Limiting the number of employees and scopes of activity

Law 182 of 17 October 2016 for the approval of Government Emergency Ordinance no.44/2008 regarding business activities by Self-Employed Persons, Sole Proprietorships and Family Businesses – comes into force on 17 January 2017.
 
Limiting the number of employees and scopes of activity:   
  • A Self-Employed Person’s scope of activity may include maximum 5 activity classes provided by the NACE Code and may employ up to three people via an individual labour agreement concluded with each.
  • A Sole Proprietorship’s scope of activity may include maximum 10 activity classes provided by the NACE Code and may hire up to 8 employees, third parties, via individual labour agreements concluded with each.
  • An individual entrepreneur owning a Sole Proprietorship or being a Self-Employed Person shall not be deemed as employee of third parties collaborating with them (under Article 16) even if collaboration is exclusive.
  • An individual entrepreneur owning a Sole Proprietorship or being a Self-Employed Person may also add the capacity of employee of a third party that works both in the same field, and in another area of ​​economic activity.
  • An individual entrepreneur owning a Sole Proprietorship or being a Self-Employed Person is insured in the public system of pensions and other social insurance rights and is entitled to be insured in the health insurance and unemployment insurance system, as provided by law.
  • An individual entrepreneur owning a Sole Proprietorship or being a Self-Employed Person is liable for the obligations of economic company exploitation with dedicated assets. If these are not enough to satisfy claims, other assets of the debtor can be targeted.
Facilities to students:
  • Students who want to start up their own business are exempt from paying taxes for registration and authorization as a Self-Employed Person or owner of a Sole Proprietorship by the Trade Register Offices attached to Law Courts, as well as from the payment of charges for support services rendered by these offices.
  • A student who receives the title of Self-Employed Person or owner of a Sole Proprietorship  must cumulatively meet the following conditions:
    a) attending a higher education institution accredited in Romania;
    b) being at least in the second year of study and on the application date having fully passed all curriculum requirements set by the institution Senate;
    c) being younger than 30 years old.
Within 2 years of this law’s entry into force, Self-Employed Persons and Sole Proprietorships whose number of activities included in the scope of activity is higher than the one provided ask the competent Trade Register for the proper amendment of trade register terms related to scopes of activity.
Within 60 days of the completion of this period, the Trade Register Office cancels ex officio the Self-Employed Persons and Sole Proprietorships which have not met the obligation to amend the terms concerning their scopes of activity.