The densely-populated Romania, located at the Black Sea within reach of other EU members and countries in the Middle East, is one of the largest in the European Union. Its large market, stable economy, and bilateral agreements with many European countries make it an attractive location for foreign investors.
Romanian soil is fertile and holds high-quality mineral deposits and natural resources. Moreover, the government grants companies free access to the country’s energy supplies.
An up-and-coming destination in Europe, Romania has many breath-taking landscapes and scenic mountain ranges to offer. It doesn’t surprise that tourism and real estate are some of the country’s key sectors.
Additionally, the demand for properties greatly outweighs the supply in Romania, ensuring that real-estate can be developed and renovated at a high profit.
Another rapidly growing investment market in Romania is information technology. With a well-educated workforce that has ample knowledge of computer science and foreign languages, Romania offers an array of profitable opportunities to foreign investors and businessmen.
CompyCo can assist you in tapping into all that Romania has to offer. Working with our experienced team, you can enjoy efficient assistance in meeting the country’s flexible business requirements and setting your company up in no time!
Forms Of Companies In Romania
- S.R.L. “Societate cu raspundere limitata” —private limited liability company
- S.A. “Societate pe actiuni” —joint stock company
- S.C.A. “Societate in comandita pe actiuni” —company limited by shares
- S.N.C. “Societate in nume colectiv” —general partnership
- S.C.S. “Societate in comandita simpla” —limited partnership
The difference between S.R.L. and S.A. in Romania
In Romania, the most common types of companies started by foreign investors are S.R.L. and S.A.
The Romanian S.R.L. can have between 1 and 50 shareholders. The amount of their subscribed shares is the limit of each member’s liability. The minimum share investment is 200 RON (around 45 EUR).
The Romanian S.A. can have at least 2 shareholders, and the minimum share deposit is 25 000 EUR.
Fundamentals Of A Limited Liability Company
Corporate Tax in Romania
VAT in Romania
Fundamentals of limited liability companies in Romania
|Limited liability company||S.R.L.|
|Minimum Share capital||EUR 45|
|Registered office required||Yes|
|Physical office required||No|
|Min. number of Shareholders||1|
|Min. number of Directors||1|
|Local Director required||No|
|Bank signatory must travel||In some cases|
|Timescale for company formation||2 weeks|
|Timescale for bank account opening||7 days|
|Timescale for obtaining VAT number||14 days|
|Statutory audit requirements||No|
|Shelf companies available||Yes|
How can I set up my company in Romania?
Regardless of where you live, establishing a business in Romania can seem daunting if you’re unfamiliar with the country’s regulations and processes. We provide our clients with efficient assistance in setting up their companies outside their jurisdiction most simply and quickly!
In Romania, registering your new company is a straightforward process as long as all the requirements are met and the required documentation submitted.
Companies must register to the Romanian Trade Register, and attain prior authorization regarding what they will produce and sell.
Apart from the articles of incorporation, which is the main incorporation document, these following documents must be submitted:
- Proof of registered company name and its legal address
- ID of its members
- The scope of your business activities
- Certificate of the paid share capital
After the incorporation, we will register the company with the Romanian Fiscal Authorities.
Romania is well-integrated and connected to European business values and offers a low cost for business operations. This densely populated country of Romania is the perfect starting place for a business that wants to tap into Europe’s lucrative markets.
By working with CompyCo, you can establish a company in this strategic location and take advantage of its business-friendly environment to have your business operations up and running in no time!
You receive a free consultation with our experts, a detailed engagement plan, and a unique company name of your choice. Along the way, we’ll offer guidance and support to ensure you make the right decisions based on your company’s needs.
Our expert team uses its vast experience to create an incorporation process that caters to your business’s unique circumstances.
From obtaining the documents and getting the necessary registration to representing you where necessary, our network of contacts offers unwavering support every step of the way!
Bank Account Opening
One of the most crucial steps during the business registration process is setting up a bank account. Non-residents of the country can open up a corporate bank account in Romania with a few easy steps to avail the sophisticated range of business services offered by the various local and foreign financial institutions.
Certain banks allow you to open a bank account remotely in some cases, while others require in-person interviews and verification before your account can be set up. Either way, we offer custom banking solutions by working with the leading experts in the field.
Some of the documents you’ll need to open your Romanian bank account are:
- Tax residency
- Proof of address, such as utility bills
- An employment contract or payslips
- Previous bank statements
To learn more about opening a bank account in Romania, head over here.
Accounting & Taxation
The accounting and taxation related requirements to consider are:
- The tax year corresponds to the calendar year.
- Financial statements, including a profit and loss account, an annex, and a balance sheet must be submitted to the Company register every year.
- All Romanian companies must maintain books of total payments received and expenses incurred, along with the details of debit and credit, and total sales and purchases.
- There’s a flat income tax rate of 16%on all net income for tax residents in Romania.
- Lower tax rates can apply to micro-companies, namely 1% for small companies with employees, and 3% for small companies without employees.
- The standard VAT rate in Romania is 19%. Certain goods are exempt from VAT.
- All invoices issued by Romanian traders must contain specific VAT information, including, the VAT number of the supplier, the VAT rate applied, and the amount of money collected as VAT.
- Companies are issued VAT numbers with the format of the country code R.O., followed by a 9-digit number that ends with a letter.
How can you employ staff in Romania?
A world-class economy, high-tech manufacturing processes, skilled IT professionals, and a thriving economic climate make Romania a viable option for foreign investments.
To ensure that your business runs smoothly, business owners need employees to keep the fuel burning. However, hiring expert employees in a foreign land where you’re unfamiliar with the regulations and laws can quickly become overwhelming.
But not with CompyCo! We have an experienced team to help you obtain the right employees for the job. We advise you on the best hiring practices and help you get the necessary documentation sorted with our premier and full-service HR solutions. By taking care of all aspects of employment, you get the freedom to focus on your business activities.
CompyCo caters to all your company’s needs by offering registration, employment agreement writing, recruiting, and payroll services. With extensive knowledge of Romanian businesses and a network of professionals, you can rest assured that your company’s HR needs are in great hands!
For a more in-depth involvement in the payroll and recruiting processes and obligations, we’ll set up an account for you with software that provides the information you need about these HR processes in the country.
Do you have any queries? Take a look at our HR services page for more information about our International HR services!