One third of companies to disappear

Nearly one third of the total number of limited liability and joint stock companies registered with the Trade Register at the end of May could go into liquidation after August 26.

The reason is that they do no comply with the new minimal share capital requirements. The law also stipulates the disbandment of the limited liability companies with sole partner, in case it holds the same position in another company.

This would affect more than 193,000 companies, which are most likely shell companies or firms to have dissolved in the course of time.

Only 80 trading companies have filed for share capital increase more than one month after the publication of Law 314 in the Official Gazette, which stipulates that the minimal share capital increase is mandatory for trading companies (up to 2 million lei for limited liability companies and 25 million lei for joint-stock ones), says Teodor Dragan, vice-chairman of the Romanian Chamber of Commerce and Industry.

“The amount stipulated by the law for the minimal share capital level is very small. This means those which have not filed for capital increase so far are either companies to have disbanded in the course of time, or shell companies which have never actually existed,” Dragan said.

According to the data centralised by the National Trade Register Office (ONRC), the number of companies registered in the entire country by the end of May amounted to 665,193 limited liability companies and 26,399 joint-stock companies.