Reduction of the tax for microenterprises – legal solutions for entrepreneurs at company incorporation or for existing businesses

Essential legal assistance for an efficient transition to the microenterprise tax regime

Starting with 2025, the fiscal regime applicable to microenterprise has undergone significant changes, marking a reduction in the tax level for microenterprise, a measure that can bring benefits to entrepreneurs, especially those who are starting their journey or looking to optimize the structure of their existing company. The financial threshold for inclusion in the microenterprise category has been significantly lowered from €500,000 to €250,000, according to Government Ordinance 156/2024 and updates in the Fiscal Code. A company that exceeds this threshold will be obliged to switch to paying corporate tax (16%) in the quarter of exceeding.

This adjustment has a direct impact on all microenterprise as most transition from the reduced tax rate (1% or 3%) to the standard tax regime, requiring a new strategic approach from entrepreneurs and consulting lawyer or tax attorney advisors. Whether at the beginning of a company formation or when re-evaluating an existing company registration, it is crucial to adapt the legal and fiscal approach accordingly.

To benefit of the microenterprise tax regime, it is essential that the legal structure of the company complies with the legal requirements imposed by the Fiscal Code and the regulations of the tax authorities. Whether you’re initiating a company formation or updating an existing company registration, expert legal support ensures compliance and reduces risks.

The intervention of a business lawyer specialized in legal and fiscal legal consultancy can make a big difference between an efficient process and one exposed to administrative or fiscal risks.

Registered Office Hosting – Compliant and Effective Legal Solutions

For the company registration of a microenterprise or changing the registered office of an existing company, legally compliant registered office hosting is necessary. A business attorney can provide assistance in drafting and registering lease or loan agreements in compliance with the current requirements imposed by the Fiscal Code and the Trade Registry.

Moreover, cooperating with accredited providers for registered office hosting reduces the risks of registration refusals or additional inspections by tax authorities.

Online Company Incorporation – Complete Remote Assistance

The process of company incorporation is now fully possible online thanks to digitalization. A consulting lawyer can guide the entire company formation process, from drafting the articles of association, choosing the activity code, setting up the shareholder structure to submitting the file to the Trade Registry. A properly executed company incorporation is necessary for smooth operation.

The legal consultancy provided by a corporate lawyer or commercial lawyer offers predictability to the process and can help avoid administrative blockages. Furthermore, they can assist in choosing the appropriate fiscal option based on the business activity and revenue level to ensure correct inclusion in the microenterprise tax regime.

During llc incorporation, specialized legal assistance helps avoid errors that could lead to the rejection of the registration application.

Share Capital and Its Impact on Fiscal Status

Although registering a microenterprise does not require a high minimum share capital, there are cases where the share capital can affect the fiscal status, access to financing, or the confidence of business partners. A fiscal lawyer or tax attorney can positively contribute to understanding the impact of these decisions on fiscal registration and interaction with tax authorities.

For any llc, these aspects become critical during the consolidation phase, and proper legal and fiscal consultancy is indispensable.

In the process of company incorporation, analyzing the level of share capital is essential, especially when it can influence fiscal status or partners’ perception.

“In the context of changes to the microenterprise fiscal regime, the consultancy offered by a business lawyer or fiscal lawyer is essential. A rigorous legal analysis can make the difference between simple fiscal compliance and an optimized business strategy,” stated the Coordinating Lawyer of the Romanian Law Firm Pavel, Mărgărit & Associates, Dr. Radu Pavel.

The reduction of this tax applicable to microenterprise is a fiscal opportunity that requires a responsible approach. Choosing a business lawyer, commercial lawyer, or corporate lawyer with extensive experience in both legal norms and fiscal realities can turn a bureaucratic procedure into an efficient business strategy. In the context of llc incorporation, such an approach becomes even more relevant as every step counts for the legal and fiscal efficiency of the future llc.

Romanian Law Firm Pavel, Mărgărit & Associates is one of the top law firms in Romania, providing the highest quality legal services. Its clients include major multinational and local companies. In 2024, the firm’s success stories earned international recognition from prestigious guides and international publications in the legal field. Thus, Pavel, Mărgărit & Associates ranked third in Romania in the ranking of business law firms with the most relevant expertise, published by Legal 500. The law firm is also internationally recognized by the IFLR 1000 Financial and Corporate 2024 guide. Additionally, Pavel, Mărgărit & Associates is the only Romanian law firm recommended by the international director Global Law Experts in London in the Dispute Resolution practice area. All relevant information about Pavel, Mărgărit & Associates can be found on www.avocatpavel.ro.