be provided under this regulation shall be repaid over a period of ten years and an interest will be charged on any value outstanding at the end of each calendar year in accordance with the terms and conditions set out in the Guidelines. (
  2. b)The repayment period may be extended in line with the performance of the supported undertaking as may be prescribed in the Guidelines.
(5)Applications for assistance under this regulation shall reach the Corporation by not later than the 31st October,
  2. A small or medium-sized undertaking to be eligible for any of the benefits under these regulations, shall not claim or may not subsequently claim any other benefits with respect to the same costs under any other legislation such that the total aid would result in an aid intensity exceeding that fixed by these regulations. Further condition. Re-numbered by: L.N. 102 of 2013; L.N. 237 of 2015; L.N. 412 of 2015.

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