Over time, more and more foreign investors or individuals have incorporated companies in Romania according to national statistics. At national level, in 2020, a number of 109.939 companies were incorporated in Romania, and in 2021, 34.89% more were incorporated, respectively a number of 148.294 companies. Thus, investors from various countries of the world, especially China, want to start an economic activity in Romania, in various industries, the objects of activity of the companies thus established including various sectors of activity. People or Chineese companies have deloped a remarkable impact on the company incorporation in Romania. In this article, the Romanian Law Firm Pavel Mărgărit and Associates presents the legislation in force regarding the incorporation of a company in Romania by investors from China as well as the conditions for starting the activity in Romania, a special importance having the legal regulations in order to maintain a linear activity.
The necessary procedure for company incorporation in Romania
The completion of the necessary steps for the incorporation of a company in Romania by a Chineese investor is conditioned by the documentation that must be adapted according to the type of company for which the investor has opted. Thus, regardless of the legal form which was chosen, the first step is to verify the availability and reservation of the name for the company, a procedure that takes place at the Romanian Trade Registry.
The chosen name must include distinctive elements, but the Chineese investor should consider that certain words may be prohibited and their use has to be confirmed by the authorities of Romania.
The articles of association of the company are considered to be the most important document of the process of incorporation of a company in Romania, being necessary to insert various information such as those relating to the administrator, object of activity, paid-up share capital. The Romanian Law Firm Pavel Mărgărit and Associates considers that a lawyer specialized in corporate, commercial, mergers and acquisitions law has a significant role in preparing and drafting the Articles of Association necessary to incorporate a company in Romania, because in addition to insertion of the element without which the document cannot exist, the choice of object of activities (NACE codes) is also substantial because, not infrequently, in practice, companies cannot carry out the desired activities because they do not comply with those established in the object of activity.
It is also necessary to submit at the Registry other documents such as the specimen of signature, the declaration of the administrator that she/he meets the necessary conditions for this quality or the declaration regarding the real beneficiary. Thus, in addition to the documents mentioned above, depending on the chosen form, it may be necessary to submit other documents such as permits or authorizations closely related to the activity which is carried out and a lawyer specialized in corporate, commercial, mergers and acquisitions may assist the investor in drafting the documentation required for acceptance of the file, given that the requirements are high and applications are often rejected on the basis of the requirements.
Incorporation of a company by a Chineese investor is a difficult process, which involves various stages depending on the legal form chosen by the party, the opinion of an expert being necessary because the procedure can be shortened and also in accordance with the standards in force. At the same time, the rapport with state authorities plays an important role in incorporation of a company in Romania, for example mentioning the China Embassy in Romania which provides assistance and consular services for drafting and authenticating the statements.
During their activity, companies may encounter various legal situations, being important to address to a lawyer specialized in corporate, commercial, mergers, acquisitions law who can assist and represent the client before the state authorities, understanding the source of the error and the possibility of redress, can provide day-to-day consultancy, draft various types of contracts, internal regulations and employment contracts for employees, and can represent the company in various litigation, debt recovery or insolvency proceedings.
Pavel, Margarit and Associates Romanian Law Firm is one of the top law firms in Romania, offering top legal advice. The Romanian law firm’s clients are foreign and top local companies and high worth individuals. In 2022, the success stories of the Romanian Law Firm have brought recognition from the most prestigious international guides and publications. The firm was ranked third place in Romania by the Legal 500 publication. The Romanian law firm is also recognized by IFLR 1000 Financial and Corporate Guide 2022. Pavel, Margarit & Associates Romanian Law Firm is also the only law firm in Romania recommended by the Global Law Experts Director in London in the Dispute Resolution area of Practice. All the relevant information regarding Pavel, Margarit & Associates Romanian Law Firm can be found on the website www.avocatpavel.ro.