The Business angels law gets promulgated

President Klaus Iohannis has signed this week the Decree for the promulgation of the Law on the stimulation of individual investors-business angels, Agerpres news reads.

2015-05-29 13:48:44

According to the law, a "business angel" investor is exempted from the tax on revenues from dividends from the company he has invested in, for 5 years. In addition, when the investor decides to sell his/her shares from the company, he/she is tax exempted of the revenue he/she has obtained (the positive difference between the sale price and the purchase price), if the transfer takes place after three-year period from the acquisition, the Agerpres news reads.

In order to benefit from the provisions of the law, the investor should enter the business as an individual and could receive 49 pct of the company he/she is investing in, at the most.
The company he/she invests in, obtains the necessary capital to develop the business through an interest-free loan. Besides the money, he/she draws into the company from the investor, experience and know-how.

In its turn, the company the money is invested in should fulfil a series of conditions: to be a limited liability company (LLC), to be an autonomous company, not to be under bankruptcy or liquidation. Plus, it should be a micro-enterprise or a small company (with assets and turnover smaller than 10 million Euro and less than 50 employees).

The law does not include: the investments in companies which develop banking, insurance and re-insurance activities, capital market, financial intermediations, any other financial activities, real estate transactions, real estate rental, real estate intermediations, real estate developments, gambling and betting, steel manufacturing or trade, coal production or trade, maritime, river ships′ building, manufacturing or trade of arms, ammunition, explosives, tobacco, alcohol, substances under national control, plants, narcotic and psychotropic preparations, any kind of consultancy