zaterdag 21 mei 2011

New Labour Code to enter into force in May - Romanian workers

Amendments to the Labour Code were published on 31 March 2011.
According to the new law, the provisions of the job description will become paramount in assessing the professional performance of any employee, which will prevent abuses from employers. Also, the new Labour Code stipulates that professional performance will prevail in case of disposals made due to the economic situation of a company, thus replacing the old provisions that social criteria had to be taken into consideration first when undertaking disposals.
The most important changes include:
1. Conclusion and execution of individual labour agreements
· Written form is mandatory for the valid conclusion of an individual labour agreement.
· The employer is obliged to give the employee the individual labour agreement before they start working.
2. Evaluation of employee performances
· Employer has the right to insert in the individual labour agreements individual performance objectivesand evaluation criteria regarding fulfillment of such objectives.
· Criteria and process of professional evaluation of employees are to be inserted in the internal regulations of the employer and shall be the main criteria of shooutout in case of redundancies due to economic conditions.
3. Liabilities
· Consideration for damages caused by employees may be retained by the employer from the wage with the consent of the employee but may not exceed the limit of five national minimum gross monthly salaries.
· People caught working without an individual labour agreement will be fined.
· Having more than five workers without individual labour agreements and repeatedly establishing wages under the level of the national minimum guaranteed wage in the country both represent criminal offences.
The new provisions will enter in force on 1 May 2011. See: Law no. 40/2011 published in the Official Gazette of Romania, Part I, No. 225 of 31 March 2011

zondag 15 mei 2011

Een Roemeense vennootschap oprichten - general partnerships

A general partnership can involve two or more partners. The partnership relationship is based upon a contract and any person who is capable of entering a binding contract may enter a partnership. Following this agreement, the parties must register their partnership with the National Trade Register Office.
In a general partnership, partners are jointly liable for the debts and obligations of the partnership and each partner can be personally liable for the overall debts and liabilities, which are not satisfied by the assets of the partnership.
The capital of the partnership is formed of the partners' contributions. These contributions can include cash, real estate, equipment, or other property. Contributions become assets of the partnership and comprise its registered capital. Romanian laws do not set maximum or minimum limits on capital, nor does it indicate how much must be in cash or other assets. These decisions are left with the partners.

A general partnership must select a name for itself. Included in this name must be the name of one individual partner, the nature of the partnership, and disclosure of the general partnership status of the enterprise (Societate in nume colectiv - SNC). If a person who is not a partner permits his or her name to be used in the name of the partnership, that person then becomes liable for the debts and obligations of the partnership in the same fashion as general partners.

General partnership matters are determined under a written partnership agreement. Where the agreement is silent or unclear, decisions are made by partners on the basis of their relative capital contributions. If a partnership seeks to have a formal management, perhaps because of its large size, a vote of the partners representing a majority of the registered capital is required.

Een Roemeense vennootschap oprichten - E.I.G. (Economic Interest Group)

Dit is een samenwerkingsverband tussen 2 en 20 natuurlijke – of rechtspersonen, opgericht voor een bepaalde periode en bedoeld om de economische activiteiten van de leden te vereenvoudigen of te ontwikkelen en de resultaten ervan te verbeteren. De E.I.G. wordt in de wet beschreven als een autonome, winstmakende, rechtspersoonlijkheid met ten hoogste 20 leden. De activiteit van een E.I.G. moet gerelateerd zijn aan de activiteiten en moet een meerwaarde bieden aan zijn leden.
De E.I.G. mag worden opgericht door een notariële akte, getekend door alle leden en wordt een rechtspersoon vanaf de registratie bij het handelsregister. Een E.I.G. mag zonder maatschappelijk kapitaal opgericht worden. Indien er toch een maatschappelijk kapitaal ingebracht wordt, is er geen minimumwaarde per aandeel vereist.
De werking van een E.I.G. is zeer flexibel, de structuur en de werking ervan kan op elk moment gewijzigd worden door de leden, wijzigingen moeten dan wel in de statuten vermeld worden.

De leden van een E.I.G. zijn in principe hoofdelijk en onbeperkt aansprakelijk voor de verplichtingen aan derden, behalve indien dit in de statuten anders werd overeengekomen. De schuldeisers van een E.I.G. wenden zich eerst tot de E.I.G. en indien er 15 dagen na de vervaldag nog geen betaling geschied is, mogen ze de betaling eisen van de leden van de E.I.G..

De leden verkiezen 1 of meer bestuurders en leggen de verplichtingen, de besturingstermijn en het loon vast.

Een E.I.G. mag geen winst maken voor eigen rekening. Indien er winst gemaakt wordt moet deze volledig in de vorm van dividenden uitgekeerd worden aan de leden, een E.I.G. mag geen winst reserveren. Indien de kosten groter zijn dan de inkomsten van een E.I.G., moet dit verlies bijgepast worden door de leden, het verlies mag niet overgedragen worden naar een volgend boekjaar.

Een E.I.G. moet bij de afsluiting van het boekjaar dezelfde financiële rapporten opstellen als gewone vennootschapsvormen.

Een Roemeense vennootschap oprichten - een Roemeens filiaal of dochtermaatschappij

A foreign company can do business in Romania through a subsidiary or a branch. While a subsidiary has a legal personality and is considered a Romanian entity, the branch is just an extension of the parent company and therefore has no legal personality and no independence.

Law No. 105/1992 on the Regulation of the Private International Law Relationship adopts the accepted international practice by which a branch is governed by the national law of its parent company.

Legally, the branch has no separate status from the foreign company itself. It is merely carrying on business in Romania. The foreign company will be liable to the employees and creditors of the branch for the actions of, and debts contracted by, its managers and agents on behalf of the branch. On the contrary, according to the Law No.31/1990, a Romanian subsidiary of a foreign company is a Romanian legal person and, consequently, it is subject to Romanian laws. It is liable, on its own behalf, for the actions assumed. Subsidiaries and branches can carry out only the activities to which the parent company is authorized.

In practice, subsidiaries are commissioned following the same steps as the registration of companies, i.e. notarizing the statutes, and registering the subsidiary with the National Trade Register Office.
The formation of a branch follows the same steps as that of a subsidiary, but they do not need to establish incorporation statutes.

a notarized copy of the articles of incorporation of the parent company;

evidence of registration of the parent company in its country of origin;

documentation indicating the company's solvency; and

the decision of the parent company's Board of Directors (or similar authorized body) to establish a foreign branch. This decision should indicate the type of activity of the branch, the individuals appointed by the parent company to act on its behalf and the confirmation of the parent company that the acts of its representatives are legally binding to it.

Assuming the branch is accepted, it must then be registered with the local office of the National Trade Register Office. The formation of a subsidiary must comply with the minimum capital requirements under the Romanian Company Law.


Een buitenlandse vennootschap kan ook handel drijven in Roemenië door middel van een filiaal of dochtermaatschappij54. Een dochtermaatschappij heeft een eigen rechtspersoonlijkheid, een filiaal daarentegen is slechts een uitbreiding van de buitenlandse vennootschap. Bij een filiaal is er dus geen sprake van een aparte rechtspersoon en is bijgevolg ook niet financieel onafhankelijk.

Door het ontbreken van een aparte rechtspersoonlijkheid is een filiaal onderhevig aan de nationale wetten van de buitenlandse vennootschap waardoor het werd opgericht. De buitenlandse vennootschap is aansprakelijk voor de schulden en de verplichtingen die door de bestuurders en vertegenwoordigers van het filiaal gemaakt worden. Een filiaal mag alleen de activiteiten uitoefenen waarvoor de buitenlandse vennootschap de nodige vergunningen heeft.

Een dochteronderneming is, omwille van haar aparte rechtspersoonlijkheid, onderhevig aan de Roemeense wetgeving en is verantwoordelijk voor haar eigen daden. De oprichtingsprocedure van een dochteronderneming is gelijkaardig aan die van andere vennootschapsvormen zoals bijvoorbeeld de naamloze vennootschap of bvba.

Een Roemeese vennootschap oprichten - een Roemeens vertegenwoordigingskantoor

Foreign corporations are entitled to set up representative offices in Romania, in accordance with the provisions of Decree – Law No.122/1990. While representative office cannot carry out commercial activities on their behalf, they are entitled to promote and supervise the business of their parent companies. As a representative of a foreign entity, a representative office cannot earn revenues in local currency. For payments in local currency, the office must open a ROL bank account, which is to be funded only by its foreign currency account.

Establishing a representative office with the approval of the Ministry of Industry and Commerce, Department of Foreign Trade, is a straightforward matter. A fee of US$ 1,200 is paid for a one year-license. The license must be renewed every year against payment of the corresponding fee. If the registration occurs at a time other than the first quarter of the opening year, the annual fee is prorated accordingly. If a representative office represents more than one foreign company, a supplementary fee of 10% is to be paid for each of the represented companies.

Most representative offices are subject to minimum taxation since their only "income" is their funding by their parent company. As of January 1st, 1997, representative offices must maintain statutory accounts in compliance with legislation applicable to companies.

Applications for representative status should be accompanied by the following documents:

documentation from a Chamber of Commerce or other official body of the country where the parent company has its headquarters, indicating the company's legal existence, activities, and registered capital;

confirmation of the parent company' solvency from the bank handling its main financial operations;

statutory or other documentation, indicating the nature of the company's activities, its organizational form and its operations; and

a power of attorney for the individual or individuals appointed to act as trade representative(s);

a decision of the parent company's General Meeting approving the setting up of the representative office;

payment proof for the relevant tax.


Een vertegenwoordigingskantoor is geen rechtspersoon maar handelt, door middel van een specifiek mandaat, in naam en voor rekening van de buitenlandse vennootschap aardoor het werd opgericht.

De afwezigheid van het statuut van rechtspersoon heeft tot gevolg dat een vertegenwoordiging geen eigen winst mag genereren. De activiteiten van een vertegenwoordiging moeten beperkt blijven tot het voeren van marketing, reclame en het assisteren van de buitenlandse vennootschap bij haar activiteiten in Roemenië. De enige inkomsten die een vertegenwoordiging mag hebben zijn de sommen die door de buitenlandse vennootschap worden doorgestort om de lokale kosten te dekken.

Het Ministerie van Economische Zaken moet de aanvraag tot de oprichting van een vertegenwoordigingskantoor goedkeuren.

De aanvraag moet binnen een periode van 30 dagen vanaf het neerleggen van de nodige informatie goedgekeurd of afgewezen worden. Indien er een goedkeuring verkregen wordt moet het vertegenwoordigingskantoor nog bij het Handelsregister en bij de lokale belastingdienst geregistreerd worden. Voor deze registratie heeft men 15 dagen, te tellen vanaf de goedkeuringsdatum.

Een Roemeense vennootschap oprichten - het consortium

De Roemeense wetgeving voorziet ook in de mogelijkheid om een consortium tot stand te brengen. Dit is een samenwerkingsverband tussen verschillende partijen waarbij ze samenwerken voor de vervolmaking van een gezamenlijke zakelijke doelstelling. Er is hierbij geen spraken van een aparte rechtspersoonlijkheid. Meestal wordt er 1 partij aangeduid die de administratie van het consortium op zich neemt.

Een Roemeense vennootschap oprichten - de commanditaire vennootschap op aandelen (societate în comandita pe actiuni)

Het ingebracht kapitaal is in aandelen verdeeld en de vennoten zijn verdeeld in actieve en stille vennoten. Het bestuur van de vennootschap wordt aan 1 of meer actieve partners toevertrouwd. Ook hier zijn de actieve vennoten onbeperkt aansprakelijk en zijn de stille vennoten slechts aansprakelijk ten belope van het door hen ingebrachte kapitaal.

De statuten moeten bepaalde informatie bevatten: de aard en de waarde van de goederen die in natura zijn ingebracht, de gegevens van de aandeelhouder die deze goederen inbracht in de vennootschap, ook het aantal aandelen, de waarde ervan en de aard van de aandelen (op naam of aan toonder) moet in de statuten vermeld zijn.

Andere specifieke eigenschappen van de commanditaire vennootschap op aandelen zijn dat er minimum twee vennoten moeten zijn, hun beslissend orgaan is de Algemene Vergadering.

Roemeense firma oprichten - gewone commanditaire vennootschap (societate în

A limited partnership consists of one or more general partners who manage the business of a partnership and one or more limited partners who contribute capital (money or other property) to a partnership but do not participate in its management. Generally, limited partners are not liable for the debts and obligations of the partnership beyond their contributions, to the registered capital. The liability of the general partner is the same as the liability of partners in a general partnership. For an investor, therefore, being a limited partner is similar to have an investment in a corporation.

Limited partners share the profits or other compensation by way of income in proportion to their partnership contributions. However, no such income or other distribution can be made if it would reduce the assets of the limited partnership to an amount insufficient to discharge its liabilities to persons who are not partners.
While the limited partners cannot manage the business, they may examine the state and progress of the partnership business and advise on its management.

A limited partner may also act as a contractor for, or an employee of, the limited partnership.

Company Law No.31/1990 generally sets out the rights, powers, and obligations of limited partners. For example, a limited partner may be held liable as a general partner if the limited partnership legislation is not strictly complied with; when a limited partner participates in the management of the partnership's business without having been mandated to that effect by company's representatives, by means of a special power-off attorney, registered with the trade register, or allows his or her name to be used in the name of the limited partnership.

A limited partnership is a practical form of organization for a pooled investment where the investors would not normally participate in the control of the investment. Investors are limited partners while the general partner provides the professional management of the investment. In this way, investors share the profits but, as limited partners, their financial risk is limited to the capital they have contributed.

A limited partnership must use in its name the words "limited partnership" (Societate in comandita simpla, S.C.S).


In deze vennootschapsvorm is er sprake van 2 soorten vennoten, de actieve en de stille vennoten. De actieve vennoten zijn gezamenlijk en onbeperkt aansprakelijk voor de verrichtingen van de onderneming. Het andere deel, de stille vennoten, is slechts aansprakelijk binnen de limieten van het door hen onderschreven kapitaal.

Deze vennootschapsvorm heeft een aantal specifieke eigenschappen: er is geen minimumwaarde vastgesteld voor de aandelen, het aantal vennoten is niet gedefinieerd maar mag vrij gekozen worden door de oprichters van de vennootschap, de dministratie van een gewone commanditaire vennootschap is de verantwoordelijkheid van één of meerdere aandeelhouders en de aandeelhouders kunnen alleen bepaalde verrichtingen in naam van de onderneming doen als ze voor deze specifieke verrichtingen een volmacht bezitten die geregistreerd is bij de Roemeense register.

zondag 1 mei 2011

Creation of a public limited company (SA) in Romania (societate pe actiuni in romania )

If you invest in Romania, then the limited company is one the options. A joint stock corporation is normally recognized by the use of the words limited incorporated or corporation in its name (Societate pe Actiuni, S.A).

The creation of a public company requires a minimum capital of the Romanian equivalent of 90000 RON. At the day of the creation at least 30% of the social capital is paid and if it is a creation by public subscription then this percentage increased to 50%.

Within 12 months from the registration (formation of the company in Romania) of the company at the local registry the social capital should be fully paid via a Romanian commercial bank. If you increase the capital, the maximum period for full payment for the new shares is 36 months.

A public limited company must have at least two shareholders, it may be natural - and legal persons. The partners of a limited liability company are only liable within the limits of their contribution to the company. The capital of a limited liability company is represented by shares in registered or bearer shares and may be freely tradable.

Each share has a nominal value of at least 0.1 new lei. In addition, all shares of equal value, because all members of a limited liability company have equal rights.

The management of a joint-stock company is assumed by a Council of Administration (Board of Directors), although it is possible to have only one Administrator. At least half of the Administrators must be Romanian citizens unless the articles of incorporation and corporate by-laws provide otherwise. The Directors do not necessarily need to be shareholders. The Directors are appointed by the General Meeting of shareholders, which establishes their powers, for a maximum mandate of four years. They may be re-elected. Before starting their activity, the Directors must deposit a guarantee, representing at least the value of ten shares or double the amount of their monthly remuneration.

Decisions are taken by majority vote at the General Assembly, a share represents a vote in principle but there may be restrictions placed on the voting rights of a shareholder who holds more shares.

At least once a year a general meeting of shareholders must be held. This meeting must take place within 3 days after the end of the fiscal year of the company. The financial statements will be disclosed to shareholders and the results are discussed.

Law No.99/1999, regarding certain measures for the economic reform acceleration, added new provision to the Company Law. Therefore, any shareholder is entitled to request information on the management of the company, maximum twice during a financial year. In addition, one or several shareholders representing at least 10% of company share capital may request the court to appoint experts which will be in charge with the analyses of certain operations in the management of the company. Such experts will draw up a report, which will be handed over to the auditors of the company.

The unnamed company is represented by the Board of Directors, which consists of one or more directors, they are elected for a maximum period of four years, this period may be renewed subsequently.

The Board has the authority to delegate his powers to a Management Committee. The directors of a public company must disclose the same information and submit the same documents as the directors of a private company. In establishing a limited company there should be a board of 6 censors. Their job consists of checking the activities of the company. At least one of these six censors must have an approved auditor. The censors are elected by the majority on the Assembly, increasing their mandate lasts 3 years. Afterwards they can be re elected for another mandate. The censors are accountable regarding their findings to the General Assembly. First they check the accounts of the company and keep an eye on them or clauses which were fixed by the statutes are not violated. If an irregularity is determined by the censors, they may convene a General Meeting.

A Romanian limited liability company may be listed on the Romanian stock exchange, the Bucharest Stock Exchange. The formal adoption of the CVNM (the Romanian stock exchange and commission) is required, the company should already have minimum 3 years activities and capital the company must be at least € 1 000 000.00 amounts, in some cases CVNM may decide to deviate from these conditions.
The constitutive act of the joint-stock company or of the limited partnership by shares shall contain:

a) the name and first name, place and date of birth, the domicile and citizenship of the associates, when they are natural persons; denomination, their registered office and the nationality of the associates, when they are legal persons; in case of a limited partnership by shares the active partners as well as the sleeping partners shall be clearly identified;
b) the form, denomination, the registered office and the emblem of the company, when there is the case;
c) the company's object of activity, specifying the field of action and its main activity;
d) the subscribed and deposited registered capital. At the time of setting up the subscribed registered capital, deposited by each shareholder, shall be no less than 30% of the subscribed capital, except where the law provided otherwise. The remaining of the registered capital shall be deposited within 12 months from the date of the company's incorporation;
e) the value of the assets brought as contribution in kind, the method of evaluation and the number of shares attributed against them;
f) the number and nominal value of the shares, specifying whether they are registered or on bearer; where there are different categories of shares the number, nominal value and the rights conferred to each category shall be specified;
g) the name and first name, place and date of birth, the domicile and citizenship of the managers, when they are natural persons; denomination, the headquarters and nationality of the managers, when they are legal persons; the guaranty which the managers are bound to deposit, the powers vested in them and whether they shall exert the said together or separately; the special rights of administration and representation granted to some of them. In a limited partnership by shares the active partners who represent and manage the company shall be identified;
h) the name and first name, place and date of birth, domicile and citizenship of the auditors, when they are natural persons; denomination, headquarters and nationality of auditors, when they are legal persons;
i) provisions regarding the management, functioning and control of the company by the statutory bodies, the controlling of the company by the shareholders, as well as the documents to which these shall have access in order to inform themselves and to exert control;
j) duration of the company;
k) method of profit distribution and loss bearing;
l) location of its subsidiaries - branches, agencies, representations or other offices of the same kind without legal personality - when they and the company are set up at the same time, or the conditions to set them up at a later date if such a setting up is considered;
m) special benefits reserved for the founders;
n) the shares for the sleeping partners in a limited partnership by shares;
o) operations concluded by associates on behalf of the company to be set up and which the company is going to take over as well as the sums of money to be paid for those operations;
p) method of dissolution or liquidation of the company.

Concerning the registration of the company and of the corporate headquarters is amended as follows from 23 July 2010:

a) The first registration of a company: For the notarization of the constitutive act or for certification of its date, one must present i) the document issued by the trade registry for proving the availability and reservation of the company’s name, and ii) its declaration on own responsibility in respect of being a sole shareholder in only one limited liability company.

Both the public notary and the person who certifies the date of the constitutive act will refuse to notarize/certify the date if the abovementioned conditions are not fulfilled.

b) The headquarters of the company: For the first registration of a company or for changing the headquarters, the following documents must be submitted at the trade registry:
• the document certifying the right to use the building as headquarters, registered at the fiscal authority from the National Agency for Fiscal Administration, in whose district the building is located;
• a certificate issued by the fiscal authority referred to in point a), attesting that, for the building used as headquarters there has not been recorded another document proving a previous transfer of the right of use or other contracts for the transfer of the right of use on the same building, if any;
• in case the certificate issued under point b) proves that there have already been registered at the fiscal authority other documents which attest the transfer of the right of use upon the same building, there must be submitted a statement on own responsibility in respect of the fulfilment of the legal conditions, as detailed in paragraph c. (see below)
By way of comparison, before this amendment, there were no documents from the fiscal authority needed to be submitted to the trade registry, neither for the first registration, nor for changing the premises.
c) Legal conditions in respect of the headquarters At the same premises, several companies can be registered only if the building, by its structure and surface of use, allows the carrying on of the activity of more companies, in different rooms or separate places. The total number of the companies can not exceed the number of the rooms or separate places.

For more information mail us

frjacobs@telenet.be
www.cibr.be