Setting up a company in Romania if you are a foreigner

As a foreign investor interested in opening a company in Romania, it's essential to understand the process of setting up a new enterprise and the steps you need to follow. This comprehensive guide will provide you with the necessary information to establish your business in Romania successfully.

Overview of the advantages of setting up a company in Romania

The primary advantage of setting up a company in Romania is the relatively low administrative costs compared to other countries. Opening a business in Romania carries low costs, as you don't have to pay for any official fees and taxes. Additionally, the process of company registration in Romania is simplified and can be completed in less than three months. If you don't have a fixed place to open your company, you can register it in just a few days.

The process of setting up a company in Romania

Opening a company in Romania involves a three-step process:

Step 1. Obtaining the license

In this step, you'll complete the documentation for establishing a legal entity. You can obtain an official license once the following conditions are met:

• You have an idea for the company
• You have a project proposal
• You have a business plan
• You have the capital you will use to operate the company
• You have a responsible management team
• You have the appropriate office space

Step 2. Completing the registration

After obtaining the license, the next step is to register the company at the notary or the Romanian register. You will complete the following procedures to register a new company:

• Submit the business information
• Specify the type of company (limited liability or private)
• Specify the activity of the company
• Specify the name of the company
• Specify the address of the company
• Enter the data of the company management
• List the partners of the company

Step 3. Keeping the company records

In the last step, you will perform the required company activities, including the formation of the company's management, the appointment of the company's main members, the creation of a company bank account, and the organization of an annual general meeting.

Requirements and steps for company registration in Romania

To register a company in Romania, you should meet the following requirements:

• An idea for the company
• A project proposal
• A business plan
• The capital you will use to operate the company - min 200 Ron
• A responsible management team
• The appropriate office space - we have two business centers since 2009 in Romania

To register a company, you must provide certain documentation to the notary or the registrar. You can find the address of the registrar on the registrar's website. You will also find the address of the notary on the notary's website. You can register a company in Romania using the following methods:

• Register a company by filing a paper
• Register a company by using a computer program

Company taxation in Romania

The Romanian tax administration determines the taxes to be paid by taxpayers. Taxes cover a range of issues, such as income tax, value-added tax, social security contributions, and so on. The income tax is a percentage of the profits gained by a company. It is calculated according to the type of company:

• A corporation is taxed at 16% on profit or 1 percent on turnover for micro companies
• Shareholders of a limited liability company are taxed at 8% for non-Romanian residents
• A partnership is not taxed

According to the tax administration, the company tax rate in Romania is very low. In fact, the tax rate is lower than the average income level in Romania. The low company tax offers corporations a low tax burden, allowing them to invest more money or create more jobs. Moreover, setting up a company in Romania provides the benefit of tax incentives and subsidies.

The timeline for creating a company in Romania

The registration process of a company in Romania is speedy. You can register a company in one day or one week. Registration can be completed in less than three months or up to six months. In Romania, there are no long-term obligations, allowing you to register a company in just a few days or months.

Sources of financing for company creation in Romania

When opening a company in Romania, you can receive funds from the following sources:

• Banking sources: You can obtain a loan from a bank, credit union, or a foreign bank. You can also get a direct loan from a Romanian bank.
• Insurance sources: You can obtain an insurance policy from an insurance company or acquire credit insurance.
• Funds for investment: You can acquire investment funds from an investment company or obtain funds from family and friends.
• Stock sources: You can purchase shares on the market or buy shares from an employee.

Tips for setting up a successful company in Romania

To set up a successful company in Romania, consider the following tips:

• Find information about the company on the internet or in law books
• Ensure your company complies with Romanian laws
• Make sure your company is a good investment

In conclusion, setting up a company in Romania as a foreigner is a straightforward process with numerous advantages. By understanding the requirements and following the steps outlined in this guide, you can successfully establish and operate your business in Romania. We already did more than 100 companies in 20 years, so please mail [email protected] for more info.

You do not need to travel for the company creation. We do it from a distance. You will only travel as your company is created and hosted in one or our business centers in Romania.

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