Moreover, Romania boasts a highly skilled and educated workforce, with a strong emphasis on technical and scientific education. This provides a competitive advantage for businesses operating in sectors such as IT, engineering, and research and development. Furthermore, the cost of labor in Romania is relatively low compared to other European countries, allowing businesses to maintain a competitive edge while keeping operational costs under control.
A foreign entity, irrespective if it is a EU entity or not, may act as the a sole shareholder or a Romanian limited liability company (SRL) or, of course, together with another foreign entity or with a Romanian entity.
With the newly introduced amendments, it is allowed to subscribe the share capital even after the company incorporation, thus saving us additional trips to the bank. The share capital can be subscribed in one installment or transferred in several successive installments, within a maximum period of 12 months from the date of company establishment.
According to the provisions of the Companies Law no. 31/1990, the limited liability company (SRL) must pay 30% of the value of the subscribed capital not later than 3 months from the date of registration, but before starting operations in the name of the company, and the difference in capital subscribed will be paid: for the cash contribution, within 12 months as of the registration date; for the contribution in kind (immovable or movable assets), within no more than 2 years from the date of registration.
5. Headquarter: it is mandatory a virtual address for headquarter acting as a virtual office. We may provide it upon your request.
In order to decide if you opt for a headquarter at the lawyer's premises or one located in a real estate property, please read more info available in our blog article The headquarter of your company in Romania.
Not having employees initially when starting a business in Romania as a foreigner allows you to fully immerse yourself in the local business environment. You can dedicate your time and energy to understanding the market dynamics, establishing valuable connections with potential clients and partners, and adapting your business strategy accordingly. This direct involvement in every aspect of your company's operations will not only enhance your understanding of the Romanian market but also enable you to make informed decisions that align with your long-term goals. As your business grows, you can gradually expand your team, ensuring that each new hire is strategically chosen to complement your existing skill set and contribute to the overall success of your company.
8. It is necessary minimum a yearly decision of the sole shareholder / shareholders, for the approval of the financial statements.
Starting a business in Romania as a foreigner requires an annual decision for the approval of the financial statements. This is not just a mere formality, but a crucial step to ensure transparency and compliance with the local regulations. By approving the financial statements on a yearly basis, you demonstrate your commitment to maintaining accurate records and adhering to the financial reporting standards set by the Romanian authorities.
9. Tax regime: 1% / 3% turnover tax on the income, depending on specific conditions or 16% corporate tax rate. VAT: 19% standard rate or 5% and 9% reduced rates for certain goods. Plus certain tax exemptions and incentives, which are subject to certain conditions.
In order to find more about taxation of the LLC in Romania, please read our brief articles, one related to the turnover tax / corporate tax - What taxes your Romanian company pays? Chapter I and the second one related to the dividend tax - What taxes your Romanian company pays? Chapter II.
10. Accounting requirements: quarterly tax compliance, and a yearly tax calculation, declaration and payment.
Navigate the complexities of starting a business in Romania as a foreigner with expert legal guidance and turn your dreams into reality.
Finally, it is advisable to seek professional advice and assistance throughout the process of starting a business in Romania. This could include consulting with a lawyer, accountant, or business advisor who can guide you through the legal and administrative procedures, as well as provide valuable insights into the local market and business culture. With careful planning and the right support, starting a business in Romania can be a rewarding and successful endeavor for foreigners.
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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