November 15 2004
The regulatory authorities recently issued new legislation on the incorporation of Romanian companies which has simplified the incorporation procedure considerably.
Government Emergency Ordinance 75/2004 has substantially amended the regulation of incorporation.
The ordinance expressly stipulates that the certificate of incorporation of a commercial company must be released by the Registry of Commerce within three days of the submission of the incorporation application.
This change will speed up the incorporation process considerably, since previously no period was specified in the regulations for the issue of the certificate of incorporation. Before the introduction of the new ordinance, the approximate term in which a commercial company could be incorporated in Romania was between 20 and 30 days, depending on the region in which it was located.
Another significant reform concerns the procedure for authorizing the operation of a new commercial company.
According to the new provisions, a company is entitled to commence activities, as specified in its bylaws and in accordance with its commercial purpose, on the basis of a standard statement as soon as the Registry of Commerce has issued the certificate of incorporation.
Through this statement, which is submitted to the Registry of Commerce together with the application for incorporation, the company representatives declare that it fulfils the operational conditions required for its commercial purpose under the applicable Romanian law.
The information contained in the standard statement is subject to the subsequent control of the competent authorities.
For further information on this topic please contact Raluca Marian or Radu Boanta at Racoti-Predoiu by telephone (+40 21 311 05 17) or by fax (+40 21 311 05 19) or by email (firstname.lastname@example.org or email@example.com).
ILO provides online commentaries as specialist Legal Newsletters. Written in collaboration with over 500 of the world's leading experts and covering more than 100 jurisdictions, it delivers individually requested information via email to an influential global audience of law firm partners and international corporate counsel. Please click here to register for the service.
The materials contained on this website are for general information purposes only and are subject to the disclaimer.
ILO is a premium online legal update service for major companies and law firms worldwide. In-house corporate counsel and other users of legal services, as well as law firm partners, qualify for a free subscription. Register at www.iloinfo.com.