Business organizations in Romania, Bulgaria and Hungary: tips for incoming investors
Over the past years CEE region has attracted many foreign investors, especially countries like Romania, Bulgaria and Hungary, due to less restrictive legislation or better markets for their products.
One of the first things which investors should know when deciding to start a business in one of the above mentioned countries might be the types of companies available and main conditions for establishment.
1. Types of business organizations in Romania
According to the Companies Law No. 31/1990, the most used are:
Joint-Stock Company (SA) – social obligations are guaranteed by the share capital; the shareholders are liable for their shares.
Limited Liability Company (SRL) – a SRL can have between 1 to 50 Shareholders (natural or legal persons). The minimum capital of is RON 200, and the associates are liable for their contributions.
Required time for registration of new company is between 5 to 7 working days.
Other business forms in Romania are:
Wholly owned subsidiary/branchof foreign legal entity – a branch performs independent economic activities without legal person status, and must be registered in the Commercial Register;
Representative office of foreign legal entity - registered in the Romanian Chamber of Commerce.
2. Types of business organizations in Bulgaria
Bulgarian legislation regulates two principal forms of business organizations. They differ in their form of legal organization and in the manner of apportionment of liability.
Most common types of companies are:
Limited liability company (OOD), incl. Single-member limited liability company (EOOD) – a limited liability company can be formed with one or more shareholders (natural or legal persons). The minimum capital is 2 Bulgarian Leva and the associates are liable for their contributions.
Required time for registration of new company is between 4 days and 5 weeks.
Other forms of business organization according to Bulgarian laws are:
According to the Hungarian Companies Act, a foreign investor has 4 options, the most common being the Limited Liability Company. A limited liability company can be formed with one or more shareholders (natural or legal persons). The minimum capital is HUF 500.000 and the liability is limited to the company's initial capital.
Required time for registration of new company is standard article of association - 1 working day and normal article of association - 15 working days