Incorporating a limited liability company in Romania has become simpler. In Romania there isn’t a minimum share capital requested when incorporating a limited liability company and for the payment of the share capital of a limited liability company. The law firm Pavel, Margarit & Associates Romanian Law Firm, found out after a verification in Trade Registry Statistics that there is an increase in setting-up companies in Romania. For example, in the first 3 months of 2020, a total of 27118 limited liability companies were incorporated, and in the first 3 months of 2021, 27319 limited liability companies were incorporated. This is also due to the fiscal and investment benefits in Romania. A lawyer specialized in incorporating a company in Romania can make all the steps for incorporate a limited liability company in the Trade Registry Office.
Legal framework established by Law 223/2020 for simplifying the payment of share capital
Romanian Company law has undergone several changes over time. We consider that any law that supports traders in the sense of simplifying the procedure and avoiding bureaucracy is welcome in Romania.
The minimum value of the share capital prior to the entry into force of Law 223/2020
Until the date of entry into force of Law 223/2020, the share capital of a limited liability company had a minimum threshold of Eur 45. The share capital is divided into equal shares and which cannot be less than Eur 2.
Removal of the minimum share capital of a limited liability company and simplification of the procedures for the establishment of a limited liability company
A first step in simplifying the procedure for setting up a limited liability company is to consider the payment of share capital. In this sense, the requirement regarding the minimum share capital of Eur 45 when setting up a limited liability company was removed.
However, we must take into account the fact that the value of the share capital cannot be less than 25 eurocents. Under these conditions, for example for the setting-up of a limited liability company with a sole shareholder, the share capital will be at least 25 eurocents, and in the case of a limited liability company with two shareholders, the minimum capital is 50 eurocents.
So, according to the law the share capital may be divided into equal shares.
Removal of the obligation to prove the making of payments
Also, the procedure to incorporate a limited liability company becomes simpler because there will be no need to travel to the bank twice as before: once for the deposit of the share capital and after the incorporation, for the opening of the current account. A lawyer specialized in corporate law, commercial, mergers and acquisitions can assist you incorporate a company in Romania, opening a bank account for your company in Romania including setting-up a Company’s Romanian current account, without the need for the presence of the shareholder in Romania.
In conclusion, the new regulation aims to streamline and align with the European Union in terms of establishing a limited liability company by providing a simplified framework and adapted to society, which can lead to increased investment in Romania. The Pavel, Margarit & Associates Romanian Law Firm offers assistance regarding the setting up companies in Romania through the department of specialized lawyers in Commercial, Corporate and M&A,
Pavel, Margarit & Associates Romanian Law Firm is one of the top law firms in Romania, offering top legal advice. The Romanian law firm clients are foreign and top local companies and high worth individuals. In 2021, the success stories of the Romanian Law Firm have brought recognition from the most prestigious international guides and publications. The firm was ranked second place in Romania by the Legal 500 publication. The Romanian law firm is also recognized by IFLR 1000 Financial and Corporate Guide 2021. 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.