Innovative start-ups 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 company is located in an assisted area or not.
Who is concerned
The financial aid is intended for small enterprises 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 company;
- was registered no more than five years ago;
- that has not yet distributed profits;
- that was not formed through a merger.
In the case of qualifying companies for which registration is not compulsory, the five-year eligibility period can be considered as starting:
- either at the time the company commenced its economic activity;
- or at the time it became subject to taxation for the economic activity in which it is engaged.
- being an innovative company:
- 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 three years or in the current fiscal year for start-ups or private research organisations with no financial history.
Terms and conditions
Companies and private research organisations have to meet the terms and conditions that apply to all types of aid for research, development and innovation.
All start-up costs are eligible for the duration of the project.
How to proceed
Submitting the application
The Ministry of the Economy provides a standard application form for financial aid for start-ups.
The completed application and accompanying documents must be dated, signed and submitted before work starts on the project:
- by email to email@example.com;
- by post to the Ministry of the Economy's Research and Innovation Directorate.
Applications for aid must include the following information and documents:
- the name and size of the company;
- a description of the project or programme, the activity or the investment, and of the related operations 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;
- the type of aid and the 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 amounts 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 the Grand Duchy 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 aux jeunes entreprises innovantes - Lignes directrices d'élaboration d'un dossier de demande d'intervention publique
Junges Innovatives Unternehmen - Leitlinien für die Beantragung staatlicher Fördermittel