Financial aid for young innovative enterprises
Last update
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.
In order to support young innovative businesses, the Ministry of the Economy has decided to increase the maximum co-financing rate from 50 % to 70 % for any financial aid 'young innovative enterprises' granted. This temporary support measure will remain in force at least until 31 December 2024 or until the date of ratification of the bill of law renewing the aid schemes for research, development and innovation, whichever is the earlier.
Applications for aid must be submitted using the online assistant available on MyGuichet.lu. Luxinnovation can provide help to set up your projects.
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.
Prerequisites
Terms and conditions
Companies and private research organisations must satisfy the terms and conditions that apply to all types of aid for research, development and innovation.
Eligible costs
All costs borne by the young innovative enterprise are eligible for the duration of the project.
How to proceed
Submitting the application
The aid application for young innovative enterprises is to be submitted using an online assistant available on MyGuichet.lu.
The person submitting the application (the applicants themselves or their representatives) must have a LuxTrust product or an electronic identity card.
The application must be submitted before the commencement of the work.
How to create a business eSpace on MyGuichet.lu
There are 2 possible scenarios:
- You are a new user of MyGuichet.lu. You must:
- first register on MyGuichet.lu; and
- then create a business eSpace.
- You already have a private eSpace on MyGuichet.lu. You can directly create a business eSpace without having to register again.
Further information as well as tutorials in relation with the business eSpace are available in our dedicated help page.
Supporting documents
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 Dudelange, Bettembourg, Wiltz, Winseler et Kiischpelt).
Payment of the aid
The capital subsidy and repayable advance are paid out after the completion of the project, programme or activity.
However, one or more advance payments may be made as the investments are made.
The application for payment of the aid is to be submitted using the online assistant available on MyGuichet.lu. This can be done in 2 different ways:
- in a detailed manner, where each individual cost is reported: to be used if there are 10 invoices or less to be declared; or
- in a summarised manner, where the total per type of cost is reported: to be used if there are more than 10 invoices to be declared.
Details of the documents to be provided depending on the cost statement templates are available under "Pièces à joindre à la démarche en ligne MyGuichet.lu de demande de paiement".
The person submitting the payment application (the applicants themselves or their representatives) must have a LuxTrust product or an electronic identity card (eID).
Online services and forms
Who to contact
-
Ministry of the Economy General Directorate - Industry, New Technologies and Research (Financing and State Aid)
- Address:
-
19-21, boulevard Royal
L-2449
Luxembourg
Luxembourg
L-2914 Luxembourg
- Email address:
- FAE@eco.etat.lu
- Website:
- https://meco.gouvernement.lu/fr.html
-
Luxinnovation Aid
- Address:
- 5, avenue des Hauts-Fourneaux L-4362 Esch-sur-Alzette Luxembourg
- Phone:
- (+352) 43 62 63 1
- Email address:
- aides@luxinnovation.lu
- Website:
- http://www.luxinnovation.lu
Related procedures and links
Procedures
Tutorials
Links
Further information
-
User guide to the SME definition
on the website of the Publications Office of the European Union
-
Summary table of the different types of aid
Pdf • 567 Kb
-
Financial aid application procedure for businesses: List of attachments to be provided depending of the type of aid requested
Pdf • 465 Kb
-
What is the size of your company?
Video by Luxinnovation on YouTube
Legal references
-
Règlement (UE) modifié n°651/2014 de la Commission du 17 juin 2014
déclarant certaines catégories d’aides compatibles avec le marché intérieur en application des articles 107 et 108 du traité
-
Texte consolidé du règlement (UE) n°651/2014 de la Commission du 17 juin 2014 (sans valeur légale)
déclarant certaines catégories d’aides compatibles avec le marché intérieur en application des articles 107 et 108 du traité
-
Loi modifiée du 17 mai 2017
ayant pour objet 1. le renouvellement des régimes d'aides à la recherche, au développement et à l'innovation; 2. les missions de l'Agence nationale pour la promotion de l'innovation et de la recherche
