The draft law on independent professional activity, published in the Official Gazette of February, 15, It entered into force May 15, 2022. What is its purpose? Creating a simpler and more secure legal, tax and social environment. Let's look at what will change.
As an argument in favor of conducting independent professional activities, the law provides for the creation of a unique status of an individual entrepreneur, which should provide more effective protection of the personal property of entrepreneurs. Therefore, the status of sole trader with limited liability (EIRL) is abolished, and its main benefits are consolidated in the new status.
Individual entrepreneurs also have the opportunity to more easily develop their business, moving from the status of an individual entrepreneur to opening a company.
From now on, all personal property of an individual entrepreneur by default becomes untouchable for professional creditors, unless he himself decides otherwise. Only items useful for the professional activities of an individual entrepreneur, such as, for example, a computer or a vehicle, can be seized in the event of debts. The division of property will be carried out automatically, without requiring any administrative actions from the creditor.
Please note that the reform will apply to all entrepreneurs three months after the adoption of the law. For companies that were already established before the reform, the division of property will only apply to new debt claims.
Possible surge if business goes out of business
Another revolution: easing the conditions for access to the Independent Trader's Allowance (ATI). Professionals who see their business becoming unviable and decide to close it can now take advantage of this to ease their financial situation while they look for a new source of income (job). According to the government, about 30,000 entrepreneurs will thus be able to receive ATI annually, up from 1,000 currently. This benefit of 800 euros per month, created in 2018, has so far only applied to former entrepreneurs who are in the process of reorganization or liquidation of their professional status through judicial proceedings. With the new status, the amount will still be 800 euros per month, except for those who have had lower incomes in the last two years. This amount will be fixed later by decree.
Finally, the social contribution arrears of the directors of most public limited liability companies (SARLs) can now also be settled under the over-indebtedness procedure.
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