Limited Liability Company (Societate cu Raspundere Limitata)
A limited liability company is a corporation established by maximum 50 associates. The business relies upon the foundation documents. The registered capital of a limited liability company cannot be less than 200 RON. The registered share capital of a limited liability company is usually split into social parts/shares, with a registered value of minimum 10 RON. The law forbids the shares of these corporations to be involved for loans or other banking operations. Shares cannot be freely exchanged, making limited liability companies, more or less, like private companies in other countries.
Limited liability companies may very well be constituted by only one individual.
The law stipulates that resolutions are made by mainstream ballot in the General Meeting of Shareholders (each share represents one vote). Decisions ...view middle of the document...
000 EUR or the equivalent of 90.000 RON and with at least two shareholders. Shares could be nominative shares or bearer shares and can be freely traded or pledged. A joint stock company may be set up privately or by public subscription.
General Partnership (Societate in Nume Colectiv)
A general partnership is a company with unlimited liability from behalf of the partners. According to the Romanian Law, it is a legal person and has to be registered at the Register of Commerce. There is no minimum capital requirement as this is not a company of capital, but of persons.
Limited Partnership (Societate in Comandita Simpla)
Associates are of two types: limited partners and general partners. Liability is unlimited for general partners and limited to the contribution to the capital for limited partners. There are at least two partners (general partner and limited partner). The general partner does not have the right to manage the company’s operations. Again, no minimum capital is required.
Limited Partnership on Shares (Societate in Comandita pe Actiuni)
This type of company is similar to the Company on Shares with the mention that there are two types of partners: general and limited, having the same characteristics as the partners in a limited partnership. The minimum amount of capital required is still 25.000 EUR or 90.000 RON
Sole proprietorship (Persoana Fizica Autorizata = Authorized Natural Person)
A sole proprietorship is a type of business entity that is owned and run by one individual and in which there is no legal distinction between the owner and the business. The owner receives all profits (subject to taxation specific to the business) and has unlimited responsibility for all losses and debts. Every asset of the business is owned by the proprietor and all debts of the business are the proprietor's. This means that the owner has no less liability than if they were acting as an individual instead of as a business. The sole trader has to be registered in the Register of Trade and as of May 2011 can have employees. The name of the sole proprietorship is the name of the owner followed by “PFA”.