The Romanian Law Firm Pavel Margarit and Associates provided legal assistance and representation services to an IT company in Romania in order to make a business transfer to another IT company in Romania having as object of activity digital services in Romania, analyzing the conditions for taking over the business, from legal, accounting and fiscal perspective.

The legal assistance services consisted, among others, in drafting the Business Transfer Agreement representing the transfer of all assets necessary for the activity of the Romanian company, the transfer of rights and obligations arising from the contracts concluded by it, as well as the assets owned by it. The Romanian Law Firm Pavel, Margarit and Associates mentioned in the Business Transfer Agreement aspects related to the sale price, the amount of penalties in case of late payment, the seller’s guarantees against hidden defects and total or partial eviction, aspects related to confidentiality. to the Seller, as well as any other issues related to the settlement of disputes.

From a formal perspective, documents certifying the transfer of the activity, as required by the tax legislation, as well as any other Annexes necessary for its performance, including assisting the company before the competent persons to provide tax and accounting advice have been drafted.

Pavel Margarit and Associates Romanian Law Firm recommends that these procedures be followed by a lawyer specialized in corporate, commercial, mergers and acquisitions law who can provide business consulting in Romania, being common in practice cases where such contracts business transfers were made in accordance with the legal provisions of Romania.

Pavel, Margarit and 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 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.

What is the purpose of a Business Transfer Agreement in Romania?

A Business Transfer Agreement in Romania serves as a legal document that facilitates the transfer of an existing business, including its assets, rights, obligations, and contracts, from one entity to another. It outlines the terms and conditions of the transfer, including the sale price, payment terms, warranties, and other relevant provisions. This agreement is essential for ensuring a smooth transition when one company acquires the business of another.

What are some key elements typically included in a Business Transfer Agreement in Romania?

A Business Transfer Agreement in Romania typically includes details such as the sale price, payment terms, penalties for late payment, guarantees against hidden defects or eviction, confidentiality clauses, and provisions for dispute resolution. It should also specify the assets, contracts, and liabilities being transferred. The agreement may have annexes and documents required by tax legislation to formalize the transfer.

Why is it advisable to seek legal assistance from a specialized lawyer in corporate, commercial, mergers and acquisitions law when conducting a business transfer in Romania?

It is advisable to involve a specialized lawyer in corporate, commercial, mergers, and acquisitions law when conducting a business transfer in Romania because these transactions can be legally complex. Such lawyers have the expertise to ensure that the transfer complies with Romanian legal requirements, minimizing risks and potential disputes. They can draft and negotiate the Business Transfer Agreement, provide advice on tax and accounting matters, and assist in all aspects of the transfer to ensure a successful transaction.