08 December 2023
Company incorporation in Romania
Unlocking the potential: How company incorporation in Romania can boost your business growth? A step-by-step guide to starting your business the right way. Learn the advantages of open a company in Romania, how to choose a company type, register it with the Romanian trade registry and obtain the fiscal code. Don't miss this opportunity to unlock your business potential. Let's get started on your journey to company incorporation in Romania!
Starting a business in Romania involves the process of company incorporation, which is the legal procedure of establishing a new company. This process is essential for entrepreneurs who wish to establish their presence in the Romanian market and take advantage of the country's growing economy. Company incorporation in Romania requires careful planning and adherence to the legal requirements set by the Romanian authorities.
Brief overview of company incorporation in Romania
If you are looking to incorporate a company in Romania, this blog article will provide you with all the necessary information on the registration and setup process advantages. Explore the steps involved, legal requirements, and key considerations for company incorporation in Romania and unlock the benefits of setting up a limited liability company in Romania!
Benefits of incorporating your company in Romania
Incorporating your business in Romania offers several benefits that can help you thrive in the local market. Firstly, Romania boasts a favorable business environment with a low income tax rate of 1% / 3%. This means that you can potentially increase your profits and reinvest in the growth of your company.
Additionally, by incorporating your business in Romania, you gain access to the European Union (EU) market. Romania's EU membership provides numerous advantages, including simplified trade procedures, access to funding programs, and the ability to expand your customer base across the EU.
Another significant benefit of incorporating in Romania is the country's highly skilled workforce. Romania has a well-educated and multilingual workforce, making it an attractive destination for companies seeking talented professionals. This ensures that you have access to a pool of skilled employees who can contribute to the success of your business.
By opting for this business structure, you can enjoy the advantage of limited liability, ensuring that your personal finances remain separate from your company's obligations.
1. Maximizing your business potential: Income tax of 1% or 3% on the company's turnover for incorporating in Romania
Incorporating a company in Romania offers numerous fiscal advantages that can greatly benefit businesses. One of the key advantages is the low income tax rate, which is currently set at 1% or 3%. This competitive rate allows companies to retain a larger portion of their profits, enabling them to reinvest and grow their business further. Additionally, Romania has a wide range of tax incentives and exemptions that can further reduce the tax burden for businesses. These incentives include tax breaks for research and development activities, investments in certain industries, and job creation. By taking advantage of these fiscal benefits, companies can significantly enhance their profitability and competitiveness in the market.
Let's take a look at the tax rates that apply to micro companies / enterprises incorporated in Romania for their turnover:
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1% turnover tax to be paid by Romanian incorporated companies whose turnover does not exceed EUR 60,000 and have at least one employee, contracted within 30 days term since the incorporation of the company.
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3% - turnover tax to be paid by: a) the companies incorporated in Romania with revenues exceeding EUR 60,000 or b) the companies engaged in activities corresponding to the following NACE codes: 5821 - Computer game editing activities, 5829 – Editing activities of other software products, 6201 - Custom software development (client-oriented software), 6209 - Other information technology service activities, 5510 - Hotels and other accommodation facilities, 5520 - Accommodation facilities for holidays and short stays, 5530 - Caravan parks, campgrounds, and camps, 5590 - Other accommodation services, 5610 - Restaurants, 5621 - Event catering activities, 5629 - Other food service activities not included in other categories, 5630 - Bars and other beverage serving activities, 6910 - Legal activities – only for legal entities not fiscally transparent, established by lawyers according to the law, 8621 - General medical practice, 8622 - Specialized medical practice, 8623 - Dental practice, 8690 - Other human health activities. But in both cases the company must have at least one employee contracted within 30 days term since its incorporation.
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16% corporate tax for incorporated companies whose turnover exceeds EUR 500,000 in a fiscal year or which have no employees.
Are you considering company incorporation in Romania? Look no further! The Romanian Trade Registry has got you covered. They'll register your limited liability company as a micro enterprise by default, making the whole process a piece of cake. And the cherry on top? You'll only have to pay a super low income tax rate of 1% or 3%.
2. Good news! You won't have to deal with the hassle of finding a notary public for your limited liability company incorporation process
This means you can skip the trip to Romania altogether. Leave it to us to handle all the formalities and deliver your fully incorporated company right to your doorstep.
3. Included in our package is a headquarter and virtual address for your company incorporation in Romania
By opting for our services, you can rest assured that your company's correspondence will be in safe hands. We also offer the convenience of welcoming you to our premises, guaranteeing that your mail will be promptly forwarded to you.
4. Say goodbye to traditional paperwork and embrace a modern company incorporation process that is conducted in Romania exclusively remotely via email.
Our team will meticulously prepare and deliver all the necessary documents in bilingual English and Romanian, granting you full control over the entire process of incorporation in Romania.
5. Who needs two shareholders anyway in your company incorporated in Romania?
There's absolutely no requirement for a Romanian shareholder or director in this case of company incorporation in Romania.
6. You don't need to worry about subscribing to a minimum share capital at the time of company incorporation in Romania
In fact, you can choose to subscribe to the share capital even after the company has been incorporated. However, it's important to note that for a limited liability company (SRL), you must pay 30% of the subscribed capital within 3 months from the registration date, but before commencing any operations under the company's name.
7. Get your company incorporated and running in a blink of an eye!
With our efficient services, we can complete the incorporation process within 2 business days, allowing you to dive into the exciting world of entrepreneurship in no time.
8. No need to hire any employees for your company incorporated in Romania!
However, if you want to take advantage of the incredible 1% income tax rate, you must have at least one employee. The good news is that as the sole shareholder, you can also register yourself as the company's sole employee.
9. The shareholders' liability is restricted to the extent of their capital contribution subscription, safeguarding their personal assets from any potential risks.
10. The Romanian limited liability incorporated company is a unique and independent entity in Romania, with the power to acquire properties, including lands, buildings, and other immovable assets, not only within Romania but also throughout the entire European Union, just like any Romanian citizen.
Legal requirements for company incorporation in Romania
Before you embark on the journey of incorporating your business in Romania, it's crucial to familiarize yourself with the legal requirements. The first step is to choose a unique name for your company that complies with the Romanian legislation. The name should not be misleading or identical to existing trademarks or company names.
Next, you need to determine the business structure that best suits your needs. Romania offers several options, including sole proprietorship, limited liability company (LLC), joint-stock company (JSC), and branch offices. Each structure has its own advantages and considerations, so it's important to carefully evaluate your business goals and choose the one that aligns with your objectives.
Once you have decided on the business structure, you need to incorporate your company with the relevant authorities. This involves preparing the necessary documentation, such as the Articles of Association, identification documents of shareholders and directors, and proof of address for the registered office. These documents will be submitted to the Trade Register Office, along with the registration application.
Documents needed for the company incorporation in Romania
When incorporating your company in Romania, you will need to prepare several documents to comply with the legal requirements. The specific documents may vary depending on the chosen business structure. To successfully incorporate your company in Romania, we kindly request the necessary documents from you:
1. Choose the company name you've always dreamed of! Let your imagination run wild and pick the perfect name for your company.
2. Get ready with your ID card or passport for the shareholders and directors.
3. Provide a brief overview of the main activity your company will engage in. Tell us a little about the main activity your company will focus on.
4. If you don't have a physical location yet, no worries! We can set up a virtual headquarters at our law office for all correspondence.
Leave the entire setup process in capable hands as a coordinator lawyer from Romanian Advocacy takes charge, ensuring that your project is successfully completed within the designated time frame.
Steps to incorporate your company in Romania
Once you have determined the appropriate business structure, it's time to incorporate your company in Romania. The incorporation process involves several steps, which we will outline below:
1. Choose a unique name for your company that complies with Romanian legislation. You can check the availability of the name for incorporation on the National Trade Register Office's website.
2. Prepare the necessary documentation for incorporation, including the Articles of Association, identification documents of shareholders and directors, and proof of address for the registered office.
3. Submit the incorporation file to the Romanian Trade Registry and the company will be ready incorporated within a 2 working days.
4. Pay the registration fee and submit the application for incorporation to the Trade Register Office. The office will review your application and supporting documents, and if everything is in order, your company will be incorporated.
5. Obtain the incorporation documents, tax identification number (CIF) and register for VAT if applicable. These steps are necessary to ensure compliance with Romanian tax regulations.
By following these steps, you can successfully incorporate your company in Romania and begin your entrepreneurial journey in this vibrant market.
Conclusion: Taking the next steps for company incorporation in Romania
Congratulations on reaching the end of this comprehensive guide to company incorporation in Romania! By now, you should have a clear understanding of the benefits, legal requirements, business structures and registration process in Romania.
Expanding your business to Romania can be a rewarding endeavor, but it's crucial to approach it with the right knowledge and preparation. As you take the next steps towards company incorporation in Romania, remember to consult with professionals, such as lawyers, accountants, and HR specialists, who can provide expert guidance tailored to your specific needs.
Unlock your business potential and embrace the opportunities that Romania has to offer. With its thriving economy, skilled workforce, and strategic location, Romania is an ideal destination for entrepreneurs looking to expand their horizons. Good luck on your journey to company incorporation in Romania!
Feel free to reach out to us at tudor@roadvocacy.ro or give us a call at +40 723 77 37 59. Alternatively, you can also use the contact form on our website at www.roadvocacy.ro. We're here to assist you in any way we can!
The blog of the Romanian lawyer
The Lawyer's corner is nothing else but a legal blog dedicated only for entrepreneurs and investors in Romania
Weekly usefull posts about the investors' first steps in Romania, from the perspective of practicing business law, servicing our clients' needs and litigation, written and published by a Romanian litigation lawyer with over 15 years experience
Romanian Advocacy
| Your Business | Our Mission |
Romanian Advocacy
| Your Business | Our Mission |
Romanian Advocacy
| Your business | Our mission |
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