How to Form a Company in Romania
We are well aware of the fact that establishing a company in Romania involves a maze of regulatory hoops to go through.
00:48 11 August 2023
We are well aware of the fact that establishing a company in Romania involves a maze of regulatory hoops to go through. Because of this, we have made every effort to simplify the procedure and provide our full expertise when interacting with local authorities like the ONRC (Trade Registry) and ANAF (Tax Man).
Read on for an executive summary and review of crucial information to help you decide whether Romania is the best location to pursue your business goals.
What are the upsides of setting a business in Romania?
- Taxes are very cheap, starting at just 1% on income up to 500.000 euros.
- There is just an 8% dividend tax on all dividends paid.
- Shareholders' Legal Immunity from Loss
- EU law has advanced and is politically stable.
- Extremely low salary level
- Very inexpensive housing market
- Super-fast, low-cost methods of communication
- A hospitable and economically stable environment for business
- No Sales Tax or Value-Added Tax Payments
- Cost-Effective Financial and Accounting Representation
- Funding opportunities in Romania and the EU
As a result of these favorable conditions, it comes as no surprise that not only multinational corporations but also smaller businesses are starting Romania company formation procedures every day.
Romania's business creation may be a thrilling, lucrative undertaking. Romania is attractive for startups and company development due to its location, educated workforce, and expanding market. Businesses may maximize chances in this lively EU member nation by following the rules. Romania might be your next business location, whether you're a startup or an existing company trying to expand.
Establish the Legal Framework
Starting a business in Romania starts with choosing a legal structure. Forms of organization with limited liability, stock ownership, and branch offices are common. The experts at Fintech Harbor Consulting can help you go through the pros and disadvantages of each structure and choose the best one for your needs. You can also get other day services from them, for example, you can open company British Virgin Islands with accompaniment.
After settling on a legal framework, the next step is to get a brand name. The name must not conflict with any trademarks or other Romanian business names that are currently in use. Company names may be reserved by filing an application with the Trade Register Office or by enlisting the assistance of one of our advisers.
Write out the articles of incorporation
Your company's Articles of Association (AoA) should include its mission, capitalization, organizational chart, and rules for making and implementing decisions. Hire an attorney to review the AoA and make sure it complies with Romanian legislation.
Trade Register registration
Your business is not "official" until it is registered with the Trade Register Office. The Articles of Association, shareholder and director identification papers, and any other legal documentation will need to be prepared. Send them to the Trade Register Office that is responsible for filing business registrations in the country or territory where your firm will be active.
Sign up for tax identification
Make sure the National Agency for Fiscal Administration (ANAF) is aware of your business' existence. Here, you'll sign up for any necessary taxes and acquire your own personal fiscal identity number (CIF). Make sure you're in accordance with Romanian tax laws by working with a trusted advisor.
Launch a Commercial Bank Account
Pick a local financial institution and sign up for a business checking account under the name of your firm. Receiving funds and making payments to vendors and workers will be impossible without this account.
Romania has a promising business environment, tax structure, and consumer base, all of which make setting up shop there a worthwhile endeavor. If you follow these instructions and consult with a lawyer via Fintech Harbor Consulting, you may go through the procedure efficiently and in accordance with Romanian legislation. You may expect great things from the Romanian market if you and your team prepare and carry out the necessary steps.