Supports projects aiming at stimulating the participation of small and medium enterprises in the digital economy, operating at the level of the reinforcement of technical and technological capacities and the modernisation of organisational structures, including modern management practices, and facilitating their integration in the global market and their access to higher degrees of integration in the digital economy.

Goals

• Promoting the reinforcement of the technical and technological capacity of SMEs and the modernisation of their structures, through the participation in the digital economy;
• Encouraging the incorporation of the impact of digital economy in enterprises' internal organisation, through their restructuring and modernisation in the technological, working processes and human resources areas;
• Encouraging the access to higher degrees of integration in the digital economy, through the transition from an active participation stage to an interactive participation stage; 
• Enhancing internal and external market broadening, namely by fostering exports and the entry into new markets; 
• Stimulating the adoption of innovative, cooperative attitudes.

Beneficiaries

Micro, small and medium enterprises (Commission Recommendation 2003/361/EC).

Activity Sectors

Industry, building industry, commerce, tourism, services and transport, in the following EAC:

Activity Sectors	Eligible EAC
Industry	10 to 37
Building Industry	45
Commerce	50 to 52 (except 5231)
Tourism	551, 552, 553, 554, 633, 711, 9232, 9233, 9234, 9261, 9262, 9272, 93041 and 93042
Services	72, 73, 7420, 7430, 9211, 01410, 02012 and 02020
Transport	602, 622, 631, 632 and 634

Investments submitted to Community restrictions under the framework of the Common Agricultural Policy (CAP), as well as investments able to receive EAGGF support under the protocol with the Programme AGRO, are excluded.

On the basis of a duly reasoned proposal by PRIME Executive Director, and depending on their strategic dimension, the Minister for Economic Affairs and Innovation may consider granting support to projects included in other activity sectors, that can receive support under the de minimis regime.

Eligibility Requirements

For the Promoter

• To be legally established;
• To satisfy the legal conditions required for carrying out its activity, namely having been granted all the necessary licenses;
• To have fulfilled all obligations related to taxes and the social security, and towards the incentive paying agencies;
• To have an organised accounting system, according to the National Accounting System;  
• To have a balanced economic and financial situation; 
• To fulfil the criteria mentioned in the definition of small and medium enterprises (Commission Recommendation 2003/361/EC);
• To present an action plan (Annex B of Regulation); 
• To appoint an investment project manager, from to the promoting enterprise’s staff and responsible for the project up to its conclusion; 
• To assume the commitment of allocating the co-financed investment to the relevant activity for a minimum period of five years from the date of the investment conclusion;
• To assume the commitment of maintaining the geographical location established in the project for a minimum period of five years from the date of the investment conclusion.

For the Project

• To represent a minimum eligible investment of €15.000 and a maximum eligible investment of €350.000; 
• To exclude all expenses incurred into before the application date (except for advances related to down-payments up to 50% of the purchasing price of each item, and for studies and projects carried out less than one year before);
• To be implemented within a maximum period of two years; 
• To prove to have guaranteed the project's financing sources.

• Rehabilitation and renovation works in facilities for the setting-up of a technological infrastructure duly justified in the project's objectives;
• Design and fitting of the local network infrastructure; 
• Studies and diagnosis essential to the preparation of the action plan;
• Technical and technological assistance and consultancy, namely relating to the re-designing of processes, of the business process along with the supplying cycle, order process, logistics, content management and internationalisation process; 
• Acquisition of basic computer equipment, namely computers reserved for content management and processing, peripherals, Web servers, firewall and storage units; 
• Standard and specific software, namely browser for Internet access, personal productivity tools, operational and development software, specific software for integration in the global economy, design and implementation of components of information, interaction and transaction, such as content management, safety, payment management, advertising management and management of electronic catalogues; 
• Initial registry of domains and fees associated to application housing in an external organisation, connection to marketplaces and other electronic platforms, preparing and publishing of electronic product and service catalogues, as well as posting/cataloguing in portal directories;
• Intervention of chartered accountants or certified public accountants;
• VAT is deduced whenever the promoter is the passive subject of this tax and can exercise the right to this deduction.

Non-Eligible Expenses

• Acquisition of land-property;
• Acquisition of buildings;
• Subletting rights and space using rights;
• Acquisition of furniture and other equipment, except those deemed as eligible;
• Acquisition of motor vehicles; 
• Acquisition of second-hand goods;
• Internal costs of the promoting enterprise;
• Interests during construction;
• Working capital;
• Advertising;
• Costs related to bank guarantees.

Incentive

Nature and Rates

Non-refundable incentive at a 35% rate.

Surcharges

• 5 percentage points - for projects located within PRASD municipalities (Ministerial Order no. 7515/2004, of 15 April).

The incentives to be granted within the scope of this and other incentive schemes under the de minimis rule shall not exceed €100.000 per promoter, for a three-year period starting from the date of the approval of the first incentive.

The de minimis aid regime does not apply to projects within the transport sector.

Submission of Applications

Applications shall be submitted through an electronic form and either sent via Internet or delivered under the same format at one of the reception desks of the Ministry of Economic Affairs and Innovation.

Applications to SIED shall be submitted by stages. A Ministerial Order of the Minister for Economic Affairs and Innovation shall establish the time limits, themes, regional modulation zones, NUTS covered and budgetary allocations.

At the moment there are no application stages open for this Measure.

Bodies in Charge

ITP – Portuguese Tourism Institute (for Tourism projects)

IAPMEI – Institute for Support to Small and Medium-Size Enterprises and Investment (for all other projects)

Geographical Area

Mainland Portugal.

Updated on November 2006

This information does not dispense with consulting the legislation.

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