The administrator of a company is the person in charge of general management and responsible for organizing and conducting the company’s activity within a legal framework. When it is proven that there are illegal activities within a company, the first person to take responsibility is the administrator. Therefore, he must be involved in all decision-making aspects with legal consequences:

  • The administrator is a person in charge appointed by the constitutive act. He can be a natural or legal person and he can have a limited mandate, compared to the duration of the company’s operation.
  • When the sole associate is also an administrator, his obligations are analyzed separately and are not confused.
  • There is no single, condensed legal basis, covering all the obligations of an administrator, therefore we will refer to several related documents. The main basis is the law of commercial companies, 31/1990 art. ’70-71. Law 31

Let’s clarify together some obligations of the administrator of a Romanian company:

  1. After the establishment of the company, the authorization obligation belongs to the administrator. Although he is not informed at ONRC about the obligation to authorize CAEN codes or about the path through the authorizing institutions, the administrator still has the obligation to authorize. If you are not sure that the activity you are carrying out needs an operating authorization, check this information with your accountant and/or lawyer.
  2. Managing and organizing the accounting is the obligation of the administrator. Regardless of whether you work with an accountant or have hired an economic director, they are legally responsible only for the execution of the accounting, and its management, as well as the content of the operations, remain the responsibility of the administrator. The administrator is the one who decides: the depreciation periods of the goods, the reimbursement conditions of the expenses, the protocol expenses engaged, the salary conditions granted, etc. That is why it is important that he acquires both the general notions of accounting and the obligations they have, in order to act informed.
  3. Although the SRL is a concept of limited liability of the partners, in accordance with the contribution of capital brought, the liability to the administrator can extend to the personal patrimony whenever a defective administration of the company is found. This liability is incurred jointly when an insolvency or bankruptcy procedure has been instituted Law 64/1995
  4. The administrator is responsible for notifying ONPCSB both informatively, upon opening the activity and on the transacted operations that fall under the conditions of Law 129/2022: https:/ /
  5. Every year, the administrator has the obligation to renew the declaration regarding the real beneficiary in the relationship with the bank and upon any change of beneficiaries in the relationship with ONRC.
  6. The administrator has the obligation to ensure the representation of the company in the relationship with all state bodies and can chooses to delegate this obligation to various natural and/or legal persons, through various acts and documents.


One of the most pressing questions of entrepreneurs concerns the legal way in which money from an LLC goes back or ends up in the pockets of the entrepreneur. Below we list 10 perfectly legal methods to get money out of the company and some information about the related taxes.

1. Settlement of expenses incurred for the company (0 taxes)

Organize personal and professional expenses and make a very clear separation between them. Deductible expenses refer to those expenses that can be settled on the company, practically you can withdraw from the company the value of the expenses incurred by you for this. To know which expenses you can deduct from the company, you can use the “deductible expenses” category from the tax code Another method is to evaluate yourself the categories of expenses you want to deduct. If they are logical and if you can always explain to a verifier why you need to hire expense x to carry out the activity, all that remains is to consult with your accountant on the details and you can settle.

2. Withdrawal of an advance of expenses (0 taxes)

If you need to withdraw an advance, for these future expenses to be settled, you can withdraw up to 5000 euros. Do not forget that these amounts must be justified with documents and that you cannot exceed this cumulative amount. For example, if you raised an advance of 5,000 euros, you can justify 1,000 euros and the following month you can withdraw a maximum of 1,000 euros again, so as not to exceed this threshold. Practically, depending on how many withdrawals you have, you will take care that permanently you do not exceed this threshold.

3. Payment of dividends (taxes 5% and 8%)

Once every 3 months, you have the opportunity to withdraw dividends together with your associates. If you have associates, you will not only be able to collect dividends, i.e. parts of the company’s profit, but all associates will collect proportionally from the profit. When paying dividends, your accountant will calculate a tax of 5% (2022) 8% (after 2023) which you will have to pay in the month following the withdrawal of the tax. There are some other obligations that you must check with the accountant: the threshold for paying contributions (additional costs), the single income statement and the preparation of an interim balance sheet, if applicable.

4. Payment of royalties (10% tax)

If you have a registered trademark in your name or if you produce content for which you want to keep the copyright, you can draw up a copyright contract with your company and you can be paid based on it. The copyright contract has lower taxes than a salary (10%) and it is also reported in the single declaration.

5. Payment of salaries (taxes 45%)

The associate and/or administrator has the right to work in the company and collect salaries and other salary rights (meal vouchers, mobility allowance, etc.) just like any other person. Of course, this is the most “expensive” form of remuneration for an associate/administrator.

6. Payment of a per diem/travel allowance (0 taxes)

The administrator can receive a per diem/travel allowance for the trips he makes in the interest of the company. There is a legal basis that establishes the maximum level of the per diem when it is granted for trips in Romania and abroad, you can consult it here:

7. Purchases of personal goods from the associate/administrator (taxes 0)

The associate and/or the administrator can sell to the company goods necessary for the company’s activity: a computer, a tablet, a telephone or a car, all of which can become the elements of a sale-purchase contract. Of course, as for all other categories, a fair price will be used and the purchased goods will actually be used in the activity.


The year 2021 will begin with a series of amendments introduced by Law 296/2020 to amend the Fiscal Code and Law 295/2020 to amend the Fiscal Procedure Code, both published in MOF 1266 of December 21, 2020. Also on December 31, 2020 it was published GEO 226 which postpones some of these measures for 2022.

We propose to address the most important of them, according to the number of individuals and legal entities affected by the changes:

• Although Romania does not yet operate with the concept of Holding companies, the treatment and functionality of the Fiscal Group is clarified with the new version of the law. Starting with 2021, the groups of companies will be able to report and pay a cumulative profit tax at the level of the tax group.

• Gift cards given by a company to individuals who are not in a salary-generating relationship with it are income from other sources and are subject to only 10% income tax.

• Some simplified mechanisms are extended in relation to ANAF: simplified rescheduling of debts, non-execution of debts, allocation of VAT to be reimbursed without control, until March 31, 2021.

• There are a series of measures to reorganize the mode of control, reporting and contestation in relation to ANAF-Fiscal Inspection Service. These measures are intended to clarify the ability of ANAF inspectors to interpret certain legislative issues, as well as to separate and clarify the way in which control acts are challenged:

• The minimum wage on the economy is changed starting with January 1 to 2300 lei, only for the positions that are not included in the base of higher education

• A new telework aid is introduced, amounting to 400 lei / month, to cover the expenses of using housing as a work space.

Find below the measures initially announced for 2021, already circulated online and which will be applied from 2022:

• Increase the VAT ceiling on collection from 2,250,000 LEI to 4,500,000 lei. The deadline for exercising the option is maintained until January 25.

• The ceiling for the purchase with VAT of 5% of the dwellings is increased to the equivalent of 140,000 euros.

• The deductibility of adjustments for impairment of receivables will be granted in the proportion of 100% until 2022. For 2021, the percentage of 30% remains valid.

We also remind you of the verification of the inclusion in the fiscal ceilings valid in 2021 and of the possibility to exercise the option regarding the VAT on collection until January 25th.