Romanian entrepreneurs will be allowed to set up as many limited liability companies as they want, and several companies will be allowed to share the same address, including as small as a room, according to a law promulgated by president Klaus Iohannis on July 2, Profit.ro reported.

The Parliament initially adopted the bill in December last year. It aims to reduce the unnecessary bureaucracy faced by Romanian entrepreneurs and facilitate the process of setting up businesses, according to the initiators, USR deputies Cristina Prună and Claudiu Năsui.

President Iohannis returned the law to Parliament, claiming that allowing multiple limited liability companies owned by the same person goes against the European Union acquis (furthermore breaching Company Law 31/1990) and same address hosting multiple companies opens the door to tax evasion. The lawmakers passed the law with nearly no amendments in April.

The Government referred the draft law to the Constitutional Court, but the Court cleared the bill. Eventually, president Iohannis promulgated it on July 2.

editor@romania-insider.com

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