A new Companies’ Law was recently published by means of Law No. 10/2017, of 17 May 2017, which expressly revokes the prior framework approved by Law No. 4/2004, of 21 April 2004. The new Law will become effective 120 days after the date of publication.
The new framework was approved within the ongoing commercial and economic legislative reform, and is aimed at adapting this legislation to the best practices of the globalized world.
Some of the amendments introduced by the new Law include:
- Creating a new mandatory corporate body, the Legal Representative, who will have to be a natural person with a permanent residence in the country;
- Eliminating the minimum share capital for limited liability companies by quotas, and introducing a minimum value of USD 1 for each quota;
- Eliminating bearer shares, in line with international best practices on prevention and fight against money laundering and financing of terrorism;
- Setting forth the possibility of conducing corporate bodies’ meetings through means of distance communication;
- Setting forth a simplified regime for shareholders loan agreements;
- Setting forth a regime for affiliated companies; and
- Abolishing General Partnership and Limited Partnership Companies, which are types of companies not in use nowadays.