How to register a company in Romania?

In order to register a company in Romania, you need to choose the type of company form you want to incorporate, to prepare the necessary documents and to submit the application to the Romanian Trade Registry. Most common forms of companies in Romania are the Limited Liability Company (LLC), Joint Stock Company (SA) and sole trader (PFA).

How long does it take to open a company in Romania?

The company formation in Romania process will take 2 working days, since the date the incorporation application is submitted to the Romanian Trade Registry.

What is the main advantage to open a company in Romania?

One of the lowest taxation in EU: 1% turnover tax for the companies whose turnover does not exceed EUR 60,000 and have at least one employee or 3% turnover tax if the companies has a revenue exceeding EUR 60,000 or the companies is engaged in some specific activities.

Can I start a company in Romania as a foreigner?

Foreign citizens and legal persons can quickly and easily incorporate their own company in Romania, without any restrictions. There is no need for a Romanian shareholder and director

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03 December 2023

Limited liability company in Romania

Why Incorporating a limited liability company in Romania is a smart business move?! In this blog post, we will explore the advantages of incorporating a limited liability company (LLC) in Romania. From the ease of incorporation to the protection it offers to business owners, we will delve into the reasons why choosing an LLC structure can be a game-changer for entrepreneurs looking to establish their presence in Romania. We will also discuss the specific steps involved in incorporating an LLC in Romania and highlight any legal requirements that need to be fulfilled

Start limited liability company Romania

From idea to reality: how to incorporate a limited liability company in Romania and kickstart your business? Starting a business can be a daunting task, especially in a foreign country. In this blog post, we will provide a practical roadmap for entrepreneurs looking to incorporate a limited liability company in Romania. From the necessary document to registering with the relevant authorities, we will guide you through the necessary steps to turn your business idea into a reality in Romania.

As you consider expanding your business in Romania, the limited liability company LLC (in Romanian: SRL - societate cu răspundere limitată) is the most used form of corporate vehicle available to start your business in Romania, being chosen also as the safest for its shareholders and directors. The Romanian LLS is also the most suitable in matter of cost efficiency, with the minimum incorporation cost and almost no share capital contribution required for setting up the company.

Discover the numerous advantages of establishing a limited liability company in Romania and how it can revolutionize your business. From reduced personal liability to simplified taxation, explore the benefits that can help take your company to new heights.

Advantages for registering a company in Romania as a limited liability company

Discover the perks of establishing your business in Romania as a limited liability company. Registering a company in Romania as a limited liability company offers numerous advantages that can greatly benefit entrepreneurs and businesses.

1. Any foreign citizens and legal persons can incorporate their own limited liability company in Romania;

2. The liability of the shareholders in a limited liability company is limited to their capital contribution subscription;

3. Quick incorporation proceedings, the limited liability company being registered within three days in the Romanian Trade Registry;

4. The limited liability company may belong only to one single shareholder, being the sole shareholder; the maximum number of shareholders in the Romanian limited liability company in 50 (fifty);

5. The Romanian limited liability company may have at least one director or more, which are appointed by the general meeting of the shareholders; the directors are the company's legal representatives before local authorities and third parties;

6. The Romanian limited liability company represents a separate and distinct Romanian entity, which is able to buy lands, buildings and other immovable assets in Romania and the whole European Union in circumstances such as a Romanian citizen.

7. The Romanian limited liability company is registered by default with the Romanian Trade Registry as micro enterprise and will automatically pay the 1%/3% income tax. Starting with 2024, the tax rates on the Romanian microenterprises, as per the latest amendments brought in force to the Fiscal Code by the Law no. 296/2023, will be the following:

1% turnover tax to be paid by Romanian companies whose turnover does not exceed EUR 60,000 and have at least one employee.

3% - turnover tax to be paid by: a) the companies 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.

16% corporate tax for companies whose turnover exceeds EUR 500,000 in a fiscal year.

8. The limited liability company incorporated in Romania may choose to apply the corporate income tax regime since its incorporation, providing that it fulfills certain conditions in terms of value of share capital and number of employees;

9. The fiscal registration number is allocated by the Trade Registry at the moment the Romanian limited liability company is incorporated;

10. The Romanian limited liability company must register, since its incorporation, at least one office address / headquarter, the the correspondence, notices, subpoenas will be submitted by the authorities. This headquarter address can not be a PO box.

We can provide you with a virtual headquarter, where we receive all your correspondence and deliver to you in proper time. In order to find more about the company, please read our blog article The headquarter of your company.

11. Low costs for incorporation and maintaining active the Romanian limited liability company, compared to other EU states.

Documents needed from you for the limited liability company registration

Dive into the necessary paperwork required to establish a limited liability company in Romania. The main documents we need from your to start the specific procedures for setting up the company are the following:

the company name your desire;
ID card or passport for the shareholders and directors;
short description of the main activity object of the company;
headquarter - let us know if you already have a premise or we can set the headquarter at our law office, as a virtual headquarter, only for correspondence;

Breaking down the timeline: how long goes it really take to open a limited liability company in Romania?

Within approximately 3 days, the company’s incorporation documents will be issued by the Romanian Trade Registry, meaning here the identification documents for the company, similar to the identity card for the natural person. Of course, this 3 days term will be complied with only if the submitted documents comply with the legal requirements and does not have inadequacies.

Protect your assets and streamline your business operations with a limited liability company in Romania.

A coordinator lawyer from Romanian Advocacy will handle the whole setting up process, in order that your project will be completed within the planned schedule.

Do not hesitate to contact us at tudor@roadvocacy.ro or by calling at +40 723 77 37 59 or use the contact form on our website at www.roadvocacy.ro.

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