Minister for Energy, Enterprise and Sustainable Development Miriam Dalli has launched a new scheme to support family businesses in Malta by providing them the opportunity to hire professionals who can help them draw up a strong succession plan.
Minister Dalli said that a total of €1 million will be invested in this scheme.
During a press conference on Wednesday, Minister Dalli explained that the main reason why this scheme is being launched is to help family businesses keep their business from generation to generation. This will be done by giving businesses the opportunity to address transitionary issues by faciliating access to advisory and mediation services.
She highlighted that this incentive is a financial aid of up to a maximum of €15,000 over a period of three years. This will enable businesses to draw up a plan for succession for their business.
“We do not want businesses to end up with nothing due to a lack in planning. Long-terrm succession planning helps businesses look ahead and plan better,” Dalli said.
She noted that on occassions, a number of family businesses have reached out to the Family Business Office, asking for help due to succession issues.
“Unfortuantely, supporting these businesses is not always possible as sometimes it would be too late. This is why we want businesses to plan ahead with regards to succession planning. When one thinks about things ahead of time, one is leaving a stable structure in place to reassure those working within the businesses and even those who come at a later generation,” Dalli said.
She encouraged family businesses to register with the Family Business Office in order to benefit from existing incentives.
Speaking about the Family Business Act which came into force four years ago, Dalli said that since then, a significant number of incentives and benefits were launched.
The Family Business Act is an enabling legislation created to assist family businesses to achieve continuity between generations, provide legal form and clarity to the sector, provide a legal and administrative framework against which family businesses can finally have a method to guide and facilitate their transition to ensure growth and continuity.
The application to register can be downloaded from the Family Business Office website and prospective applicants should contact the Family Business Office to request authoristation for the services to be acquired.
Applications may be submitted until 30th November 2023.
Malta’s Family Business Office regulator, Joseph Gerada said “that throughout the four years, we have made sure to evaluate the best methods of helping businesses to reach our goals.”
This incentive is one that will help the Family Business Office continue reaching these important goals. In addition, through this incentive we will also help family businesses with direct financial assistance. This would translate into advice and support from professionals to make the necessary plan to ensure that the family business is passed on from one generation to the next, Gerada said.
He highlighted that the incentive is based on two important points. The first involves that of consulting, whilst the second involves providing family businesses with assistance through mediation services that may be needed in the drawing up of a strong plan for that business.