Synergies and Networking – Development Law 4399/2016

The programme

The aim of the Synergies and Networks scheme - Development Law 4399/2016, is to provide a complete framework of incentives with the main objective of creating business initiatives in existing , start-ups or in under establishment enterprises intending to make an initial investment in one of the eligible sectors of the Act.

Περιεχόμενο επενδυτικού σχεδίου – Χαρακτήρας αρχικής επένδυσης

• Create a new unit
• Capacity expansion of an existing unit
• Diversification of a unit's output into products or services that have never been produced in it
• Fundamental change of the entire production process
• Acquisition of assets of a unit that has ceased operations

Who it concerns

The beneficiaries of this aid scheme are cluster management bodies, i.e. networks of enterprises, which can research/educational institutions may participate (universities, public and private research and development organisations, NPOs, NPIs, etc.), operating at regional level and with a thematic focus. Business clusters are managed and coordinated by a management body with legal personality, in which all its members participate. The cluster manager represents the cluster, develops and implements activities that support its development and create added value for each of its participants.

The business clusters covered by this scheme must include at least:

• six (6) enterprises for investment projects to be implemented in the Region of Attica or the Prefecture of Thessaloniki, or
• four (4) enterprises for investment projects to be implemented in the other counties of the territory.

If the business cluster includes affiliated or cooperating enterprises, these enterprises shall be considered as one for the purpose of determining the minimum number of enterprises required under this paragraph.

The member companies of the management body must be existing companies that are established or have a branch in the Greek territory.
at the time of submission of the application for affiliation. Applications to benefit from the provisions of this scheme may be submitted by an existing or in the process of being set up by a business cluster management body and not by its individual or potential members. Where the managing body has not already been established when the project is subject to the provisions of these schemes, the procedures for its establishment must have been completed within the time limit laid down in the decision to include it. By way of exception, managing bodies whose eligible investment projects are exceeds five hundred thousand (500,000) euros and are subject to this aid scheme, are required to take the legal form of a commercial company or cooperative before the start of work on the investment project.

Eligible business forms

Eligible are companies that are established or have a branch in Greek territory at the time of commencement of the investment project and have one of the following forms:

• trading company,
• cooperative,
• Agricultural Cooperatives (AC), Producer Groups (PG), Agricultural Corporate Partnerships (ACP) of Law 4384/2016 (A' 78),
• firms in the process of being set up, subject to the obligation to have completed the incorporation procedures within the time limit laid down in the incorporation decision,
• enterprises operating under theform of a  joint venture   subject to their registration in the General Register of Companies, 

Υπάγονται επενδυτικά σχέδια όλων των τομέων της οικονομίας με την επιφύλαξη των παραγράφων του άρθρου 7 της προκήρυξης.
 
The following are not considered beneficiaries of and are excluded from aid under this scheme:

• firms in difficulty, as defined in paragraph 18 of Article 2 of the General Tax Code (Article 1(4)(c) of the General Tax Code),
• enterprises which, during the two (2) years preceding the submission of the application for aid, have relocated to the business premises where the initial investment in respect of which aid is requested will take place or have not undertaken not to do so within a period of two (2) years after the completion of the initial investment for which aid is requested,
• enterprises implementing investment projects carried out on the initiative and on behalf of the State, on the basis of a relevant contract for the execution of a project, concession or provision of services.

Program budget

The total budget of the present scheme Synergies and Networks of the Development Law 4399/2016 for 2018 amounts to EUR 100 000 000, of which EUR 80.000.000 relating to the types of aid of the grant, the leasing subsidy and the subsidy for the cost of the employment created come from the Public Investment Budget and the 20.000.000 euros concern the type of aid of the tax exemption.

The entity's participation in the total eligible costs of the investment project may be made either through own funds or external financing, provided that twenty-five percent (25%) of it does not contain any state aid, public support or benefit (Article 14(14) G.A.K.).

The same contribution may also consist ofexternal funding. The alternative ways of covering equity are:

• Increase in share or company capital from new cash contributions
• Capitalization of existing taxable reserves and retained earnings
• Use of existing taxable reserves and retained earnings
• Asset disposal
• Bank loan 

The minimum eligible amount of an investment project for the inclusion of investment projects in this aid scheme is set at the amount of two hundred and fifty thousand (250,000) euros.

Amount of subsidy

Under this notice, aid of up to 55% is foreseen, based on the Regional Aid Map, depending on the region of establishment.

Types of aid

Business clusters consisting of SMEs and/or large enterprises up to 50% are supported with the following types of aid:

• Tax exemption
• Subsidy
• Leasing subsidy
• Subsidization of the cost of employment created

Business clusters, which include a large enterprise with a stake of more than 50% in the management body, are granted the incentives of tax exemption, subsidies for leasing and subsidies for the cost of the employment created,

Restrictions

-The total amount of aid per investment project submitted may reach up to EUR 5.000.000
-The aid granted to each body may not exceed a cumulative total of 10 million euros for an individual enterprise and 20 million for all related and cooperating undertakings

Expenses subsidized

Tangible assets

- Construction, extension, modernisation of buildings and special and ancillary facilities of buildings and landscaping.

Cumulatively cannot exceed 45% of the total eligible costs.

For investment projects in the tourism sector, the rate is set at 60% for building expenditure, while for investments in the logistics sector in 70% also for the building costs of these investment projects. Finally, for buildings that are classified as listed buildings, this coefficient amounts to 80%.

- Purchase of all existing fixed assets, for SMEs, subject to conditions.

- Purchase and installation of new modern machinery and other equipment, technical installations and means of internal transport

- Leases of new modern machinery and equipment

- Special & mechanical installations

Intangible assets

- Technology transfer, purchase of intellectual property rights, licences, patents, know-how and unpatented technical knowledge

- Quality assurance systems, certifications, supply and installation of software and business organisation systems

Eligible expenditure for intangible assets cannot exceed 50% of total eligible expenditure and for SMEs 75%.

Wage cost

The wage costs of the new jobs created as a result of the implementation of the investment project are subsidized, calculated for a period of two (2) years from the creation of each job.

Conditions for wage cost support

1. Mandatory a net increase in the number of Annual Work Units (AWUs) compared to the AWUs of the previous 12 months from the date of submission of the application for membership
2. The filling of jobs should be within 3 years from the date of completion and start of production operation
3. Mandatory job retention for 3 years from the date of their recruitment

Other categories of expenditure

Expenditure on consultancy services and only for new SMEs (not yet seven years from the date of their establishment).

Support is provided for costs for monitoring the implementation of the investment project, for support in obtaining permits, in matters of financing the investment project, organisational and management studies, market surveys, etc.

Important dates

Start of Submissions: 29/10/2018
 
Closing date for submissions: 30/6/2019

Χρήσιμα αρχεία

24/10/2018
Notice of scheme

30/1/2019
Applications extended until 31/3/2019

20/3/2019
Applications extended until 30/6/2019