Financial aid for unemployed persons to start/take over a business

This page was last modified on 16-05-2018

The financial aid available for starting or taking over a business is aimed at the hard-to-place unemployed to help them return to a professional activity.

Applications for financial aid have to be submitted to the Ministry of Labour, Employment and the Social and Solidarity Economy (ministère du Travail, de l'Emploi et de l'Economie sociale et solidaire).

Forms / Online services

Carry out your procedure:

  • By downloading a form

    • Aide à la création d'entreprise - Lignes directrices d'élaboration d'un dossier de demande d'intervention publique

Who is concerned

The following persons may apply for financial aid to start/take over a business:

  • unemployed persons with unemployment benefits for at least 3 months and aged 40 or more;
  • unemployed persons who have been receiving unemployment benefits for at least 6 months;
  • job seekers (even those not in receipt of unemployment benefits):
    • registered with the National Employment Agency (Agence pour le développement de l'emploi - ADEM) for at least 8 months;
    • who have worked in Luxembourg for at least 6 years, provided that their last period of employment ended less than 3 months prior to their registration as a job seeker with the ADEM.

Prerequisites

To benefit from financial aid to start/take over a business, the applicant must:

  • hold a business permit or any other type of authorisation that allows him to access a profession;
  • start or take over a business established in Luxembourg;
  • in the case of a company, be a majority shareholder/partner(i.e. hold more than 50 % of the company shares);
  • not have been declared bankrupt.

Duration and deadlines

The application must be filed, on pain of ineligibility, at least one month prior to the start or resumption of the activity.

How to proceed

Submitting the application

Applicants must send an application for financial aid for business start up to the Ministry of Labour, Employment and the Social and Solidarity Economy.

The application must be accompanied by the following documents:

  • the description of the new activity;
  • in the case of a company, a copy of the articles of association (attesting that the applicant is a majority shareholder);
  • the forecast accounts for the coming year;
  • the business permit(s).
  • a certificate of affiliation as a self-employed worker issued by the Joint Social Security Centre;
  • the paid invoices concerning the creation of the business.
    Only expenses linked to setting up / taking over the business (purchasing equipment, fitting out the premises, etc.) and not those linked to the day-to-day running of the business (telephone expenses, etc.) are covered.

Degree of aid

The amount of aid granted to set up a business is equivalent to:

  • the capitalised amount of unemployment benefits to which the applicant would have been entitled to during the first 6 months following the creation or takeover of the activity;
  • within the limit of the actual expenses related to the creation/takeover, proven by paid invoices.

The aid is payable in one lump sum after the application has been checked and validated by the Ministry of Labour, Employment and the Social and Solidarity Economy.

For job seekers without unemployment benefits, the Minister of Labour sets a fixed allowance depending on each case.

Repayment of the aid

The aid granted may have to be reimbursed (the reimbursement can be spread out over several payments, under certain conditions):

  • in the event of fraud or false declarations;
  • if the business closes or the beneficiary leaves within 12 months following the creation/takeover of the business.

Who to contact

National Employment Agency (ADEM)
1, boulevard Porte de France
L-4360 - Esch-sur-Alzette
Postal box B.P. 289 L-4003 Esch-sur-Alzette
Luxembourg
Phone: (+352) 247-88000
Fax: (+352) 40 59 88
Email info.mai@adem.public.lu

26, rue Zithe

Postal box L-2939 Luxembourg
Phone: (+352) 2478 6100
Fax: (+352) 2478 6108
Email info@mte.public.lu