On this page 6 sections
1What is a family business
A family business (Î.F.) is made up of two or more members of a family, under Government Emergency Ordinance no. 44/2008. It is set up through a written founding agreement, which sets out the members, the representative and each member's share.
The business is represented by one of the members, based on a special power of attorney signed by the others.
2Who can be a member
- Husband and wife.
- Their children aged 16 or over.
- Relatives by blood or marriage up to the fourth degree inclusive, that is, up to first cousins.
- The representative of the business must be at least 18 years old.
3Important rules
- It cannot employ anyone under an employment contract. Everyone who works in it must be a member.
- Liability is joint and indivisible: the members are jointly liable for the business's debts, first with the assets assigned to the business, then with the rest of their assets.
- The shares of each member's profit and loss are set out in the founding agreement.
- Members can at the same time hold a PFA or a sole proprietorship.
4What we need from you
- ID cards of all members
- Birth or marriage certificates showing the family relationship
- For the professional address: the title deed or, where applicable, the lease. We draw up the loan-for-use agreement ourselves.
- How you want to share the earnings between members
We draft the founding agreement and the special power of attorney for the representative ourselves.
5The steps
- Free consultationWe decide on the members, the representative and the shares.
- The nameWe check and reserve the name.
- The agreementWe draft the founding agreement and the power of attorney. All members sign.
- FilingWe file the application with the Trade Register.
- The certificateYou receive the registration certificate.
6Frequently asked questions
Can a relative who is not a member work in the family business?
Not under an employment contract. If you want them to work, they must join as a member, provided they meet the family relationship conditions.
What happens if a member wants to leave?
The agreement is amended and an entry is made at the Trade Register. We take care of the paperwork.
How many members must a family business have?
At least two, from the same family: spouses, their children aged 16 or over, or relatives up to first cousins.
Who signs the business's documents?
The representative, that is, one of the members, based on the special power of attorney signed by the others.
How are the earnings shared?
According to the shares set out in the founding agreement. You decide them yourselves; they don't have to be equal.
Can I also have a PFA if I am a member of a family business?
Yes. Members can at the same time hold a PFA or a sole proprietorship.
Can a new member join later?
Yes, if they are part of the family under the conditions of the law. The agreement is amended and an entry is made at the Trade Register. We take care of the paperwork.
Information updated in October 2026. Legislation changes often, so during the consultation we check exactly what applies in your case.