Branch

 

Company Branch Romania

As opposed to the status of subsidiaries, the branch is just an extension of the parent company and therefore has no legal personality and no independence. Law no. 105/1992 on the Regulation of the Private International Law Relationship adopts the accepted international practice by which a branch is governed by the national law of its parent company. Consequently, if intending to establish Romanian branch, clients should be informed that this business entity remains dependent on the mother company at the economic level. The branch is a secondary unit which must be commercially equipped by the main company in order to conduct an activity falling within the objects of the parent company.

 

 

Establish Romanian Branch – Key Elements

The set up branch Romania process requires this business unit to be registered with the National Trade Register. The mother company is entirely liable for all actions of managers and other employees of the branch. Representatives of the branch can conclude contracts even if this type of unit does not have a legal personality. It is still authorized to conclude transactions on behalf of the parent company. Thus, a legal document signed by the branch is a legal act of the company founder. All foreign entities deciding to open a company branch Romania should also know that the set up branch Romania process follows the main steps mentioned for the subsidiary. The dossier required for such a procedure must not contain the incorporation statutes. The most important information which need to be added to this dossier include a notarized copy of the articles of incorporation of the parent company, evidence of registration of the parent company in its country of origin and the proof of solvency of the mother company. The proof of solvency is actually a financial soundness certificate from the bank used by the mother company in order to conduct its major operations.

 

As this brief presentation showed, in order to open a company branch Romania, there should be followed certain procedures which sometimes can prove to be cumbersome. Our company developed accurate approaches able to guarantee favorable final results. Our experts can assist any client willing to establish Romanian branch explaining rigorously each phase of this process and delivering optimal solutions for all particular cases.