A legislative initiative is being prepared in Romania that will allow teenagers aged 16 to 18 to create and manage a special form of limited liability company. Parental consent will be required to register such a business, euro-pulse.ru reports.

The initiators of the law believe that sixteen-year-olds are already responsible enough to run their own business, especially considering that at this age they are already allowed to get official employment and obtain a license to drive certain vehicles.

To prevent possible abuses, the bill provides for a number of restrictions. A minor will be able to own only one company, and the teenager will have to manage it himself, which will eliminate the possibility of using young people as front men for adult businesses.

Youth companies will be able to engage in a maximum of three types of activities, while finance, real estate, gambling and alcohol production will be prohibited.

To protect young entrepreneurs, financial restrictions are being introduced: the company's assets or annual turnover must not exceed 100 thousand Romanian lei (approximately 20 thousand euros). Within these limits, the company is exempt from income tax.

Once the owner reaches 18 years of age, the company automatically loses its special status. Within 45 days, the young entrepreneur will have to either transform it into a standard LLC or liquidate the business.

The authors of the bill note that today’s teenagers demonstrate significant potential in creating high-quality business ideas, especially in the field of digital technologies. The new initiative is designed to help them develop entrepreneurial skills from an early age.