Investment Aid to Shared Service and Research & Development centres

Target group: An entrepreneur who has been registered in Estonia and belongs to an international group, and who also provides support services or serves the function of development activity in the group.

A shared service centre to be created in Estonia can be a centre that provides support functions concerning accounting, finance, personnel (excl. labour force rental), procurement, technical engineering, customer support and technical services (e.g. maintenance and repair) as well as filling support functions related to information technology (incl. software and hardware development) in order to support the business activities of an international group.

Development activities to be conducted in research and development centre that will be created in Estonia include implementing knowledge that has been acquired through studies and the entrepreneur’s previous experience in order to create new materials, products or devices, strengthen or significantly improve processes, systems or services.
Euroopa Regionaalarengu Fond

Total budget

2 million euros.

Goal

Results


Terms and Conditions

  • The maximum grant sum is 200,000 euros.
  • The maximum duration of a project is 18 months.
  • Grant rate:
    • up to 35% of eligible costs, if the support service centre is located in Tallinn or in adjacent municipalities;
    • up to 65% of eligible costs, if the support service centre is located outside of Tallinn or adjacent municipalities;
  • When providing training support, the share of the grant in the project’s eligible expenses is:
    • up to 50% of the fee for the person conducting the training or of the remuneration costs of employees participating in the training;
    • up to 60% of the accommodation costs of the disabled employees who are participating in the training.
  • The applicant has to belong to a group the consolidated turnover of which was at least 100 million euros in the last financial year.
  • The group has to conduct economic activities in at least two foreign countries.
  • As a result of the project, at least 20 new full-time jobs should be created. The average gross salary of the created positions should be at least 1.5 times the size of the county-based monthly gross salary depending on the location of the new centre.
  • The project plan of the applicant has previously received a positive evaluation from the EAS. In order to receive preliminary assessment, please contact the EAS.
  • The following projects are preferred:
    • projects that involve cooperation with vocational training institutions, applied higher education schools or universities in terms of research and development activities;
    • projects that fall within the following growth areas of smart specialisation:
      • information and communications technology (ICT) horizontally through other sectors,
      • health technologies and services,
      • a more effective use of resources.
  • The project should match at least one of the preferences:
    • Projects that involve cooperation with vocational training institutions, applied higher education schools or universities during the eligibility period in terms of research and development activities;
    • The project falls within the growth areas of smart specialisation.
  • The applicant has not received prior grants given within the framework of this support scheme or prior grants given to support service centres on the basis of Regulation No. 65 of the Minister of Economic Affairs and Communications “Conditions and policies for investment aid to industrial and service entrepreneurs”.
  • The regulation of investment aid to shared service and reasearch development centres can be found here.

Activities that are supported

  • starting up the activities of a shared service or research and development centre in Estonia and purchasing fixed assets that are necessary for its advancement, including the lease payments that are payable during the project period on the basis of a lease contract used for purchasing the fixed assets;
  • expenses for renovating a building or part of a building that is used as a place of business for the shared service or research and development centre in Estonia;
  • recruitment service expenses of employees who are necessary for the activity of the shared service or research and development centre;
  • wages of the centre staff and the taxes payable from it in proportion to the time spent working on the project;
  • holiday pay in proportion to the time spent working on the project;
  • travel expenses;
  • fees of the person who conducts vocational training for the support service and development centres staff;
  • remuneration for the full-time employees who participate in the training, as well as the national taxes and payments payable from the aforementioned remuneration in proportion to the training participation hours if the employee works on the project only;
  • the minimum resources need for accommodation costs of the disabled employees who are participating in the training.

Application

Prior to submitting an application, you should definitely meet with an EAS Project Manager for Foreign Investments in order to introduce your project and get an evaluation on its suitability, as well as submit a project plan, the requirements of which can be found it the Guidelines.


Allan Selirand
Head of Estonian Investment Agency
+372 627 9781
Allan.Selirand@eas.ee

Information and Support Centre
+372 627 9700
info@eas.ee

Application documents

  • Application form

    The application process is conducted via the EAS e-service. Get acquainted with the application form sample.


Evaluation

The applications are evaluated by an evaluation committee of the EAS.

The evaluation criteria of the application and their percentages of the total grade are the following:
1) project impact in terms of meeting the goals of the measure (55% of the total grade);
2) the applicant’s capabilities in terms of meeting the goals of the measure (25% of the total grade);
3) the quality of project preparation (10% of the total grade);
4) project match to stated preferences (10% of the total grade)

 

Reporting

Reports are submitted via the EAS e-service.
The reporting period lasts at least 6 months.
Both the interim and final report should be submitted within 1 month after the end of the project period by the latest.
EAS will spend up to 42 days on proceedings of the report.

Be sure to use the intermediate report and final report forms.

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