| Subsidy Details |
The Scheme:
The DEG has been promoting private investment
in developing and transition countries and partnerships between German
and other European enterprises within the framework of the German
development co-operation for more than 35 years. By promoting the
private sector in these countries, the DEG creates jobs, contributes
to economic growth and increases people's standard of living. The
DEG - German Investment and Development Company, Cologne, grants project-tied
founding and consolidation subsidies (together called start-up subsidy)
to citizens of developing and transition countries who wish to start
up an independent business as entrepreneurs in their home country
or another developing or transition country.
Start-up subsidy:
The NRIs will receive a founding and a consolidation
subsidy for the partial finance of their investment project - in total
called "start-up subsidy". The DEG will grant a maximum of DM 9,000
as a founding subsidy the first time the NRI enterprise invests in
tangible assets, a warehouse and the required operating resources.
A consolidation subsidy of the same amount is then disbursed 12 months
later in order to support the start-up phase, if his business has
developed favourably. Thus, the NRIs will receive a maximum amount
totaling DM 18,000. However, the maximum amount depends on the total
amount of the eligible investment costs and will not exceed 3% of
these expenditures.
Eligibility:
The following entrepreneurs from developing and
transition countries are entitled to apply: � NRIs who have been living
legally in the Federal Republic of Germany for several years or who
usually have returned to their home countries no more than 5 years
prior to the submission of the application � NRIs who have been trained
and/or retrained professionally for at least 1 years (with appropriate
certifications of completion) or who have acquired several years working/
professional experience (as employees) in Germany, and � NRIs who
are capable of establishing their own, independent business as a result
of their technical, commercial or entrepreneurial qualifications.
Eligibility for Project Promotion:
The following types of business start-up projects
in the private sector are eligible for promotion. � Establishing enterprises
� Taking over existing private enterprises � The acquisition of an
equity participation allowing for genuine business activity � Expansion-related
investments in those businesses which are in the initial start-up
phase of the first three years after taking up business activity
Conditions for Subsidy:
The start-up subsidy shall only be granted if it
would be considerably more difficult to assure the success of the
new enterprise without it. A reasonable amount of the financial resources
of the entrepreneur must be used to finance the start-up project.
The applicant must have the technical, commercial and entrepreneurial
qualification necessary to operate in his/her area of business, and
prove this by submitting a CV and certificates or other pertinent
documents (for example, certificates of business activities or training).
The applicant should have commercial know-how and entrepreneurial
skills. Compensation for any lack of commercial expertise may be effected
by engaging an employee experienced in this field or by employing
external commercial specialists. In order to evaluate the start-up
project, the DEG needs a detailed business plan with information on
the type of business to be carried out, the location, infrastructure,
size of the business, the number of employees, the availability of
suppliers and the sales market, the expected turnover and profits.
The business plan should be accompanied by an expert opinion submitted
to the DEG and issued by a competent and independent local institution
evaluating the feasibility of the start-up project and its prospects
of success. As the start-up project can only be promoted if its total
financing is assured, a detailed investment and financing plan is
also required. A start-up project will only be promoted if the applicant
predominantly works in it, thereby making it constitute his/her primary
source of income. It must be assured that the start-up project provides
a viable existence to the applicant and his/her family and that it
meets the debt service for the raised loans. Conclusive evidence of
the sales and earnings to be produced by the start-up project shall
be provided. |
