Starting a first business is never an easy journey. Between securing financing, handling administrative procedures, and managing the initial investments, launching an activity often represents a genuine challenge.
Good news: in July 2023, the Luxembourg government has introduced a new state aid scheme designed to support newly established micro-enterprises operating exclusively in the commerce and craft sectors.
A grant to get started right
This Start-up Support Scheme takes the form of a non-repayable grant of up to €12,000, paid in instalments of €2,000 per month for a maximum of six months.
It aims to assist entrepreneurs launching their first economic activity in the Grand-Duché by offering them greater financial stability during the crucial start-up phase.
Who can benefit?
The aid is reserved exclusively for micro-enterprises employing fewer than ten people, with a total annual balance sheet not exceeding €2,000,000, and holding a business permit issued no more than six months prior.
In addition, the business must operate from its own commercial or craft premises, which may not be used as residential space.
Excluded companies and sectors
Certain sectors are not eligible for this measure, including:
- Primary agriculture and the processing of agricultural products;
- Shopping centres exceeding 400 m²;
- Transport, cinema, tattooing, and liberal professions, among others.
Strict conditions for founders
To ensure that this support truly benefits first-time creators, the scheme excludes anyone who has carried out an economic activity in Luxembourg or abroad during the past ten years.
Founders must also :
- Not hold more than 25% of shares in any other Luxembourg or foreign company;
- Have no other source of income in Luxembourg or abroad (salary, pension, allowance, etc.);
- Complete an approved business management training course offered by a professional chamber or hold an equivalent diploma;
- Automatic exclusion in case of conviction related to illegal employment.
How to apply
The application is submitted online via MyGuichet.lu, using a secure authentication method (LuxTrust or eID).
The file must include several supporting documents related to the company, its managers, and their management qualifications
.
Repayment conditions
If, after receiving the grant, the company is found to no longer meet the eligibility criteria, for instance in the case of a transfer of more than 50% of the activity or ownership, repayment of the aid becomes mandatory, within one year from the aid approval decision.
ParFi Group by your side
At ParFi Group, we have been supporting entrepreneurs for over 50 years, guiding them through every stage of their development, from creation to daily management.
Questions ?
Get in touch with your usual ParFi contact or write to us to info@parfigroup.eu.
