DEVELOPMENT LAW 4399/2016: NEW PROCLAMATIONS [08/12/2020 to 31/03/2021]

Dec 11th 2020 10:39am

The two subsidy schemes of the Development Law have been republished:

  • General Entrepreneurship [6th Cycle], and
  • Entrepreneurship of Very Small and Small Enterprises [4th Cycle]

 Applications will run from December 8, 2020 to March 31, 2021.

The subsidy rates (aid with monetary subsidy, tax exemption) vary depending on the size of the company and on the Region in which the investment plan is implemented. Investment projects start from the minimum amount of 100,000 EUROS (except for Cooperatives, KOINSEP etc where the minimum is 50,000 EUROS).

Expenditures for Buildings and Landscaping, Machinery and Mechanical / Other Equipment are supported. The salary costs, intangible expenses as well as consultants' fees (studies) and start-up expenses for the small and very small enterprises to be established are also supported. [See in detail the Subsidized Expenditures]

Basic Prerequisites for Inclusion in the Development Law 4399/2016

Beneficiaries of the aid are Existing or Under Establishment companies, which are established in the Greek territory and have or will take the form of a commercial company (SA, LTD, IKE, OE, EU), Sole Proprietorship. Also eligible are the following forms: Social Cooperative Enterprises (Koin.S.Ep.), Agricultural Cooperatives (DP), Producer Groups (OP), Agricultural Partnerships (AES), enterprises operating in the form of a consortium subject to registering them at GEMI.

Applications are evaluated comparatively and ranked in descending order according to the score they have obtained. All proposals that receive the minimum acceptable score are funded until the respective budget is covered.

Applications must be related to one of the following:

  • Creating a new unit.
  • Expansion of capacity of an existing unit (certified by official data).
  • Diversification of unit production into products or services that have not been produced before.
  • Fundamental change of the entire production process of an existing unit (for large companies).
  • Acquisition of all assets from a business establishment that has closed and the purchase is made by an investor who is not related to the seller.

In order for a company to join, it is necessary that the subsidized project has not started in advance (purchase of machinery, payment of advances, etc.), before the submission of the Application. Also, non-performing companies are not included, as well as those that have relocated to the place of investment where the subsidized project will take place in the last 2 years.


[GOVERNMENT GAZZETE OF ENTREPRENEURSHIP VS / SMALL ENTERPRISES]

[GENERAL ENTREPRENEURSHIP GOVERNMENT GAZETTE]

[% MAP OF REGIONAL AID]

[SUBSIDIZED EXPENDITURES]

 

Our company, Investment Center (Business Consultants - NSRF Consultants) provides full and complete support, from the first eligibility test, the assessment of the expected score (pre-evaluation) as well as the elaboration - submission of an excellent business plan which will give the maximum possible scoring. With more than 10 years of experience, we fully undertake the integration and support of companies. [See previous projects in the Development Law]. More information at 21080283302810823002 , (info@kei.gr).

 

☆ Experience of more than 10 years in business upgrading aid☆
*NSRF Advisors: RDP, NSRF Tourism, Leader Programmes, Development Law* 

The know-how in combination with the high specialization are the guarantee for the quality of our office services, ensuring the smooth integration of companies in subsidized programs, and the correct disbursement of grants. The high success rates in the recently sponsored programs are the guarantee for the excellent support from our office.


New Additions to the Development Law

With the New Regimes that were announced, new activities are included such as:

• Wholesale Trade of Oil, LPG etc (details),
• Parking Lot Services,
• Athletic Field services (eg 5x5),
• Swimming pool services,
• Recovery & Rehabilitation Centers (details),
• provision of Supported Living Housing for the disabled, etc.

Also in the primary sector (agricultural / livestock production) investments can now exceed 500,000 Euros.


1. General Entrepreneurship - Minimum Investment Amount

The minimum eligible amount of the investment for the inclusion of investment projects in this aid scheme is determined on the basis of the size of the entity, ie:
  1. for large companies, in the amount of EUR 500,000,
  2. for medium-sized enterprises and cooperatives in the amount of EUR 250,000,
  3. for small businesses, in the amount of EUR 150,000,
  4. for very small businesses, in the amount of 100,000 Euros.

The total budget of General Entrepreneurship amounts to 170 million Euros, plus any unallocated amounts from the previous action and is distributed as follows: 70 million Euros for grants, leasing subsidies and subsidies for the cost of employment created and 100 million Euros for tax exemptions.

2. Entrepreneurship of Very Small and Small Businesses - Minimum Investment Amount

The minimum eligible amount of the investment for the inclusion of investment projects in this aid scheme is determined on the basis of the size of the entity, ie:
  1. for small businesses, in the amount of EUR 150,000,
  2. for very small businesses, in the amount of 100,000 Euros.

The total budget of the Entrepreneurship of Small and Very Small Businesses amounts to 205 million Euros, plus any unallocated amounts from the previous action and is distributed as follows: 200 million Euros concern grants, leasing subsidies and subsidies for the costs of the created employment, and the 5 million are related to tax exemptions.

It should be noted that in the Action "Entrepreneurship of Small / Very Small Enterprises" can participate only those companies that employ / will employ less than 50 employees and the turnover or the total annual balance sheet does not (will) exceed 10,000,000 EUROS. Also (and under certain conditions) the MAXIMUM GRANT PERCENTAGE will be raised as a Grant (ie in cash and not in tax exemption), based on the Regional Aid Charter (which does not happen in the General Entrepreneurship regime).

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