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Company Creation Incentives

Do you need capital for your project?
Do you need financial support to launch your company?

When creating a company, the entrepreneur’s main concern and focus is on ways to make the investment project viable. In addition to the financing solutions available through equity and financing, which aim to allow the creation of the company, through financing in exceptionally advantageous situations, resorting to incentives is the most viable mechanism to turn a good idea into a business.

Application for Business Creation Incentives

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There are, at national level, several initiatives to encourage the creation of new companies, promoted by public entities and which aim to reward good business ideas with incentives, to encourage the realization of these ideas.
These incentives are intended, in this way, to boost the business fabric, by supporting entrepreneurs, with the aim of creating differentiating companies in the national business fabric.

The feasibility study will provide a realistic and credible view of the fundamental question in creating or expanding a business: Is the project viable?

Types of Incentives for Business Creation:

Portuguese Government

At government level, the QREN – National Strategic Reference Framework 2007-2013, is one of the national incentives in force, which aims to qualify human potential, through the enhancement of knowledge, science, technology and innovation, as well as the promotion of high levels and sustained by economic and socio-cultural development and territorial qualification, thus establishing equal opportunities and efficiency of Public Institutions.

Its operational programs aim to encourage the creation of new companies.

I&DT

This incentive supports the development of new products, services or processes, which, being economically viable, respond to global challenges for the coming years, in a commitment to Research and Technological Development Projects (R&DT) .

In this context, and given the current economic context, the priority of this initiative is to support projects that strengthen the competitive capacity of companies in accessing foreign markets. At the internal level of companies, the R&DT program also intervenes in terms of strengthening these skills and valuing results.

Inovation

This incentive and investment support is intended to stimulate innovation, through the production of new goods and services in Portugal or the significant improvement of production, applying organizational innovations and knowledge transfer.

In addition, the measure aims to expand the productive capacity of the sectors covered by the Innovation incentive system, through the introduction of technological improvements and reinforcement of their orientation towards international markets.

The Innovation incentive system is also intended to encourage qualified entrepreneurship and investment in new areas with potential for growth.

Qualification

With the objective of promoting the competitiveness of companies through increased productivity, flexibility, responsiveness and active presence of SMEs in the global market, the Qualification incentive system supports projects promoted by companies, individually or in cooperation, that have as claim the modernization of processes and resources, as well as internationalization or innovation.

The Institute for Support to Small and Medium Enterprises and Innovation (IAPMEI) is the main instrument of economic policies aimed at micro, small and medium-sized companies in the industrial, commercial, services and construction sectors, and is responsible for promoting favorable conditions for the strengthening the entrepreneurial spirit and competitiveness.

Creating a company can also involve IAPMEI and its incentive programs for new projects, namely through Finicia and Modcom.

Finicia

The Finicia program, promoted by IAPMEI, aims to encourage and support bank financing, on a subsidized basis, for the creation of new micro-enterprises or for the expansion of new activities in already established companies.

In this way, this program provides means to facilitate access to financing solutions and technical assistance in the creation of new companies or companies at an early stage of their life cycle, which present innovative and economically viable projects.

Modcom

Directed to the commerce sector, Modcom aims at the modernization and revitalization of commercial activities, in urban or rural areas, as well as the promotion of actions related to commerce.

For unemployed people or young people looking for their first job who have a business idea, the IEFP and Social Security support its operationalization, through incentive programs and investment support, through the advance of unemployment benefits or facilitating access to lines bank credit on subsidized regime.

Through measures specially developed to encourage projects with proven financial viability. If the future entrepreneur is unemployed or looking for a 1st job, the Institute of Employment and Vocational Training and Social Security help create the company itself, based on a new idea, by financing part of the initial investment, through:

  • Advance of unemployment benefits, with the objective of creating a company;
  • Easier access to bank credit lines on a subsidized basis, to support the entrepreneur, when creating a company

The stimulus to the presentation of new ideas with potential and the creation of companies aims to increase entrepreneurial capacity, at national level, as well as a greater performance in terms of entrepreneurship and national competitiveness, compared to other European countries.

The entrepreneurial impulse to search for entrepreneurs who intend to create companies is given through multiple incentives, which each entrepreneur should conveniently analyze, so that the incentives adapt, as much as possible, to the financing needs and object of the project to be developed.

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