Young people aged between 16 and 18 in Romania will be able to establish and manage a new type of limited liability company (S.R.L.), which will be called a "firmă de exercițiu" (practice firm) and will have the abbreviation "S.R.L.-F.E.", according to a new project. 

A young person will be able to establish or acquire the status of associate in a single such company, and for this purpose will need parental consent, according to a draft analyzed by Profit.ro. 

The age corresponds with the study of entrepreneurship in high schools and is the threshold at which a young person has the necessary maturity to understand the consequences of their actions, the initiators believe. Moreover, the minimum age of 16 corresponds to the age at which a young person can independently sign an individual employment contract and the age at which a driver's license can be obtained for certain types of vehicles on public roads. 

Considering the relatively short period of time for the functioning of this type of company, and to avoid the situation where minors might be tempted to establish a large number of companies, they will have the right to establish or acquire the status of associate in only one such company, subject to verification from the Trade Register Office.

Moreover, the practice firm must be managed by the person or persons who establish it, therefore avoiding the situation in which young people are used as proxies by adults who would take over the management of the company. 

The firm can also have a maximum of 3 activity groups provided by the classification of activities in the national economy in force (or CAEN), except financial intermediation and insurance, real estate transactions, gambling and betting activities, production or marketing of weapons, ammunition, explosives, tobacco, alcohol, substances under national control, plants, substances and narcotic and psychotropic preparations

In terms of assets, companies for those 16 to 18 may hold total assets or achieve a net annual turnover of up to RON 100,000, EUR 20,000, a threshold imposed for their protection. Up to that point, the SRL-FE will be exempt from profit tax or small enterprise tax. When these thresholds are exceeded, the status is lost, and its economic activity ceases. 

The status of S.R.L.-F.E is lost by law, and the company no longer has the right to carry out economic activity on the date of reaching the age of 18 by the sole associate or the youngest of the associates, who have the possibility within 45 days to opt for transformation into an SRL or to dissolve the firm. 

"Young people are increasingly present in the online environment and may have business ideas targeting applications, websites, gaming platforms, e-commerce, etc. Early access to entrepreneurial development opportunities aligns with the global trend of encouraging startups among teenagers and students," say the authors of the project. 

radu@romania-insider.com

(Photo source: Stefan Dahl | Dreamstime.com)