Are You Over 16 and Interested in Starting a Business? Solution: the Family Business! (Întreprinderea familială)

Alongside the licensed sole trader and individual enterprise, the family business is the third simplified business structure regulated by Emergency Government Ordinance No. 44 of 2008.

It is established by two or more family members, who may also be individual entrepreneurs, licensed persons, or employees of another company.

A family member includes spouses, children over the age of 16, as well as relatives up to the fourth degree who:

• Possess full legal capacity (at least 16 years old if a minor),
• Have not committed any offenses under financial, accounting, customs, or tax laws,
• Provide a self-declaration affirming compliance with health, veterinary, environmental, and occupational safety regulations,
• Hold qualifications or relevant experience if required by law for specific economic activities.

The family business is founded based on a written agreement among members, which must include the personal information of family members and their appointed legal representative, operational conditions, proportions for profit or loss contribution, relationships between members, exit options, and the date of the document.

Its establishment and licensing fall under the jurisdiction of the trade register of its registered office, and it does not possess legal personality.

The registration application must include: copies of members’ ID cards or passports, name reservation, signature specimen of the appointed representative, documentation proving compliance with the above requirements, lease or loan-for-use agreement for the registered office, founding agreement, authorization for the representative, and, where applicable, consent from the residential association, as well as documents proving assets, qualifications, and professional experience.

The appointed representative handles the business’s administration, while decisions concerning asset management (e.g., buying and selling) require a simple majority vote from members. Assets acquired by the business are jointly owned by members, with shares defined in the founding agreement.

The family business can engage in contractual relationships with any individual or legal entity, including other family or individual businesses and licensed persons. There is no limit to the number of economic activities listed under the CAEN (TEÁOR) code; however, it may not employ staff under individual employment contracts.

The business has no separate assets, though members may decide to create assets specifically for business activities, with each member’s contribution level indicated in the founding agreement.

Members have unlimited liability and are jointly responsible for any debts with both business assets and personal assets, as per their shares in the founding agreement. They are required to pay taxes and social and health insurance contributions on their income.

The family business dissolves and is removed from the trade register if over half of its members decide to cease operations, withdraw, or pass away.