Aid for young businesses

Last update 18.10.2018

The Minister of the Economy and the Minister of Finance can grant financial aid to young businesses with strong growth potential, which can already provide at least 2 balance sheets and which have not taken over the activity of another business. The aid granted aims to support the young business in its growth phase. The amount of aid depends on the amount of capital brought by the business ("matching clause").

Who is concerned

Each small business (a business that employs less than 50 persons with an annual turnover not exceeding EUR 50 million or an annual balance sheet total not exceeding EUR 43 million) which:

  • is established in Luxembourg;
  • is not listed;
  • has not been registered for more than 5 years.
  • has not distributed any profits yet; and
  • does not come from a corporate concentration;
  • can already provide 2 annual balance sheets;
  • has a strong growth potential.
In the case of eligible companies for which registration is not compulsory, the 5-year eligibility period can be considered as beginning on:
  • the moment the business commences its economic activity;
  • the moment it becomes subject to taxation for the economic activity in which it is engaged.

Deadlines

The full application file, dated and signed, together with its annexes must be sent before the commencement of the activity in relation with the project or the activity concerned.

How to proceed

Filing an application

The Ministry of the Economy makes available a sample application template for the project in question.

The completed application and accompanying documents must be dated, signed and submitted to the Ministry of the Economy before starting work on the project by mail or email (see the section Who to contact below).

Supporting documents

Applications for aid must include the following information and documents:

  • the name and size of the business (any document deemed necessary may be requested for the determination of the size of the business);
  • a description of the investment project, including its start and end dates;
  • a description of the operating conditions of the investment project and the economic potential;
  • the location of the investment project;
  • the total project cost;
  • a business plan;
  • the form and the amount of financial aid required for the investment project;
  • any other relevant information which would help the ministers in charge to understand the qualities or the specific aspects of the investment project. ou programme (training, tv), program (IT, only if computer-related) et son Incentive effect.

The business must grant the Minister of the Economy and the Minister of Finance the authority to verify with the Luxembourg Inland Revenue, the Registration Duties, Estates and VAT Authority and the Joint Social Security Centre that the business has not avoided its tax and social obligations. If not, the business must attach the certificates issued by these administrations providing proof that all tax and social charges have been duly paid.

Validity period

The payment of financial aid must be requested, on pain of ineligibility, within a period of 5 years from the date of payment of the expense for which aid is requested. The beneficiary of the aid can apply for an extension of this deadline on written request to the Minister of the Economy.

Amount of aid

The amount of subsidies granted in the form of a gross subsidy equivalent (amount before tax and other contributions) cannot exceed EUR 400.000. The capital subsidy is based on the "matching" principle, i.e. if the business successfully collects new funds, the Ministry will grant an equal amount up to a maximum of EUR 400,000.

For any investment project, the amount of aid may not be less than EUR 1,000.

The ministers may not grant aid in excess of EUR 100,000 prior to having requested the opinion of a consultative commission The consultative commission can collect any information on the project, the investment or the beneficiary which is deemed useful, it can hear the applicant and demand the presentation of a business plan or equivalent documents, if applicable. It can also seek advice from experts.

Payment of aid

The aid can take the following forms:

  • loans whose interest rates are not compliant with the market conditions in force and for a maximum duration of 10 years ;
  • guarantees whose premiums are not compliant with the market conditions in force and for a maximum duration of 10 years ;
  • subsidies, in particular in the form of equity capital investments or quasi-equity capital investments, or in the form of interest rate reductions and guarantee premiums;
  • a recoverable advance payment;
  • interest relief. The aid may be paid out by an intermediary, such as a credit institution or a financial establishment under public law.

Capital subsidies and recoverable advances are paid out after completion of the investment project. However, one or more advance payments may be made as the investments are made.

The business and the Minister of the Economy agree together, at the time the aid is granted, on the repayment terms of the recoverable advance payment if the project is successful.

Should the business have outstanding debts concerning social security and tax contributions, the granting of the aid may be subject to the full payment of the debts or to a repayment plan set up by the administrations concerned. The business concerned can opt for a repayment in full or in part of the debts by transferring the aid received to the administrations concerned.

Depending on the general terms and conditions which apply to all types of aid for SMEs, the investment aid:

  • may potentially be combined with other types of financial aid;
  • may potentially have to be reimbursed and sanctions may be applied.

Forms / Online services

Aid for young businesses

To complete your application, the information about you collected from this form needs to be processed by the public administration concerned.

That information is kept by the administration in question for as long as it is required to achieve the purpose of the processing operation(s).

Your data will be shared with other public administrations that are necessary for the processing of your application. For details on which departments will have access to the data on this form, please contact the public administration you are filing your application with.

Under the terms of Regulation (EU) 2016/679 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, you have the right to access, rectify or, where applicable, remove any information relating to you. You are also entitled to withdraw your consent at any time.

Additionally, unless the processing of your personal data is compulsory, you may, with legitimate reasons, oppose the processing of such data.

If you wish to exercise these rights and/or obtain a record of the information held about you, please contact the administration in question using the contact details provided on the form. You are also entitled to file a claim with the National Commission for Data Protection (Commission nationale pour la protection des données), headquartered at 1, Avenue du Rock'n'Roll, L-4361 Esch-sur-Alzette.

By submitting your application, you agree that your personal data may be processed as part of the application process.

Aides en faveur des jeunes entreprises

Les informations qui vous concernent recueillies sur ce formulaire font l’objet d’un traitement par l’administration concernée afin de mener à bien votre demande.

Ces informations sont conservées pour la durée nécessaire par l’administration à la réalisation de la finalité du traitement

Les destinataires de vos données sont les administrations compétentes dans le cadre du traitement de votre demande. Veuillez-vous adresser à l’administration concernée par votre demande pour connaître les destinataires des données figurant sur ce formulaire. Conformément au règlement (UE) 2016/679 relatif à la protection des personnes physiques à l'égard du traitement des données à caractère personnel et à la libre circulation de ces données, vous bénéficiez d’un droit d’accès, de rectification et le cas échéant d’effacement des informations vous concernant. Vous disposez également du droit de retirer votre consentement à tout moment.

En outre et excepté le cas où le traitement de vos données présente un caractère obligatoire, vous pouvez, pour des motifs légitimes, vous y opposer.

Si vous souhaitez exercer ces droits et/ou obtenir communication de vos informations, veuillez-vous adresser à l’administration concernée suivant les coordonnées indiquées dans le formulaire. Vous avez également la possibilité d’introduire une réclamation auprès de la Commission nationale pour la protection des données ayant son siège à 1 Avenue du Rock'n'Roll, L-4361 Esch-sur-Alzette.

En poursuivant votre démarche, vous acceptez que vos données personnelles soient traitées dans le cadre de votre demande.

Beihilfe zugunsten von Jungunternehmen

Ihre in diesem Formular erfassten personenbezogenen Informationen werden von der zuständigen Verwaltungsbehörde verarbeitet, um Ihren Antrag erfolgreich abzuschließen.

Diese Informationen werden von der Behörde für den zur Verarbeitung erforderlichen Zeitraum gespeichert.

Die Empfänger Ihrer Daten sind die im Rahmen Ihres Antrags zuständigen Verwaltungsbehörden. Um die Empfänger der in diesem Formular erfassten Daten zu erfahren, wenden Sie sich bitte an die für Ihren Antrag zuständige Behörde.

Gemäß der Verordnung (EU) 2016/679 zum Schutz natürlicher Personen bei der Verarbeitung personenbezogener Daten und zum freien Datenverkehr haben Sie das Recht auf Zugang, Berichtigung und gegebenenfalls Löschung Ihrer personenbezogenen Informationen. Sie haben zudem das Recht, Ihre erteilte Einwilligung jederzeit zu widerrufen.

Weiterhin können Sie, außer in Fällen, in denen die Verarbeitung Ihrer Daten verpflichtend ist, Widerspruch einlegen, wenn dieser rechtmäßig begründet ist.

Wenn Sie diese Rechte ausüben und/oder Einsicht in Ihre Informationen nehmen möchten, können Sie sich unter den im Formular angegebenen Kontaktdaten an die zuständige Verwaltungsbehörde wenden. Sie haben außerdem die Möglichkeit, bei der Nationalen Kommission für den Datenschutz Beschwerde einzulegen (Commission nationale pour la protection des données, 1, Avenue du Rock'n'Roll, L-4361 Esch-sur-Alzette).

Wenn Sie Ihren Vorgang fortsetzen, akzeptieren Sie damit, dass Ihre personenbezogenen Daten im Rahmen Ihres Antrags verarbeitet werden.

Who to contact

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