Non-operating companies will be exempt from filing no activity declarations

By amendments to the Accountancy Act promulgated in State Gazette No 92 dated 17.11.2017, all non-operating companies were released from the requirement to announce their annual financial statements. Instead, such companies were obliged to declare their lack of activity on an annual basis until 31 March of the year following the accounting period.

By virtue of the latest amendments to the Accountancy Act, effective as of 01.01.2020, the declaration requirement for non-operating companies was further reduced. According to the amendment the lack of activity is subject to a one-time declaring. Following the first financial year during which the company has had no operations, a template declaration approved by the Minister of Finance should be submitted at the Commercial Register and Register of Non-Profit Legal Entities.

It is worth noting that the new simplified administrative rules for a one-time declaring will be applicable for accounting periods following 01.01.2020, meaning that the non-operating companies are still obliged to file their declarations for 2019 until 31.03.2020, although they have already submitted such for the year 2018.

Regarding the subsequent accounting periods, companies that have already declared their lack of activity at the Commercial Register and Register of the Non-Profit Legal Entities until 31.03.2020 will not be obliged to submit further declarations confirming those circumstances in the future.

In view of the amendments, by Order OMF-12-63 dated 30.12.2019, the Minister of Finance has also approved a new template declaration under art. 38, para. 9, item 2 of the Accountancy Act.

After resuming its commercial activities, a company shall comply with the obligation to announce its annual financial statements within the statutory term.

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