Post General Conclusions

The range of options is very various and only a good knowledge and understanding of these options, correlated with a realistic vision, taking into consideration the market situation and your expectations and possibilities can lead to carrying out an optimal choice, because the ideal organizational-legal form possessing just advantages, does not exist. Therefore, the establishment and the choice of the legal form for the future business must be made in accordance with the proverb: “measure twice and cut once “, taking as a basis the options provided by the legislation in force.

Comparison criteria

Individuals performing independent activities

Individual Enterprise

Peasant Farm

Limited Liability Comapany

Joint Stock Company

Legal status

individual

individual

individual

legal entity

legal entity

Number of founders / partners

one individual

one individual, members of a family

one individual, members of a family

min. 1,

max. 50

unlimited

Liability

unlimited

unlimited

unlimited

according to belonging share capital

according to belonging shares

Minimum share capital

does not exist share capital

does not exist share capital

does not exist share capital

1 lei

20000 lei

Founding documents

request to the territorial State Tax Service

founding decision

founding decision

statute,

constitutive agreement

statute,

constitutive agreement

Accounting and reporting

single entry accounting system without presenting the financial statements

single entry accounting system without presenting the financial statements until their registration as VAT payers

single entry accounting system without presenting the financial statements until their registration as VAT payers

double entry accounting system with presenting simplified or complete financial statements

double entry accounting system with presenting simplified or complete financial statements

Taxation

1% from income from independent activities

-7% from annual taxable income that does not exceed 31140 lei;

-18% from annual taxable income that exceeds the amount of 31140 lei.

7% from taxable income

12% from taxable income or 3% from income from operating activities + 6% from dividends

12% from taxable income + 6% from dividends