Message from the Minister for Energy, Enterprise and Sustainable Development Hon Miriam Dalli
Family businesses are crucial for the Maltese economic prosperity, as they are essential growth and employment drivers across our industries.
Due to their inherent importance, we need to ensure a strong and dynamic eco-system which enable the growth and expansion of our family businesses As Government we are continuously investing in these companies, with particular emphasis being placed on the generational transitioning of family-owned businesses.
In this context, back in 2017, we pushed through legislation to address the needs of the local family businesses followed by the establishment of the Family Business Office.
Our support towards the business community is to continue Collaborating with the Family Business Office, Malta Enterprise promotes small and medium enterprises 70% of which are family owned, by offering incentives tailor made for these companies. With such targeted incentives, we want to tangibly support the growth of Maltese family-driven enterprises, not just through the operational expansion of existent businesses but also to enable them to take up new opportunities to ensure a more prosperous future.
Through the challenges presented during the pandemic months, we ensured that local family businesses would be the prime recipients of financial assistance which would allow companies to go through the worst economic crisis ever experienced. In 2020, the Family Business Office, assisted family businesses in achieving €23 million in tax reductions. Amongst other schemes, family businesses can now benefit from €15,000 over a three-year period to get professional support to be able invest in their succession.
Through this support the Maltese government is effectively supporting this indispensable pillar of the Maltese economy. The Government itself is being proactive to keep on supporting and investing in family businesses through the creation of adequate structures, targeted incentives and support schemes.
Message from the Regulator Dr Joseph Gerada
The Family Business Act, Chapter 565 of the Laws of Malta was introduced in 2017. Since then, the Family Business Office has introduced numerous backed incentives to assist family businesses overcome obstacles which make them vulnerable.
Historically family businesses have been the drive and backbone behind any country’s financial system and have proven to be some of the most robust dynamic sectors of the economy. They are the backbone to the economy generating millions of turnover and their existence provides stability to the economy in a way that no other enterprise can.
It is a fact that, prior to the introduction of the Family Business Act, after years in operation and practise, when it comes to facilitating the transfer, many businesses were faced with either a legislative vacuum or else legislation that would render it not feasible to continue with the transfer. The scope of this legislation is to tackle these difficulties and find sound, practical and responsible ways in paving a way ahead.
Following in the footsteps of my predecessor, as Family Business Office Regulator, I shall endeavour to bring recognition and support to this vital economic sector. The role of the Regulator is intended to assist family businesses in transferring their family business by benefitting from the incentives made available to those registered and receive all due support in the process. Furthermore, the Family Business Office provides support to family businesses in relation to the regulation and governance of their business, the enhancement of their internal organisation and structure, with the aim of helping them to effectively operate their business and pave the way towards a successful succession of the family business.
We welcome and invite all types of family businesses and professionals who assist and operate in this sector to make inquiries at our offices so that together we can help this sector and family businesses evolve and continue in successfully passing on their wealth of knowledge and industry to the next generation.