Support for first-time business start-ups

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The support for first-time business start-ups is:

  • reserved for newly created micro-enterprises in the trade and craft sectors; and
  • paid in 6 monthly lump sum grants of EUR 2,000.

Who is concerned

Eligible businesses

You can apply for this aid if:

  • your micro-enterprise holds a business permit; and
  • its activity, in addition to being a commercial or craft activity, is not among the excluded activities in accordance with the general conditions applicable to all aid measures for SMEs.

Definition of a micro-enterprise

Any company with fewer than 10 employees and an annual turnover or balance sheet total not exceeding EUR 2 million.

Excluded businesses

The aid may not be granted to:

  • businesses in the sectors referred to in article 1, paragraph 2 of the law of 20 December 2019 on the establishment of a de minimis aid scheme and the activities referred to in article 1, paragraph 3 of the same law;
  • businesses that fall within the sectors listed in the annex to the law on the establishment of a financial aid scheme for first-time business start-ups;
  • employers who have been convicted on at least 2 occasions for contravening the provisions prohibiting illegal employment or the employment of illegally resident third-country nationals, during the 4 years preceding the judgment of the competent court, and for a period of 3 years from the date of that judgment.

Prerequisites

To be eligible for first-time business start-up support, you must meet the following conditions:

  • your business must be newly established and have had a business permit for 6 months or less;
  • you, as an entrepreneur, or your partners, if your business is run as a company, must also meet the following criteria:
    • not have held a business permit in your own name or as a partner in the same or any other field of activity during the previous 10 years, nor have carried out economic activities abroad in that capacity during that period;
    • not hold more than 25 % of the shares in another company which has its registered office in Luxembourg or abroad; and
    • not be in receipt of an old-age or disability pension, a salary or other professional income, unemployment benefit, social inclusion income or other replacement income in Luxembourg or abroad;
  • the manager of your company, as defined in the amended law of 2 September 2011 regulating access to the professions of craftsman, trader and certain liberal professions, has taken a business management course organised or recognised by the competent professional chamber; and
  • your company has its own premises that are not used for residential purposes.

How to proceed

Submitting the application

You must submit your application for first-time start-up aid via the MyGuichet.lu platform (see 'Online services and forms').

This procedure requires authentication, i.e. in order to submit your application, you need:

  • a LuxTrust product; or
  • an electronic identity (eID) card.

The procedure is also available in the mobile app.

Supporting documents

You must submit the following information/documents with your application:

  • the name and size of your company;
  • any relations that form a single enterprise (e.g.: majority of voting rights, right to appoint the majority of the members of the administrative body, etc.);
  • a statement of the affiliations of the partners or the entrepreneur in their own name with the Joint Social Security Centre during the 10 years preceding the issue of the business permit;
  • a document issued by the competent professional chamber attesting to the completion of the training provided for by law or, if the person concerned holds a diploma which exempts them from taking this training, a copy of the diploma;
  • a declaration of honour (see 'Online services and forms') written and signed in their own name by each partner or by the entrepreneur, stating that they do not hold more than 25 % of shares in another company which has its registered office in Luxembourg or abroad;
  • an extract from the criminal record of the country(ies) in which the partners or the entrepreneur have resided during the 10 years preceding the application for aid;
  • an income certificate for each partner or the entrepreneur in their own name;
  • a written and signed declaration of honour by each partner or the entrepreneur in their own name, stating that they are not in receipt of an old age or disability pension, do not receive a salary or other professional income, unemployment benefit, social inclusion income or other replacement income;
  • a declaration of honour written and signed in their own name by each partner or the entrepreneur, stating that they have not carried out any economic activities abroad during the last 10 years;
  • a copy of the commercial lease agreement or title of ownership of the business.

Application processing time

The ministerial decision to grant or deny the aid is taken within one month of receipt of the complete application accompanied by all the necessary information and supporting documents.

Amount of aid

The aid takes the form of a one-off capital grant, which is paid in monthly instalments of EUR 2,000 for a maximum of 6 months.

The total amount of aid per single enterprise may not exceed EUR 12,000.

The aid granted is subject to the provisions of article 6 of the law of 20 December 2019 establishing a de minimis aid scheme.

The aid may be combined with other de minimis aid provided that it does not exceed the ceiling set in article 3 of the law of 20 December 2019 establishing a de minimis aid scheme.

Repayment

The business must repay any amount unduly received if it is found to not be in compliance with the conditions laid down in the law after the aid has been granted.

Online services and forms

Who to contact

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