Registration of a company in Romania

Romania is a European country with a dynamically developing new economy, loyal taxation and fair business legislation for foreigners. The official currency of the country is RON (LEI). The state is a member of the EU from 2007. The minimum gross salary wage in 2019 was 2080 RON and the inflation rate – 3,5%.

Among the advantages of the opening companies in Romania are:

• the high economic growth (above the average among the EU members);
• low public debt ( below the average among the EU members);
• elimination of double taxation with > 70 states.

Short review

• One of the largest spheres of the republic economy is oil exploration. A significant proportion of the production is occupied by “Rompetrol”.
• The leading branch of agriculture is crop production and grain farming.
• Being the owner of an outlet to the Black Sea, it has developed tourism.
• After the legalization of the gambling market in the Republic in 2015, the gambling business is developed strongly there.

Business in Romania is governed by part 4 “Economy and public finance” of the Constitution. The major financial regulator in the country is the Romanian National Securities Commission (CNVMR).

Business Forms

The legislation offers 5 organizational forms, where the most beneficial for non-resident founders are the first two:

• Limited Liability Company (SRL);
• Joint Stock company (SA);
• General Partnership (SNC);
• Limited Partnership (SCS);
• limited Partnership by shares (SCA).

Similarities

Both SRL and SA must have:

• the registered address;
• the registered administrator legal or natural person;
• an activity object, formed with the main activity.

Both, a citizen of the republic and its non-resident, pay the same taxes for the same amount in Romania.

1. Corporate income tax – 16%
   • Entrepreneurs pay only 3% on their profit in the a case of:

   The company operates in one of the following areas:
   – Trade;
   – Production of goods;
   – Execution of works/provision of services;
   – They are holders of a “small business”:
   – Annual income < 100.000 EUR;
   – Staff < 9 people;
   – Small business, religious organizations, educational institutions and some others – 0%;

2. VAT – 19% (registration of this tax isn’t required if the annual turnover < 88,500 EUR)
   • for sellers of building materials / providing entertainment services (clubs, museums, hotels, cinemas, sport events / selling newspapers, books, magazines) – 5%;
   • for sellers of essentials (not alcoholic drinks, food, medicines, prostheses) – 9%;

   Tax benefits are not eligible for insurance, stock or banking organizations.

3. Real estate property tax – 0.25-0.5%
4. Tax on dividends – 5%
5. Local taxes – 4000 EUR
6. Gambling business tax – 2%

The Prifinance specialists quickly and efficiently will consult you about details of calculating and paying all of the necessary taxes.

Documents

Documents, required for registration of a company to a foreigner:

• Memorandum of association.
• Certificate, confirming the legal status of the owner and founder of the enterprise.
• Registration certificate.
• Confirmation of the absence of debts in the home state.
• Information about the new company and its founders (copies of passports, company name, kind of activity, authorized capital).
• A letter of recommendation from a banking institution in Romania.
• Founders’ agreements to comply with all Romanian legislation.
• Office lease agreements.

For long-term business ( > 90 days), foreign entrepreneurs must:

• apply for a long-term visa (type D) at the Romanian Consulate in their country;
• obtain a temporary residence permit from the Immigration Department under the local Ministry of Internal Affairs ( valid for up to one year, with the right to renew);
• obtain permission from the local center for the promotion of trade and foreign investment;
• get approval from the Directorate of Immigration under the Ministry of Internal Affairs of Romania.

The following persons have the right to renew a temporary permit:

• entrepreneurs, investing > 150.000-200.000 EUR/ providing > 25 workplaces (the extension period – 1 year);
• entrepreneurs, investing > 500.000 EURO/ providing > 50 workplaces (the extension period – 3 years).

Our Prifinance specialists can help you choose the most suitable option for business immigration to Romania.

Registration Procedure

How to open a company in Romania within 2 weeks:

• Visit the International Trade & Investment Center to review the proposed business plan;
• Visit the General Inspectorate for Immigration and obtaining approval for registration of the company;
• Verification and registration of a unique company name through the National Trade Register Office (72 RON);
• Opening a deposit account in a Romanian bank and depositing the required amount of funds (0 RON);
• Registration in the Romanian Trade Register at the location of the company’s head office and obtaining a certificate of incorporation (700 RON);
• Registration a company in the tax office (0 RON);
• Online registration of company employees at the territorial State labor Inspectorate (0 RON).

How Prifinance Specialists May Help You

What are the advantages of our company for registering and opening your business?

• The professionalism of our staff.
• Fast response.
• Reasonable prices.
• 24/7 online support and consulting.

To contact us, click on the pop-up window “call back in 28 seconds” or contact a consultant and we will be happy to help you!