No penalties for SMEs in first three years from incorporation

In the first three years from the incorporation of small and medium-sized enterprises, regulatory authorities shall refrain from imposing sanctions or restrictive measures, except for serious or repeated violations. The measure, among many others, is contained in a draft Deregulation Package, which has been approved by the Government.

An initiative of the Ministry of Economic Development and Digitization, the proposed Deregulation Package brings significant changes in areas such as IT, digitization and electronic communications. The package also covers labor relations and government supervision of entrepreneurial activity.

The draft introduces the requirement for the evaluators to submit a formal note explaining why an inspection is needed and notify the business to be inspected what exactly will be evaluated. Also, the business being inspected will have the right to record the process on camera.

“The regulatory changes aim to reduce bureaucratic barriers and lessen the administrative burden. Inspection activities represent one of the main challenges for entrepreneurs, especially for those just getting started, as such activities are associated with a risk for abuses and corruption”, said Dumitru Alaiba, Deputy Prime Minister/Minister of Economic Development.

In the field of digitalization, IT and communications, the new regulations provide that electronic communications equipment is not considered immovable property unless it is permanently attached to the ground.

Also, the Enforcement Code will be amended, which will introduce the digitization of relations between bailiffs and commercial banks, which will reduce administrative costs and time spent.

Additionally, according to the initiative, employers will no longer be required to pay the leave allowance at least 3 days before the employee effectively takes the leave. The allowance can be paid on another mutually agreed date, but no later than the pay day for the month in which the leave was granted.

When hiring people in the restaurant industry, the mandatory medical examination can be carried out at public or private medical institutions, and the costs will be covered by the Mandatory Health Insurance Fund.

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