Investment and Financing

For companies to be able to submit applications to the incentive system, they must be legally constituted at the time of the application and have started their activity by declaration with the Tax Authority. Thus, there is no impediment for newly created companies.

In order to prove the SME dimension, the company must register in the electronic SME certification of IAPMEI.

The use of this certification is mandatory for all entities involved in procedures requiring SME status (Article 3(3) of Decree-Law No 372/2007 of 6 November).

Not using the SME certification to prove its status means that in the decision-making process, the managing authority classifies it as a Large Enterprise, which then has consequences for the level of incentive granted, since this is typically higher the smaller the size of the enterprise.

Companies of any nature and in any legal form that propose to develop investment projects that fall within the scope of COMPETE 2020 support may apply, including individual entrepreneurs. However, it always depends on the type of project in question, since in certain tenders this may be impeditive. Across the board, it is mandatory for companies to have organised accounting.

The company is in the process of obtaining a license for the workspace from the local authority and will then apply for a license to operate from the competent authority. While dealing with the respective processes, can the company apply for the aforementioned notice, presenting proof of licensing when signing the incentive contract, under paragraph c) of article 13 of Decree-Law no. 159/2014, of 27 October?

In response to the first question posed, it is clarified that, pursuant to Article 13(a) and (c) of Decree-Law No 159/2014 of 27 October, the beneficiaries' eligibility conditions are, respectively, to be legally constituted and to be able to legally carry out activities in the territory. In this regard, it is necessary to differentiate the situation of the company in terms of licensing, the licensing adjusted with the changes resulting from the project, as well as the fact that the investment is intended for the creation of a new establishment or the modernisation of an existing establishment.

In the case of a new establishment, the prior existence of a license is not mandatory, since it can only be granted after the execution of the project, however, for the purpose of implementing the project, the company must demonstrate that it meets the legal conditions for the execution of the investments and, for this purpose, it must submit the application for a license for the establishment and activity object of the project and obtain the license until the closure of the project.

In the case of a project carried out in an existing establishment of the company, the company must have a valid industrial license for the establishment concerned.

For this purpose, the company declares in the application form the legal conditions for the implementation of the investments, and for this purpose it must instruct the request for changes to the license for the changes resulting from the project and obtain the license until the closure of the project, or undertake to demonstrate that the project does not involve changes that require licensing.

It is also clarified that under the terms of paragraph 2 of art. 5 of RECI, the demonstration that it meets the legal conditions for the purpose of implementing the project (instruction of the license application at the competent authority), can be reported until the date of acceptance of the decision and its proof (electronic submission of supporting documentation) is allowed until the 1st Payment.

In addition to the head office, a factory, workshop, warehouse, subsidiary, or branch situated in a topographically identified place distinct from the head office is also to be regarded as an establishment. In or from establishment economic activities are carried out for which one or more persons work on behalf of an enterprise. Subsequently, all investment items should be linked to the establishment to which it will be allocated.

Article 2(v) of the RECI defines "Net job creation" as "the net increase in the number of workers directly employed in the enterprise, calculated as the difference between the monthly average of the year of project completion and the monthly average of the pre-project year". The information available in the HEI should be considered.