PUBLIC CALL FOR FINANCING PROPOSED PROJECTS for the Support Instrument – Co-financed Grants for Newly Established Enterprises: Startup and Spin-off

Based on article 25 paragraph 4 of the Law on Innovation Activity (Official Gazette of the Republic of Macedonia no. 79/13, 137/13, 41/14, 44/15, 6/16, 53/16, 190/16 and 64/18) Access instrument management rule of Fund for Innovation and Technological Development on 25.12.2019 Announces a Public Call for proposals for a research project under the Instrument for Co-Financed grants for newly established enterprise ”Start-up ” and ”Spin-off”

The instrument is aimed at encouraging the innovation level in newly established enterprises by providing the necessary financial support for research and development activities. The grant is expected to encourage a culture of risk taking and innovation, to provide support for the enterprises that aim to develop new or improved product, process, and/or service.

The instrument supports projects that are in the phase of proof-of-concept, up to the close-to- market phase.

The instrument is intended for financing of newly established micro, small and medium sized start-up enterprises registered in the Republic of Macedonia aiming to encourage innovation, to implement innovative solutions and support enterprises with high growth potential, as well as to transfer the results of scientific research into applicative i.e. commercial activities by establishing spin-off enterprises.

The goal is to encourage innovation in companies, implement innovative solutions and support companies that have high growth potential, as well as transfer the results of scientific research into applied, ie commercial activities through the formation of spin-off companies.

Under this instrument the Fund for Innovations and Technology Development (hereinafter referred to as: the Fund) shall provide financing of up to 85% (eighty-five percent) of the total project budget, in a maximum amount of 30,000.00 (thirty thousand) EUR. The remaining amount of the project budget shall be provided by the Applicant. (Funds received from the Fund on any other grounds or any other form of state aid shall not be eligible as co-financing by the Applicant).

Eligible for funding under this instrument are applicants who fulfill the following criteria:

  • to be a trade company established in accordance with the Law on Trade Companies and registered in the Central Registry of the Republic of Macedonia,
  • the period from the establishment of the applicant to the date of submission of the project proposal to the Fund shall not have exceeded 6 (six) years
  • to be a micro, small or medium sized enterprise (up to 250 employees),
  • to be with majority Macedonian ownership structure (of 50,1% or more);
  • to be in ownership of a physical person/s and/or micro, small or medium sized enterprises (with a Macedonian ownership structure of 50,1% or more), and/or a higher education, i.e. scientific-research institution (of up to 20% ownership in the applicant
  • the annual income of the enterprise does not exceed 1,000,000.00 (one million) euros according to the financial statements for the previous two fiscal years;
  • not affiliated (according to the Law on Trade Companies) with another enterprise whose total annual revenues of both enterprises exceeds 1,000,000.00 (one million) euros in the previous two fiscal years, except in case of a capital connection with a higher education, i.e. scientific-research institution,
  • to not have accumulated more than 200,000.00 (two hundred thousand) EUR state aid of small importance in the last three fiscal years, including the amount requested from the Fund in accordance with the Law on State Aid Control and the Regulation on the Conditions and Procedures for Granting Aid of Minor importance (de minimis)
  • to not have accumulated more than 100,000.00 (one hundred thousand) Euros state aid of minor importance for a period of three fiscal years, including the requested amount of funds from the Fund, if the enterpirise is active in the road traffic sector, in accordance with the Law on State Aid Control and the Regulation on the conditions and the procedure for granting aid of minor importance (de minimis);
  • to not be in difficulty (an enterprise in difficulty is an enterprise that is unable to meet its obligations from its own resources or funds that it can obtain from its owner/ shareholders or creditors, to stop losses which without outside intervention of providers of aid, will certainly lead to short-term and long-term cessation of operations of the enterprise).
  • not to be engaged in production of coal.

Eligible activities for financing under this instrument are the following

  • Research and development activities;
  • Development of pilot lines;
  • Testing activities;
  • Activities related to the protection of intellectual property and
  • Design.
  • Gross Salaries (only for employees of the Applicant). The amount of the gross salaries for employees engaged in the project should correspond with the established practices of the beneficiary before the start of the project;
  • Purchase or rent of research and development equipment and supplies;
  • Research and development services, subcontractors (e.g. testing, laboratory services etc.);
  • subcontracting research and development services (e.g. testing, laboratory services, etc.)
  • Engaging experts / advisors for other needs directly related to the expected results of the project (expertise related to innovation management, financial management, mobilization of funds and capital, business development, marketing, legal affairs, protection of intellectual property, etc.); 
  • Preparation and submission of patent application, protection of trade mark and industrial design;
  • Office and business support (rent of premises, office costs, bank fees, accounting services, hosting and other types of administrative costs in the maximum amount of 15% (fifteen percent) of the total project budget. The costs for office and business support are awarded on a quarterly basis, as lump sum, for the budget lines for which there is evidence of expenditure.

Only costs incurred for activities carried out during the project’s duration and which are in accordance with the approved project budget and rules and procedures of the Fund, are eligible for financing.

The main criteria for evaluation of the projects and awarding funds under this instrument are: 

  • degree of innovation
  • project quality
  • capacity of the project team
  • market potential
  • impact

The main criteria and sub-criteria for evaluation of the projects are given in the Evaluation Table form.

The duration of the project for which funds are awarded under this instrument can be up to 12 (twelve) months.

Based on justified circumstances, the Beneficiary can request extension of the duration of the project by submitting an elaborated written request stating the reasons for extension. The request shall be submitted before the expiration of the duration of the project.

For financing projects under this call for this instrument is provided a total amount of 1,500,000 (one million and five hundred thousand) euros in denar counter value.

In order to apply, the competitor shall:

  • download the forms by clicking on the “Download Documentation” button;
  • to properly fill in, sign and print the forms for Project Application, Project Budget, Applicant Statement of Acceptance of the Fund’s requirements, Environmental Questionnaire and Transparency and Public Communication Plan.
  • to submit short biographies of the main persons engaged in the project (maximum for five persons);
  • to submit a statement from the Current Situation from the Central Register of the Republic of Northern Macedonia not older than 6 (six) months;
  • to submit a Income Statement submitted to the Central Register of the Republic of Northern Macedonia for the previous two years, except for companies registered in the same year when the project proposal was submitted
  • to submit a Statement for ownership / founding structure of the Applicant (notarized)
  • To submit a list / confirmation of the number of employees to the Applicant / consortium representative.

The rest of the documentation should be submitted only in Macedonian language.

 

Due to the increased interest, especially from students and young people from all over the country, the deadline for applying for the public call for co-financed grants for start-ups and spin-off companies has been extended by twenty days, ie until March 15, 2020 ( Until 23:59).

All information and documentation related to the call can be found at the following link: www.fitr.mk and Rulebook for the Support Instrument – Co-financed Grants for Newly Established Enterprises: Startup and Spin-off.

Call us on the telephone number: 02 3145 258

visit us at the Fund’s office, address: GTC, local 6, unit 220, Skopje, R. of North Macedonia