Legal framework to allow 16-year-olds to open and run businesses

A new legal framework that would allow young people aged 16 and above to establish and operate their own businesses has been announced by Prime Minister Robert Abela earlier on Thursday (today).

The initiative, known as Intrapriża16, was revealed during an event held at Ġ. F. Abela Junior College and forms part of measures outlined in this year’s national budget aimed at strengthening youth entrepreneurship.

Under the proposed framework, teenagers from the age of 16 will be able to set up companies through what the Government described as a responsible and regulated system. The initiative is intended to address legal constraints that currently make it difficult for minors to engage independently in commercial activity.

At present, individuals under the age of 18 generally require court procedures or parental legal arrangements to enter into binding commercial contracts or operate businesses. These restrictions have often discouraged young people who wish to commercialise ideas or launch small ventures while still in education.

Speaking at the event, the Prime Minister said the reform was developed after recognising that young entrepreneurs were encountering legal barriers when attempting to launch business projects before reaching adulthood.

He explained that the new framework would provide structured support through several institutions, including the Malta Business Registry, Aġenzija Żgħażagħ, and JA Malta.

According to the Government, Malta would be among the first European countries to introduce such a system aimed specifically at enabling entrepreneurship among teenagers.

The reform builds on longstanding calls from organisations working with young entrepreneurs. In particular, JA Malta had previously proposed that individuals under 18 should be allowed to legally register and operate businesses, noting that current regulations limit their ability to obtain VAT numbers or establish companies without complex legal arrangements.

The organisation argued that these barriers can discourage entrepreneurial activity among young people who are otherwise permitted to work, marry or participate in local governance from the age of 16.

In earlier recommendations submitted ahead of the 2025 Budget, JA Malta suggested introducing mechanisms that would allow teenagers to experiment with business activity in a controlled environment before reaching adulthood. These proposals included the possibility of a structured framework enabling young people to develop products, carry out research and development, and conduct limited commercial transactions.

Commenting on the Government’s initiative, Minister for the Economy, Enterprise and Strategic Projects Silvio Schembri said the measure is intended to provide young people with the confidence and support required to pursue their entrepreneurial ambitions.

Parliamentary Secretary for Youth, Research and Innovation Keith Azzopardi Tanti added that the framework represents a broader effort to empower a new generation of entrepreneurs by giving them the tools to transform ideas into viable ventures.