Interested in setting up a non-profit cannabis association?

The Authority for the Responsible Use of Cannabis (ARUC) organised a convention with the theme “Setting the Standards” on 27^th January 2023. The first major announcement revealed was that the official opening for applications for non-profits will be the 28^th of February 2023.

The Executive Chairperson of ARUC, Mr Leonid McKay, stressed the importance of ensuring a safe and regulated market, having an open dialogue with all stakeholders, prioritising harm reduction, and preventing any forms of commercialisation.

Here is all you need to know about the setting up and licencing process so far:

The Associations will be in the form of non-profit organisations with the below requirements:

• Minimum of two founders (founders must have been a resident in Malta for at least 5 years)
• Minimum of three administration board members (members must have been a resident in Malta for at least 5 years)
• Cannot have more than 500 members (over 18 years of age and resident in Malta)

The Licensing model announced by the Authority is based on progressive pricing based on the number of members which are categorised as below:

• 50 members
• 51 - 100 members
• 101 – 250 members
• 251 – 350 members
• 351 – 500 members

The license fee will be set at €1,000, while the application fee will vary according to membership size. There will also be a harm reduction contribution imposed on the Associations.

As for the Authorisation process here is a breakdown of the steps involved:

• Preliminary meeting with ARUC
• Submission of application including financial, technical, organisational, and operational elements (a risk assessment and business recovery plan would also have to be included)
• Vetting by ARUC and issuance of an In-Principal Approval
• Registration of the Association with the Registrar within ARUC
• Operational Verification
• Attainment of Licence

There are also certain obligations in terms of preparing the financial plan, maintenance of the operational environment, and the technical and organisational setup.

As KSi Malta we can assist you with the application process, preparation of the business plan with financial forecasts, liaising with all involved authorities and governmental entities, and setting up and maintaining the Association. If interested, feel free to reach out to our Business Development Manager, Mr Isaac Sammut, on isammut@ksimalta.com.