The companies, in which shares may be purchased, must meet the following conditions: to be constituted as limited liability companies under Art. 2 of the Company Law No. 31/1990, republished, with subsequent amendments; to be independent companies in the sense of Law no. 346/2004, with subsequent amendments; not be in default or insolvent or bankrupt and not to have opened the procedure of liquidation.
To benefit from the tax incentives mentioned above, any person can become a individual business angel investor in companies above mentioned, if it meets the following conditions: it is an outsider of the Company and acquires the quality of shareholder in the company by contribution of cash to the capital of the Company, resulting in the issuance of new shares in his favor; individual business angel investor, will acquire a number of shares in the company at the nominal value with the related issue premium contribution, paid on the date of the capital increase; invests an amount between EUR 3,000 and EUR 200,000 equivalent in lei at the National Bank of Romania exchange rate on the day of the operation in the company whose associate he becomes, by acquiring shares; acquiring of the shares is held by capital increase, in accordance with point a), and the amount invested will be paid through the banking system in Romania and will be recorded in the company accounts according to law; These limits apply to the cumulative amount regardless of the number of investors; the investment is carried out strictly in order to fulfill the core activity of the company and the business plan for individual-investor business angel to invest; he has no facts written in his record issued by the competent authorities at the investment date; he cannot hold as a result of the investment, in their own name or through intermediaries, more than 49% of the share capital of the company in question; is unable or has not been convicted of crimes against property through disregard of trust, offenses of corruption, embezzlement, forgery offenses, tax evasion, crimes stipulated by Law no. 656/2002 on preventing and sanctioning money laundering, and the establishment of measures to prevent and combat terrorist financing, republished, as further amended, or offenses under the Law no. 31/1990, republished, with subsequent amendments.
Also, the fiscal incentives are granted if there are fulfilled cumulatively the following conditions:
1. Individual-investor business angel does not alienate the shares before the expiry of three years from the date of their acquisition in accordance with Art. 2 paragraph (1) a); otherwise, it owes tax on income as dividends according to art. 67 paragraphs (1) of Law no. 571/2003, with subsequent amendments, for the period for which he was granted fiscal facilities mentioned in art. 3 paragraph (1), plus accessories, as well as tax on income from investments under art. 67 paragraph (3) b) of Law no. 571/2003, related to alienation of shares;
2. The Articles of Association of the Company, submitted to support the application for registration of the capital increase by issuing new shares in the Trade Register, contains the following clauses: participation in the profit and loss of the associates will become proportional to the percentage of shares held by each shareholder; the decisions on the business plan and on giving up dividing the profit, regarding the investment made, will be taken with the agreement of all partners;
3. The company and the associates do not use the share premium at the capital increase and not distribute it to the shareholders, for a period of 3 years from the date of registration of individual-investor business angel in the trade register;
4. The company has no debts to the general consolidated budget at the date of the shares transfer by the individual business angel investor.
The law will enter into force within 45 days after publication in the Official Gazette, respectively 17.07.2015.