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

Romania company registration. Register a company in Romania

The Power of 1%: How company registration in Romania can save you money on income tax? Register your business in Romania and leverage the 1% turnover tax rate to maximize your profits. In this blog post, we will explore the unique advantages of registering a company in Romania and the transformative impact it can have on your business. From startups to established enterprises, Romania offers a favorable tax regime that can help you retain more of your hard-earned profits. We will delve into the various industries that can benefit from this tax incentive, the requirements for eligibility, and the steps involved in registering your company in Romania. Don't miss out on this opportunity to discover how a 1% income tax can revolutionize your business's financial outlook

Registering a company in Romania made simple with Romanian Advocacy lawyers

Thinking of incorporating your business in Romania? Here's 5 facts why you should consider register company in Romania and enjoy the 1% income tax rate benefit! Experience the perks of open company in Romania and pay only 1% tax exclusively on your company turnover.

Introduction: company registration in Romania must be considered

Romania, with its strategic location, skilled workforce, and business-friendly environment, has emerged as a prime destination for entrepreneurs and investors looking to expand their operations in Eastern Europe. Registering a company in Romania offers numerous benefits, including access to the European Union market, competitive tax rates, and various investment incentives. This comprehensive guide provides essential insights into Romania company registration, detailing the steps, benefits, and key considerations for establishing a business in this vibrant and growing economy. Whether you're a startup or an established enterprise, understanding the process to register a company in Romania is your first step towards capitalizing on the myriad opportunities this dynamic market has to offer.

Register your business in Romania and leverage the 1% turnover tax rate to maximize your profits. In this blog post, we will explore the unique advantages of registering a company in Romania and the transformative impact it can have on your business. From startups to established enterprises, Romania offers a favorable tax regime that can help you retain more of your hard-earned profits. We will delve into the various industries that can benefit from this tax incentive, the requirements for eligibility, and the steps involved in registering your company in Romania. Don't miss out on this opportunity to discover how a 1% income tax can revolutionize your business's financial outlook.

Why register a company in Romania? Company registration in Romania brings a lot of unique benefits

Strategic location

Romania's geographical position as a gateway between Western Europe and the Balkans makes it an ideal hub for businesses looking to expand in both regions.

Skilled workforce

Romania boasts a highly educated and skilled workforce, particularly in IT, engineering, and manufacturing sectors, making it an attractive destination for tech startups and industrial companies.

Favorable tax regime

Romania offers a competitive turnover income tax (1% or 3%) or corporate tax rate of 16%, one of the lowest in the European Union. Additionally, various tax incentives are available for certain sectors and regions.

EU Membership

As a member of the European Union, Romania provides businesses with access to the single market, enabling seamless trade and investment opportunities within the EU.

Benefits of company registration in Romania

Unlocking tax benefits: A guide to register company in Romania and pay only 1% income tax. Are you a business owner looking to optimize your profits and minimize the tax burden? Look no further! In this blog post, we will explore the benefits of registering a company in Romania and how it can help you save on taxes. With the opportunity to pay only 1% income tax, Romania offers an attractive tax regime for entrepreneurs and businesses. Contact us as we uncover the secrets to maximizing your profits through strategic tax planning.

Here's 5 facts why you should consider company registration in Romania and enjoy the 1% income tax rate benefit!

1. A percentage of 1% to 3% is levied on the company's turnover as income tax. Don't miss the chance to register a company in Romania

Imagine a business environment where you can enjoy a significantly reduced income tax rate of just 1%. Sounds too good to be true? Well, not in Romania! In this blog post, we will explore the unique advantages of registering a company in Romania and the transformative impact it can have on your business. From startups to established enterprises, Romania offers a favorable tax regime that can help you retain more of your hard-earned profits. We will delve into the various industries that can benefit from this tax incentive, the requirements for eligibility, and the steps involved in registering your company in Romania. Don't miss out on this opportunity to discover how a 1% income tax can revolutionize your business's financial outlook.

Did you know that registering your company in Romania can bring you the benefit of only paying 1% income tax? It's a fantastic opportunity to save money and maximize your profits. Take advantage of this favorable tax rate and register your company in Romania today!

Examine the tax rates that are specifically designed for microenterprises incorporated in Romania and their turnover.

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 some specific activities.

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

2. By subscribing to the capital contribution, shareholders can rest assured that their personal assets are shielded from any potential risks. By registering a company in Romania, the owners' personal assets are separate from the company's liabilities

It means that if the company faces financial difficulties or legal issues, the owners' personal assets, such as their homes or savings, are generally protected. With other words, their liability is restricted to the extent of their investment, providing them with a sense of security and peace of mind. Shareholders are only liable for the amount they have contributed to the capital subscription, ensuring that their personal assets remain protected from any potential risks.

3. Get your company off the ground in a flash! Registration process lasts only 2 working day, so your company to be quickly operational in Romania

Get ready to embark on your entrepreneurial journey in record time with our exceptional legal services. We guarantee a swift incorporation process, ensuring that you can dive headfirst into the thrilling world of entrepreneurship within just 2 business days!

4. Rest assured, there's no need for concern about having to subscribe to a minimum share capital during the company registration process

You have the option to subscribe to the share capital even after the company has been registered. Just keep in mind that if it's a limited liability company (SRL), you'll need to pay 30% of the subscribed capital within 3 months from the registration date, but before starting any operations under the company's name.

5. Say goodbye to the headache of searching for a notary public to handle your limited liability company registration process

No need to worry about traveling to Romania anymore! Let us take care of everything for you, from handling all the necessary paperwork to delivering your fully incorporated company straight to your doorstep.

Conditions for the new registered companies in Romania to pay the turnover income tax

As per the newly in force amendments brought to the Fiscal Code, starting with 1st of January 2024, a newly registered company in Romania shall follow the micro-enterprise tax regime beginning with the first year of its registration and will remain under this tax rules only and only if the company fulfilled all the following conditions simultaneously:

1. The incomes gained did not exceed EUR 500,000, in RON equivalent

So, the maximum threshold of annual turnover is EUR 60.000 for 1% turnover income tax and if this amount is exceeded and will be up to EUR 500,000, the company shall pay 3% turnover income tax. If is more then EUR 500,000, the company will pay 16% corporate tax, determined on the company's profit, resulted as the difference between the turnover and expenses.

2. At least 80% of its incomes are generated from other activities than consulting and management activities.

In other words, if a micro-enterprise revenues from consulting and management activities are 20% or more of the total incomes during a fiscal year, it owes corporate income tax as of the quarter in which they exceeded those limits.

The micro-enterprise taxation cannot be applied by Romanian entities conducting activities in banking, insurance and reinsurance of the capital market, gambling, upstream oil and natural gas activities.

Romanian entities, excepting those that carry out activities corresponding to HORECA (Hotels, Restaurants, Bars and Coffee shops) codes, may opt to apply micro-enterprise tax starting the fiscal year following that in which they meet the conditions. Romanian legal entities that carry out activities corresponding to the CAEN codes for HORECA can opt for the payment of micro-company tax (without having to fulfill the above conditions) or for the payment of corporate income tax of 16%.

3. The company has at least one employee.

This employee must be contracted within one month starting from the moment of company incorporation in Romania. Regarding the steps for the company formation in Romania, please check the following relevant info, as presented in the previous blog article 5 steps for setting up a business in Romania.

Starting with 1st of January, 2024, micro-companies with no employees is no more subject to the 1% / 3% income tax, as such regulation has been repealed, but only to the 16% corporate income tax, determined on the difference between the turnover and expenses.

4. The company has shareholders that hold more than 25% of the value/number of participation titles or voting rights in no more than 3 (three) Romanian micro-enterprises

5. The company's share capital is owned by persons other than the state and administrative-territorial units

6. The company is not under dissolution, followed by liquidation.

If at least one requirement of the above is not fulfilled, the company shall pay the 16% corporate income tax, determined on the company's profit (the difference between the income and expenses). The Romanian entities that meet the conditions for applying micro-enterprise taxation may opt for the payment of corporate income tax only as of the following fiscal year.

Together with other main advantages as explained in our article Top 5 reasons to set up a business in Romania, this 1% income tax for micro-companies qualifies Romania in the category of countries with an optimum investments profile of any kind placing our country in top of the list the investors want to develop businesses in.

Steps to company registration in Romania

1. Choose the type of company for registration in Romania

The first step in the Romania company registration process is to choose the type of company that best suits your business needs. The most common types are: limited liability company (SRL) and joint stock company (SA).

2. Reserve a registration company name in Romania

Select a unique name for your company and check its availability with the Romanian Trade Register. Once confirmed, reserve the name to prevent others from using it.

3. Prepare the required documents for company registration in Romania

Gather and prepare the necessary documentation, which typically includes: articles of association, identification documents of the shareholders and directors, proof of registered headquarter address (you can read more about headquarter in our article The headquarter of your company in Romania), affidavits and statements etc.

4. Register the company with the Romanian Trade Registry

Submit the prepared documents to the Romanian Trade Register. The registration process includes: filing the incorporation documents, paying the registration fees and publishing the company’s formation in the Official Gazette

5. Obtain the VAT number for the company registered in Romania

If your business activities require VAT registration, apply for a VAT number with the National Agency for Fiscal Administration (ANAF).

6. Open the bank account for the already registered company in Romania

Open a corporate bank account in Romania to manage your business finances. This is also where you will deposit the initial share capital.

Benefits of registering a company in Romania

Access to EU funds

Companies registered in Romania are eligible to apply for various EU funds and grants aimed at supporting business growth and development.

Investment Incentives

Romania offers numerous incentives for foreign investors, including grants, tax exemptions, and subsidies for certain industries and regions.

Business-friendly environment

The Romanian government has implemented various reforms to create a more business-friendly environment, including simplifying administrative procedures and reducing bureaucratic barriers.

Access to EU market and Schengen area

Romania's anticipated integration into the Schengen Area will simplify travel and trade across member states. Businesses will benefit from reduced border controls, faster shipping times, and easier movement of personnel, enhancing overall operational efficiency.

Schengen membership is expected to bolster investor confidence, attracting more foreign direct investment (FDI). The elimination of border checks and streamlined regulatory procedures will make Romania an even more attractive destination for global investors.

Registering a company in Romania presents a myriad of advantages, from strategic access to the EU and Schengen markets to a competitive tax regime and cost-effective business environment. With its skilled workforce, robust infrastructure, and supportive government policies, Romania stands out as an ideal destination for entrepreneurs and investors seeking to expand their footprint in Europe. Whether you are a startup or an established enterprise, Romania offers unparalleled opportunities for growth and success.

Conclusion: Taking the next steps for register a company in Romania

Congratulations on reaching the end of this comprehensive guide on the main advantages for registering a company 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 registration 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 registration in Romania!

Registering a company in Romania is a strategic move for entrepreneurs and investors looking to capitalize on the country’s growth potential and favorable business climate. By following the outlined steps and understanding the benefits, you can successfully establish and grow your business in Romania. Whether you are a startup or an established enterprise, Romania offers a wealth of opportunities for business success.

Contact us today to get expert assistance with your Romania company registration and take the first step towards your business success in this thriving market.

Feel free to reach out to us at tudor@roadvocacy.ro or give us a call at +40 723 77 37 59. You can also use the contact form on our website at www.roadvocacy.ro.

Remember, your business, our mission.

Register company in Romania and benefit of 1% income tax