MEASURE FACT SHEET
Support to investment projects, through the recruitment of executive staff specialized in economics, management and technology, with a ceiling of three per firm and a maximum co-financing allowed by the de minimis rule (€100.000 euros per firm), according to the professional experience of the recruited executive.
Goals
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To foster a new growth and development cycle in the enterprises, by the recruitment of new executive staff for business areas with a strategic dimension;
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To stimulate activities with a strong growth and a high innovation content, including the strategic conversion of activities.
Beneficiaries
Small and medium-size enterprises (Commission Recommendation 2003/361/EC).
Activity Sectors
| Activity Sectors |
Eligible EAC |
| Industry |
10 to 37 |
| Commerce |
50 to 52 |
| Tourism |
551, 552, 633, 711, 926 and 9304 |
| Services |
72, 73, 90, 01410, 02012 and 02020 |
Following a proposal from the managing entities, the Minister for Economic Affairs and Innovation may grant support to projects included in other activity sectors.
Eligibility Requirements
For the Promoter
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As a component of the project, the promoter shall present a strategic diagnosis, to be obligatorily implemented by the enterprise, demonstrating his business strategy and justifying the need to create jobs;
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To be legally established for more than one year;
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To have fulfilled all obligations related to taxes and social security, and towards the paying agencies responsible for the incentive;
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To have an organised accounting system, according to the applicable legislation;
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To prove a balanced economic and financial situation, to be verified by the fulfilment of the economic and financial ratio (Annex C to the Regulation);
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To have had net positive results for the last two years, except when the enterprise was established less then three years before;
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To prove having the management and financial capabilities necessary to fulfil the application objectives;
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To demonstrate not to employ any executive with a profile similar to the one to be hired.
Eligible Expenses
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Strategic diagnosis (up to €15.000);
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Monthly salary plus Christmas bonus, holiday allowance, and any other benefits included in the work contract resulting from the creation of a new job (maximum amount depending on the number of years of professional experience– less than 3 years: 3 statutory minimum wages/month; equal to or higher than 3 years: 5 statutory minimum wages/month);
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Expenses related to vocational training actions (up to €1.000 per executive).
Non-Eligible Expenses
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Any allowances linked to a specific activity development condition;
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Company car, personal communication media, company credit card, daily allowance or any other payment not included in the monthly salary, and the corresponding Christmas bonus and holiday allowance.
Incentive
Non-refundable incentive.
The incentive rate is 40% (or 45% for projects located in PRASD municipalities), and shall apply for 24 months to expenses incurred into during this period for the recruitment of: doctors, masters, graduates or other specialists in technological areas.
The incentive for executives applies only to the creation of one job per beneficiary and per specialised area (for enterprises having NEST statute this limit is two jobs).
As to the diagnosis, the incentive rate is 45%.
Vocational training shall be supported at the maximum rate of 100% of the eligible expenses.
The incentives to be granted shall not exceed €100.000 per promoter, during a three-year period starting from the approval date of the first incentive. All other incentives granted under the scope of any other incentive schemes will be aggregated to this one, under the de minimis aid rules. Globally, the maximum support allowed for that period is €100.000.
No enterprise shall benefit from incentives for the creation of more than three jobs.
Application Submission
Applications must be submitted via Internet, through an electronic form, or at the reception desks of the Ministry of Economic Activities and Innovation.
Applications to this Measure are now suspended (Ministerial Order no. 19624-B/2006, of 25 September).
Body in Charge
Coordinating Bodies
IAPMEI – Institute for Support to Small and Medium-Size Enterprises and Investment
ITP – Portuguese Tourism Board
Geographical Area
Mainland Portugal and the Autonomous Regions.
This information does not dispense with consulting the legislation.
Updated on November 2006.