The share capital of a company can not be less than 200 lei. However, there is no maximum limit for it. The amount that exceeds 200 lei can be used to finance the company’s business, like equipment acquisition, salary payments or other actions. The share capital reduction and the use of these amounts must follow certain procedures. To accomplish this action, you can hire a Romanian corporate lawyer, who will follow or the necessary procedures and draft the documentation, recommends Pavel, Margarit & Associates Romanian Law Firm.
The share capital of a LLC may be reduced at any time, and this change must be registered with the Romanian Trade Registry.
The amount of the share capital must be mentioned on the documents issued by the company, such as the decisions of the general meeting of the shareholders, the decisions of the sole shareholder or the company’s invoices.
The decrease of the share capital is accomplished in two stages, each of which requires certain acts.
Stage I through which the decision on the decrease of the capital is published in the Romanian Official Gazette
– Request for submission and mention of documents;
– The decision of the general meeting of the shareholders or the decision of the sole shareholder (original);
– If necessary, special authorization (in authentic form), lawyer or delegation for persons designated to carry out legal (original) formalities;
– Evidence of payment of the legal publication fee in the Official Gazette
This first file is filed with the Trade Registry.
– Application for registration (original);
– The amending act of the constitutive act (original);
– Extract from the Official Gazette of Romania, Part IV – in which the decision to reduce the share capital was published;
– The constitutive act, in original;
– If applicable: the agreement regarding the limit of the share capital provided by special laws (original); prior notice provided by special laws (original); special empowerment (in authentic form), delegation for persons designated to carry out legal formalities (original);
– Evidence of payment of the legal tariff, respectively, of the publication fee in the Official Gazette, Part IV, for the notification regarding the submission of the updated text of the constitutive act.
This second file will be filed with the Romanian Trade Registry too. The registration procedure with the Romanian Trade Registry takes 3 days.
The decrease in the share capital is made by a diminish of the capital contribution of the shareholders. Therefore, once this stage has taken place, the shareholder’s share ratio may change. A lawyer specialized in corporate law can provide the necessary advice and explain the potential risks for a shareholder following this action. The same lawyer can draft the necessary documentation so that this action does not imply any risk to the client, according to Pavel, Margarit & Associates Romanian Law Firm.
Pavel, Margarit & Associates Romanian Law Firm is one of the top law firms in Romania, which offers legal services at the highest quality, beyond clients expectations. The Law Firm approaches the cases with maximum professionalism and dedication. Its ultimate goal is obtaining exceptional results and achieving the clients objectives, in a time efficient manner. Among Pavel, Margarit & Associates clients are top multinationals and local companies. In 2017, the success stories of the Romanian Law Firm have brought recognition of the most prestigious international guides and publications. Thus, Pavel, Margarit & Associates Romanian Law Firm ranked second place in Romania in the rankings of business law firms with the most relevant expertise this year, realised by the Legal 500 publication, the most prestigious guide for law firms in the world, based in London, UK. The law firm is also recognized internationally by IFLR 1000 Financial and Corporate Guide 2017. 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
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