You finally want to become an entrepreneur in Romania and you don’t have enough funds, or your business needs to grow? The Romanian state is preparing a state aid scheme which will be implemented in 2022 through the “Start-up Nation – Romania” programme.
In 2022, Romania will approve de minimis state aid schemes to encourage and stimulate the creation of new Romanian small and medium-sized enterprises. de minimis aids are small sums of money that are offered to Romanian legal persons by the State, as financial aids, amounts that do not have to be notified to the European Commission as they are considered to have no impact in the European internal market due to their insignificance in total volume.
Assistance will be given in the form of non-repayable funds to companies that meet the following main criteria:
- The company is created after 1st from January 2020;
- The company is a Romanian legal person and its capital is entirely private;
- The areas of activity eligible for funding are: production, services, creative industries, IT, trade;
- For hiring a person, the company can obtain financing of 100,000 Lei (about 20,000 Eur);
- For the hiring of 2 people, the company can obtain financing of 200,000 Lei (about 40,000 Eur);
- New jobs must be maintained for at least 2 years from the granting of state aid;
- The total financing that can be obtained is between 85% and 95% of the total investment, but not more than 200,000 Lei (about 40,000 Eur);
The non-reimbursable funds (grants), can be used to cover eligible expenses such as: technological equipment, the acquisition of work/production space, places of service delivery or commerce; means of transport; purchase of furniture, salaries, utilities, accounting services, rental of workplaces, digital packages which must contain at least a website presenting the activity of the company or an online store, set-up costs, development courses capacity of entrepreneurs, advice, etc. All assets must be new, with the exception of work/production spaces for which an appraisal report is required. Non-reimbursable state aid will not be granted for assets purchased by leasing, which are second-hand or which have been obtained by another non-reimbursable source. It is also important to mention that the personnel hired from the eligible company must not be an existing employee of the company in question and must not have entered into an employment contract with the company during the last 6 months preceding the ask for help.
Eligible businesses can benefit from non-repayable funding through the Start-up Nation program only once, during the period 2017-2027.
The Romanian State has introduced for this program the obligation of eligible companies not to alienate more than 49% of the shares/social parts of the company throughout the implementation and monitoring of the program. Such a restriction aims to eliminate opportunistic exploitation of the program that will not result in a lasting contribution to the Romanian economy.
The procedure for implementing the Start-up Nation Romania 2022 program is currently the subject of public debate and will therefore be launched by a ministerial decree published in the Romanian Official Gazette.