NEWSFLASH – Financial support for SME from external non-reimbursable funds

NEWSFLASH - Financial support for SME from external non-reimbursable funds

Given the drastic economic effects of the current SARS-Cov-2 pandemic and the crucial role of small and medium enterprises (hereinafter “SME”) for the Romanian economy, the Romanian Government has issued the Emergency Ordinance no. 130/ 2020 (hereinafter “EO 130”), by which it sets the conditions for granting financial support for Romanian SMEs from external non-reimbursable funds. The financial support can be granted until 31.12.2020 at the latest.

Please find more information here


Update of the Romanian trademark law

In December 2015, the Directive (EU) 2015/2436 to approximate the laws of the Member States relating to trade marks was adopted. According to the directive, the EU member states were supposed to implement it in their national legislation by 14.01.2019.



As already communicated several times, companies, associations and foundations must register the ultimate beneficial owners (in short UBO) either with the Commercial Register or with the Ministry of Justice by November 1st, 2020.

The correct identification of the UBO caused difficulties for some companies because the legal definitions are not easy to implement in a multi-level international group structure.

Our law firm directed several inquiries to the Anti-Money Laundering authorities in order to find out how the definitions were interpreted in certain cases, especially since the practice of the commercial register is inconsistent.

Please find more details here.



New regulations in public procurement law

Beside the regulations coming into effect in the context of the Covid-19 pandemic, further legal acts regulating the award of public contracts have been enacted this year.

For instance, after the Emergency Government Ordinance no. 23 dated 04.02.2020 has been declared unconstitutional due to lack of certain opinions on the part of authorities, the Government Emergency Ordinance No. 114 dated 09.07.2020 (hereinafter referred to as the “GEO”) entered into effect, restating some provisions of the unconstitutional ordinance with partial amendments.

NEWSFLASH – New restrictions caused by Covid-19 in Romania and the Bucharest area

NEWSFLASH - New restrictions caused by Covid-19 in Romania and the Bucharest area

After most restrictions imposed during the lockdown phase have been canceled, the number of Covid-19 infection has considerably increased in Romania and especially in the capital.
This prompted the authorities to impose new restrictions, partially for the entire state and partially for the Bucharest area.
Please find more details here.

Competition law: Using a superior bargaining position could soon become subject to sanctions

The Law No. 11/ 1991 concerning unfair competition represents, together with Law 21/1996 on competition, the most important instruments of the Romanian Competition Council (Consiliul Concurenței) for monitoring and regulating competition on the Romanian market. At the beginning of June, the draft of an Emergency Ordinance (“EO”) modifying and complementing the abovementioned laws was published for consultation.

The sale of non-urban agricultural plots became significantly more difficult

Beginning with the 13th of October 2020, the sale, respectively the purchase of agricultural plots in outer city areas has become significantly more difficult. The basis for such change is represented by the law No. 175/2020 (hereinafter referred to as “Law 175”), which was published on 14.08.2020 and amended the law No. 17/2017 on the sale of agricultural plots located in non-urban areas (hereinafter referred to as “Law 17”).

NEWSFLASH Procedure for short-time work and financial support for telework in force

NEWSFLASH - Procedure for short-time work and financial support for telework in force

As previously announced, the Emergency Ordinance 132/2020 implemented not only “Kurzarbeit” (short-time work), but also provided a financial support for employers whose employees performed telework.

In a nutshell,

  • Kurzarbeit implies that the employer reduces the working time and the salary of affected employees, with the state covering 75% of the employee’s salary loss;
  • The employer is entitled to a one-time allowance amounting to RON 2,500 for each employee who performed telework according to Law 81/ 2018 for at least 15 working days during the state of emergency, in order to acquire goods and technological services necessary for the telework.

You can access our previous information on Kurzarbeit here and the one on the telework support here.

For both types of state support, the procedures have been published, meaning that the legal framework is now complete and can be applied.

  1. With regard to short time work:

The Order 1393/2020 providing the documents which have to be filed for the reimbursement of the short time work indemnity has been published and will enter into force on 19.09.2020.

Basically, the employer will have to file a request for the previous month and attach an affidavit regarding the fulfilment of all conditions, a list of affected employees and evidence regarding the payment of taxes and social contributions in order to obtain the indemnity from the state.

If accepted, the payment will be made within 10 days as of (both) the application and the payment of the income tax/ social contributions for the respective month.

  1. With regard to the support for telework:

The Order no. 1376/2020 regulates the method of granting such allowance and the goods which may be acquired with it. The allowance is granted through the agencies for employment (AJOFM) on a first-come-first-serve basis, within the funds allocated for this purpose.

  1. The following new goods and technological services may be acquired:
  • Laptops/ notebooks
  • Tablets
  • Smartphones
  • Peripheral input and output equipment related to the goods mentioned above
  • Equipment necessary for the internet connection of the goods mentioned above
  • Licenses regarding the operating systems and software applications related to the goods, necessary for carrying out the telework, in accordance with Law 81/2018,

The technological services are defined as all means related to the information and communication technology which the employer has to provide to the employees performing telework according to law 81/2018.

  1. Application for the allowance

The employer uploads the following documents on the platform :

  • Application;
  • Affidavit and
  • List of teleworkers for which the allowance is required.

The templates of the mentioned documents are attached to the Order.

If accepted, the payment shall be made within 10 days as of the submission of the full documentation.

  1. Justifying documents

The Order identifies the documents justifying the acquisition of the goods and services, which have to be provided by the employers as scanned copies within 30 days as of the day on which the allowance is granted.

In case of non-compliance with such obligation the employer will fully reimburse the amount received.

We would be pleased to answer any questions you might have.

STALFORT Legal. Tax. Audit.

Romania introduces short time work („light“)

Many countries have introduced – in part for quite a while – regulations on short time work. After several initiatives were launched in Romania in this regard at the beginning of March, the Government has now finally adopted the long-awaited regulation. Thus, the Romanian law has become acquainted with the reduced schedule work since 10.08.2020.

Ultimate Beneficial Owners at a Glance

We have tackled the subject of the ultimate beneficial owners (Ro. beneficiar real) on a regular basis in our past articles. Shortly after Romania was sanctioned due to its failure to implement the 5th anti-money laundering directive, two changes of the money laundering law were adopted in July. The subject is far from being exhausted. By means of the questions below, we will try to synthesize the most important regulations, as well as the issues not yet clarified.