Romanian Companies, Procedures Improvement
If you are living in Romania, you probably already know that some business procedures are complicated. If we can find a silver lining in this pandemic, if there is one, that could be the digitalization of Romanian public institutions.
Meaning that many public institutions, including Trade Registry, are now much easier to approach online. Including legal and administrative procedures. They have also made some modifications of the procedures to help us in our process of companies changes.
One major modification is that there is no minimum limit to the share capital of a Limited Liability Company. The explanation is that it used to be a very low amount, 200 lei. That was in anyway very limited to a liability that any Company could have.
That means when we register a new LTD Romanian Company, we don’t need to prove anymore that the share capital of the company was submitted to the bank. The Shareholders though, have the obligation to submit the capital in any amount that they want. There is no maximum limit either.
Another important rule that was changed is that an apartment or house can now host many Headquarters of a Company, regardless of the number of rooms that are part of the building.
For example, before this modification, if an apartment had two rooms, that apartment could not host more than two companies. One Company for each room. Even though the companies had no activity or had the activity externalized, that was not allowed. So, we can all see the benefits of this modified legislation.
Some changes concern the number of documents that had to be submitted for an administrative change of the company. I.e., the Registration Certificate of a Company had to be submitted in original in many procedures of Trade Registry. But now, the Shareholders get to keep the original document and they have the obligation not to use it if a new document is issued by Trade Registry. Basically, the new document replaces the old document, and you have the obligation to use the one that is valid. Fair enough.
Other changes reflect in some small steps that lead to a faster and normal digitalization. In a time that everything is online, we should use this power and adapt.
Therefore, I appreciate the ongoing process of Romanian institutions, and I am confident that we are on the right path to a modern and sustainable development of the bureaucracy.
Change is hard but good!