Accounting Entries for Closing a Romanian Company

Closing a company involves a set of mandatory procedures which in accounting terms translates into strict protocols which are legally necessary in order to avoid unwanted twists at the financial level. For most of the cases, the general scenario to be taken into account when deciding to close a company covers a sequence of highly useful procedures that we will list below. Accounting for dissolution of company in Romania might require the presence of an expert and if you feel that dealing with this process might bring into question numerous unknown features you would better ask for a professional opinion that will surely solve your issue. As mentioned above we will briefly indicate the most significant operations that should be looked into when doing the accounting entries for closing a Romanian company. First thing to start with is the inventory and a strict evaluation of liability items and assets of the establishment in question. The preparation of financial statements is to be performed in one of two manners that can be illustrated by a professional accountant. The general assembly must decide regarding the operations that are to be performed by the expert liquidator on behalf of the company. The selling of any remaining assets is essential; assets should be previously evaluated. Then the funds that are to be paid to creditors must be discharged. Any debt to the state budget has to be discharged. The next phase indicates the profit/loss evaluation. Then the calculation, withholding and payment of income tax and dividends may be taken into consideration. The balance sheet for partition according to adequate stipulations must be performed. Partition of equities must be performed according to bylaws or to contract of the society, the decision of the general meeting of shareholders and the contribution to the share capital.

Given these procedures, the accounting for dissolution of company in Romania indicates partition as a division between net assets resulting from liquidation. There are, as well, particular cases that can be effectively illustrated only by experts and accepting a professional point of view proves highly important in such situation. Some supplementary details might also be involved depending on the type of liquidation that is to be taken into consideration. Another aspect regards the type of company that you are dealing with. As we explained from the beginning it becomes extremely significant to opt for a professional approach since bookkeeping varies from a national system to another raising new and, most of the times, unexpected questions. Our lawyers are able to deliver a series of answers to controversies related to this area and we can also recommend a group of accountants that will competently assist you in such cases. 

Dissolution of a Romanian Company

Dissolution of a Romanian company may be initiated in a voluntary manner which implies the decision of the shareholders (or the verdict of the sole shareholder) or through a court order which occurs when shareholders do not agree on certain aspects or if other legal instances are applicable. In some situations the liquidation of a Romanian company is mandatory. We will explain below the differences between these two phases in closing a company pointing out the most important details in these procedures as well emphasizing key terms that are not to be disregarded. Sometimes this process may take longer than expected depending on basic factors which caused the decision to close the company. There are several situations that describe the main cases justifying the dissolution of a Romanian company. As mentioned form the start such a procedure may be determined by the decision of the general meeting of shareholders. The company may also be invalidated and it might not be able to fulfill its main objectives. At certain points a dissolution situation may be imminent since the term for which the company was registered has expired. Conflicts between shareholders are very much likely to cause the dissolution and, in this case, the decision of the court is the instrument which provides the final verdict. A bankruptcy scenario can also determine the process above mentioned.  

The dissolution phase is usually followed by the liquidation of a Romanian company excepting certain cases. And hereby we may identify several different ways of closing a company depending on its type of organization and also the causes which dictated the decision of dissolution. So, at this point we shall mention several types of procedures as it follows: dissolution of a limited liability with a unique shareholder, dissolution of an LLC with several shareholders, voluntary dissolution of SNC, SCS, SRL, SA and SCA involving the appointment of a judicial liquidator, etc. When the death of a unique shareholder or one’s of the several occurs procedures impose a specific approach. When dissolution is performed through the court order, the liquidation of a Romanian company follows for protecting shareholders’ interests. The court’s decision validating the dissolution of a Romanian company must be registered with the trade registry, must be notified to the economics and finance department of local authorities and must be published in the Official Gazette. Any individual who is interested in appealing against the court’s decision must do that within 30 days after publishing the order in the official gazette. The bureaucratic background may be a little bit too intricate depending on several agents such as the type of company, the cause explaining the dissolution decision and other legal discrepancies that might occur under certain circumstances. Our lawyers provide assistance and counseling in any matter related to this topic clearly highlighting all aspects which may distinguish as debatable for cases covering this area. We would like also to stress the importance of understanding every judicial phase in the dissolution process as future negative effects might profoundly alter any financial position.

Building regulations in Romania

According to building regulations in Romania a set of bureaucratic criteria must be met in order to initiate any project in this area. An important and highly useful document required under these circumstances is the urbanism certificate. This paper delivers several quintessential technicalities related to utilities, access, and vicinity of the land. This document also contains details concerning the accepted construction height, numbers defining the land use and land occupations. Its main purpose is to provide information regarding the legal, economic and specialized terms defining the optimal conditions for initiating any building procedure. Through this paper, the competent authorities come to deliver to any suppliant decisive features regarding the land, proximity and other aspects that might influence the construction itself. The urbanism certificate in Romania is offered through a corresponding bureau of the department of urbanism in the city hall where the structure is to be built. In order to request this certificate the suppliant needs to submit a dossier to the city hall in question containing the title deeds, cadastral maps, a standard application form and the proof for payment. Sometimes an architectural brief is required but this usually depends on other parameters. The urbanism certificate does not allow the initiation of the project. In order to start building, the suppliant needs to obtain the building permit.

Building Permit in Romania

This is a more specific document which is provided by the local authorities illustrating the conformity status of the project proposed, from technical and the legal point of view. This paper allows the beginning of the project itself as it offers the general features that secure the structure as designed. The building permit in Romania is valid for 12 month which indicates that the owner of the project is to start building within this specific period of time. In order to obtain such a paper a file has to be submitted containing the following documents: the certificate of urbanism, the title deed or any evidence of it, a technical project illustrating the structure itself, neighbors’ approval, proof for taxes which are required to be paid, any relevant studies which are usually imposed through the certificate of urbanism. Depending on the project, there might be necessary some extra documents. Suppliants must keep in mind that the difficulty of any project might bring also the requirements of more specific utility. It is highly important to understand that besides these two documents the owner of the project has other bureaucratic obligations as well. The certificate of urbanism and the building permit are one of the most stringent but other technical papers are required also. Another strongly significant detail emphasizing the dynamic character of the bureaucratic environment clearly indicates that all features related to documents might be modified for future references. As the real estate market continuously evolves implying more and more elaborate approaches we point out the importance of securing any project with a solid expert opinion. Evaluating any project of this kind right from the start guarantees continuity and financial protection.