Tens of thousands of Limited Liability Companies are incorporated each year in Romania. Many times, however, the prospective owners do not take into considerations the problems that may arise in the future, especially issues related to shareholders rights and obligations or the firm’s Article of Association. By hiring a lawyer specialized in incorporating LLCs and corporate and commercial law, the shareholders can prevent any liabilities or claims that may arise in the company activity, say lawyers specialized in incorporating LLCs and corporate and commercial law from Pavel, Mărgărit & Associates Romanian Law Firm.
Any company set up in Romania must be registered at the Romanian Trade Registry. A Limited Liability Company can have a main object of activity and more secondary objects of activity. Also the LLCs may have one or more shareholders that may be liable to the clients of the company only within the limit of the subscribed and paid-up share capital. Throughout his career, Radu Pavel, the Managing Partner of Pavel, Mărgărit & Associates Romanian Law Firm, assisted lots of companies in various legal issues in Corporate, Commercial and M&A area of practice. The legal issues would not have arisen if they would have hired a Romanian lawyer specialized in incorporating LLCs and corporate and commercial law.
“Most corporate law cases are related to the decisions of the General Meeting of the Shareholders, their rights and obligations and the director or board of directors legal issues. However, before or after setting up a LLC, a lawyer specialized in corporate and commercial law can advise the client regarding the rights and obligations of the majority or minority shareholders, the powers of the directors, the voting rights in the General Assembly of the Shareholders, on the issues regarding the heirs and their rights and on the liability of the directors. Over time, we have advised in litigations between shareholders, canceling of board decisions and in drafting the Articles of Association. Fortunately, in these cases we have advised in a timely manner, as there is a period of 15 days after the decision is taken when it can be appealed in court. In general, all these cases of corporate law have strict deadlines, so it is advisable to call on a specialized corporate lawyer who can act promptly, thus preventing any claims that may seriously harm the activity of the company. Also, we managed cases of administrator’s liability, for the damages caused to the company. For example, there were cases when the directors, having the right to sign in the bank, withdrew significant amounts from the accounts of the company, concluded fraudulent contracts, made fictitious payments or paid services or goods at a much higher price. In situations like this it is advisable to act in a timely manner. If not, the chance of recovering damages is substantially reduced”, explains Radu Pavel, the Managing Partner of Pavel, Mărgărit & Associates Romanian Law Firm.
Over the years, Pavel, Mărgărit & Associates Romanian Law Firm has incorporated all types of limited liability companies, such as consultancy companies in various industries, manufacturing companies, IT companies, construction companies, companies activating in the mining or other energy field, real estate developers, food industry, agriculture, automotive, car-sharing etc. The Romanian law firm has also set up joint-stock companies and limited partnerships. Subsequently, the Romanian law firm advised these clients on various transactions, such as mergers or acquisitions. A Romanian lawyer specialized in incorporating limited liability companies and corporate and commercial law can advise the client about setting up the company in Romania, while also carrying out the incorporation procedure in the shortest time, according to the lawyers specialized in incorporating LLCs and commercial and corporate law of Pavel, Mărgărit & Associates Romanian Law Firm.
Pavel, Mărgărit & Associates Romanian Law Firm is one of the top law firms in Romania, which offers legal services at the highest quality, beyond client’s expectations. The Law Firm approaches the cases with maximum professionalism and dedication. It’s ultimate goal is obtaining exceptional results and achieving the client’s objectives, in a time efficient manner. Among Pavel, Mărgărit & Associates clients are top multinationals and local companies. In 2019, the success stories of the Romanian Law Firm have brought recognition of the most prestigious international guides and publications. Thus, Pavel, Mărgărit & 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 2019. Pavel, Mărgărit & 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, Mărgărit & Associates Romanian Law Firm including areas of practice and the most important deals can be found on the website www.avocatpavel.com, which is one of the most complex law firm websites in Romania.
STATISTICS REGARDING THE STRUCTURE OF THE LLCs MANAGEMENT
In the first five months of 2019, 68,230 companies, family businesses, individual enterprises and authorized person were incorporated in Romania. The number is 11 percent higher than in the same period in 2018. Number of LLC, family enterprises, individual enterprises and authorized person established in May was 7.961.
Most business executives are at their 40s
Approximately 30% of the Romanian LLC directors are between 40 and 49 years of age, while 27.5% are in the 30-39 years category. Less than 10% of company administrators are less than 30 years old. Only 14% of the directors of the companies have exceeded this age. At the end of May in Romania, there were 960,000 Romanian legal companies with approximately 1,12 million directors.
40% of authorized person and members of family businesses are women
Women represent only 37% of the shareholders of legal companies in Romania. At the end of May 2019, the companies incorporated in Romania had about 1.4 million shareholders. Women are somehow better represented when it comes to private authorized persons and individual businesses. About 40% of the shareholders and members of these categories are women. In the end of May 2019, in Romania were 374,000 private authorized persons, individual enterprises and family businesses.