Financial aid for the creation of spin-offs from public research
Last update
Summary:
You can apply for financial aid for the creation of a spin-off from public research under certain conditions.
The aim of this aid is to support the creation of spin-offs from Luxembourg public research organisations. It is designed to increase their chances of successfully raising initial capital by helping to partially cover their financing needs until this decisive step is achieved.
Who is concerned
Businesses concerned
Spin-offs from Luxembourg public research organisations.
Eligible costs
Eligible costs include the company's operating costs for a maximum period of 18 months prior to potential fundraising.
These costs are classified as follows:
| Category | Description |
|---|---|
| Payroll expenses | Staff remuneration and social insurance contributions |
| Technical and development costs | Rental/acquisition of technical equipment/software, certifications, intellectual property protection, regulatory advice, acquisition of specific technical expertise |
| Testing costs | Acquisition and testing of products/services (example: rental of environmental testing facilities or specific testing environments, acquisition of testing services, laboratory testing, clinical testing, etc.) |
| Data acquisition costs | Acquisition of data and/or specific databases |
| Costs associated with building a customer base | User experience analysis, marketing activities |
| Costs of installations and infrastructure | Rental of laboratories and/or offices, IT infrastructure, use of the Cloud and HPC, etc. |
| General and administrative expenses | Telecommunications, accounting, insurances, legal counsel, etc. |
You must submit details of the estimated costs when applying for aid.
Prerequisites
To qualify for this aid scheme, the spin-off must meet the following eligibility criteria:
- have a valid business permit issued by the Ministry of the Economy;
- be a small enterprise as defined in Annex I to Commission Regulation (EU) No 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market;
- be incorporated as a public limited company or a limited liability company;
- not have been registered for more than one year (either the spin-off itself or the group to which they belong, if applicable);
- have fully paid-up share capital of at least EUR 15,000;
- hold a signed agreement for a licence to commercially use or exploit a technology, know-how or intellectual property right, or have a signed contract for the transfer of such rights from a public research organisation;
- have a solid business plan that has the potential to convince investors and highlights the economic viability and feasibility of their project;
- not have already benefited from an aid scheme.
How to proceed
Filing an application
In order to submit an application for aid to the Ministry of the Economy, you must go through Luxinnovation.
Please note: You must submit your application before the start of the eligibility period for costs. Costs incurred before submitting your application for aid will not be taken into account.
Amount of aid
The amount of aid you can request for the spin-off cannot exceed 80% of the eligible costs needed to bridge:
- the period up to the first fundraising; or
- a maximum period of 18 months.
In addition, the company must provide private financing in the form of:
- cash contributions to the fully paid-up capital; or
- other forms of investment, such as shareholder loans or debt investments, representing at least 20% of the financing requirement for that period.
The maximum amount of financial aid is EUR 200,000, in the form of a capital subsidy, granted by the Ministry of Economy.
Payment of the aid
The aid is divided into two instalments, which are subject to various conditions that the spin-off must fulfil.
First instalment (80% advance payment)
The first instalment is paid as an advance of 80% of the total amount of the aid.
Payment is conditional upon proof that the company has the required 20% co-financing in the form of a cash contribution to the fully paid-up capital, or through other forms of investment, such as shareholder loans or debt investments.
Second instalment (remaining 20%)
The second instalment is available subject to the following conditions:
- one or more notarial instruments confirm that a minimum amount of EUR 200,000 has been raised;
- the submission of a detailed list of costs incurred;
- the submission of a certificate of expenditure duly certified by a chartered accountant.
You must send your request for payment of the second instalment by email, before the deadline specified in the ministerial decision, to the following address: paiement.fae@eco.etat.lu.
You must attach all the documents requested, as listed above, to the payment request form, which must be completed and submitted with the request.
Who to contact
-
Luxinnovation Aid
- Address:
- 5, avenue des Hauts-Fourneaux L-4362 Esch-sur-Alzette
- Phone:
- (+352) 43 62 63 1
- Website:
- http://www.luxinnovation.lu
-
Ministry of the Economy General Directorate for Industry, new Technology and Research
- Address:
-
19-21, boulevard Royal
L-2449
Luxembourg
Luxembourg
L-2914
- Email address:
- fae@eco.etat.lu
- Website:
- https://meco.gouvernement.lu/en.html
Related procedures and links
Links
Further information
-
What is the size of your company?
Video by Luxinnovation on YouTube
-
User guide to the SME definition
on the website of the Publications Office of the European Union
Documents
Legal references
declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty (Text with EEA relevance)Text with EEA relevance
