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Call 0032-478-331-799 or 0040-766-622-873 and take a free intake interview in our offices to learn how you can acces Structural Funds and Structural Instruments in Romania

State aid programs in Romania

Keywords: state aid programs Romania, state aid in Romania

State Aid for regional development 2014 - 2020
Financial support for the private sector


Legal basis:

Government Decision 332/2014 - State aid scheme for investments which promote regional development through job creation


Government Decision 807/2014 - State aid scheme to stimulate investments with major impact in the economy


State aid scheme aims regional development by making initial investments in fixed assets of high technology to achieve products with high added value, regardless of the size of the recipient. The total value of an investments project must be of minimum 44 million Ron. This value was determined by reference to an equivalent value of approximately 10 million Euros (calculated at a exchange rate of 4,4 Ron/Euro).
State aid scheme is included in the Program "State Aid to finance investment projects", within the budget of the Ministry of Finance - General Actions.

The expenses may be included in the total investment value are those that are capitalized in the value of tangible and intangible assets. The expenditure on purchase / renting / leasing land not included in the total investment. Any expenses distinctly highlighted in the company's accounting records other than those related to tangible and intangible assets, such as expenditure on consultancy, obtaining approvals, agreements, licenses, employee training, etc., are not included in the total investment.

The maximum budget for the scheme is 2,700 million Ron, equivalent to 600 million Euro, to supplement as follows:
a) Commitment to the issue of financing agreements for the period 2014 - 2020;
b) Appropriations for payment of state aid approved under agreements to financing issued for the period 2015 - 2023.

Maximum annual budget of the scheme is 450 million Ron, equivalent to approximate 100 million Euro, as it will be determined by the annual budget laws. Financing agreements may be issued under the scheme till December 31, 2020 respecting state law aid.
State assistance payments shall be made between 2015 and 2023, based on agreements for funding issued within the annual budget, allocated to the scheme.


WHO CAN APPLY FOR FUNDING UNDER THE STATE SCHEME?

Companies which may request state aid under this scheme are recently established companies or ongoing activity companies, both SME's and large enterprises, with legal personality established under the Companies Act no. 31/1990, republished, subsequent amendments.


WHAT ARE THE ELIGIBLE AND NON-ELIGIBLE EXPENCES RELATED TO THE INITIAL INVESTMENT?

CONDITIONS:

a) State aid for investments which promote regional development through job creating
  • The initial investment should create at least 10 new jobs, out of which minimum 3 are for disadvantaged persons;
  • The new created jobs are maintained for minimum 5 years (for large enterprises) or 3 years (for SMEs);
b) State aid to stimulate investments with major impact in the economy
  • Making an initial investment of at least Euro10 million in sectors that are not specifically excluded from the scheme (non-eligible activities);
  • Maintaining the investment for a period of at least 5years from the date of completion;

  • A. ELIGIBLE COSTS

    There are considered eligible expenses, costs without VAT linked to implementing or acquisition, where appropriate, the tangible and intangible assets and expenses linked to renting construction related to the initial investment achievement.

    Eligible expenditure on tangible assets
    The tangible assets shall meet in whole the following conditions of eligibility:
    • must be operated exclusively by company recipient of aid to achieve the investment objectives for which the funding.
    • must be included in the assets of the company benefiting from state aid and must remain associated investment for which funding was granted for a period of at least five years after completion of the investment.
    • must be purchased in market conditions.

    The maximum amount that can be considered eligible expenses related achievement cannot exceed the standard construction cost. The costs of obtaining construction cost exceeding the standard are considered ineligible.

    In case of purchase of tangible assets are completed on specific chapters of the investment plan and the period for the purchase thereof, the years in which they were received (partial or final) and after payment (partial or final) thereof.

    Eligible expenditure on intangible assets
    The intangible assets shall meet in whole the following conditions of eligibility:
    • must be operated exclusively by company recipient of aid to achieve the investment objectives for which the funding.
    • must be included in the assets of the company benefiting from state aid and must remain associated investment for which funding was granted for a period of at least five years after completion of the investment.
    • must be purchased in market conditions.

    In case of purchase of intangible assets or licenses, know-how or other intellectual property rights, they complement the specific chapters of the investment plan and the period for the purchase thereof, the years in which they were received (partial or final) and after payment (partial or final) thereof.
    To be considered eligible, costs of intangible assets cannot exceed 50% of the total eligible costs of the investment.


    B. INELIGIBLE COSTS

    There are considered ineligible expenses the costs without VAT linked to implementing or acquisition, where appropriate, the tangible and intangible assets and expenses related to renting construction that do not qualify as eligible expenses. Ineligible costs are not funded by state aid.


    ELIGIBILITY CRITERIA OF ENTERPRISES


    1. GENERAL

      a) are registered under the Companies Act no. 31/1990, republished, as amended and supplemented;

      b) made an initial investment in Romania, in the areas of eligible activity;

      c) proves the viability of the project investment and economic efficiency of the company based on the Investment Plan and Business Plan;

      d) registers no debts to the budgets of the general consolidated budget;

      e) does not qualify as "firms in difficulty";

      f) not in enforcement proceedings, insolvency, bankruptcy, reorganization, dissolution, operational closure, liquidation or temporary suspension of activity;

      g) decisions are not subject to recovery of State aid or where such decisions were issued, they were executed according to the law in force;

      h) have not benefited from other national regional aid for eligible costs of the nature of wage costs in the same single investment project;

      i) not closed an identical or similar activity in the European Economic Area in the last 2 years prior to the filing of the financing agreement and, at the time of registration application, no concrete plans to close such activity over a period of 2 years after completion in the region in question, the initial investment;


    2. IN ADDITIONAL FOR ENTERPRISES WITH AT LEAST ONE FINANCIAL YEAR ENDED

      j) have profitability turnover greater than zero in the last financial exercise;

      k) have positive equity in the last financial exercise;


    3. IN ADDITION TO START- UPS COMPANIES

      l) they have paid share capital amounting to at least 100,000 Ron;

      m) they do not belong to shareholders who hold or have held in the past two years previously application registration of the financing agreement for another registered company under Companies Act no. 31/1990, republished, as amended and supplemented, carrying or has carried out its activity for applying for funding.


      METHOD FOR GRANTING THE STATE AID


      STAGES OF EVALUATION PROCESS OF THE APPLICATION FOR FINANCING

      Application for funding by agreement shall be submitted in continuous session. Assessment Application for funding agreement is achieved in a single step, which includes:

      • Application Registration for funding agreement;

      • Application Assessment for funding agreement in terms of submitted documents compliance;

      • Application Assessment for funding agreements in terms of the conditions and eligibility criteria;

      • Viability Assessment of the project investment and economic efficiency of the enterprise on the information and documents submitted in the business plan;

      • Information and/or documents request to complete the application for funding agreement, if any;

      • Application solving of the financing agreement;

      • Sending mail with acknowledgement of receipt for funding agreement or for rejecting letter of request for funding agreement, as applicable.

      State Aid is paid to companies that have received funding agreement, after performing partial or total eligible expenditure of initial investment under the investment plan and approved by the agreement for funding, within the limit of the approve annual budget.



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