PUBLIC ASSISTANCE SCHEME LASTING ECONOMIC DEVELOPMENT

 

 

Lasting economic development – Public Assistance Schemeimages (1)

 

Eligible costs:

 

a) either for the capital and/or non-capital assets related to the founding of a new unit, to the expansion of an existing unit, to the diversification of the production of a unit on new product markets or to a fundamental change of the assembly of the production process of an existing unit;

 

b) either to the purchase of the fixed assets directly related to a unit when the unit is closed or would have been closed without this purchase and the assets are bought by an independent investor. The mere acquisition of an enterprise’s actions is not regarded as an investment.

Granting requisites:

1. Be part of one of the following categories:

a)5 to 10 million euros included, the equivalent in lei, and leads to the creation of at least 50 new job positions as a consequence of the initial investment;

b) realizes an initial investment with a value between 10 and 20 million euros, the equivalent in lei, included and leads to the creation of at least 100 new job positions as a consequence of the initial investment;

c) realizes an initial investment with a value between 20 and 30 million euros, included, the equivalent in lei and leads to the creation of at least 200 new job positions as a consequence of the initial investment;

d) realizes an initial investment of a value that is bigger than 30 million euros, the equivalent in lei, and leads to the creation of at least 300 new job positions as a consequence of the initial investment.

2. Are registered in conformity to the dispositions of the Law 31/1990, republished with ulterior modifications and completions in regard to the commercial societies that make investments in Romania.

3. At the time when the request for the public assistance was made has a valid plan of investment (the expenses will be described in detail: the quantity, the price, the value) and a technical and economic study performed by a specialized company which proves the economic efficiency of the investment through their conformity with the values described at the III Chapter of the present guide;

 

The regional help for initial investments is calculated in relation to:

the costs of the investments made with capital and non-capital assets emerging from the initial investment project;

the wage costs determined for the job positions that are directly created**) as a consequence of the carrying out of the investment project (the eligible costs are considered wage costs for the newly hired personnel, which includes the gross wage and the obligatory social contributions calculated for a two-year period),

The public assistance for the initial investment is granted if the initial investment and the newly created job positions are maintained for a five-year period starting from the enactment of the investment. This condition does not prevent the replacement of the old gear during the 5-year period due to the rapid technological evolvement. If the public assistance is calculated based on the wage costs, the following conditions must be fulfilled:

a) the job positions are directly created by the investment project;

b) the job positions must be created within 3 years after the works have been finished and maintained for 5 years starting from the date of their filling.

The intensity of the nonrefundable grant:

50% of the costs related to the initial investment or to the wage costs foreseen for a 2-year period for the newly hired personnel.

For the investments or job positions created within the 8 region of Bucarest-Ilfov, the biggest intensity of the public assistance is of 40%.

For the companies that are active in the field of agricultural products processing and commercialization which have less than 750 employees and/or a turnover of less than 200 million euros*, the highest intensity is of 25% of the eligible costs related to the initial investments.

 

Payment of the public assistance:

 

The specific individual distributions are assigned to the selected applicants after the partial or total execution of the eligible expenses related to the investment project for which the Financing Agreement was released.

During one calendar year every applicant can make at most 4 issue requests for the nonrefundable sum. The issue request for the first rate, accompanied by justifiable documents is registered after a period of at least 3 months  since the initiation of the investment project. The actual transfer of the rates of the nonrefundable sum is realized with the help of the Ministry of Economy and Finance, within 45 working days starting from the day in which the request was registered.

 

The modification of the investment project: only 2 modifications are allowed provided that the Ministry of Economy and Finance is notified within 10 days starting from the day of the modification.

 

The revocation of the financing agreement:

The agreement for the financing is revoked if:

a) the society does not make any other changes on the investment project besides the two modifications that are allowed during the period of enactment of the investment project;

b) the society hasn’t started the investment project within the deadline that was specified in the investment project (within at most 4 months starting from the date of issue of the financing agreement);

c)  the society hasn’t accomplished the investment project within the deadline foreseen in the investment project;

d) the society hasn’t notified the Ministry of Economy and Finance (within the 10 working days deadline since the introduction of the modifications in the investment project, enclosing a technical- economic basis).

 

Tel:0040-762552142 Ec Crisan Adelina

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