The programme
The programme
The draft Decision on the announcement of the aid scheme Entrepreneurship of Micro and Small Enterprises, included in the
Development Law 4399/2016
according to which the submission of applications for inclusion will start at the beginning of June 2019.
The aim of the scheme is to provide a comprehensive incentive framework with the main objective of creating business initiatives for start-ups or micro and small enterprises that intend 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
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 in the form of a consortium, 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,
- their operation shall not be subsidised by public funds for the period of compliance with the long-term obligations referred to in Article 21.
Υπάγονται επενδυτικά σχέδια όλων των τομέων της οικονομίας με την επιφύλαξη των παραγράφων του άρθρου 7 της προκήρυξης.
Program budget
Program budget
The total budget of this Micro and Small Enterprises Entrepreneurship scheme is EUR 150 000 000, of which EUR 145.000.000 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 5.000.000 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
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.
Amount of subsidy
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
-Tax exemption
-Subsidy
-Leasing subsidy
-Subsidization of the cost of created employment
Restrictions
-The total amount of aid per investment project submitted may reach up to EUR 3.000.000
-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
Special categories of aid (Article 12)
In order for a company to be eligible for a higher rate of aid through a grant, it must fall into at least one of the following categories:
1. Outward-looking SMEs: This refers to enterprises that show at least a 10% increase in outward-looking activities on average over the last three years, either 5% if their exports account for more than 70% of their turnover in the third year, or no increase if their exports account for more than 85% of their turnover in the third year prior to the submission of their project.
2. Innovative SMEs: with a minimum of 10% of total operating costs to be covered by research and development expenditure, for at least one (1) year out of the last three (3) years prior to the submission of the application for inclusion in the provisions of this Regulation.
3. Independent SMEs that after the entry into force of the law (22-6-2016) have gone through a merger process either by absorption or by creating a new company - outside the takeover
4. Increase in employment in SMEs by at least 10% over the last three years
5. Cooperatives, Social Cooperative Enterprises (SSEs) of Law 4019/2011, Agricultural Cooperatives (AC), Producer Groups (POs), Agricultural Corporate Partnerships (ACPs) of Law 4384/2016.
6. Investment projects implemented in the ICT (Technology, Information and Communication Technology) and agri-food sectors
7. Enterprises that achieve increased value added compared to the average of their sector as determined by ELSTAT
8. Enterprises which implement their investment plan in B.E.P.E., E.P.E.B.O., E.P.E.B.O., T.I.C.T. and do not concern the modernisation or extension of existing structures of the assisted enterprise.
9. Enterprises implementing an investment project in special regions as defined in a relevant annex to the law (mountainous, disadvantaged, with particularly increased refugee and migrant flows, with population decrease, island, border regions).
10. Enterprises whose investment project is implemented in areas with particularly increased refugee and migrant flows and in particular: Agathonisi, Kalymnos, Kastelorizo, Kos, Leros, Lesvos, Samos, Symi, Chios.
Expenses subsidized
Expenses subsidized
Tangible assets
- Construction, extension, modernisation of buildings and special and ancillary facilities of buildings and landscaping.
The total may not exceed 45% of the total eligible costs.
For investment projects in the tourism sector the rate is set at 60% for building costs, while for investments in the logistics sector it is set at 70% also for the building costs of these investment projects. Finally, for buildings that are classified as listed buildings, the rate is 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 on intangible assets cannot exceed 50% of total eligible expenditure and 75% for SMEs.
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 SMS's (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. These concern start-up costs such as legal and accounting services, organisational studies, etc.
Important dates
Important dates
Start of submissions: Wednesday 3 July 2019
Closing date: Friday 28 February 2020
Useful files
Useful files
21/05/2019
Draft notice decision
31/05/2019
Final Draft Notice Decision
03/07/2019
Notice of the aid scheme
