At the end of last week, Law 102/2020 which brings major changes regarding the LLC’s registered in Romania was promulgated and immediately published in the Official Gazette.
Prior to these changes, an individual or legal entity could not be a sole shareholder in several limited liability companies, and an LLC with a sole shareholder could not be in turn, a sole shareholder of another LLC. The violation of this prohibition would lead to the dissolution of the company by the Ministry of Public Finance or any other interested person.
The Law eliminating this ban was promulgated and published in the Official Gazette on July 2nd, 2020, and will come into force within three days from the date of publication.
Therefore, starting July 5th, 2020, an individual or legal entity can be a sole shareholder in several LLCs, this being a major change from the legal provisions in force so far.
This law was rejected from promulgation by the President of Romania in January of the current year, a reconsideration beign requested, given that, in the President’s opinion, the risk of tax evasion will be increase. Subsequently, the law was challenged by the Government at the Constitutional Court at the end of April, the objection of unconstitutionality being rejected in mid-June.
This law also eliminated the ban on having more companies registered in the same building than the number of rooms in the space in question. Thus, until now, for example, in a two-room apartment, at most two companies could have their registered office. By the same law, this ban was removed.
At the same time, regarding the notice from the owners’ association, which was necessary in the situation of establishing the registered office in a collective housing building (blocks with several apartments), the new law also removes the ban on obtaining this agreement if the administrator issues a statement on his own responsibility that he does not carry out activities at the registered office.