Family Foundations: A Strategic Solution for the Future of Romanian Entrepreneurship
Family businesses are the backbone of any economy, and Romania is no exception. In a recent episode of Academia de Guvernanță on Profit.ro TV—a project developed by Envisia – Boards of Elite in partnership with Profit.ro—Carmen Micu, CEO and co-founder of Envisia, and Ionuț Simion, Partner at PwC, emphasized the urgent need for a dedicated legal framework for family foundations in Romania. They argue that such a framework would strengthen local entrepreneurship and help family businesses secure their legacies.
“Family businesses are the future of the economy, especially now, as we see global economic fractures and deglobalization,” said Ionuț Simion. He pointed out that 47% of family businesses worldwide lack a prepared successor, while nearly half cease operations after the founder’s departure. In Romania, these challenges are compounded by the absence of clear legal tools for succession planning, fueling potential conflicts within families and threatening the continuity of businesses.
One of the main drivers for establishing family foundations, Simion explained, is to prevent these disputes. PwC and other partners have drafted a law that creates a clear framework for family foundations, an entity designed to preserve family wealth and ensure smooth transitions. “Such a law is the most valuable succession planning tool,” he said, noting that it would keep capital in the country and contribute to greater stability and higher tax revenues.
Carmen Micu outlined the governance structures that make family foundations effective. At the core is the board of trustees, which handles the formal governance responsibilities. Alongside this formal structure, there are advisory boards—councils of trusted advisors—and specialized committees that help manage complex portfolios of assets and navigate evolving risks. “Family foundations often operate alongside other structures, such as family offices, but the core vision always aligns with the founding leader or leaders,” she noted.
This governance architecture is particularly important at a time when many Romanian entrepreneurs are transitioning their businesses to the next generation. “We’re at a historic moment of transferring family businesses to children or other successors,” Carmen Micu said. With over 600,000 companies in Romania—99% of them entrepreneurial—the need to protect family capital and foster long-term sustainability is more urgent than ever.
The proposed law includes over 100 articles and has been in development for more than two years. It provides clear rules for creating a family foundation, including the minimum assets required (100,000 euros) and the creation of a board of directors to manage the foundation’s affairs in line with the founder’s vision. “It’s about protecting the founder’s legacy and ensuring that family wealth is used to support long-term prosperity,” Simion said. The law also outlines how these foundations can generate revenue—such as through dividends, rent, or interest—and distribute it according to the founder’s wishes.
Importantly, the law is designed not to create tax havens but to encourage responsible stewardship of wealth. “It’s not about tax exemptions—it’s about creating more tax revenue by keeping capital in Romania,” said Ionuț Simion. With Romania’s upcoming OECD accession and increasing demands for good governance, this legislative initiative aligns perfectly with broader economic goals. “I’m confident that within the next 10–15 years, we’ll see 50–100 Romanian companies with a strong regional presence, supported by family foundations,” he added.
Envisia – Boards of Elite has been a vocal supporter of this initiative, seeing it as a natural extension of its mission to strengthen governance practices in Romania. “Family businesses and family foundations are built around governance structures, and at their core lies the board,” said Carmen Micu. She stressed the importance of including independent voices in these boards to ensure long-term vision and sound decision-making. In a world where family wealth and legacy intersect with public scrutiny and evolving markets, strong governance has never been more crucial.
Follow the entire discussion HERE.
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