Romania Legal Articles
Law related articles writen by lawyers
and experts witnesses practicing in Romania
January 17, 2017 By Hammond, Minciu and Associates
Romania being Romania has a different approach to directors of companies and their relationship with such companies. It is very easy for someone not from Romania to use the word director.
Inheritance and succession issues in relation to UK citizens with assets in Romania are one of the areas about which we are being asked more and more to advise upon. As a Romanian law firm whilst we deal and advise on succession in relation to all countries in respect of Romanian issues, I wish to look briefly at the position so far as a UK succession is concerned
KYC or know your client seems to be a mantra repeated by many institutions these days, whether is it from banks of financial authorities the mantra KYC is repeated.
How to Establish and Incorporate a Limited Liability Company in Romania Using a Corporate Lawyer in Bucharest
What seems to be relevant in the present article is the current legislation in Romania which allows any private or corporate entities to incorporate a limited liability company in Romania. In this regard, the article proposes to give an overview of the legal steps in order to incorporate a limited liability company in Romania by a corporate lawyer in Bucharest.
The custody and control of children are under Romanian law that of the parents and to those who the courts delegate this authority. Parental authority involves both rights and obligations for the parents for the education and raising of children. The rule is that parental authority is exercised jointly by both parents, regardless of whether they are married or divorced.
The court system in Romania is still to many a confusing impenetrable system. In the past the rules and regulations seem to have a mind of their own which only the judges and a few practioners seem to fully understand. Fortunately, with a more up to date approach and exposure of the legal system to the EU rules this is no longer the case which it
The first question international clients usually ask lawyers in Romania is how long will it take to incorporate a company. For an experienced law firm, that should be an easy question to answer, but like most things in the current business world, the answer is not as simple as the question would lead you to believe.
Whilst the protection of Know-how and Trade Secrets is usually covered in local law there is often confusion as to how this will translate internationally and how will clauses covering this in a contract governed by one law be considered in another jurisdiction.
In Romania, and perhaps in the rest of Europe, little attention seems to be paid to Data Protection and the implication of the regulations which are passed both at European Union and Romanian National level.
Being an employer in any jurisdiction seems to become more complicated as time goes on. I was recently reminded of this when we were advising an international client of the Firm on employment issues in Romania.
Most investors and companies that wish to incorporate a company in Romania chose to form a limited liability company (SRL). As Romanian lawyers we are often asked to advise on the type of company to be formed. In many cases we agree with the client’s initial instructions as to the form of the company to be incorporated.
The Romanian courts do not necessarily operate with the speed and efficiency that may be found in Western Europe or the USA but this should not prevent a practitioner considering the following steps against a Romanian debtor. Consider here both the enforcement of a decision issued by a competent court as well as a seizure order against a debtor’s assets.
Immigration law provides the right of foreign to apply for Romanian citizenship. With the help of an immigration attorney specialized in immigration law you can obtain details about the conditions to be fulfilled in order to obtain Romanian visas, resident permit in Romania and Romanian citizenship. An immigration lawyer will help you with submitting the documents and with understanding the conditions mentioned in the immigration law of Romania, so obtaining Romanian citizenship becomes easier.
The Supreme Court of Romania, in motivating the decision, considered that the tax audit is the document that underlies the issuance of the tax decision, namely that document that records the findings of the fiscal inspection bodies, "it does not represent an administrative act” so as defined by art. 41 of Ordinance no. 93/2003 regarding the Romanian Fiscal Procedure Code, also it does not represent "a receivable title" as it is defined by art. 110 par. 3 of the Romanian Fiscal Procedure Code.
The Customs Code establishes the general rules and procedures applicable to goods brought into or out on the customs territory of the Union and is applied uniformly throughout the Union. Starting in June 2016 will enter into force the provisions regarding the use of electronic data processing techniques for all exchanges of information (statements, requests, decisions) between customs authorities and economic operators, as well as the methods of their storage;
For individuals receiving dividends from a Romanian legal entity, starting in January 2016 it is maintained the 5% percentage of the gross dividend paid. Also, since January 2016, the persons who obtain income from dividends do not owe social health insurance contribution for that income in case they obtain income from wages, pensions, independent activities, association with a legal person, etc., except the earnings from intellectual property rights.
The European Court of Justice is having a larger influence on people’s lives than is popularly realised. As is often the case the Court has made a decision which will have an impact on consumers in Europe and perhaps world-wide and was not picked up by the majority of the consumer press, rather only by lawyers who specialise in the field of aviation law.
After much debate and discussion the European Parliament and the Council have issued the recast Directive on Insurance Distribution.
The use of lawyers in Romania has in the past has often been limited to using them for legal advisory and court work. Most clients should consider using their lawyers in other fields in Romania. They should be used not only for legal matters but for commercial matters which have a legal angle.
Companies have been formed in the past for many reasons in Romania. Over the past few years the Romanian Trade Registry has endeavoured to clean up the number of Romanian dormant or non-trading companies which had been set up in the first flush of a free trade economy as shown on the register. In many cases the owners have let these companies die as they had no interest in them or their assets.
In the 1930’s smoking was seen as the “in” thing to do. Social and economic pressure was such that no-one knew or cared about the consequences of smoking. This was also true in the 1950’s and early 1960’s. Romania allowed this until recently.
One of the current most challenging issues on the incorporation of a company in Romania is the immediate tax impact on the company and its profitability. The majority of Romanian companies were incorporated with the minimum capital of two hundred (200) RON. This means a minimum capital of approximately forty five (45) Euros. This is still the case.
Since 1989, Romania has passed from the command economy of socialism to commerce based on the free market and capitalism.
For both local Romanian investors and also foreign investors interested in obtaining public contracts in Romania it is very important to be familiar with the local public procurement legislation, out of which the most delicate part is the one pertaining to the public procurement disputes.
Recently, on 18 July 2014 Order no. 1847 was issued by the President of the National Agency for Fiscal Administration to cover the approval of the application and the forms to be used by inactive taxpayers.
After several attempts including an appeal to the Constitutional Court of Romania the legislators have now adopted a new law regarding insolvency and bankruptcy. The new law is Law no. 85/2014 and was issued in June 2014 coming into force on 28th June 2014.
US company Pure Fishing Inc, the owner of worldwide-known fishing tackle brands, has obtained a positive decision in a second annulment action brought against local company SC Chen Yang 2000 SRL.
Although according to European Union reports, all Member States must deal with the regulation of bullying with top priority, the Romanian legislature has not included in the new Criminal Code provisions criminalizing bullying. The need of integration was stated in the Romanian doctrine to adjust legislation and regulation of moral harassment at work by making it consistent through all national laws and regulations.
Despite the current political turmoil the new Romanian Government has already passed legislation aimed at improving the investment climate. In the Official Gazette no. 563 of August 9, 2012 was published Government Resolution no. 797/2012 (“Resolution”) setting up a State aid scheme to support investments promoting regional development using new technologies and which created new jobs.
Romania has recently passed into law, Law no. 148/2012 which establishes the legal framework for the issuing of electronic documents (invoices, tax bills, receipts) which will contain data regarding economic operations such as exchange or sale of goods or services. This is a further step to modernise the financial and banking system in Romania. As electronic commerce continues to expand Romania will continue to be at the fore front of this industry.
Advantages of Alternative Methods of Settling Disputes - Ability to quickly design conflict arbitration agreements or by inserting arbitration clause in commercial contracts between parties either separately or compromise before the arbitration court.
The Power of Attorney (POA) is the act in which the Romanian lawyer receives the authorization to develop a certain activity in the name and for the client, whether he is a natural or legal person.
General Information about the Romanian lawyer.
How does a Lawyer in Romania can exercise his profession?
General information for foreign investors.
Regarding its organizational structure, the Trade Register shall be kept by “The Trade Register Office”, which is organized in every county and in Bucharest, near the local trial court.
Exequator is a procedure regarding the recognition of foreign judgments in Romania by court order.
For over 2 years now, the Romanian State Office for Inventions and Trademarks has been supporting the amendment of Law 84/1998 in relation to trademarks and geographical indications. Finally, on April 9, 2010, Law 66/2010 for modification and completion of Law 84/1998 in relation to trademarks and geographical indications has been published.
Custom is a second human nature and the Romanian justice has inoculated itself for years the concept that any misunderstanding should be resolved in a court of law.
The liquidated damages clause is the ancillary convention allowing the parties to determine in advance the amount of the damages incurred by the lender as a result of the borrower’s failure to fulfill or of the borrower’s delayed or inappropriate fulfillment of its obligation.
It is possible under Romanian Law to establish branches of an existing foreign company starting its business activities in Romania. The general term of a Romanian “branch” refers to the location where companies create secondary quarters, locations where the company sets up entities which are either only empowered to administer the Romanian company’s business or only empowered to represent.
In the present article we will briefly present the legal provisions in force in Romania which make the use of the FIDIC Conditions of Contract mandatory when Romanian authorities are either beneficiaries or employers.
In the following we will briefly present the characteristics of Romanian nongovernmental and nonprofit organizations.
Before the accession of Romania in the European Union there existed strict rules that prevented foreign investors, either legal or natural persons, to purchase land in Romania. After January 1st, 2007 when Romania joined the European Union these rules have been changed and as such presently foreign investors are allowed to purchase land in Romania under certain conditions.
The Romanian law provides for two types of inheritance: the legal inheritance and the inheritance established through a last will or testament.
Foreign natural or legal persons are admitted by the Romanian law to hold shares in Romanian limited liability companies. There is no limitation as to the share capital with a foreign investor, either legal or natural person, can hold in a Romanian limited liability company. As such, a foreign investor can hold the total share capital of a Romanian limited liability company, it thus being the sole shareholder.
In the following we would like to generally refer to the conditions, costs, steps and time frame for setting up a limited liability company in Romania.
The most frequently used types of companies in Romania are the limited liability company (“SRL”) and the joint stock company (“SA”). They are also the most recommended. From a fiscal point of view, one can choose to set up a ‘micro company’ or a ‘small and medium company’.
In Romanian Law a debt represents a patrimonial right in on the basis of which the creditor can request from another person (named debtor) to act per his obligations.
In the course of running a business and in a financial crisis, employers sometimes have to consider making some of their employees redundant. This is not a situation which is pleasant, but it is necessary and the employer has to ensure that the legal formalities are complied with. This article is intended to provide an outline of, and to draw the reader’s attention to the provisions of Romanian law and possible consequences.