Find out how you can receive up to 10.000 euro grant for your company
Setting up a limited liability company for debutants (L.T.D. – D) has the following benefits for young entrepreneurs:
• Grants of up to 10.000 euro;
• State guarantees for loans contracted to finance the business plan;
• Exemption from social security contributions;
• Exemption payment of registration fees for registration at the Trade Registry.
What is the purpose of such a company?
Who is it for?
What are the obligations besides the benefits?
What documents will be required at the Trade Registry?
A topic that increasingly arises more and more interest among young entrepreneurs in Romania, is the limited liability companies for debutants (L.T.D. – D).
This type of company aims to increase the number of SMEs by encouraging young entrepreneurs to participate in Romania’s economic recovery.
According to Emergency Government Ordinance (O.U.G.) no. 6/2011 article 2 „debutants” (young beneficiaries of the program) must meet the following condititons:
1. Have full legal capacity and age between 18-35 years;
2. Prior to registration of the company at the Trade Registry, they must not be shareholders, partners or members of the management bodies of other companies in the European Economic Area;
3. Establish for the first time a limited liability company respecting the provisions defined under Law 31/1990 on trading companies, republished;
4. To complete and submit at the Trade Registry an affidavit that meets the requirements of section 2).
Next to these conditions for entrepreneurs, the company itself must meet certain other conditions, some economic activities being excluded in this case. Here are some of them:
1. The company should work for an indefinite period of time under Law 31/1990, republished;
2. Fall into the category of microenterprises under Law 346/2004;
3. Must be founded by a debutant entrepreneur;
4. Must have at most 5 groups of activities as defined in its CAEN Code (Romanian Official Classification of Companies’ activity);
5. Activities that cannot be undertaken are: financial and insurance intermediation, real estate transactions, gambling and betting activities, production or marketing of weapons, explosives, tobacco or alcohol.
Nevertheless, because I have spoken about an encouragement of young entrepreneurs to start new companies, I draw yours attention on financial facilities that O.U.G. no. 6/2011 mentiones in article 5:
1. It is granted through the Agency for Implementation of Projects and Programs for Small and Medium Enterprises (A.I.P.P.S.M.E.) financial benefits, with value up to 50% of the total value of the project, but no more than 10.000 euro;
2. Guarantees granted for loans by the National Credit Guarantee Fund for SMEs for young entrepreneurs in order to realize their business plans accepted by A.I.P.P.S.M.E;
3. Debutants are exempted from paying social security contributions under the law, for the time worked by more than 4 employees, employed indefinitely;
4. Debutants are also exempt from payment of registration fees for transactions made at the Trade Registry for registering microenterprises;
5. May obtain advice, training and support on developing the business from the Territorial Office for SMEs and Corporations of A.I.P.P.S.M.E.
Along with these provisions of O.U.G. no. 6/2011, when registering a L.T.D. – D at the Trade Registry you will need a number of documents: application for registration, proof of availability check and booking the name of the company, constitutive documents, statement of responsibility given by the manager/founder of microenterprise.
You can find more details about the subject of setting up a company in the article: What documents are needed to start a limited liability company?
Therefore, the purpose of such L.T.D. – D is to help young entrepreneurs, to simplify their initiative to develop and maintain a business.
If you have any questions about setting up a L.T.D. – D, you can find me available on my e-mail address.