Can affiliated companies each file their own application?

Yes. Affiliated companies can generally each file their own Forschungszulage application. What matters, however, is that the maximum funding limit per fiscal year applies to the entire corporate group, and the assessment base must be allocated accordingly among the affiliated companies. In practice, it is therefore important to coordinate early and document which company is claiming which eligible expenses.

When is a project within a corporate group considered contract research?

An innovation or development project within a corporate group is generally classified as contract research only when a clear commission and a distinguishable exchange of services exist. Key criteria are: an explicit commission with a clearly defined task, influence of the client on goals and/or implementation, a separately agreed remuneration or budget, and provisions on the involvement of third parties and rights to results.

What is the most common mistake made by affiliated companies?

Unclear documentation (contracts, budget, IP/usage rights) and a missing, traceable distinction between in-house activities and contract research.

Why is the definition of affiliated companies relevant since 2021?

Because the delineation has been linked to § 290 para. 2–4 of the German Commercial Code (HGB) since 25 June 2021 and applies retroactively from 1 January 2020 – this creates more legal certainty, especially in investor-driven structures.

What is the best way to get started if I am part of a corporate group?

First create a brief group and project map: companies involved, roles (client/executor), budget flow, rights to results. After that, a structured review with dieforschungszulage.de is worthwhile to use the funding safely and efficiently.

Forschungszulage in Corporate Groups: Rules and How to Secure Funding

Date: February 21, 2026•Author: Erich Lehmann

TL;DR – Summary

Affiliated companies can generally file applications – but what matters is how projects within the group are organised and billed. The most important stumbling block: the correct classification (in-house innovation activity vs. contract research within the group). The funding amount is capped at group level and must be coordinated across the group.

Terms & context: Application process · Requirements · Calculation

Why this article matters

In corporate groups (parent/subsidiary companies, ownership structures, holding models, PE-backed setups), innovation projects often span multiple companies. This is exactly where things get demanding in practice: Who applies? Which costs are eligible where? And is the project "internally commissioned" or independently executed?

Anyone who resolves these questions too late risks queries, delays or an unfavourable allocation of eligible expenses.

What are affiliated companies in the context of Forschungszulage?

The definition of "affiliated companies" in the Forschungszulagengesetz was legally clarified in 2021 and applied retroactively from 1 January 2020. Since then, the decisive factor is whether one company exerts a controlling influence over another within the meaning of § 290 para. 2 to 4 of the German Commercial Code (HGB).

Important: For the classification, what counts is the controlling influence – not whether a consolidated financial statement actually has to be prepared or whether exceptions from group accounting apply. This creates more clarity especially for high-growth, investor-driven structures (e.g. start-ups with fund/PE structures).

The core issue in practice: In-house or contract research within the group?

In affiliated structures, delineation is often the decisive lever. Typical situations:

A subsidiary develops a new software or product component that will later be used across the group.
The parent finances a project "via cost allocation" – without a clear project commission.
Multiple companies work together, but roles and rights are not cleanly documented.

In-house innovation activity (more common than you think)

If the company carrying out the work substantially controls the goals, implementation and results itself, this is usually in-house activity. In that case, the executing company is the correct applicant for its own eligible expenses.

Contract research within the group (only with clear separation)

For a project within a corporate group to be recognised as contract research, four criteria must be cumulatively met:

Specific commission (clearly defined task from another affiliated company)
Co-determination of goals and implementation by the client (material influence)
Separate remuneration or budget (not merely "internal cost allocation without structure")
Restriction on involving third parties (no subcontractors without the client's consent)

Consequence:

All criteria met: The client can apply for the tax credit for the commissioned expenses.
Not all met: This suggests in-house activity at the executing company.

Practical tip: The decisive factors are contracts, budget logic, IP/usage rights and actual control. These are exactly the points that should be clearly established early within the group.

Funding cap within the group: Coordination is mandatory, not optional

Even if multiple affiliated companies each carry out innovative projects: within the group there is a shared limit per fiscal year, which must be coordinated and allocated across the group.

In addition, for the classification within the group, the reference is typically a cut-off date at the end of the fiscal year – this reduces the tracking effort when structural changes occur during the year.

Special case: Group structures with an international dimension

Even though only companies based in Germany can apply for the tax credit, international group structures can affect the classification (e.g. company size / SME context). The group structure (shareholdings, control, key figures) should therefore be transparently recorded from the outset.

How dieforschungszulage.de helps

With affiliated companies, it is rarely "one form" that decides success, but rather the system: project roles, cost logic, delineation, documentation. This is exactly where dieforschungszulage.de comes in:

Clear project and group analysis: Who does what – and who should apply?
Clean delineation of in-house vs. contract (including a look at contracts and billing)
Structured preparation of documents so that the funding becomes predictable
Focus on commercial innovation (especially for software, product development, processes)

Find out more at dieforschungszulage.de – especially in the sections on Process, Requirements and FAQ.

Frequently Asked Questions (FAQ)

Check out our guides about applications and funding