While most state aid is available to all businesses established in Luxembourg, some are specifically reserved for SMEs, small and medium-sized enterprises. In other cases, financing rates may vary depending on the size of the company.

But what are the thresholds that must be met for your business to be considered “small” or “medium”?

Those concerning the number of employees and financial data are quite easy to remember:

A “small” company:

  • has fewer than 50 employees in full-time equivalents


  • generates an annual turnover of less than or equal to €10 million
  • has a balance sheet total of less than or equal to €10 million.

A “medium-sized” company:

  • has fewer than 250 employees in full-time equivalents


  • generates an annual turnover of less than or equal to €50 million
  • has a balance sheet total of less than or equal to €43 million.

But do you know over what scope this data should be measured? Because beyond the knowledge of these three thresholds,, it is important to know that the concept of a “small” or “medium-sized” enterprise is not only based on the scope of your legal entity but also takes into account the broader concept of the group to which it belongs.

What are the linked companies or the partner companies of your own company in the context of subsidy applications? Do you know how to take into account the headcount, turnover, and total balance sheet data of these linked or partner companies?

It is to enable you to better understand the calculation of the size of your company that Luxinnovation has created this explanatory video which allows you, in less than 5 minutes, to understand everything about these thresholds and how to calculate them.

Without forgetting that even if your company is a large company, it can obviously benefit from certain state aid.

Please note: the aim of this video is to provide you with simplified guidance when applying the SME definition. It is not legally binding, and its authors may not be held liable in any way whatsoever. Commission Recommendation 2003/361/EC, as published in the Official Journal of the European Union L 124, page 36 of 20 May 2003, is the sole authentic basis for determining the conditions regarding qualification as an SME.



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