Questions from the 3rd Call for Proposals
Q.1 - Our company is interested in applying for this grant, and we have some questions regarding the documents we need to provide. All legal documents are in Albanian language issued by Albania government. Is necessary to translate the documents in English by an official English translation?
A. 1 The documents requested under section 4.4 of the Guideline for Applicants document “Documents to be submitted” which are issued from the State Institutions, do not need to be translated in the English language.
Please consult the Guidelines for Applicants document that provides details on the format and issuing institution for each supporting document.
Q.2 - During the application process, we have encountered some uncertainty regarding co-financing. For LOT 3, the maximum grant amount that can be requested is €30,000, with a 30% co-financing requirement. We would like to clarify whether the €30,000 limit includes the co-financing portion or if it solely represents the grant amount, with the co-financing calculated separately—bringing the total project value to approximately €42,800.
A. 2 Kindly refer to Section 4.1 of the Guideline for Applicants document “The grant amount”, where it stated as follows: Lot 3: Scale-up stage start-ups – maximum 30 000 EUR [an active registered business entity within the first 13 months and 6 years of registration from the official registration date of the business entity at the QKB to the date of publishing of this Call for Proposals.
The total project budget consists of the grant amount and co-financing.
For example: If you are applying for the maximum amount of €30,000, the breakdown will be as follows:
Grant amount: €30,000
Co-financing: €12,857
Total budget: €42,857
Q.3 - We previously received the Prosecution Document requested from 3rd call in January, before the open call for the project we are now preparing to apply for. As the call is open in February, we would like to confirm whether the document we received is still valid and eligible for submission.
A. 3 Kindly refer to Section 4.4 of the Guideline for Applicants document “Documents to be submitted”, where it is stated that the Document issued by the Prosecution should be issued within three months from the application date.
Q.4 - I am reaching out to request clarification regarding two specific documents required for the application: A certificate issued by the Court confirming that the founder of the start-up has no ongoing penal court cases, dated within three months of the application submission. A certificate from the Prosecution confirming that the founder of the start-up is not under prosecution, also issued within three months of the application submission. Could you kindly provide further guidance on where I can obtain these documents?
A. 4 Please note that both documents are obtained physically respectively from the Court and Prosecution offices.
Q.5 - Our business was registered in January 2019. Does it meet the criteria to apply as a startup under the Challenge Fund?
A. 5 Based on the Guideline for Applicants document, Section 3.1 “Eligibility criteria”: All applicants must meet the following eligibility criteria to be eligible for a grant under the Challenge Fund: have not been registered in QKB for more than 6 years from the date of publication of this Call for Proposals”.
Please note that the date of publication of the 3rd Call for Proposals is 7 February 2025, and as such only startups registered in QKB after February 7, 2019, are eligible to apply to the Challenge Fund.
Q.6 - I am interested in applying for the Challenge Fund grant scheme and need more information. My business is already established, and I am looking forward to further developing it. What documents do I need to submit and complete? Where can I find all the necessary details? I am having trouble locating them on the portal.
A. 6 You may find the published Guideline for Applicants document and relevant annexes on the following link: https://challengefund.euforinnovation.al/apply/.
For the documentation to be submitted, please refer to Section 4.4 “Documents to be submitted” of the Guideline for Applicants document where you may find the relevant information.
Q.7 - I am writing to express my interest in applying for a grant under LOT1 of the EU4Innovation Challenge Fund. I currently reside and work in Sweden, while my team member is in Albania. While reviewing the list of required documents for the application, I noted the following: Document issued by the Court certifying that the founder of the start-up does not have any penal court cases in process, issued within three months from the application date; - scanned in PDF format. Document issued by the Prosecution certifying that the founder of the start-up is not prosecuted by the prosecution, issued within three months from the application date; - scanned in PDF format As I am presently outside Albania and will not be able to travel there before March 17th, is there a recommended way to proceed so that I can still submit a valid application for this call?
A. 7 Please note that all supporting documents including the Document issued by the Court and Document issued by the Prosecution should be submitted within the deadline for applications.
Q.8 - I would like to ask about the documentation required for the grant call. One of the requirements is: "Last Financial statements (Profit Loss Accounts and Balance Sheets) or Last simplified profit tax declaration, as applicable, certified copies (signed and sealed) by Tax Authority; - scanned in PDF format" a. How should the financial statements be from which year(s)? The 2024 financial statement is in the process of being compiled during this season. What happens if it is not completed before the application deadline? b. Also, is it mandatory to be signed and sealed by Tax Authority or sufficient if signed and sealed by the Administrator of the start-up?
A. 8
a) You should submit the Last Financial Statement for the year which the financial statements have been delivered to the Tax Authority. The Financial Statements for year 2023 are hereby acceptable to be submitted.
b) Yet, it is mandatory for the Financial Statement to be signed and sealed by the Tax Authority.
Q.9 - The Challenge Fund Factsheet states that: "The applicant must ensure that the start-up is registered and operates in Albania if selected a winner and before signing the contract for LOT 1." In this case, does the applicant need to register solely as a start-up or they must register as Sole Trader also?
A. 9 Please refer to the Guideline for Applicants document, Section 6 “Contracting” where it is stated as follows: “It is a requirement for all applicants selected in Lot 1: Idea and validation stage, to be registered as a business entity (MSME) in the National Business Center (QKB), in one of the registration types listed in the application form, before signing of the grant contract”.
Q.10 - Should the application for the Challenge Fund grant be submitted in Albanian or English language?
A. 10 Please refer to the Guideline for Applicants document, Section 2 “What is the “Challenge Fund’’? where it is stated as follows: “Applications are only accepted in English language to allow a transparent selection process”.
Q.11 - I would like to clarify whether Sole Traders (Person Fizik) are eligible to apply for the Challenge Fund under LOT 3, provided they meet all other eligibility criteria outlined in the Guideline for Applicants.
A. 11 As stated in the Guideline for Applicants, Section 3.1 Eligibility Criteria, applicants for Lot 3 of the Challenge Fund – 3rd Call for Proposals must meet the requirement to “be a legal person (business entity – MSME) already registered and operating in Albania (applicable only for Lots 2 & 3);”
Q.12 - I am applying for the Challenge Fund to establish a startup. However, I am at the final stage of the application process, where I am required to submit a document from the court and prosecution. Could you clarify what this document refers to?
A. 12 As stated in the Guideline for Applicants, the required documentation includes:
- Document issued by the Court certifying that the founder (in case of Lot 1) or the administrator ( in case of Lot 2 and 3) of the start-up does not have any penal court cases in process, issued within three months from the application date; – scanned in PDF format
- Document issued by the Prosecution certifying that the founder (in case of Lot 1) or the administrator ( in case of Lot 2 and 3) of the startup is not prosecuted by the prosecution, issued within three months from the application date; – scanned in PDF format
Both documents must be obtained physically from the Court (Gjykata) and Prosecution (Prokuroria) offices in the city where you reside.
Q.13 - I currently own and operate a hair salon, which is registered as a Sole Traders (Person Fizik (PF)). Within the business description, the registered activity also includes graphic design development. At the moment, I am working on an innovative graphic development project that is still in progress. To further develop this aspect of my business, I am seeking support. I am interested in applying for Lot 2 and would like to clarify whether this would be considered under the same NUIS as my hair salon or if it should be treated as a separate entity.
A. 13 As stated in the Guideline for Applicants, to be eligible for Lot 2, applicants must be legally registered as a business entity (MSME) in Albania. Since your hair salon is registered as a Sole Trader (Person Fizik – PF) and already includes graphic design development within its registered activities, you may apply under the same NUIS.
Q.14 - I am an inventor, and I have a disruptive invention related to industries. From this invention, my startup was born, which is an industry 4.0 for cleaning products. With the invention, I can meet the concepts of Industry 4.0, circular economy, smart cities, SDGs, and others. My invention is already on the market for the production of the COVID-19 vaccine worldwide. I need resources to implement it, but the amount I need is well above what you offer. Do you offer higher amounts?
A. 14 As stated in the Guideline for Applicants, section 4.1 “The grant amount” – Under this Call for Proposals, the three subcategories of start-ups are eligible for a grant from the Challenge Fund of the following amounts:
➢ Lot 1: Idea and Validation stage start-ups – maximum 10 000 EUR [a founder or a team in the early stages of developing an innovative business idea (not registered entity in QKB)]
➢ Lot 2: Growth stage start-ups – maximum 20 000 EUR [an active registered business entity within the first 12 months of registration from the official registration date at the QKB to the date of publishing of this Call for Proposals]
➢ Lot 3: Scale-up stage start-ups – maximum 30 000 EUR [an active registered business entity within the first 13 months and 6 years of registration from the official registration date of the business entity at the QKB to the date of publishing of this Call for Proposals]
Q.15 - a) I am in the process of completing the "Financial Form 3" tables and applying under Lot 3. I wanted to clarify whether the "Operating Income" column in Table 3 ("Cash Flow") should include the current profit of the business. b) Additionally, in section 4 ("Financial Data"), under the "Operating Income" column, should I enter the sum of Operating Income + Income from Challenge Fund, or only the Income from Challenge Fund?
A. 15
- a) In the “Operating Income” column of Table 3 (“Cash Flow”), you should include the operating income (xhiro) generated from the regular operations of your business.
- b) In Section 4 (“Financial Data”), under the “Operating Income” column, you should enter the sum of both Operating Income and Income from the Challenge Fund.
Q.16 - We are preparing the application for the Third Call of the Challenge Fund and have some uncertainties regarding the required documentation. For the documents that certify that the applicant is not prosecuted by the Prosecution; does not have any penal cases in process in Court; is not convicted for a penal case with a final decision of the Court; and is directly responsible for the preparation and implementation of the activities outlined in the application, find below our questions: Besides the Judicial Records Certificate which can be obtained through e-Albania, are there any other institutions where these documents can be acquired? Regarding the requirement that the applicant holds full responsibility for the preparation and implementation of the activities included in the application, in cases where the applicant is the administrator of the entity, is it necessary to submit a decision from the assembly confirming the appointment of the administrator, or is the historical extract of the entity sufficient as proof?
A. 16 For the documentation required under the 3rd Call for Proposals, please refer to the Guideline for Applicants document, Section 4.4 “Documents to be submitted”. Only the documents required in Section 4.4 of the Guidelines, as specified and from the institutions/sources outlined in the guidelines, must be submitted as part of the application.
Q.17 - I am interested in applying for a grant in the field of tourism and would like to know how to apply to the Challenge Fund grant.
A. 17 You may find the published Guideline for Applicants document and relevant annexes of the 3rd Call for Proposals on the following link: https://challengefund.euforinnovation.al/apply/.
For the documentation to be submitted, please refer to Section 4.4 “Documents to be submitted” of the Guideline for Applicants document where you may find the relevant information.
Q.18 - I am interested in applying to the third call for proposals and I have a few questions. 1- I am going to apply for LOT 1 and plan on registering as a Sole Trader. After applying, can I start financial activities as a Sole Trader? (Unrelated to the business idea I will apply in this call, I work as an architect and will get my license soon) 2 - In section 3 and 4 there are Operating Income, Financial Income, Extraordinary Income, Financial Expenditure, Extraordinary Expenditure. I am a bit unclear what these are, can you provide some examples of what constitute each please? 3 - If I plan on buying some equipment before the implementation phase, can I include that as part of cost-sharing in the Financial Form (in kind contributions)? If so, can this be considered as the 5% cost-sharing if provided with correct invoices for purchase?
A. 18
1- Please refer to the Guidelines for Applicant document, Section 6 “Contracting”, where it is stated as follows: “It is a requirement for all applicants selected in Lot 1: Idea and validation stage, to be registered as a business entity (MSME), in one of the registration types listed in the application form, before signing of the grant contract”.
2- Please find below some definitions:
Operating Income: Revenue generated from a company’s core business activities.
Financial Income: Earnings from financial activities such as interest, dividends, or investments.
Extraordinary Income: One-time or non-recurring gains not related to regular operations.
Financial Expenditure: Costs incurred from financial activities, such as interest on loans.
Extraordinary Expenditure: Unusual or non-recurring expenses outside normal business operations.
3- Yes, you may include as part of the cost-sharing (as in-kind contribution), the equipment purchased before the implementation phase of the grant, if provided with the correct invoices for purchase.
Q.19 - Our company was officially registered on 19.02.2019, and over the past six years, we have continuously expanded our operations. Could you kindly confirm whether we meet the eligibility criteria for application?
A. 19 Based on the Guideline for Applicants document, Section 3.1 “Eligibility criteria”: “All applicants must meet the following eligibility criteria to be eligible for a grant under the Challenge Fund: have not been registered in QKB for more than 6 years from the date of publication of this Call for Proposals”.
Please note that the date of publication of the 3rd Call for Proposals is 7 February 2025, and as such startups registered in QKB after February 7, 2019, are eligible to apply to the Challenge Fund.
Q.20 - I have a question regarding 2 types of documents required for the application for Challenge Fund, LOT1: Document issued by the Court and document issued by the Prosecution. Are they necessary for everyone? If you have more information how to apply for them would be really helpful.
A. 20 All applicants applying under the Challenge Fund grant should submit the requested documents under section 4.4 “Documents to be submitted” of the Guideline for Applicants document, including Document issued by the Court and Document issued by the Prosecution.
Both these documents must be obtained physically from the Court (Gjykata) and Prosecution (Prokuroria) offices in the city where you reside.
Q.21 - I am confused about which Lot should we apply. We have a first product and we had 6 business registered last year, but we still don’t have income or profit. The founder is registered at the QKB since February 2025 as Natural Person with NUIS. Which lot should we apply?
A. 21 Please refer to the Guidelines for Applicants document, Section 3 “Who can apply?”, where it is stated as follows:
“The Challenge Fund is open to three subcategories of start-ups:
➢ Lot 1: Idea and Validation stage start-ups, i.e. a founder or a team in the early stages of
developing an innovative business idea (not registered in QKB).
➢ Lot 2: Growth stage start-ups, i.e. an active registered business entity (MSME) within the
first 12 months of registration (from the official registration date of the business entity at
QKB to the date of publishing of this Call for Proposals).
➢ Lot 3: Scale-up stage start-ups, an active registered business entity (MSME) within the first
13 months to 6 years of registration (from the official registration date of the business entity at QKB to the date of publishing of this Call for Proposals)”.
Q.22 - We would appreciate your guidance on a few aspects of the application process (LOT-3). Could you kindly provide clarification on the following points? 1- In the application form, who should be included in the team CVs? Should the CVs of external consultancy individuals be included? Should external consultancy be considered part of the key staff and included when presenting our team? 2- Since the administrator and key person of the project is a Sole Trader, and the application will be submitted under her name, can her salary be included as an In-Kind Contribution? 3- In the budget sheet, should we detail all costs item by item, or can we categorize them into broader items? In the cash flow sheet, are we allowed to add or remove budget lines as needed?
A. 22
1- Please note that only CVs of members who will contribute in the implementation of the business idea should be included in the online application form. This does not include CVs of external consultancy.
2- Please refer to Annex III “Financial Form” notes where it is stated as follows: “If the applicant is a self-employed Sole Trader, they should NOT include a salary for themselves in the project budget under Staff Costs. Instead, it could only cover their social and health contribution payments as required by Albanian legislation for self-employed individuals”.
3- The “Financial Form” should be completed as thoroughly as possible, detailing expenditure based on their nature. For each cost, an explanation must be provided in the “Item Explanation” column. The Cash Flow sheet should be prepared as per exact template provided by the Challenge Fund.
Q.23 - I am an operator in the tourism sector, where, in addition to accommodation facilities, we also organize horseback riding activities. This activity has been running for about five years, while the guest house has been operating for around eight years, both under the same business registration (NIPT). My question is: In which grant or funding program can I apply to improve this activity, and do I qualify for it?
A.23 Based on the Guideline for Applicants document, Section 3.1 “Eligibility criteria”: “All applicants must meet the following eligibility criteria to be eligible for a grant under the Challenge Fund: have not been registered in QKB for more than 6 years from the date of publication of this Call for Proposals”.
Please note that the date of publication of the 3rd Call for Proposals is 7 February 2025, and as such startups registered in QKB after February 7, 2019, are eligible to apply to the Challenge Fund.
Q.24 - While working with the budget, I wanted to ask if the grant if won can be used to buy the necessary types of equipment for the project. Can we use the majority of the grant to buy types of equipment or is there any limit?
A.24 Please refer to Section 4.3.3 “Eligible costs” of the Guideline for Applicants document, for the eligibility of costs and Annex III “Financial Form” instructions which provides the necessary details on budget preparation.
Q.25 - When filling out the Indicative Action Plan form, if a few activities last longer to implement (8 months) but other activities are planned for a shorter amount of time, is it a problem? Should all the activities have the same timeframe?
A.25
Please refer to Section 4.5 “Duration and disbursement” of the Guideline for Applicants document, where it is stated as follows: “The period for the implementation of the business proposal will be 6 (six) to 8 (eight) months and the grant must be utilized within this period”.
The project duration should be between 6 to 8 months. Meanwhile the duration of each activity is determined by the applicant, taking into account that no activity can extend beyond the maximum project duration.
Q.26 - I am reaching out to inquire about the eligibility criteria for the Challenge Fund 3rd Call. I established my business in 2020, but I have not acquired customers yet as I have been in the development phase and now, we are in the Beta phase. I would appreciate your guidance on whether I should apply under Lot 2 or Lot 3 for my startup, considering my current stage.
A.26
Please refer to the Guidelines for Applicants document, Section 3 “Who can apply?”, where it is stated as follows:
“The Challenge Fund is open to three subcategories of start-ups:
➢ Lot 1: Idea and Validation stage start-ups, i.e. a founder or a team in the early stages of developing an innovative business idea (not registered in QKB).
➢ Lot 2: Growth stage start-ups, i.e. an active registered business entity (MSME) within the first 12 months of registration (from the official registration date of the business entity at QKB to the date of publishing of this Call for Proposals).
➢ Lot 3: Scale-up stage start-ups, an active registered business entity (MSME) within the first 13 months to 6 years of registration (from the official registration date of the business entity at QKB to the date of publishing of this Call for Proposals)”.
Please note that the date of publication of the 3rd Call for Proposals is 7 February 2025.
Q.27 - I am applying for LOT1 in the Challenge Fund. 1. Could you please clarify whether the key metrics for 2026 should match the cash flow for the same year? 2. Should I create a cash flow chart for each year or only for 2026? 3. Additionally, should these figures align with the financial data?
A.27
- The key metrics for 2026 should be aligned with the cash flow for the same year, as both should reflect the financial projections and expected performance.
- You should only prepare a cash flow for the first year of the project implementation period.
- Yes, the key metrics data should align with the financial data.
Q.28 When filling out the online application form in the section for the legal owner/administrator, can we enter more than one name, or does it have to be just one? 1. Could you please clarify whether the key metrics for 2026 should match the cash flow for the same year? 2. Should I create a cash flow chart for each year or only for 2026? 3. Additionally, should these figures align with the financial data?
A.28 You may enter more than one name in the online application form in the section for the legal owner/administrator.
Q.29 I am in the process of applying for Lot 1 and reviewing the financial form required for the application. In this regard, I would like to request further clarification on how to properly complete this document, particularly concerning budget allocation, cost specification, and the representation of the applicant’s contribution. I would greatly appreciate it if you could provide me with a guideline, any additional information, or any example form that could assist me in accurately completing the form and ensuring compliance with all application requirements.
A.29 Please refer to the instructions provided in Sheet 1 “Budget” of Annex III “Financial Form”, for more information on how to prepare the budget.
Q.30 If the applicant is registered as a sole trader in NBC (QKB) (for less than 12 months) but wishes to apply for a project/idea unrelated to their current business activity, as it belongs to a different field, can they apply for Lot 1/Idea Stage? If not, can they apply for Lot 2/ Growth Stage, even though the project is not related to their current activity, but they plan to add it as a future business activity?
A.30 Every individual with an innovative business idea can apply under LOT 1 of the Challenge Fund.
However, it is important to note that if selected as a winner, they must register as a business in the National Business Center (QKB) in accordance with the Guideline for Applicants document, Section 6 “Contracting” where it is stated as follows: “It is a requirement for all applicants selected in Lot 1: Idea and validation stage, to be registered as a business entity (MSME) in the National Business Center (QKB), in one of the registration types listed in the application form, before signing of the grant contract”.
