company dissolution procedure in Romania Archives - Pavel, Margarit and Associates

Corporate Lawyer: How the "Train Ordinance" affects companies and entrepreneurs in Romania Ordinance No. 156/2024, published in the Official Gazette No. 1334 on December 31, 2024, brings essential changes to the business environment in Romania. These changes affect both existing companies and entrepreneurs planning to start a business in Romania, register as a company in Romania and launching a business in Romania in 2025. Key changes include: taxation of dividend income, micro-enterprise revenues, income tax, social contributions, taxes on non-residents' income, and the reintroduction of taxes on construction. The consequences of the ordinance may include the dissolution and liquidation of companies in Romania, particularly those unable to settle their debts. Additionally, the number of newly established companies in 2025 may decrease, and other negative effects may affect the business environment. The Romanian Law Firm Pavel Mărgărit and Associates provides top-tier legal services to ensure that company dissolution in Romania, dissolution and liquidation in Romania, voluntary liquidation in Romania, closing a company in Romania and deregistration of a company in Romania are carried out within a reasonable timeframe and without negative legal consequences that could impact the smooth progress of the entire procedure. Commercial lawyer in Romania. Changes regarding dividend taxation A significant aspect of Ordinance No. 156/2024 is the increase in the dividend tax rate from 8% to 10%, applicable to dividends distributed after January 1, 2025. This measure aims to align Romania’s tax regime with budgetary sustainability requirements and with other similar European tax regimes. The new tax rate will apply starting from the first day of the modified fiscal year beginning in 2025. Corporate lawyer in Romania. Changes for micro-enterprises The ordinance also introduces important changes in the fiscal regime for micro-enterprises. Starting in 2025, the revenue threshold for the micro-enterprise regime will decrease from EUR 500,000 to EUR 250,000, and in 2026 to EUR 100,000. Additionally, the condition related to consulting and management revenues for companies meeting other criteria will be eliminated, and the applicable NACE codes will be updated for clarity and compliance in the fiscal framework. Commercial lawyer in Romania. Income tax and social contributions Fiscal facilities for employees in the IT, construction, agriculture, and food industries will be eliminated for incomes related to January 2025. Furthermore, the guaranteed minimum gross salary will increase at the beginning of 2025. Commercial lawyer in Romania. Reintroduction of the construction tax The construction tax, previously provided in Group 1 of the Fixed Asset Classification Catalog, is reintroduced with a 1% rate on the value of existing constructions as of December 31 of the previous year. Payment will be made in two installments: June 30 and October 31. For additional information regarding the changes brought by Ordinance No. 156/2024, Pavel Mărgărit and Associates Romanian Law Firm recommends contacting a specialized commercial lawyer in Romania who can provide detailed legal consultation and can manage the legal aspects related to dividend taxation, micro-enterprise regimes, income tax, and social contributions, as well as the reintroduction of the construction tax. A corporate lawyer in Romania or a company registration lawyer in Romania can help you better understand the impact of these changes on the business environment in Romania and provide legal assistance both for entrepreneurs who want to register as a company in Romania, start a business in Romania and launching a business in Romania, as well as for those facing financial difficulties and considering company dissolution in Romania, dissolution and liquidation in Romania, company voluntary liquidation in Romania that lead to closing a company in Romania and the final deregistration of a company in Romania. Corporate lawyer in Romania. Steps for dissolving a limited company in Romania and documents needed for company dissolution procedure in Romania An important topic for entrepreneurs is the procedure for dissolving a limited company in Romania and dissolution and liquidation in Romania. This process, regulated by current legislation, involves several steps that require both legal and accounting considerations. The liquidation of a company in Romania and dissolution procedure in Romania is a complex process that includes various stages designed to ensure compliance with the legal framework and the completion of all financial and administrative obligations. The initiation of this process may be motivated by various situations: a decision by the shareholders, reaching the term established in the articles of association, the impossibility of performing the business activity or other circumstances provided by law, such as financial difficulties. The first step in the dissolution and liquidation procedure in Romania is making a formal decision at the General Assembly of Associates. This decision must be registered with the Trade Register and followed by its publication in the Official Gazette. Once the company is declared in the process of dissolution in Romania and dissolve llc in Romania, its commercial activities must cease, and the administrators must start preparing the necessary documents for the liquidation procedure in Romania. The company voluntary liquidation in Romania represents the next step, which focuses on liquidating the company’s assets, settling debts, and distributing any remaining sums among the shareholders. It is a meticulous process that requires the involvement of an authorized liquidator or, in simpler cases, the administrators themselves. They must prepare various documents necessary for closing a company in Romania, such as a liquidation balance sheet, pay all financial obligations and ensure that the company has no outstanding commitments. An essential aspect is coordination with the tax authorities. During the procedure of dissolve llc in Romania and liquidation procedure in Romania, all tax declarations must be filed, and overdue taxes and contributions must be paid in full. Failure to meet these obligations may delay or complicate the procedure for closing a company in Romania and deregistration of a company in Romania. Finally, after all the steps for closing a company in Romania are completed, the deregistration of the company in Romania from the Trade Register follows. The company dissolution procedure in Romania is the final stage and confirms that the company no longer exists from a legal standpoint. Deregistration of a company in Romania involves submitting a set of documents to the Trade Register, including the decision of company dissolution procedure in Romania, the approved liquidation balance sheet, evidence of debt payment and other supporting documents. The process is officially completed with the approval of the deregistration request by the authorities. It is important to note that each stage of this process may raise legal or fiscal challenges and questions. For this reason, collaborating with a commercial lawyer in Romania or a corporate lawyer in Romania specializing in company dissolution procedures in Romania and the closing a company procedure is recommended for preparing the necessary documents for company closure in Romania. Such a professional can provide personalized guidance, ensuring compliance with all legal requirements and reducing the risks associated with a faulty dissolution. The Romanian Law Firm Pavel Mărgărit and Associates provides high-quality legal services, assisting you in the dissolution procedure in Romania, dissolving a limited company in Romania and deregistration of a company in Romania to ensure compliance with legal procedures within a reasonable timeframe and without the legal risks that could affect the smooth operation of your business. For support regarding the process of launching a business in Romania, start a business in Romania and register as a company in Romania in 2025, you can contact us by accessing the contact form available at https://avocatpavel.com/contact/ . Don't navigate these challenges alone. Contact Us today for expert assistance tailored to your needs. Contact Us “Considering the changes brought by Ordinance No. 156/2024, it is recommended to consult a corporate lawyer in Romania and a commercial lawyer in Romania when you want to register as a company in Romania, start a business in Romania and launching a business in Romania, as these legislative changes require a thorough understanding of the new regulations, which can influence decisions regarding liquidation of a company in Romania or company dissolution procedure in Romania” stated Dr. Radu Pavel, Managing Partner of The Romanian Law Firm Pavel Mărgărit and Associates. Ordinance No. 156/2024 introduces significant fiscal changes that will impact both individuals and the business environment. It is crucial for companies to assess the impact of these changes and adopt proactive strategies to adapt to the new conditions. Collaborating with experts, whether commercial lawyers in Romania or corporate lawyer in Romania can make the difference between a smooth transition and operational or financial difficulties. For businesses that want to successfully navigate this new legislative context, careful planning and access to specialized advice are essential. According to statistics compiled by the National Trade Register Office, the number of registered companies decreased in 2024 to 116,938, compared to 137,673 in 2023. Pavel, Margarit and Associates Law Firm is one of the top law firms in Romania, providing high-quality legal services. The firm’s clients include multinational and domestic companies of great magnitude. In 2024, the law firm’s success stories brought it international recognition from the most prestigious international guides and publications in the field. As a result, Pavel, Margarit and Associates Law Firm ranked 3rd in Romania in the Legal 500’s ranking of business law firms with the most relevant expertise. The law firm is internationally recognized by the IFLR 1000 Financial and Corporate 2024 guide. Additionally, Pavel, Margarit and Associates Law Firm is the only law firm in Romania recommended by the international director of Global Law Experts in London in the Dispute Resolution practice area. All relevant information about Pavel, Margarit and Associates Law Firm can be found on the website www.avocatpavel.com.

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Commercial Lawyer: The impact of the “Train Ordinance” on the business environment in Romania