Entrepreneurship of Micro and Small Businesses – Development Law 4399/2016 – 3rd Proclamation

The programme

The aim of the scheme is to provide a comprehensive incentive framework with the main objective of creating business initiatives for Micro and Small Enterprises intending to make an initial investment in one of the eligible sectors of the law.

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 aid under this aid scheme are  micro, small and medium-sized enterprises, within the meaning of Article 2 of Annex I to the General Tax Code.

Micro and Small Enterprises controlled by shareholders of companies that have ceased trading in the previous 12 months are not eligible for this scheme, provided they operate in the same or adjacent markets,

The following are also not eligible 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.

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:

• sole proprietorship,
• trading company,
• cooperative,
• Social Cooperative Enterprises (SPs) of 4430/2016 (A 2015)), Agricultural Cooperatives (AC), Producer Groups (POs), Agricultural Corporate Partnerships (ACPs) of Law 4384/2016 (A 78),
• companies being formed or merged, with the obligation to have completed the disclosure procedures before the start of work on the investment project,
• enterprises operating under theform of a  joint venture   subject to their registration in the General Register of Companies,
• public and municipal enterprises and their subsidiaries, provided that:
  • they are not entrusted with the service of a public purpose,
  • they are not exclusively entrusted by the State with the provision of services,
  • δεν επιχορηγείται η λειτουργία τους με δημόσιους πόρους για το διάστημα τήρησης των
    μακροχρόνιων υποχρεώσεων του άρθρου 21. 

Υπάγονται επενδυτικά σχέδια όλων των τομέων της οικονομίας με την επιφύλαξη των παραγράφων του άρθρου 7 της προκήρυξης

Beneficiaries - Eligible activities

• Hotels and camping of at least 3 star category
• Health and medical tourism 
• Manufacturing / Industry
• Agri-Nutrition
• Energy
• Supply Chain/Logistics
• Information and Communication Technologies (ICT)

Program budget

The total budget of this Micro and Small Enterprises Entrepreneurship scheme is EUR 150 000 000, of which EUR 140.000.000 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 10.000.000 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 participation can also consist of external funding. The alternative ways to cover 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

Amount of subsidy

The minimum eligible investment project size for the inclusion of investment projects in the present aid scheme is defined on the basis of the size of the entity, i.e:

• for small enterprises, in the amount of one hundred and fifty thousand (150,000) euros,
• for micro enterprises, in the amount of  one hundred thousand (100,000) euros,
• for the Social Cooperative Enterprises (JVs) of Law 4430/2016 (A'205), as well as the Agricultural Cooperatives (AC), the Producer Groups (POs) and the Agricultural Corporate Partnerships (ACPs) of Law. 4384/2016 (A' 78) in the amount of fifty thousand (50,000) euros.

Under the present call for proposals under the scheme "Entrepreneurship of Micro and Small Enterprises, aid of up to 55% is foreseen, based on the Regional Aid Map, depending on the region of establishment.

Types of aid

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

Expenses subsidized

Tangible assets

• Construction, expansion, modernization of building facilities and special and auxiliary building facilities and the shaping of the surrounding area.

  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 for financial leasing of new modern machinery and other equipment
• Special & mechanical installations

Intangible assets

• Transfer of technology, purchase of intellectual property rights, licenses, patents, know-how and unproprietary know-how
• Quality assurance systems, certifications, software supply and installation and business organization systems

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

Wage cost

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

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.
• Start-up costs only for newly established small and micro enterprises. They concern start-up costs, such as legal and accounting services, organisational studies, etc.

Important dates

Start of submissions: Tuesday 1 September 2020

Closing date: Friday 30th October 2020

Useful files

16/03/2021
Third (3rd) Notice of the aid scheme "Entrepreneurship of Micro and Small Enterprises" of the Development Law 4399/2016