Company Set Up In Romania
Romania, located on the Black Sea and within close reach of other EU members and the Middle East, is one of the largest countries in the European Union. Its large market, stable economy, and bilateral agreements with European partners make it an attractive location for foreign investors.
With fertile soil, valuable mineral deposits, and abundant natural resources, Romania provides significant opportunities across agriculture, energy, and industry. The government also grants companies free access to national energy supplies.
As an up-and-coming European destination, Romania attracts investors in tourism and real estate, with strong demand for property development and renovation. The information technology sector is also rapidly expanding, supported by a well-educated, multilingual workforce with advanced knowledge of computer science.
CompyCo has the expertise to coordinate your market entry into Romania through its network of licensed professionals. We can connect you with solutions for company registration, banking, taxation, and licensing so that your business setup is completed efficiently while meeting all local requirements.
Forms Of Companies In Romania
- S.R.L. “Societate cu raspundere limitata” —private limited liability company
- S.A. “Societate pe actiuni” —joint stock company
- S.C.A. “Societate in comandita pe actiuni” —company limited by shares
- S.N.C. “Societate in nume colectiv” —general partnership
- S.C.S. “Societate in comandita simpla” —limited partnership
The difference between S.R.L. and S.A. in Romania
In Romania, the most common types of companies started by foreign investors are S.R.L. and S.A.
The Romanian S.R.L. can have between 1 and 50 shareholders. The amount of their subscribed shares is the limit of each member’s liability. The minimum share investment is 200 RON (around 45 EUR).
The Romanian S.A. can have at least 2 shareholders, and the minimum share deposit is 25 000 EUR.
Fundamentals Of A Limited Liability Company
Corporate Tax in Romania | VAT in Romania |
|---|---|
16% | 19% |
Fundamentals of limited liability companies in Romania
| Limited liability company | S.R.L. |
| Minimum Share capital | EUR 45 |
| Registered office required | Yes |
| Physical office required | No |
| Min. number of Shareholders | 1 |
| Min. number of Directors | 1 |
| Local Director required | No |
| Other requirements | No |
| Bank signatory must travel | In some cases |
| Timescale for company formation | 2 weeks |
| Timescale for bank account opening | 7 days |
| Timescale for obtaining VAT number | 14 days |
| Statutory audit requirements | No |
| Shelf companies available | Yes |
How can I set up my company in Romania?
Regardless of where you live, establishing a business in Romania can seem daunting if you’re unfamiliar with the country’s regulations and processes. We provide our clients with efficient assistance in setting up their companies outside their jurisdiction most simply and quickly!
In Romania, registering your new company is a straightforward process as long as all the requirements are met and the required documentation submitted.
Companies must register to the Romanian Trade Register, and attain prior authorization regarding what they will produce and sell.
Apart from the articles of incorporation, which is the main incorporation document, these following documents must be submitted:
- Proof of registered company name and its legal address
- ID of its members
- The scope of your business activities
- Certificate of the paid share capital
After the incorporation, we will register the company with the Romanian Fiscal Authorities.
Romania is well-integrated into European business values and offers a competitive cost base for operations. For companies looking to tap into Europe’s lucrative markets, it provides an ideal starting point.
By working with CompyCo, you can benefit from our experience in coordinating market entry into Romania. Through our network of licensed professionals, we bring together all the solutions you need for company registration, banking, taxation, and licensing so that your operations can start quickly and in compliance with local requirements.
You will receive a tailored engagement plan, support in selecting a company name, and ongoing guidance to ensure the process fits your business’s unique needs. From handling documentation and registrations to connecting you with the right local expertise, CompyCo ensures you have coordinated support at every step.
Bank Account Opening
One of the most crucial steps during the business registration process is setting up a bank account. Non-residents of the country can open up a corporate bank account in Romania with a few easy steps to avail the sophisticated range of business services offered by the various local and foreign financial institutions.
Certain banks allow you to open a bank account remotely in some cases, while others require in-person interviews and verification before your account can be set up. Either way, we offer custom banking solutions by working with the leading experts in the field.
Some of the documents you’ll need to open your Romanian bank account are:
- Tax residency
- Passport
- Proof of address, such as utility bills
- An employment contract or payslips
- Previous bank statements
To learn more about opening a bank account in Romania, head over here.
Accounting & Taxation
The accounting and taxation related requirements to consider are:
- The tax year corresponds to the calendar year.
- Financial statements, including a profit and loss account, an annex, and a balance sheet must be submitted to the Company register every year.
- All Romanian companies must maintain books of total payments received and expenses incurred, along with the details of debit and credit, and total sales and purchases.
- There’s a flat income tax rate of 16%on all net income for tax residents in Romania.
- Lower tax rates can apply to micro-companies, namely 1% for small companies with employees, and 3% for small companies without employees.
- The standard VAT rate in Romania is 19%. Certain goods are exempt from VAT.
- All invoices issued by Romanian traders must contain specific VAT information, including, the VAT number of the supplier, the VAT rate applied, and the amount of money collected as VAT.
- Companies are issued VAT numbers with the format of the country code R.O., followed by a 9-digit number that ends with a letter.
How can you employ staff in Romania?
Romania’s world-class economy, strong IT sector, and skilled workforce make it an attractive destination for foreign investors. Yet, navigating employment laws and regulations in a new market can be complex and time-consuming.
CompyCo helps coordinate your HR and recruitment needs in Romania by connecting you with our network of experienced HR professionals. Through this network, you gain support in drafting employment agreements, recruiting and onboarding talent, ensuring compliance with local labor laws, and managing payroll obligations.
We also facilitate access to tailored payroll and HR software so you can maintain oversight of processes while ensuring compliance with Romanian requirements. By relying on our coordination and network, you can focus on running your business while experts handle the regulatory and administrative aspects of HR.