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What Tax Will You Pay on Company Incorporation

One of the current most challenging issues on the incorporation of a company in Romania is the immediate tax impact on the company and its profitability. The majority of Romanian companies were incorporated with the minimum capital of two hundred (200) RON. This means a minimum capital of approximately forty five (45) Euros. This is [...]

Why a Mandate Contract

Since 1989 Romania has passed from the command economy of socialism to commerce based on the free market and capitalism. Romanian commercial development really started with the passing of the Company Law (Law 30/1990) which enabled the formation of limited liability companies as well as joint stock companies. This was a first step in the [...]

Twenty Six Years Ago.

It has been drawn to my attention that 26 years ago on the 12th January 1990, it was the first time I came to Romania. I came with a party of ten, including another partner from my law firm in London. He had never been to Romania either. The TAROM plane had left London Heathrow [...]

New Name

I am sorry to advise you that the law firm Hammond, Bogaru and Associates no longer exists. I am continuing in Romania in partnership with Alina Minciu an experienced financing and banking lawyer together with a team of experienced Romanian lawyers. Hammond, Minciu and Associates is a full service law firm specialising in corporate and [...]

By | January 6th, 2016|Categories: Blog|0 Comments

Do not let your heart rule your head

One of the greatest difficulties we have as an international law firm operating in Romania is to explain the clients and potential clients the differences in the Romanian legal system and the system which they may be used to. They seem to think that the law should be the same as in their home country [...]

By | September 4th, 2015|Categories: Blog, Romanian Business, Romanian Social Issues|0 Comments

Romanian Business Angels to Appear

The Business Angel law has now been introduced into the Romanian legal system. Whether it will stimulate investment in new ventures is a question which still has to be answered. It is a step taken by the Government to try and bring new investment into the market. Law no. 120/2015 regarding fiscal facilities granted to [...]

Have You forgotten About Your Romanian Investment?

During the last period we have received enquiries concerning property transactions and property led transactions all of which arose out of property purchases prior to 2009. Many investors both foreign and local made purchases during those times which they now regret.  The reasons for this regret are many but they now have to deal with [...]

Contract Negotiating Conclusion

As will have been seen from the previous articles the involvement of the lawyers can cause further delays in negotiating and closing the transaction. In many companies they do not employ lawyers.  They have a person who is defined as a legal advisor.  The legal advisor will have a law degree but is not usually [...]

By | June 22nd, 2015|Categories: Blog|0 Comments

Contract Negotiating Romanian Style Part 3

Whilst not specifically part of the initial contract negotiations the introduction of lawyers into the negotiations will add a further dynamic.  Depending on the size of the company the legal department may have been part of the original negotiating team and this can be both a hindrance and a help. The majority of larger companies [...]

Contract Negotiating Romanian Style Part 1

I was recently reading about negotiations in China and how you need to have great patience and understanding.  I brought to mind the situation in Romania when I first came here in 1990.  The situation was not very different then to the Chinese experience.  But what has changed, or has indeed anything changed since those [...]