Last updated: 2 February 2017
Newly created small and medium enterprises (SME) can benefit, in certain conditions, of a minimis aid in an amount of 200,000 Lei (approximately 44,500 Euros), representing 100% of the eligible expenses. This minimis aid will be granted under the “Start-up Nation – Romania” program, approved by Government Emergency Ordinance no. 10/2017, published in Official Journal no. 79 on the 30th of January 2017.
Up to 10,000 SMEs can receive, each year, this non-refundable financial aid.
This program was adopted as part of the initiatives taken by the successive Governments in order to support the development of Romanian entrepreneurship by funding programs or by tax beak measures.
Thus, in accordance with Government Emergency Ordinance no. 3/2017, starting from January 2017, in order to be classified as a micro enterprise, a company has to obtain an income inferior to 500,000 Euros, instead of 100,000 Euros, as previously provided. Furthermore, the 1% tax rate previously applicable to microenterprises with at least 2 employees is also applicable to companies with at least 1 employee. On the other hand, the 3% tax rate applicable to companies without employees has been preserved.
START-UP NATION – ROMANIA: ELIGIBILITY CONDITIONS
In accordance with Government Emergency Ordinance no. 10/2017 and Order no. 760/2016 approving certain minimis aid schemes in support of micro enterprise development under the Regional Operational Program 2014-2020, minimis aid beneficiaries are SMEs created after the entry into force of Emergency Ordinance no. 10/2017 (after the 30th of January 2017). Such SMEs must cumulatively fulfill several conditions, among which:
• They must have been created in accordance with Law no. 31/1990 on companies or Law no. 1/2005 on the organization and functioning of cooperatives;
• They must have at least 2 employees with a full-time employment contract and they must undertake to preserve such employees for at least 3 years starting from the year subsequent to the year when the minimis aid was paid;
• The activity code (the Classification of Economic Activities in the National Economy “CAEN”) is eligible when the funding application is submitted, in accordance with the list detailed in Appendix 1 to Order no. 760/2016. According to this list, the following activities are eligible, among others: manufacturing of materials and various products, repair activities, provision of services for various types of transport, construction or installation works, activities specific to the hospitality or IT industry. On the other hand, accounting and tax audit activities or the activities specific to the extraction industry or to the agri-food and agricultural sectors;
• They must not be subject to a winding-up, judicial reorganization, liquidation, enforcement, operational closing, insolvency, bankruptcy or temporary suspension procedure;
ELIGIBLE COSTS: EXAMPLES
Order no. 760/2016 details the fundable expenses, among which:
• Site development;
• Utilities the company needs in order to do business;
• Design and technical assistance;
• Basic investment;
• Compulsory publicity and information activities;
• External tax audit activities.
The specific conditions of the Start-up Nation – Romania Program will be set forth by its Implementing Regulations, within 30 days from the entry into force of Government Emergency Ordinance no. 10/2017, namely until the end of February 2017.
The funding needed to implement the above mentioned program will be drawn annually from the State budget, through the budget of the Ministry for the Business Environment, Trade and Entrepreneurship, and/or from external sources.