This article aims to focus on the procedure (and consequences) of declaring the establishment of a company invalid. The institute for invalidity of the establishment of a commercial company is regulated in art. 70 of the Commercial Law, which provides for the following:

'The incorporation of a company shall be invalid only if one of the following infringements has been committed:
1. there is no memorandum of association or it has not been drawn up in the form prescribed by law;
2. in the case of a joint-stock or limited partnership with shares, the requirements of Art. 159 and 163…;