site.btaCommerce Act Changes Expediting Liquidation Pass on First Reading

The National Assembly voted on Wednesday to pass provisionally two bills, put forward by the Council of Ministers. The bills, which update the Commerce Act by expediting liquidation and facilitating changes to cross-border businesses, were approved on first reading.

The first bill was approved by 135 votes in favour, one against, and four abstentions. It establishes a legal framework for the expedited liquidation of inactive legal entities. Companies that have not been active, have not employed staff, or have not registered for VAT in the past 12 months, and have no debts to the state, municipalities, or tax and social security obligations, will be eligible for this simplified liquidation procedure.

The second bill to change the Commerce Act sets up basic rules for cross-border business changes, like mergers, splits, and spin-offs. This framework will apply when at least one of the companies involved is established under the legislation of another EU member state or a country party to the Agreement on the European Economic Area, and has its seat, registered office, or principal place of business within the EU. This bill received support from 148 MPs, with five abstentions.