A business in Romania can be registered by both natural persons and legal entities. A Romanian business form has to be incorporated with the required minimum share capital, deposited in the company’s bank account.
Also, it is allowed for local businesses to hold their own assets and to establish a management structure in accordance with the provisions of the Romanian law.
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Another basic requirement for company formation in Romania is to assign a registered office for the newly founded legal entity. Our lawyers can help you open a company in Romania in just a few days. We can also offer you details about the process of company formation in Romania.
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– 16% applied on the taxable profit or 5% on the revenue (the highest value will be selected) for companies involved in gambling and nightclubs activities,
The procedure of company formation in Romaniawill take 5 working days (this is calculated since the date in which all the necessary documents are subscribed with the local authorities).
In order to register a limited liability company, the necessary minimum share capital is of EUR 40, while for a joint stock company, the capital is established at EUR 25, 000.
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Foreign investors can open the following types of Romanian companies (structures): the Romanian SRL, the Romanian subsidiary, the Romanian branch, the Romanian representative office (liaison office).
The representative office in Romania can be established only for certain types of activities; our team of Romanian lawyers can offer advice on the documents necessary to register a liaison office here and help you start a business in Romania.
Since the Romanian SRL is the most common business form selected for company formation in Romania, we will present below the steps for forming this type of company. Prior to starting the registration process, the investors must gather all the documents and information required by the local authorities.
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One of the main steps for company formation in Romania is to assign a suitable trading name for the company. This registration step is completed with the Trade Registry, where the investors will complete a reservation form in which they will mention their main options for the desired company name.
After the file is submitted, the Trade Registry will provide a certificate stating that the reservation for the company name was registered. The document is issued on the same day when the application is made and it has a limited validity (of only 3 months).
Foreigners who are not residentsmay also open a business in Romania, but they will need to declare on their own responsibility that they do not have any fiscal debts in the country where they reside (an original document is generally required).
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If the document is written in a foreign language, a certified translation has to be added to the file, and this is done through a public notary.
Once all the required documents are submitted with the Trade Register Officeand after the institution will verify the applicant’s file, the company will receive a unique registration code (CUI).
Formally, a company is recognized as a legal entity in Romania once it is registered with the Trade Register. We can help you with the legal procedures in order to start a business in Romania in just a few days.
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Yes, the legislation in Romania provides an alternative to the Romanian SRL; this is represented by the Romanian SRL-D, which was designed to assist young entrepreneurs in starting a business.
This business form is especially addressed to persons who have never been the associates or the owners of other companies in Romania or in any other country of the European Union (EU).
In order to register the SRL-D, there has to be a maximum of 5 shareholders; the company can carry out only certain types of economic operations. For example, the SRL-D can’t have as its business operations activities that are related to fields such as: insurance, gambling, real estate, tobacco or alcohol.
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A major advantage of this company type is that the investor can obtain many tax exemptions and grants, because it was created to increase the number of investors on the local market (especially of young investors).
Yes, and this is because each legal entity has its own characteristics. For instance, the Romanian representative office may only start marketing activities; it can’t be registered with the purpose of developing commercial operations.
The Romanian authorities have introduced a new set of fiscal measures in 2023. They are regulated under the Government Ordinance no. 16/2022 and they were published in the Official Journal of Romania on 15 July 2022.
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The new tax law for 2023 provides certain modifications with regards to the manner in which the VAT is applied. Thus, starting from 1 January 2023, the new tax law states that certain reduced VAT rates will be modified for specific products or services providers.
For instance, the hotel, accommodation, restaurant and catering industries are charged, starting with 1 January 2023, with a VAT rate of 9%, instead of the 5% rate that was imposed until 1 January 2023.
A new regulation referring to the VAT applied to flavored and sweetened non-alcoholic beverages. Instead of the reduced rate of 9%, these products are charged starting with 1 January 2023 with a tax rate of 19% (CN code 2202 99 and CN code 2202 10 00).
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The Romanian micro-company regime was created so that it can promote investments amongst young entrepreneurs, who benefit from a preferential tax regime. This policy has been very successful, as many Romanians decided to start a business, given its advantages.
Under the new Fiscal Code, the rules concerning the micro-company regime were modified, including the definition of what a micro-company can be from a legal perspective.
As said above, the Romanian micro-company must hire minimum 1 employee in order to benefit from the micro-company tax regime. Having an employee is no longer optional, but an obligation.
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More so, the employee must be a hired based on a full-time contact. Our team of Romanian lawyers can present in-depth information on the employment regulations currently in force in Romania.
Please mind that if the micro-company has only 1 employee and the contractual relationship ends, regardless of the reason, the company must seek to hire a new employee in order to retain the micro-company regime.
Thus, the obligation of the company is to hire a new employee in a period of 30 days since the termination of contract. Here, there are 2 options:
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The new fiscal code imposes a new corporate income tax for the micro-company regime, which is charged at a rate of 1% regardless of the number of employment contracts or other conditions.
A company will retain this beneficial tax system as long as it maintains the conditions stipulated for the new definition of a micro-company. Provided that the company will not be able to fulfill all these conditions, then the standard taxation system will apply.
In the case in which this applies, the company will be considered a regular corporate tax payer from the quarter when any of the micro-company conditions mentioned above is not met by the legal entity.
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Thus, the company can go from a micro-company regime to a corporate taxpayer regime during the same financial year. You can find out more information concerning this rule from our Romanian lawyers.
A foreign company can be sole shareholder (if LLC) or the foreign company can be shareholder together with at least 1 other shareholder which can be legal entity or private person (if joint stock company).
The most common way to start a business in Romania is by registering a limited liability company (societate cu raspundere limitata – SRL).
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Companies in Romania can also take the form of partnerships and joint stock companies, which are commonly incorporated in this country. Depending on the nature of the activity developed here, these companies that can also be liable for the payment of VAT in Romania.
In order to open a business in Romania, it is necessary to register it with the National Trade Register Office, an institution which operates under the Chamber of Commerce and Industry in Romania.
This body, the National Trade Register Office, is set up as a public institution that gathers data on all companies that are registered at a national level. You can get more information about company formation in Romania from Avocati.ro, an excellent online resource.
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Click to download our free guide to company formation in Romania, containing information for the setup of Romanian branches and representative offices, joint stock and SRL companies.
This provides information regarding the costs of company formation in Romania, the procedures to follow, the documents investors must prepare and any other requirements imposed by the law.
It provides information on the procedure and requirements in order toopen a company in Romania, the costs associated with the registration procedure, as well as on the documents that have to be submitted with each particular institution.
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This gives the right to company formation in Romania to both local and foreign businessmen. Please mind that there aren’t any requirements with regards to the nationality of the appointed directors. Romanian law also allows corporate shareholders and directors.
Legal registration operations such as the formation of new Romanian companies, change of the social headquarters
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