ROMANIA: THREE MAJOR CHANGES TO THE COMPANY LAW

On the 2nd of July 2020, after an almost six month wait, the law that allows for the de-bureaucratisation of company incorporations in Romania, was finally published in the National Gazette. The law entered into force on the 5th of July 2020, making it easier to incorporate a Romanian company.

The law brings with it three major changes:

1. The elimination of the limitation that a natural or legal person may be a sole shareholder in only one limited liability company. As a result, any natural or legal person may be a sole shareholder in any limited liability company, including when the sole shareholder of the legal entity is also a limited liability company with a sole shareholder;
2. Within the same building, a registered office can be declared for any number of companies, regardless of whether the respective building, through its structure and usable area, allows the operation of several companies in different rooms or in distinctly shared spaces;
3. The elimination of the once mandatory request to obtain the owners’ and neighbours’ approval for the establishment of a registered office in a building with a residential permit use.