Young Entrepreneurs Aid Scheme Q&A

The information provided here is for reference only and does not constitute any legal opinion. Administrative Regulation No. 12/2013 serves as the requirements of the Young Entrepreneurs Aid Scheme.

 

1. Q: What is the definition of “young entrepreneur of Macao”?

A: For the purpose of this Administrative Regulation, “young entrepreneur of Macao” refers to:

  1. Macao permanent resident;
  2. aged between 21 and 44;
  3. engaging in industrial/commercial activities in the Macao Special Administrative Region (SAR)

 

2. Q: What are the application requirements for the Young Entrepreneurs Aid Scheme?

A: An application shall be made under the name of a commercial enterprise and shall comply with the following:

  1. the individual commercial entrepreneur(s) (individual owner(s))/shareholder(s) owning over 50% of the capital contributed to the collective person commercial entrepreneur(s) (corporate owner(s)) must be “young entrepreneur(s) of Macao”;
  2. the “young entrepreneur(s) of Macao” shall has(have) never been granted any repayable assistance by the Industrial and Commercial Development Fund (FDIC); for a collective person commercial entrepreneur who has previously been granted an assistance by FDIC, the shareholder solely owning over 50% of the capital contributed to it is also considered as having been granted the assistance;
  3. the entrepreneur(s) is/are not debtor(s) to the Macao SAR;
  4. the enterprise has operated in the Macao SAR for a period not exceeding two years;
  5. the enterprise holds the license(s) required by law to carry out the business activity (except for those who have not yet commenced carrying out the business activity);
  6. the “young entrepreneur(s) of Macao” has/have to complete not less than 42 hours of entrepreneurship-related training courses organised or held by public or private higher education institutions in the Macao SAR, or by the Macau Productivity and Technology Transfer Center (CPTTM); young entrepreneurs possessing higher education degrees, or diplomas of courses with a duration of not less than 1 year, in business administration or similar studies are waived from the aforementioned training courses.

For example: A is 30 years old this year, while XX Trading Company is a commercial enterprise registered at the Financial Services Bureau (DSF) under the name of A as a taxpayer and has been opened for a period not exceeding 2 years with normal tax status; A has never received any repayable assistance granted by FDIC, nor has he ever owned more than 50% of the capital contributed to a limited company that has been granted a repayable assistance by FDIC. Moreover, A is already a holder of a higher education degree in business administration. As a result, XX Trading Company owned by A meets the application requirements.

 

3. Q: Can anyone who has not yet completed the training courses lodge an application for the Young Entrepreneurs Aid Scheme?

A: Young entrepreneurs studying or planning to study the training courses are also allowed to lodge applications for the Young Entrepreneurs Aid Scheme. However, it should be noted that beneficiary entrepreneurs will receive the assistance only after having submitted the copies of certificates of completion of the courses within 180 days from the date of approval of application.

 

4. Q: If a young entrepreneur has not studied a higher education degree in business administration or similar studies, yet the degree contains courses related to business administration, is the young entrepreneur still compulsorily required to study entrepreneurship courses?

A: In fact, not all applicant young entrepreneurs are compulsorily required to study entrepreneurship courses pursuant to the requirements of the new legislation. Considering that those who are holding higher education degrees, or diplomas in courses with a curriculum of not less than 1 year, in business administration or similar studies have possessed a certain level of business and management knowledge, they can be waived from studying entrepreneurship-related courses.

If the young entrepreneur has not studied a higher education degree in business administration or similar studies, yet the degree contains courses related to business administration, he/she is recommended to submit information about the academic results, courses and degree along with the application, so as to enable the Advisory Committee to assess the applicant’s eligibility in an accurate manner; if the Advisory Committee considers such courses unable to meet the requirements after analysis, the young entrepreneur is still compulsorily required to study entrepreneurship courses.

 

5. Q: I am a Macao permanent resident, currently aged 30, who opened a XX Trading Company one and a half years ago. However, I used to have an entrepreneurial attempt when I was 18 as I opened a XX Snacks Store, which has been closed later on. I currently do not have any other business registered at the DSF, may I know does the XX Trading Company that I am currently running meet the application requirements?

A: Although you have previously opened the XX Snacks Store prior to opening the XX Trading Company, your application eligibility will not be affected regardless of whether XX Snacks Store is closed or not, as long as you have never received any repayable assistance granted by FDIC, nor have you ever owned over 50% of the capital contributed to a limited company that has previously been granted a repayable assistance by FDIC. However, it should be noted that XX Trading Company still has to meet other application requirements, such as: opened for a period not exceeding two years, normal tax status, and you have to finish the training courses required by law or hold academic qualifications in business administration or similar studies.

 

6. Q: I am currently 21 years old and opened a XX Snacks Store one and a half years ago. As the business was doing well, I opened a XX Boutique three months ago. May I know whether XX Snacks Store or XX Boutique, both of which currently run by me, meets the application requirements?

A: On the premise of meeting other application requirements, both XX Snacks Store and XX Boutique are eligible for application, as long as you have never received any repayable assistance granted by FDIC, nor have you ever solely owned over 50% of the capital contributed to any company registered at the DSF, or even if you have ever owned over 50% of the capital contributed to a certain collective person commercial entrepreneur, that entrepreneur has never received any repayable assistance granted by FDIC. However, applications can only be lodged for either one of them at one time instead of both.

 

7. Q: XX Café was registered and opened by A over ten years ago and has received repayable assistance granted by FDIC. Around half a year ago, I acquired the ownership of XX Café from A and keep using XX Café as the business name. I would like to know if XX Café, which is currently run by me, meets the application requirements or not.

A: As you acquired the ownership of XX Café round half a year ago, you have not operated the business for more than 2 years. Thus, if you and the café meet other requirements of the Young Entrepreneurs Aid Scheme, both of you are eligible for application.

 

8. Q: XX Café was registered at the DSF in 2003 by ABC Company Limited, of which the shareholders were A (owning 51% of shares) and B (owning 49% of shares). Around half a year ago, I acquired the 51% of shares from A. I would like to know if XX Café, run by ABC Company Limited with me being the largest shareholder, is eligible for filing an application or not.

A: Although you became ABC Company Limited’s largest shareholder half a year ago, the owner of XX Café has not changed as a result and is still collective person commercial entrepreneur ABC Company Limited. Therefore, XX Café, which has been operated by ABC Company Limited for more than 2 years, does not meet the application requirement of the Young Entrepreneurs Aid Scheme.

In this case, since XX Café has been in operation for more than 2 years, it may apply for the SME Aid Scheme if relevant requirements are met.

 

9. Q: Is the individual commercial entrepreneur or the shareholder owning over 50% of the capital contribution who is applying for the Young Entrepreneurs Aid Scheme required to be a full-time entrepreneur?

A: There is no such limitation or requirement in this Scheme.

 

10. Q: How to apply for the Young Entrepreneurs Aid Scheme? What materials/documents should applicants prepare? How to submit an application?

A: To provide convenient services to residents and businesses, commercial enterprises intending to apply for the Young Entrepreneurs Aid Scheme shall submit an online pre-application by logging on to the DSE’s website in the first place.

After the pre-application, bring along the application documents, which include application form (printed and signed after the online pre-application), identification document copy of the owner(s)/shareholder(s), license(s) if any, entrepreneurship proposal or business proposal, relevant information for showing the use of assistance (such as quotation(s) of planned renovation or of equipment to be purchased), copy of document(s) certifying the completion of training courses or copy of proof of academic qualifications in business administration or similar studies.

Submit the application documents to the DSE, Area J (Economic Affairs) of 1st floor of the Macao SAR Service Centre, or service points set up by industrial and commercial organisations as entrusted by the DSE in person or by a representative. Applicants may also make an Appointment for “Services on the Doorstep” through the DSE website to arrange a visit by our enterprise liaison staff to collect the application.

 

11. Q: I am preparing to set up a new business, but it is still under planning at this moment, and I have not yet registered any business at the DSF, can I lodge an application?

A: An application for the Young Entrepreneurs Aid Scheme has to be made under the name of a commercial enterprise.

 

12. Q: What is the maximum amount of assistance available from the Young Entrepreneurs Aid Scheme?

A: Each beneficiary commercial entrepreneur may receive an assistance amounting to a maximum of MOP300,000.00.

                                          

13. Q: Is any administration fee required for an application? How is the interest on the assistance calculated?

A: No administration fee is required for an application. If an application is approved, the financial assistance granted will be interest-free, and the beneficiary commercial entrepreneur is only required to repay the principal in instalments.

                                                                                  

14. : Does the assistance require a guarantor?

A: In case the beneficiary commercial entrepreneur is a natural person (an individual), the entrepreneur has to fully undertake the obligation of the assistance as a debtor, and provide a promissory note with an amount equal to that of the assistance as a guarantee; in case the amount of assistance applied for is higher than MOP100,000.00, the entrepreneur has to offer a Macao permanent resident as another guarantor, who will also fully undertake the obligation of the assistance.

In case the beneficiary commercial entrepreneur is a legal person (company), the company has to fully undertake the obligation of the assistance as a debtor, and provide a promissory note with an amount equal to that of the assistance as a guarantee; in addition, the “young entrepreneur of Macao” is required to fully undertake the obligation of the assistance as a guarantor; in case the amount of assistance applied for is higher than MOP100,000.00, a Macao permanent resident has to be offered as another guarantor, who will also fully undertake the obligation of the assistance, in addition to providing the abovementioned guarantees.

 

15. Q: If an application for the Young Entrepreneurs Aid Scheme is successful, what are the obligations that a beneficiary commercial entrepreneur shall fulfil?

A: A beneficiary commercial entrepreneur is required to fulfil the following obligations:

  1. to submit documents evidencing the use of the assistance every 180 days from the date of obtaining the assistance until the completion of the project;
  2. a beneficiary entrepreneur who has not submitted the relevant permit(s)/licence(s) due to not having started carrying out the business activity at the moment of application shall submit such document(s) within 180 days from the date of being notified of the approval of the granting;
  3. a “young entrepreneur of Macao” who no longer owns more than 50% of the capital contributed to the beneficiary collective person commercial entrepreneur before the full repayment of assistance due to transfer of participation (capital contribution) shall make a notification within 180 days;
  4. written notification shall be made should there be any changes in the scope of business before the assistance is fully repaid.

 

16. Q: Under what circumstances will an approved assistance be cancelled?

A: A granting of assistance will be cancelled with immediate effect if the beneficiary commercial entrepreneur makes a false declaration, provides false information or uses other unlawful means to obtain the assistance. Furthermore, circumstances that will lead to cancellation of granting of assistance are also specified in legislation, mainly including:

  1. non-performance of any one of the obligations of beneficiary commercial entrepreneur;
  2. termination of business activity of the beneficiary commercial enterprise;
  3. the beneficiary commercial entrepreneur no longer operates or owns the commercial enterprise;
  4. the shareholder originally holding more than 50% of the capital contributed to the beneficiary collective person commercial entrepreneur no longer holds more than 50%;
  5. assistance is not dedicated to the purpose(s) that the granting is approved for;
  6. assistance is used by a commercial enterprise other than the beneficiary commercial enterprise;
  7. non-repayment of due assistance for over 9 months, or of the final instalment of assistance for over 3 months.

 

17. Q: If a commercial entrepreneur to which the granting of assistance has been revoked does not refund the assistance, can coercive collection be applied to the enterprise or its guarantor(s)?

A: Yes. If a commercial enterprise does not refund the assistance, coercive collection will be carried out by the Coercive Collection Bureau of DSF.

 

18. Q: How long is the repayment period for the Young Entrepreneurs Aid Scheme? Is it possible to apply for extension of repayment period or early repayment?

A: The maximum repayment period for the Young Entrepreneurs Aid Scheme is 8 years. The repayment period is proposed by the Advisory Committee. This Scheme does not allow extension of repayment period, but allows commercial enterprises to make early repayments.