Strategy development
Preparing sector specific strategy papers, developing country specific strategies for Romania
Managing director contract. Advantages and disadvantages
It is well known that in Romania, board members of public limited companies are not allowed to conclude employment contracts with the company concerned during their mandates, but must be given mandate contracts. Any existing employment contracts are suspended during the term of office. For a Romanian SRL (limited liability company), such a prohibition is not provided for by law, so in practice the parties often waver between a mandate contract or an employment contract. There is often a certain reluctance on the part of prospective managing directors to abandon the known employment relationship, which is reinforced by a current discussion about seniority (vechime în muncă) in mandate contracts. Below we present some basic principles and background information that companies can use when negotiating contracts.
Tax amnesty for outstanding taxes until 25 November
In view of the insufficient collection of contributions for the state budget, but also for the purpose of supporting businesses, the Romanian government has adopted some tax relief for all categories of debtors through Emergency Ordinance no. 107/2024. These measures concern the cancellation of default interest and penalty surcharges (dobanzi si penalitati) that were due on obligations to the state budget outstanding on 31 August 2024 if certain conditions were met.
The heat apparently also paralyses the commercial register
This summer was supposed to bring positive changes for entrepreneurs and freelancers. The authorities had announced a revolution in the commercial register portal and the services offered through it. Among the promises giving hope to those who frequently deal with the commercial register was a reduction in the processing time for company start-ups, simpler and faster issuing of documents and the expansion of information offered. However, entrepreneurs, lawyers and all those affected were confronted with a harsh reality: the revolution began with an obstacle.
Consumer protection in Romania - obligations for manufacturers and sellers
Consumer protection is of great importance throughout Europe, so that European legislation regulates standardised principles in this regard. This concern is based on Articles 169, 114 and 169 of the Treaty on the Functioning of the European Union. Member States adopt specific and detailed rules to guarantee these rights and safeguards for consumers. Romania is no exception in this matter: some of the general legal obligations to ensure consumer protection in Romania are presented below.
e-VAT - Romanian tax administration introduces pre-filled VAT forms
The Romanian tax authority ANAF will soon be introducing the pre-filled RO e-VAT form. For activities carried out from July 2024 by companies registered for VAT purposes, a new system will be applied, which has been met with concern in practice. Basically, it is based on the fact that ANAF collects information from all tax returns and reports submitted from July onwards and sends taxpayers pre-filled VAT returns based on this information. This information must be adapted to reality by the taxpayers on time. In practice, it is to be expected that the information from the first forms will not correspond to reality, in most cases. The first form pre-filled by ANAF should be expected on September 5th at the earliest.