Company registration in Romania
- What are the advantages of registering a company in Romania?
- What types of organizational and legal forms of legal entities exist in Romania?
- What is the procedure for opening a company in Romania?
- What documents are required to register a company in Romania?
- What are the taxes in Romania?
- How can our company help?
Company registration in Romania
Romania is a country that not only has a rich cultural heritage, but also attracts foreign investors from all over the world due to its favorable geographical location on the European continent. Therefore, in this article we will talk about the features of registering a company and doing business in Romania.
What are the advantages of registering a company in Romania?
- Membership in the European Union allows entrepreneurs to actively enter European markets, which allows free trade with other EU member countries without customs duties or restrictions on the quantity of goods exported or imported;
- Romania currently has more than 89 agreements on the avoidance of double taxation, and every year this list of countries is only expanding;
- Low tax Romania is what the Romanian government is trying to implement to attract more foreign investment into the country;
- The World Bank recognizes Romania as a high-income country (GDP per capita is taken into account);
- Romania is a country that does not create high costs of doing business, as its maintenance and tax burden is one of the lowest in Europe.
What types of organizational and legal forms of legal entities exist in Romania?
- Individual Entrepreneurship - an enterprise based on the personal property of an individual and exclusively his labor. Recording of its activities is carried out through the district Trade Register, on the territory of which it is planned to conduct business;
- Limited Liability Company (SRL) - is the most common solution for starting a business. The minimum authorized capital is 50 EUR, provided that the company has no more than 50 employees;
- Joint Stock Company (SA) - a popular solution for creating a large company. The minimum authorized capital is EUR 25, 000% of which is immediately deposited into the company's bank account. The overwhelming majority of joint stock companies are engaged in banking or insurance activities. It must have at least 30 shareholders and 5 director.
It is also possible to open a company in Romania in the form of other types of legal entities, namely a limited liability company, a branch or representative office, etc.
What is the procedure for opening a company in Romania?
- Select the organizational and legal form of a legal entity for doing business;
- Prepare a name for the future company (there can be 3-4 of them in total);
- Develop constituent documents and charter of the company;
- Open a bank account in Romania, where it is necessary to deposit the amount of the authorized capital in full;
- Register the legal address of the company for at least 1 year;
- Register with the social and tax authorities;
- Obtain a domestic VAT fiscal number and an international one (if necessary);
- Obtain licenses if carrying out business activities without them is impossible.
What documents are required to register a company in Romania?
- copies of the national and foreign passports of the company founders must be notarized;
- providing a description of what types of activities the legal entity will engage in;
- documents confirming the residence address of the company’s founders (about payment of utility bills);
- documents indicating who the ultimate beneficiary of the company is (that is, who will actually own it);
- a power of attorney, which must be notarized and have an apostille;
- additional information about the founders of the company if necessary (for example, no criminal record).
It's important! The entire package of documents must be submitted only in Romanian. Therefore, if the documents are written in another language, their translation must be notarized.
What are the taxes in Romania?
The personal income tax rate is 10% for residents of Romania, and 16% for non-residents. However, there is a 0% tax rate that can be applied to persons who are engaged in scientific research or software creation.
Income tax is 16%. In addition, the profit that the company received by selling its assets is also subject to taxation. Small enterprises that have an annual income of up to 100 EUR are subject to income tax at a rate of 000%, provided that they do not have employees. If there are employees, then the tax will be 0%.
VAT - 19% with the possibility of applying reduced rates of 9% and 5% for restaurant, tourism, medical and other types of business.
The tax on dividends in Romania is 8%, this applies to both residents and non-residents. If royalty or interest is paid, taxation is carried out at a rate of 16%.
Employees of companies in Romania are required to pay social taxes on their salaries, namely: 25% - pension insurance; 10% - medical insurance. Employers pay social insurance contributions at two rates of 4% or 8% depending on the working conditions of the company's employees. The unemployment insurance contribution is 2,25%.
Thus, low taxes in Romania are one of the key advantages why foreign investors are willing to invest in the state and do business in it.
How can our company help?
Company registration in Romania
If you need to open a company in Romania, then contact qualified specialists from the consulting company Jurisprudential LTD. We know all the legal subtleties of opening a business in different countries of the world, because we have thorough knowledge of how to implement this procedure in practice.
To clarify the cost of registering a company in Romania, please contact our company for a free consultation, since each situation that arises in practice is individual, and therefore prices for services depend on various factors.