The Business Angel law (Individual Investor’s law) was approved on April 29 within the Lower Chamber, the decisive Chamber. The legislative framework for the financial support offered by investors to start-up companies has thus been created.
“Business Angel is the most modern legislative instrument at European level that we created and promoted during the government activity period. Thus set are the premises for an entrepreneurial framework favourable to the development of start-ups and the financing of debutants’ initiatives. I am very proud for thus having contributed to the future of innovative ideas,” stated Florin Jianu, President of the Young Romanian Investors’ Employers’ Association (PITR) and former minister for SMEs.
Any physical person can become an individual investor – a business angel, provided he simultaneously meets the following conditions: he comes from outside the company and becomes its associate through his cash contribution to the company’s registered capital, the result being the issuing of new shares in his favour; he invests a sum ranging from EUR 3,000 to 200,000 (the sum invested will be paid through the Romanian banking system and will be registered within the company’s accounting books); as a result of the investment he cannot own, directly or through middlemen, more than 49 per cent of the company’s registered capital; the beneficiaries of these investments have to be limited liability companies on the basis of Article 2 of law no. 31/1990.
A business angel is exempt from the payment of taxes on revenues in the form of dividends, for a period of three years starting from the moment he buys the shares, for the dividends related to the shares bought, and is exempt from paying taxes on the earnings obtained as a result of selling the shares, if the sale takes place at least three years after they were bought.