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

Rent apartment in Bucharest | Apartment rentals in Bucharest

Discover the legal secrets before you decide to rent a flat in Bucharest! On the legal side of apartment rentals in Bucharest, when it comes to renting, it is crucial to have a clear understanding of the legal aspects involved. Familiarizing yourself with the legal requirements and regulations can help ensure a smooth and hassle-free renting experience and get the essential legal information you need to rent apartment in Bucharest

Legal tips for tenants in apartment rentals in Bucharest process. Be ready to rent a flat in Bucharest

Securing an apartment rental in Bucharest involves navigating through a legal landscape that is essential to understand for a smooth and informed tenancy. Before embarking on the process of renting flat in the vibrant Romanian capital, it is crucial to be well-versed in the legal aspects that govern landlord-tenant relationships. This insight not only safeguards your rights as a tenant but also ensures a transparent and lawful leasing experience. In this guide, we will explore key legal considerations that prospective tenants should bear in mind when seeking accommodation in Bucharest, offering a comprehensive overview of the regulations and obligations shaping the rental landscape in this dynamic city. Don't rent apartment in Bucharest until you read this!

Understanding the legalities of renting an apartment in Bucharest

Renting a flat in the bustling city of Bucharest can be an exciting venture, offering the promise of a vibrant urban lifestyle. However, before you sign that lease agreement and unlock the doors to your new home, it's crucial to delve into the legal intricacies that govern the tenant-landlord relationship in this dynamic city. Understanding the legal landscape in apartment rental in Bucharest not only protects your rights as a tenant but also ensures a seamless and worry-free living experience. In this blog post, we'll explore the key legal insights you need to know to rent apartment in Bucharest, providing you with the knowledge to make informed decisions and navigate the rental process with confidence.

From the perspective of the legal resources and support, we strongly recommend to consult a specialized lawyer on leasing / rental agreements in order to familiarize you with all the leasing clauses and the local legal resources. Knowing where to turn in case of disputes or legal concerns ensures that you can address issues efficiently and seek guidance when needed.

We offer legal assistance and representation services in any renting legal aspects. Romanian Advocacy lawyers are specialised on all the renting agreements issues, having a solid expertise also in the disputes arising from the lease agreements between the tenants and landlords, even if we speak about a home renting or a commercial premises lease.

Remember, consulting a lawyer before signing a lease agreement, even may incur a couple of hundreds euro spent, may save you thousands in the future. Don't play with your legal safety because it may affect in the future your emotional one or stability in life!

Don't rent apartment in Bucharest without a rental agreement! Conclude a lease agreement with the landlord. This is a must. Apartment rental in Bucharest is zero without a contract

One important aspect to consider when you decide to rent apartment in Bucharest is the rental agreement conclusion, which should be in writing and signed by both the landlord and the tenant, by handwriting on using certified electronic signature. This agreement should outline the terms and conditions of the rental, including the duration, rent amount, and any additional fees or charges. So, it is a must for apartment rental in Bucharest to conclude the lease agreement in writing before committing to a rental property, thoroughly review the lease agreement. Understand the terms and conditions, payment schedules, and any additional charges. Ensure that all agreed-upon terms are clearly stated in the contract to avoid misunderstandings later on.

Whether you are a prospective tenant or landlord looking to rent out a property or lease a commercial space/residence, a lease agreement could save you from many headaches in the future and, as we explained before, may save you a lot of money if the agreement is well drafted, tailored for your needs and protection.

The contract provides a legal framework and establishes rights and obligations for both parties, ensuring predictability and equality throughout the duration of the contractual relationship.

Another important aspect we strongly advise our clients is to either have a bilingual agreement form, both in Romanian and English or the language the tenant fully understand, or have an interpreter to help them understand the agreement concluded in Romanian. There were several cases when landlords or real estate agents rush the tenants, especially the expats, to sign only the Romanian version of the lease agreement, without even understanding what they get themselves into.

Within the agreement, you can include clauses regarding the duration of the lease, monthly rent, upfront payments, possible deposits, who bears the costs of utilities and property repairs and maintenance, when and how the landlord is allowed access to the property, payment terms and methods, penalties for late rent payment or failure of timely handover of the property by the landlord, utilities included, contract termination, and many more, which are essential to be agreed and established clearly by the parties, from the beginning.

So, when it comes about apartment rental in Bucharest, stipulating in the lease agreement all this clauses may prevent any harassment or abuses from the landlords. The paperwork can not be skipped.

All the more considering the registration of the lease agreement with the tax authorities determine that the renting agreement becomes writ of execution, being enforceable title towards the tenant for the payment of rent at the agreed-upon terms and eviction of the lessee at the lease expiration date. In other words, if the landlord register the lease agreement with the tax authority (and has the whole right to proceed like this, being encouraged for fiscal purposes to do so) and you as the tenant fail to pay the rent on the due date or do not vacate the property upon the lease expiration contractual moment, the landlord is able to enforce the lease agreement and force execute your banking accounts or evict the tenant, without going through the court proceedings.

Rights and responsibilities of the tenant and landlord. What you should pay attention when decide to rent apartment in Bucharest?

Additionally, when decide on an renting a flat in Bucharest, it is essential to be aware of the legal rights and responsibilities of both the landlord and the tenant. For example, the landlord is responsible for maintaining the property in a habitable condition and addressing any necessary repairs. On the other hand, the tenant is responsible for paying the rent on time and taking care of the property. Understanding these rights and responsibilities can help prevent any potential disputes or misunderstandings during the rental period.

Tenant rights and obligations you must pay attention when you decide to rent apartment in Bucharest are mainly the following: the duration of the rent, monthly payment rent or quarterly and its due dates, upfront payments (in advance), deposits and warranties, who bears the costs of utilities and property repairs and maintenance, the landlord's access in the premises, penalties for late payments or failure of timely handover of the property by the landlord, contract termination, returnal of the deposits etc. Familiarize yourself with your rights and obligations as a tenant in Bucharest. Knowing your rights empowers you to address issues promptly and assertively.

For example, regarding the maintenance and repair clauses, considering that many buildings in Bucharest are old enough and it may appear anytime the necessity of a repair, it is a must to clarify the maintenance and repair responsibilities outlined in the lease agreement. Know the procedures for reporting and addressing maintenance issues promptly.

Another crucial one is regarding to the tenant privacy in opposition to the landlord access. It is essential a tailored protection on this topic. Learn about your rights to privacy as a tenant and the circumstances under which a landlord can access your rented space. Clear guidelines on these matters help maintain a respectful and lawful living environment.

Another one: check if all the utilities are included in rent or not. This one may add you additional expenses for the use of the apartment, such as maintenance costs, water supply, electricity, internet, cleaning, security, and may not be cheap. So, their payment must be explicitly set out in the lease agreement on behalf of the tenant of by the landlord, where should be paid by the tenant, either to the homeowners association or directly to suppliers or shall be included in the cost of the rent and any other payments should not be beared by the tenant.

Understanding these aspects ensures that your living space remains in good condition throughout your tenancy. So, apartment rentals in Bucharest are not as easy as it appears from the legal perspective, implying a smooth pairing of the right and duties of both the landlord and the tenant.

Sign a handover protocol for the apartment you are about to rent. Check the condition of the apartment before renting it

Within the handover protocol for the premises, both the landlord and the tenant will document the condition of the property at the time of its rental, considering that some of these aspects can not be specified and detailed within the lease agreement. In this respect, aspects regarding the condition of the goods inside the flat, the value of the counters for electricity, water at the moment of handover, the status of the rooms and of the flat equipments can be done within the handover protocol.

This protocol is highly efficient for both parties to avoid potential discussions/complaints later on regarding the condition of the property, rooms, and goods before and after renting the property, as well as the status of the apartment at the moment of renting agreement conclusion all the more considering that the Romanian Civil code offers the tenant the right to receive the apartment with all its accessories, in a condition suitable for its destination of use (housing, commercial, industrial).

So, when you decide to rent apartment in Bucharest, it may not be sufficient to sign only the lease agreement, being necessary for your full protection in the rental process to conclude also the handover protocol.

Security deposits. Is it legal to rent apartment in Bucharest without subscribing a deposit to the landlord?

Another important aspect to consider is the security deposit. Even if this is not a validity condition under the Romanian law, in Bucharest, landlords often require tenants to pay a security deposit before moving into the apartment. This deposit is usually refundable at the end of the tenancy, provided that the tenant has fulfilled all the terms of the rental agreement and there are no damages to the property. It is advisable to carefully inspect the apartment before moving in and document any existing damages to avoid any disputes regarding the security deposit when moving out and, as we recommended before, to sign a handover protocol describing the status of the premises. So, the apartment rental in Bucharest may arise another issued from the deposit conditions, when it will be refunded, the conditions for refund etc.

Understand the rules regarding security deposits and the conditions under which they can be withheld is an important aspect to consider when you decide to rent apartment in Bucharest. Clear communication with your landlord on financial matters is essential for a transparent apartment rental in Bucharest experience.

Verify the ownership title on the flat, from whom you are renting the property. The proof of ownership is crucial when you decide to rent apartment in Bucharest

This aspect is extremely relevant when you are about to become a tenant. Therefore, verifying the property owner's documents (ownership title / deed of property - which may be a sale-purchase agreement or the construction documents, land book registry extract, right of access to the premises etc.) is crucial to ensure that they own the property they are renting out and its access is smooth, without any encumbrances. Also, this documents help you confirm that the property is available for rent and allows you to check if the owner is involved in any legal disputes related to the flat.

In other words, be careful who signs the lease agreement, check thoroughly if this person - the lessor is really the owner of the flat or a person legally authorized by the landlord to rent you the apartment. It has been many cases of apartment rental in Bucharest when tenants concluded lease agreements with friends or relatives of the owner who did not have the right to lease the apartment, which could cause future legal problems and disputes.

Check the maintenance list from the homeowners association, as well as the latest paid invoices from utility providers.

If you are a tenant, it's advisable to verify whether the apartment you are moving in has all the utilities and maintenance bills paid to avoid unpleasant situations where you might be disconnected from certain utility services or to impose you the cost of such services. Additionally, this check can help you form an objective idea about the actual costs of maintenance and utilities that you will be responsible for. During the signing of the contract and the handover of the apartment rent in Bucharest, it is useful to take photographs of the utility meter readings and attach them to the handover protocol.

Eviction and termination of the rental agreement. Rental apartment in Bucharest has an ending. Will be smooth or in court?

Eviction procedures: while no one likes to think about eviction, it's essential to know the legal procedures in case it becomes necessary. Understanding the grounds for eviction and the steps involved can provide peace of mind and enable you to act appropriately in challenging situations. So, when you decide to rent apartment in Bucharest, it is crucial to describe in the lease agreement the situations of eviction and termination of the lease agreement,

Conclusion: Making informed decisions when renting an apartment in Bucharest. But rental apartment in Bucharest definitely worth it

It is an exciting journey to rent apartment in Bucharest, and being well-informed about the legal aspects of the process is key to a positive experience and it can help ensure a smooth and legally compliant renting experience. By understanding your rights and responsibilities, you can navigate the rental landscape with confidence, ensuring a harmonious relationship with your landlord and a secure living environment in this vibrant city. Stay informed, know your rights and responsibilities ask questions, and make decisions that align with both your needs and the legal framework governing the rental market in Bucharest.

Romanian Advocacy lawyers offer legal assistance and representation services in any renting legal aspects, being specialised on all the renting agreements issues, having a solid expertise also in the disputes arising from the lease agreements. Don't hesitate to get in touch with us! You can send us an email 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. We're always here to help and answer any questions you may have.

Rent apartment in Bucharest: Top legal insights