Measures for stimulating the setting-up and the development of microenterprises by business debutants
The most important provisions of the new GEO 6/2011 are related to:
I. The beneficiaries of the program
According to the ordinance, the beneficiary of the program is the junior entrepreneur, natural person who meets the following conditions:
i. Is not older than 35 years at the moment of the application;
ii. Has never had and does not have the quality of a shareholder, partner or member of the governing bodies of an enterprise established in the European Economic Area;
iii. Is establishing a limited liability company for the first time;
iv. Fills out a statement on his own responsibility, under the penalty of the criminal law, by which he declares that he never has been a shareholder, partner or member of the governing bodies of a company.
II. The microenterprise
To benefit from the provisions of this ordinance the microenterprise must fulfill cumulatively the following conditions:
i. Is a limited liability company that operates for indeterminate period;
ii. Has no more than nine employees and achieved a net annual turnover or assets of maximum 2 million euro, equivalent in lei;
iii. Is founded by a junior entrepreneur, as sole associate, or by most five junior entrepreneurs associated;
iv. Is managed by the sole member or by one or more administrators of the associates;
v. The activity object covers more than five groups of activities provided by the national economic activities classification in force;
vi. Will not develop the following activities: financial intermediation, insurance, real estate, activities of gambling and betting, production or marketing of weapons, ammunition, explosives, tobacco, alcohol, substances under national control, plants, narcotics and psychotropic substances and preparations and all the activities excluded from the European rules for which state aid can not be granted.
III. Name of the company:
The company’s name consists of its own denomination accompanied by the phrase „limited liability company – junior” written in full or by the abbreviation „Ltd. – D”.
IV. Facilities granted to the microenterprise:
i. The provision of a non-reimbursable financial allowance that represents maximum 50%, but not more than 10,000 euro or the equivalent in lei, of the business plan’s value;
ii. The award of guarantees granted by the National Credit Guarantee Fund for Small and Medium – SA – IFN;
iii. The exemption from social security contributions due by employers for the income paid for maximum 4 employees, hired on indeterminate period;
iv. Exemption from the registration fees;
v. Counseling, training and support from the relevant authorities in whose jurisdiction the company has registered its office.