[BUYING AND SELLING REAL ESTATE IN ROMANIA]
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2. Common ownership : More than one owner over the property; there are two types: (a) joint ownership (ownership by two or more persons holding undivided – undetermined – shares over the property – such as ownership by spouses); no deed may be concluded without the consent of the other co- owner. (b) co-ownership (ownership by two or more persons holding
Shareholders may also be appointed as directors. No restrictions on citizenship or residency apply for directors or
shareholders. 2. Formation The main
steps
for
the
establishment of an SRL are:
a. Applying for and obtaining reservation of the SRL’s trade name, b. Choosing a Registered Office, c. Drafting and submitting the SRL’s constitutive documents to the Trade Registry, and d. Subscribing the share capital. An SRL may also be incorporated by a sole shareholder even if: (i) this shareholder is sole shareholder in another company; or (ii) the sole shareholder is a legal entity which, in turn, has a sole shareholder. Timing: In principle, after all documentation is submitted, incorporation is completed within three (3) business days as of the filing of the registration with the Trade Registry (if no other issues arise and no additional documents are requested). 3. Costs of Formation The administrative fees are approximately RON 1,200 (approximately EUR 250).
determined shares over the property) which, in turn, can be ordinary co-ownership (e.g., two buyers acquire 50% each of a property) or forced co- ownership (e.g., forced co- ownership of the owners of apartments in a building over the common parts of a building – stairs, lobby, elevator, rooftop, etc.) – deeds may be concluded by each co-owner for its share of the property
C. Commercial Property Owners of commercial property are most frequently legal entities. The most commonly used entities under Romanian law are joint-stock companies (SA) and limited liability companies (SRL). i. Limited Liability Company – SRL 1. Legal Entity SRLs are the most commonly used vehicles.
An SRL is managed by directors who act under the control of the general meeting of shareholders.
ILN Real Estate Group – Buying and Selling Real Estate Series
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