Legal & Tax Alerts

Amendments to Companies law

Law no. 102/2020 for the amendment and supplementation of the Companies Law no. 31/1990 (“Law no. 102/2020” and, respectively, “Companies Law”) introduces a series of welcomed amendments to the Companies Law, which greatly simplify the registration procedure for setting up a company. The amendments have entered into force on July 5th, 2020.

The most important novelty is that both natural persons and legal entities can now be sole shareholders in several limited liability companies, whereas until now, a natural person or legal entity could only hold the position of the sole shareholder in a single limited liability company.

Another substantial amendment is the fact that from now on a limited liability company will be able to have as sole shareholder another limited liability company, held itself by a single person.

Moreover, Law no. 102/2020 eliminates some legal requirements for the establishment of a company or, as the case may be, for the change of the registered office of a company, as follows:

several companies will be able to operate at the same registered office;

for the companies that do not carry out any activity at the registered office, the notice on the change of the destination of collective buildings with the residential regime is no longer required, provided that the directors give a statement to this effect.

The methodological norms for the enforcement of the aforementioned amendments are to be revised within 60 days from the date of entry into force of Law no. 102/2020.

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