ILN: Buying and Selling Real Estate - An International Guide

[BUYING AND SELLING REAL ESTATE IN ROMANIA]

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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.

(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).

An SRL is managed by directors who act under the control of the general meeting of shareholders. Shareholders may also be appointed as directors. No restrictions on citizenship or residency apply for directors or shareholders.

3. Costs of Formation

The administrative fees are approximately RON 1,200 (approximately EUR 250). 4. Minimum Registered Capital The minimum share capital is RON 1. 5. Limited Liability The shareholders are liable for the obligations of the company up to a limit equal to the amount of their contributions to the company’s subscribed capital. Romanian Joint-Stock Company – SA 1. Legal entity The minimum number of shareholders of an SA is two. An SA is more complex than an SRL. The supreme corporate body is still the general meeting of

2. Formation

The main steps for the establishment of a 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. A SRL may also be incorporated by a sole shareholder even if:

ii.

ILN Real Estate Group – Buying and Selling Real Estate Series

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