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

Set Up NGO in Romania Association or Foundation for Non-Profit Success

Dreaming of making a difference in Romania? Establishing a non-governmental organization (NGO) is your pathway to creating lasting social impact. Whether you're driven to champion human rights, preserve the environment, or empower local communities, starting an NGO in Romania—whether as an association or a foundation—offers endless opportunities to bring your vision to life

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Romania boasts a vibrant landscape of non-profit organizations that play pivotal roles in tackling societal challenges. From NGO registration to understanding the types of NGOs in Romania, this guide will walk you through every step of the process. Discover how to navigate the legal requirements, choose between forming an association NGO or a foundation NGO, and successfully launch your initiative.

By following our comprehensive insights on association registration Romania, foundation registration Romania, and NGO formation in Romania, you can build a robust and impactful organization. So, whether you’re starting small or dreaming big, now is the time to turn your passion into action and establish a thriving non-profit organization Romania that will inspire change for generations to come!

What is an NGO in Romania?

An NGO (non-governmental organization) in Romania is a legally recognized entity that operates independently from the government and primarily focuses on social, environmental, cultural, educational, or other public interest causes. NGOs in Romania can be either associations or foundations, each with distinct legal structures and operational models.

NGO Romania refers to any non-profit organization operating within Romania that serves public or community interests.
Non-governmental organizations in Romania are often set up to address various challenges such as poverty, education, health care, the environment, and human rights.

Non-governmental organizations (NGOs) in Romania play a vital role in promoting social change, providing essential services, and advocating for various causes. These organizations are set up to serve public interests, rather than private profits, making them an essential part of the country's civil society. Whether you're looking to establish an NGO in Romania, create a non-profit association, or start a foundation, this guide will walk you through the necessary steps, provide insight into the types of NGOs in Romania, and offer key details on the registration process for NGOs in Romania.

Types of NGOs in Romania: Associations vs. Foundations

When considering how to set up an NGO in Romania, you’ll need to decide on the structure that best fits your mission. NGOs in Romania can generally be divided into two types: associations and foundations.

1. Association Romania (Non-profit Association)

A non-profit association in Romania is typically formed by at least three individuals or legal entities. It is the most common form of NGO in Romania, providing flexibility for community-driven initiatives.

Key features of an association in Romania:

Members: At least three founding members are required.
Purpose: The purpose of the association must focus on the public good, such as social welfare, cultural development, or environmental sustainability.
Governance: Associations are governed by their members and are required to hold regular general meetings to elect board members and make key decisions.
Registration: The registration process involves submitting necessary documents to the Romanian Court of Law, including the association’s statute, the founding act, and a declaration of the association’s address.

2. Foundation Romania (Non-profit Foundation)

A foundation is a type of NGO in Romania established by one or more founders who contribute an initial donation or endowment to fund the organization’s activities. Foundations generally have a more structured approach compared to associations and are often used for larger-scale initiatives.

Key features of a foundation in Romania:

Founders: A foundation can be created by a single founder, unlike associations that require multiple members.
Assets: The foundation must have an initial endowment of assets, which are used to fulfill the organization’s charitable or public-interest goals.
Governance: The governance structure often includes a board of trustees or directors, with less direct involvement from members compared to associations.
Registration: Similar to associations, foundations must submit their founding documents and financial details to the Romanian Court.

Key Differences Between Associations and Foundations

Criteria	Association	Foundation
Founders	At least three individuals or entities	One or more founders
Initial Capital	Not required	Requires initial endowment
Purpose	Public interest-focused	Charitable or public interest-focused
Governance	Members elect board and make decisions	Board of trustees or directors govern

Both types of NGOs in Romania are essential vehicles for implementing change, but their structure and management differ significantly. Whether you set up a non-profit association or a foundation will depend on your goals, the scope of your work, and your available resources.

Legal Framework for NGOs in Romania

The operation of NGOs in Romania is governed by:

Government Ordinance No. 26/2000 on associations and foundations.
Relevant amendments and additional legislation applicable to non-profit organizations.

These laws outline the requirements for the registration of NGOs, their operation, and tax benefits.

Key Features of Romanian NGO Legislation

Non-Profit Status: Romanian NGOs must not distribute profits to members; all proceeds should be reinvested in activities aligned with the organization’s mission.
Transparency: Financial and operational activities must be transparent.
Public Benefit Recognition: NGOs can apply for public utility status, granting them certain privileges and increasing public trust.

Steps to Set Up an NGO in Romania

Starting an NGO in Romania—whether it's an association or foundation—requires compliance with local laws and regulations. Here's an overview of the key steps involved in establishing a non-governmental organization in Romania.

1. Choose the Type of NGO: Association or Foundation?

The first decision you need to make when starting an NGO in Romania is choosing between an association or a foundation. As we discussed earlier, associations require multiple members and focus more on community-driven activities, while foundations are established by one or more founders who contribute assets for the organization’s charitable purposes.

Decide whether to establish an association or a foundation, based on your mission and resources:

Association: Ideal for collaborative efforts involving multiple people.
Foundation: Suited for initiatives with significant financial backing or asset contributions.

2. Prepare Your Statutes and Founding Documents

For both associations and foundations, the next step is preparing the foundational documents. These typically include:

Founding Act (Articles of Incorporation): A document that outlines the founding members and their intentions for creating the NGO.
Statutes: These are the rules and regulations governing the operation of the NGO. They will specify the organization’s purpose, structure, management, and operational guidelines.
Address and Registered Office: You’ll need to designate a physical address in Romania for your NGO’s registration.

These documents outline the purpose, structure, and governance of the NGO. They must include:

Name and address of the NGO
Objectives and activities
Membership rules (for associations)
Initial contributions or assets (for foundations)

3. Register Your NGO with the Romanian Court

NGO registration in Romania requires you to submit your documents to the relevant Romanian Court of Law, which will review your application and decide whether to grant legal recognition to your NGO.

Romania NGO Registration: To set up an NGO in Romania, you must file the appropriate paperwork, which includes the founding documents, statutes, proof of address, and any required financial guarantees. The Court will assess the viability of the organization and verify that the NGO’s activities align with Romanian law.
Registration Fees: While there are no significant costs involved in registering an NGO, there are minor administrative fees required during the registration process (EUR 20).

Once registered, your NGO in Romania will have the legal status of a non-profit organization and will be entitled to operate within the country.

4. Obtain a Fiscal Identification Code

Register the NGO with the Romanian tax authorities to obtain a fiscal code, enabling financial operations.

5. Obtain Tax Exemption Status (Optional)

One of the key benefits of establishing an NGO in Romania is the ability to access tax-exempt status. As a non-profit organization, you can apply for tax exemption, which allows you to direct more funds towards your mission and activities.

To qualify for tax exemption:

Your NGO must maintain strict non-profit activities, ensuring that funds are not used for private gain.
You must provide evidence of your public interest work and maintain proper financial records.
The NGO should submit annual reports to ensure ongoing compliance with Romanian tax laws.

6. Open a Bank Account

Once your NGO is officially registered, the next step is to open a dedicated bank account for your non-profit organization. This bank account will be used for receiving donations, grants, and other income generated by your NGO, as well as for managing operational expenses.

7. Apply for Necessary Licenses and Permits

Depending on the nature of your NGO’s activities, you may need to apply for certain licenses or permits. For instance, if you plan to run a charitable event, provide healthcare services, or engage in environmental conservation efforts, you’ll need to obtain relevant permits from local authorities.

8. Compliance with Romanian Laws and Reporting Requirements

NGOs in Romania must adhere to certain reporting and compliance requirements. These include:

Submitting annual reports detailing the NGO’s activities, finances, and achievements.
Ensuring transparency in operations and finances, especially when receiving donations and grants.
Ensuring your NGO’s activities align with its stated mission and public interest objectives.

Timeline for NGO Registration in Romania v. Recognition of Foreign Association / Foundation in Romania

To gain legal personality, an association or foundation in Romania must be registered in the Registry of Associations and Foundations. According to Romanian law, the registration process is approved by a designated judge within three (3) days after all required documents are submitted. Legal recognition becomes official on the date the court decision is finalized.

Realistic Timelines for NGO Registration in Romania. While the law specifies a swift timeline, practical realities often result in delays due to the court’s workload and administrative complexities beyond the parties’ control. Here’s what to expect:

Establishing a New Association or Foundation in Romania
- Expected Timeline: 1–3 months
- Factors Affecting Timing: Administrative processing, court schedules, and document review.
Recognition of Foreign Nonprofit Entities in Romania
- Expected Timeline: 4–6 months
- Additional Requirements: Prior governmental approval and a lengthy term of appeal for the court decision approving the recognition.

Types of Non-Governmental Organizations in Romania

In Romania, NGOs can be categorized based on the nature of their activities and mission. Some of the most common types of NGOs in Romania include:

1. Charitable Organizations. These NGOs focus on providing services and support to vulnerable populations, such as children, the elderly, and marginalized groups. They may run shelters, food banks, or community outreach programs.

2. Environmental NGOs. Environmental organizations work to protect Romania’s natural resources and promote sustainability. These NGOs are involved in conservation efforts, advocacy for environmental policies, and awareness campaigns.

3. Cultural and Educational NGOs. These organizations promote Romania’s cultural heritage and offer educational programs in various fields such as arts, science, and technology. They may also support youth development initiatives and organize public events or workshops.

4. Human Rights and Social Justice NGOs. NGOs focused on human rights advocate for the protection of civil liberties, equality, and justice. They often work on issues like gender equality, minority rights, and social inclusion.

5. Health-related NGOs. Health-focused NGOs aim to improve public health in Romania, provide medical care, and raise awareness about important health issues. They may also offer services like mental health counseling, addiction recovery programs, or preventive health campaigns.

How to Finance Your NGO in Romania: Funding Options for Non-Governmental Organizations

Securing funding is a critical step in sustaining and growing your NGO in Romania. Whether you’re running an association NGO or a foundation NGO, there are multiple avenues to finance your non-profit organization Romania and support your mission. Here are some of the most effective funding options for NGOs in Romania:

Member Contributions: Many NGOs in Romania rely on membership fees or contributions from their members as a foundational source of funding. This method is particularly effective for non-government associations that prioritize community-driven initiatives.
Donations and Sponsorships: Generous contributions from individuals, corporations, and sponsors are a significant funding source for many non-governmental organizations Romania. Testaments or wills can also be a source of legacy gifts to your NGO.
Grants from Local, National, or International Authorities: By applying for grants, your Romania NGO can access funds provided by governmental bodies or international organizations. This is a popular method for NGO formation Romania as these funds are often allocated to specific projects or programs that align with your mission.
Interest or Dividends from Fund Investments: Some non-profit organizations Romania generate income by strategically investing their funds. The interest or dividends earned from these investments can be reinvested into the NGO’s activities.
Dividends from Commercial Companies Established by the NGO: Your association Romania or foundation Romania can establish a commercial company whose profits are directed back into the NGO. This approach creates a self-sustaining financial model.
Income from Economic Activities: Many non-profit associations in Romania diversify their income by engaging in economic activities. For example, your NGO could operate a café, art gallery, or cultural center affiliated with the organization to generate revenue.

By leveraging a mix of these funding strategies, you can ensure the financial stability of your NGO in Romania, allowing it to thrive and fulfill its mission effectively. Don’t forget to comply with Romania’s legal requirements for NGO finances and reinvest all income into the organization’s goals to maintain its non-profit status.

Benefits of Starting an NGO in Romania

Fulfilling a Social Mission: Address pressing social issues and contribute to community development.
Tax Benefits: NGOs enjoy certain tax exemptions, including on donations and grants.
International Collaboration: Romanian NGOs often partner with international organizations, leveraging expertise and resources.
Public Trust: NGOs recognized as public utility entities gain additional credibility and support.

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Challenges Faced by Romanian NGOs

Despite their positive impact, NGOs in Romania encounter challenges such as:

Limited Funding: Many organizations rely heavily on donations and grants, which can be unpredictable.
Bureaucracy: Lengthy administrative processes for registration and compliance.
Human Resources: Difficulty in attracting and retaining skilled staff and volunteers.
Legislative Changes: Frequent amendments to NGO laws create uncertainty.

Prominent NGOs in Romania and Collaboration between NGOs and the Government

Several NGOs have made a significant impact in Romania, including:

Save the Children Romania: Focuses on child rights and education.
World Wildlife Fund (WWF) Romania: Promotes environmental conservation.
Foundation for Social Development (FDSC): Strengthens civil society initiatives.
Red Cross Romania: Provides disaster relief and healthcare support.

Collaboration Between NGOs and the Government. The Romanian government works with NGOs to achieve mutual goals, particularly in: social welfare programs, environmental policies and educational initiatives. However, NGOs maintain independence, ensuring unbiased advocacy and action.

The Future of NGOs in Romania

The role of NGOs in Romania is expected to grow, driven by:

EU Membership: Access to European Union funds for development projects.
Increased Public Awareness: Growing recognition of the importance of civil society.
Digital Transformation: Leveraging technology for greater outreach and impact.
Global Collaboration: Strengthening ties with international non-profits.

Conclusion: Start Your NGO in Romania Today

Starting an NGO in Romania offers an incredible opportunity to contribute to the public good and create meaningful change in various sectors of society. Whether you are interested in setting up an association or a foundation, understanding the legal requirements and operational structures is key to the successful formation of your NGO.

By following the appropriate steps for NGO registration, preparing necessary documents, and aligning your organization with Romania’s legal and regulatory frameworks, you can ensure that your NGO thrives and serves its intended purpose. Remember, NGOs in Romania are not just about charity; they represent a force for social, environmental, and cultural transformation that can make a lasting impact on local communities and beyond.

As Romania continues to embrace a robust non-profit sector, the opportunities to create and grow a meaningful organization are greater than ever before. So, whether you’re planning to establish a non-governmental organization for community development, environmental protection, or human rights, starting your NGO in Romania is a step toward making a significant impact.

For any question regarding the NGOs in Romania, feel free to reach out to us at tudor@roadvocacy.ro or use the contact form on our website at www.roadvocacy.ro.

Setting Up NGO in Romania: Guide to Associations and Foundations Registration

What is an NGO in Romania?

NGO Romania refers to any non-profit organization operating within Romania that serves public or community interests.

Non-governmental organizations in Romania are often set up to address various challenges such as poverty, education, health care, the environment, and human rights.

Types of NGOs in Romania: Associations vs. Foundations

When considering how to set up an NGO in Romania, you’ll need to decide on the structure that best fits your mission. NGOs in Romania can generally be divided into two types: associations and foundations.

1. Association Romania (Non-profit Association)

A non-profit association in Romania is typically formed by at least three individuals or legal entities. It is the most common form of NGO in Romania, providing flexibility for community-driven initiatives.

Key features of an association in Romania:

Members: At least three founding members are required.

Purpose: The purpose of the association must focus on the public good, such as social welfare, cultural development, or environmental sustainability.

Governance: Associations are governed by their members and are required to hold regular general meetings to elect board members and make key decisions.

Registration: The registration process involves submitting necessary documents to the Romanian Court of Law, including the association’s statute, the founding act, and a declaration of the association’s address.

2. Foundation Romania (Non-profit Foundation)

A foundation is a type of NGO in Romania established by one or more founders who contribute an initial donation or endowment to fund the organization’s activities. Foundations generally have a more structured approach compared to associations and are often used for larger-scale initiatives.

Key features of a foundation in Romania:

Founders: A foundation can be created by a single founder, unlike associations that require multiple members.

Assets: The foundation must have an initial endowment of assets, which are used to fulfill the organization’s charitable or public-interest goals.

Governance: The governance structure often includes a board of trustees or directors, with less direct involvement from members compared to associations.

Registration: Similar to associations, foundations must submit their founding documents and financial details to the Romanian Court.

Key Differences Between Associations and Foundations

Both types of NGOs in Romania are essential vehicles for implementing change, but their structure and management differ significantly. Whether you set up a non-profit association or a foundation will depend on your goals, the scope of your work, and your available resources.

Legal Framework for NGOs in Romania

The operation of NGOs in Romania is governed by:

Government Ordinance No. 26/2000 on associations and foundations.

Relevant amendments and additional legislation applicable to non-profit organizations.

These laws outline the requirements for the registration of NGOs, their operation, and tax benefits.

Key Features of Romanian NGO Legislation

Non-Profit Status: Romanian NGOs must not distribute profits to members; all proceeds should be reinvested in activities aligned with the organization’s mission.

Transparency: Financial and operational activities must be transparent.

Public Benefit Recognition: NGOs can apply for public utility status, granting them certain privileges and increasing public trust.

Steps to Set Up an NGO in Romania

Starting an NGO in Romania—whether it's an association or foundation—requires compliance with local laws and regulations. Here's an overview of the key steps involved in establishing a non-governmental organization in Romania.

1. Choose the Type of NGO: Association or Foundation?

Decide whether to establish an association or a foundation, based on your mission and resources:

Association: Ideal for collaborative efforts involving multiple people.

Foundation: Suited for initiatives with significant financial backing or asset contributions.

2. Prepare Your Statutes and Founding Documents

For both associations and foundations, the next step is preparing the foundational documents. These typically include:

Founding Act (Articles of Incorporation): A document that outlines the founding members and their intentions for creating the NGO.

Statutes: These are the rules and regulations governing the operation of the NGO. They will specify the organization’s purpose, structure, management, and operational guidelines.

Address and Registered Office: You’ll need to designate a physical address in Romania for your NGO’s registration.

These documents outline the purpose, structure, and governance of the NGO. They must include:

Name and address of the NGO

Objectives and activities

Membership rules (for associations)

Initial contributions or assets (for foundations)

3. Register Your NGO with the Romanian Court

NGO registration in Romania requires you to submit your documents to the relevant Romanian Court of Law, which will review your application and decide whether to grant legal recognition to your NGO.

Registration Fees: While there are no significant costs involved in registering an NGO, there are minor administrative fees required during the registration process (EUR 20).

Once registered, your NGO in Romania will have the legal status of a non-profit organization and will be entitled to operate within the country.

4. Obtain a Fiscal Identification Code

Register the NGO with the Romanian tax authorities to obtain a fiscal code, enabling financial operations.

5. Obtain Tax Exemption Status (Optional)

One of the key benefits of establishing an NGO in Romania is the ability to access tax-exempt status. As a non-profit organization, you can apply for tax exemption, which allows you to direct more funds towards your mission and activities.

To qualify for tax exemption:

Your NGO must maintain strict non-profit activities, ensuring that funds are not used for private gain.

You must provide evidence of your public interest work and maintain proper financial records.

The NGO should submit annual reports to ensure ongoing compliance with Romanian tax laws.

6. Open a Bank Account

Once your NGO is officially registered, the next step is to open a dedicated bank account for your non-profit organization. This bank account will be used for receiving donations, grants, and other income generated by your NGO, as well as for managing operational expenses.

7. Apply for Necessary Licenses and Permits

8. Compliance with Romanian Laws and Reporting Requirements

NGOs in Romania must adhere to certain reporting and compliance requirements. These include:

Submitting annual reports detailing the NGO’s activities, finances, and achievements.

Ensuring transparency in operations and finances, especially when receiving donations and grants.

Ensuring your NGO’s activities align with its stated mission and public interest objectives.

Timeline for NGO Registration in Romania v. Recognition of Foreign Association / Foundation in Romania

Realistic Timelines for NGO Registration in Romania. While the law specifies a swift timeline, practical realities often result in delays due to the court’s workload and administrative complexities beyond the parties’ control. Here’s what to expect:

Establishing a New Association or Foundation in Romania

Expected Timeline: 1–3 months

Factors Affecting Timing: Administrative processing, court schedules, and document review.

Recognition of Foreign Nonprofit Entities in Romania

Expected Timeline: 4–6 months

Additional Requirements: Prior governmental approval and a lengthy term of appeal for the court decision approving the recognition.

Types of Non-Governmental Organizations in Romania

In Romania, NGOs can be categorized based on the nature of their activities and mission. Some of the most common types of NGOs in Romania include:

1. Charitable Organizations. These NGOs focus on providing services and support to vulnerable populations, such as children, the elderly, and marginalized groups. They may run shelters, food banks, or community outreach programs.

2. Environmental NGOs. Environmental organizations work to protect Romania’s natural resources and promote sustainability. These NGOs are involved in conservation efforts, advocacy for environmental policies, and awareness campaigns.

3. Cultural and Educational NGOs. These organizations promote Romania’s cultural heritage and offer educational programs in various fields such as arts, science, and technology. They may also support youth development initiatives and organize public events or workshops.