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of July 21, 2016 No. 179

About the small and medium companies

(as amended on 09-06-2022)

The parliament adopts this organic law

Chapter I. General provisions

Article 1. Subject, purpose and tasks of the law

(1) This law establishes the legal basis of activities of the micro, small and medium companies and measure of the state support for their creation and development.

(2) the Purpose of this law is promotion of sustainable development of the micro, small and medium companies by means of improvement of the legal base and economic conditions within which they are created and function.

(3) Tasks of this law are providing and increase in competitiveness and efficiency of activities of the micro, small and medium companies, and also assistance of timely adaptation to changes in economy and technologies.

Article 2. Sphere of regulation

(1) Operation of this law extends to all the micro, small and medium companies irrespective of type of property and organization-legal form which in total constitute the sector of the small and medium companies (the small and medium companies, or MSP) and answer the criteria determined in Article 4, excepting the physical persons working at the basis of the entrepreneurial patent and legal entities of the public law.

(2) the Concept "small and medium companies" and abbreviation of MSP will be used in all regulating, statistical and other official documents published by bodies of the public power and public organizations.

Article 3. Basic concepts

In sense of this law the following basic concepts are used:

innovative activities – the activities performed for the purpose of improvement or creation of the new products, technologies, processes or services conforming to practical requirements and market requirements;

competent authority – the central industry bodies of public management, public organizations and bodies of local public authority given authority on development and/or implementation of policy in the field of MSP;

business angels – the physical persons and legal entities investing equity in development of the company for the purpose of acquisition or stock subscription or share in the authorized capital of the company which they support;

the cluster – consolidation of the interconnected companies located in geographical proximity from each other and belonging, as a rule, to one industry or allied industries and also research establishments, universities and other organizations which activities are concentrated on innovations and cooperation allows to increase competitive advantages of the companies;

advisory state control – the state control exercised by monitoring bodies at the small and medium companies for the purpose of the prevention of violations of the law by provision of consultations concerning their activities and elimination of the revealed violations without application of sanctions;

crowd funding – the method of financing of projects with use of on-line resources (forums, social platforms, etc.) entering remuneration technique instead of classical system of collection of donations. Initiators of the started project create network which members offer money in exchange for the services or products generated by the project;

entrepreneurial education – the development of entrepreneurial spirit by means of formal and informal education throughout all life aimed at forming of knowledge, skills and capabilities connected with innovations, creativity and acceptance on itself it is risk, and also the specific business skills concerning planning and project management on realization of certain tasks, data on methods of opening and successful enterprise management and the other widely applied qualities and skills representing basis of business activity;

mezzanine financing – subordinated long-term (5–8 years) loan which gives to the financier opportunity of entry into shareholding structure of the credited company at the moment when the majority shareholder of the company changes or when its shares are quoted at the exchange;

venture capital fund – the fund created from fees of large investors, representing important financing source for the small and medium companies with high potential of growth, but without financial capital. Individual investors can buy financial instruments due to issues of the companies which provide venture capital, or can invest in the investment funds specializing in the field;

financial guarantee on the credit - the obligation to bank or non-bank credit organization undertaken by organization which manages funds of guaranteeing the credits, for the purpose of distribution of credit risk and ensuring sufficient pledge on the credits/loans granted the legal entities or physical persons who are engaged in economic activity;

guarantee of credit portfolio - the obligation according to which the organization managing funds of guaranteeing the credits undertakes the credit risk connected with portfolio of the acceptable loans granted according to the agreement on cooperation signed with bank or non-bank credit organization;

business incubator – the place in which on limited space again registered enterprises are concentrated and which task is increase in opportunities of growth and viability of data of the companies by their providing with modular rooms where the managerial help and services in support are on favorable terms provided;

support infrastructure – set of the organizations and organizations specializing in distribution, transfer and economic use of results of research and development, set of the services and projects offered by them, and also set of scientific and technology and/or industrial parks, the centers of transfer of technologies, business incubators, groups/clusters, business schools, information and advisory centers, research laboratories, free economic zones;

instruments of support – measure (action), special projects and programs of informing, training, consultation and financial support intended for creation of the small and medium companies and development of their competitiveness;

the company debutant – the microcompany which is again registered in accordance with the established procedure and run by the young entrepreneurs beginning to be engaged in economic activity;

again registered enterprise – the company registered according to the current legislation from the date of which creation there passed no more than one year;

entrepreneurial spirit – capability of the person to distinguish and master obvious or potential opportunities for business, to assume the responsibility and risk following from independent activities.

Chapter II. Characteristics of the small and medium companies

Article 4. Determination of the small and medium companies

(1) As the small and medium companies are determined the companies answering in total to the following conditions:

a) have the annual average number of workers (the average number of workers for the accounting period) to 250 people;

b) have annual turnover (sales return) to 50 million lei or amount of total assets (the amount of fixed assets and current assets) to 50 million lei according to the last approved financial statement.


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