Malta has introduced an innovative legal framework through the Companies Act (Youth Enterprise) Regulations, 2026, creating a new form of private limited liability company specifically designed for 16 and 17-year-old entrepreneurs.
The new regulations aim to encourage youth entrepreneurship by allowing minors who have completed compulsory education to establish and operate a “Youth Enterprise”, while ensuring appropriate safeguards through mentor oversight and regulatory supervision by the Malta Business Registry (“MBR”).
A Youth Enterprise has a separate legal personality, enabling it to operate as an independent legal entity distinct from its members. Incorporation is limited to natural persons aged between 16 and 17 residing in Malta, and the company name must include “Youth Enterprise” or “YE”.
The framework imposes a minimum paid-up share capital of €100 per member, with the authorised share capital capped at €20,000, while ensuring equal voting rights among members regardless of capital contribution.
To ensure accountability, every Youth Enterprise must appoint an approved mentor, whose role is to guide the members, monitor financial transparency, and support compliance, without participating in the company’s day-to-day management. Members are also required to complete 20 hours of annual training in business, compliance, or financial literacy.
The regulations further restrict Youth Enterprises from carrying out licensable activities that cannot legally be undertaken by minors and prohibit them from employing staff. However, members retain the ability to gain practical entrepreneurial experience and may later convert the Youth Enterprise into a standard commercial partnership upon reaching the age of 18.
This legislative development represents an important step in bridging the gap between education and entrepreneurship, equipping young individuals with real-world business exposure within a regulated legal framework.
As Malta opens the door to a new generation of entrepreneurs, professional legal guidance will be essential to ensure that Youth Enterprises are established on a sound legal and regulatory footing. Zerafa Advocates is well placed to assist young founders with every stage of the process – from incorporation and governance structuring to ongoing compliance support under the new regulatory framework.
Our team is available to provide practical, tailored advice to help transform entrepreneurial ambition into a compliant and sustainable business venture.
