What it means to be the administrator of an Srl: advantages and disadvantages

Have you thought about doing your business and opening a company? So you probably already know that, at least, a limited liability company is the best option due to the tax benefits it has. And since this is the most common form of organization of companies in our country, we have decided to discuss what are the advantages and disadvantages of being the administrator of an Srl.

The responsibility of the administrator in an srl

First of all, the administrator of an Srl is the one who deals with the registration of the company in the commercial register, in which all the necessary documents are presented. But he can delegate another person, as a lawyer, to face these formalities. And after the company has been established, the administrator is his legal representative.

The administrator is the executive body of the company, that is, implement the provisions of the constitutive act of the inscription, as well as the Aga decisions (the General Assembly of the Associates), if necessary. If the administrator is at the same time and the only associate, the decisions he takes capable of associating are also implemented by him.

Who can be the administrator of an srl?

The administrator of an Srl can be someone from the company or outside of it, a Romanian or foreign citizen, a legal person in the country or outside of it. As a natural person, the Romanian law establishes that the administrator must satisfy two conditions: the legal capacity and the honorable.

In particular, the natural person has designated that the administrator of an Srl must be at least 18 years old and has not been sentenced for fraudulent acts, false, improper use of trust, deception, embezzlement, donation or taking bribes, false testimonies or other crimes provided for by the law of companies.

Advantages and disadvantages

First of all, the administrator of the Insl is the main person who responds before the law regarding the company’s activities, because he has the executive power. Therefore, whether we are talking about a natural or legal person, the administrator is the first to respond in the case of criminal acts.

However, being the administrator of an Srl is a great experience, through which you will learn many notions, procedures and legislative and accounting aspects that in the end will help you manage your business in a more efficient way (if you have just set up your company and you have no experience).

Advantages in being the administrator of an Srl:

• You have the opportunity to deepen the tax legislation in Romania
• You have the executive power in an srl
• Manage the activity of the ISR
• You can also be associated (unique or not) and the administrator of the ISR at the same time
• You can also be administrator and employee of your micro -enterprise
• You can collect your revenues through the company: as associated, from dividends or as an employee

Disadvantages in being the administrator of an srl:

• You are responsible for the law on what the company does (this means that you have to be careful, including the company’s accounting activity, even if you already have a man dedicated in this regard)
• It is necessary to satisfy all the legal conditions to be the administrator of an Srl, the conditions that in the first phase are controlled on the basis of declarations on their responsibility, for which you can be deprived of the rights and you can respond in a criminal way if there is a false situation in the declarations
• You are responsible for the law for most of the company’s activities

Whether you manage an online or traditional company, being the administrator of an Srl involves advantages and responsibilities. As a result, we advise you to treat this status with responsibility and to be strictly informed before accepting it.