New rules on the sole shareholder in a limited liability company, registration of multiple HQs at the same address, neighbours’ approval for registration of HQ
As of July 5 2020, new regulations are in force regarding commercial companies.
First and foremost, prior to July 5 2020, a natural or legal person could become sole shareholder only in one limited liability company. Moreover, a limited liability company could not have as sole shareholder another limited liability company that was made up of one single person.
As of July 5 2020, these restrictions were lifted so that from now on, there are no legal obstacles for a legal or natural person to become sole shareholder in several limited liability companies or for a limited liability company held by a single person to become the sole shareholder in another limited liability company. As a consequence of this simplification, we believe that the process of registering a company will improve.
Besides, multiple companies could not register their HQ at the same address. This restriction was complicating incorporation of a company or a change of its HQ.
The new rules will eliminate this condition, thus allowing registration of multiple company HQs at the same address.
In addition, when registering the HQ of a company in a residential building, the neighbours had to give their written approval, even though the company was not conducting any activities at the HQ. With the new regulation, this provision is repealed and as of July 5 2020, and if the director of a company gives a sworn affidavit that there are no activities being conducted at that HQ, the neighbours’ written approval will no longer be necessary for registering the company or changing its HQ.
Law no. 102/2020 for the modification and completion of Law no. 31/1990