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Frequently Asked Questions (FAQ) - Linked Third Parties

Question details: 
When should a partner participate as a third party (with a legal link or affiliate) instead of participating as a (regular) beneficiary? Is the difference related to the amount of work of the partner or must the partner participate as a third party if related to another beneficiary?
Answer: 

Implementing tasks as a Linked Third Party is an option, not an obligation. It is up to the potential Linked Third Party and to the consortium do decide if it makes use of this option or includes the organisation as an additional beneficiary. In general, entities performing a substantial part of the work (i.e. tasks) should be beneficiaries, and not linked third parties. Linked third parties should only exceptionally perform a major part of the R&I work.

Answer: 

Unless otherwise agreed with the Linked Third Party, the beneficiary should transfer the money to the Linked Third Party after it has received it from the coordinator.

Answer: 

We are not sure if we understand your question correctly.
As a general rule, entities performing a substantial part of the work (i.e. tasks) should be beneficiaries, and not linked third parties.

Question details: 
You mentioned that affiliated companies could be regarded as subcontractors under special circumstances. Could you please clarify under which circumstances these would therefore not be regarded as linked third parties?
Answer: 

Subcontracting to affiliates is only allowed if there is a framework contract or the affiliate is the usual provider, and the subcontract is priced at market conditions. Moreover, an affiliated entity is not automatically considered a Linked Third Party of a beneficiary, but only if it has been identified as such in the Grant Agreement.

Answer: 

It can be a Linked Third Party if it is under the ‘direct or indirect control’ of the beneficiary. This means that the large company must (directly or indirectly) hold of more than 50% of the nominal value of the issued share capital, or a majority of the voting rights, or the decision-making powers in the R&D unit.