Young innovative enterprises may be eligible for financial aid in the form of grants, repayable advances or equity contributions. The financial aid serves to cover part of the eligible costs and the cap varies depending on whether the business is located in an assisted area or not.
Who is concerned
The financial aid is intended for private enterprises and research organisations established in Luxembourg that meet all of the following conditions:
- being an unlisted company or private research organisation that:
- has not taken over the activity from another business;
- was registered no more than 5 years ago;
- has not yet distributed profits;
- was not formed through a merger;
In the case of eligible enterprises for which registration is not compulsory, the 5-year eligibility period can be considered as starting:
- either at the moment the enterprise commences its economic activity;
- or at the time it became subject to taxation for the economic activity in which it is engaged.
- being an innovative enterprise:
- capable of demonstrating, by means of an assessment conducted by an external expert, that, in the foreseeable future, it will develop new or substantially improved products, services or processes compared to the existing state of the art in the sector in question, and which represent a risk of technological or industrial failure;
- whose R&D expenses represent at least 10 % of the total operating costs during a period of at least one of the last 3 years or in the current fiscal year for young enterprises or private research organisations with no financial history.
Terms and conditions
Private enterprises and research organisations have to meet the terms and conditions that apply to all types of aid for research, development and innovation.
All costs borne by the young innovative enterprise are eligible for the duration of the project.
How to proceed
Filing an application
The Ministry of the Economy provides a standard application template for financial aid for young innovative enterprises.
The completed application and accompanying documents must be dated and signed by a person authorised to sign on behalf of the business and must be submitted before work starts on the project in electronic format or by post to the Research and innovation Directorate at the Ministry of the Economy.
In the event of a submission by post, the following must be indicated on the envelope:
Ministère de l'Economie
Demande d'aides d'Etat
The application for aid must namely include the following information and documents:
- the name and size of the company;
- a description of the project or programme, of the activity or investment, and of the related works and its innovative nature, including its start and end dates;
- a description of the economic valuation methods for the results of the project or programme, for the activity or the investment and the related operations, and its economic potential;
- the location of the project or programme, activity or investment and related operations;
- a list of the costs for the project or programme, activity or investment and related operations (business plan);
- the type and amount of aid necessary for the project or programme, activity or investment and related operations;
- any relevant piece of information that will allow the competent ministers to assess the qualities or specificities of the project or programme, activity or investment and related operations plus its incentive effect.
Maximum amount of financial aid
The amount of aid will be calculated on the basis of the eligible costs of the project and may not exceed the following cap:
|Small enterprise or small private research organisation||Small enterprise or small private research organisation established in an assisted area*|
Investments and expenses
|EUR 800,000||EUR 1,200,000|
* assisted area: an area located in Luxembourg and featured on the regional aid map approved by the European Commission for the period from 1 July 2014 to 31 December 2020 (currently Differdange and Dudelange).
Payment of financial aid
Capital grants and repayable advances are paid out after completion of the project or programme concerned.
However, one or more advance payments may be made as the investments are made.
Aid in the form of equity contributions may be paid before the completion of the project or programme.
Forms / Online services
Aid for young innovative enterprises - Guidelines for an application for State aid
Aides pour jeunes entreprises innovantes - lignes directrices pour une demande d'intervention publique
Junges Innovatives Unternehmen - Leitlinien für die Beantragung staatlicher Fördermittel