Aid for young businesses
Last update
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').
Luxinnovation can provide help to set up your projects.
Who is concerned
Eligible businesses
This aid is intended for small and medium-sized enterprises (SME) holding a business permit and which are not active in any excluded activity in accordance with the general terms and conditions applying to aid for SMEs.
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 yet distributed profits;
- does not come from a corporate concentration;
- can already provide 2 annual balance sheets;
- has a strong growth potential.
In the case of eligible businesses 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.
Eligible costs
All costs borne by the young business are eligible for the duration of the project with the exception of excluded expenses as stipulated by Grand-Ducal regulation.
Prerequisites
In order to receive aid for young businesses, the business must observe and fulfil the general terms and conditions applicable to all aid for SMEs.
How to proceed
Filing an application
Applications for aid for young businesses must be submitted:
- via an online assistant available on MyGuichet.lu; or
- using an application file template.
Online application using an electronic assistant
The person submitting the application (the applicants themselves or their representatives) must have a LuxTrust product or an electronic identity card (eID).
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.
Application using the application file template
The complete application file, dated and signed by a person authorised to sign on behalf of the business, and the accompanying documents must be submitted before work starts on the project in electronic format to the Ministry of the Economy.
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 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 or programme and its 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 evaded 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.
Maximum amount of financial 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 grant 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 each investment project, the amount of aid will not be less than EUR 1,000.
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).
The payment application must be submitted before the deadline indicated in the decision/agreement.
Online services and forms
Who to contact
-
Ministry of the Economy General Directorate for SME, Craft and Retail (Department for Support to SMEs)
- Address:
-
L-2914
Luxembourg
Luxembourg
B. P. 535 L-2937 Luxembourg
- Phone:
- (+352) 247 74 704
- Email address:
- info.aide.pme@eco.etat.lu
Related procedures and links
Procedures
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
Download
Excel • 408 Kb
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
-
Loi modifiée du 9 août 2018
relative à un régime d’aides en faveur des petites et moyennes entreprises
-
Règlement grand-ducal du 12 octobre 2018
déterminant la nomenclature des dépenses et des entreprises éligibles au régime d’aides prévu par la loi du 9 août 2018 relative à un régime d’aides en faveur des petites et moyennes entreprises
