Trust

Romanian legislation does not recognise the concept of a trust. An EIG is an association of two or more individuals or companies set up for a definite period. Its main objective is the development of the activities of the members; the development of the EIG itself is secondary. An EIG is allowed a maximum of 20 members. A key feature of EIGs is the unlimited joint liability of its members and the fact that it may not, directly or indirectly, own shares in one of its member companies or in another EIG. An EIG is not allowed to issue shares, bonds or other negotiable instruments.


A EEIG is similar to EIG and it can be set up in any EU member state and may function in Romania through subsidiaries, branches, representative offices or other non-legal entities provided these comply with domestic legislation. The subsidiaries and branches of an EEIG are subject to the same registration procedure as EIGs. A SE may be created on registration in any of the EU member states in accordance with the EC Regulation 2157/2001.

European law requires member states to treat a SE as if it is a public limited company formed in accordance with the law of the member state in which it has its registered office. By using the SE, businesses operating in several member states can establish themselves as a single company instead of having to follow different rules for each country in which they have subsidiaries. SEs are only suitable for large companies.


Limited liability companies are the most popular vehicles for business in Romania because of their simple administrative requirements, greater flexibility compared to other types of companies and low capital requirement. However, joint stock companies remain an attractive option for investors which plan to list their companies on the stock exchange.