Company formation in Romania is an easy process which can be done exclusively online in three business days with almost no money.
Romania is good for business and more and more investors ask our law office how easy is it to start a business in Romania.
How easy is it to start a business in Romania?
The incorporation procedure is a smooth process.
The main steps for business registration are the following:
you choose a company name – it should be unique, as is your brand; your lawyer will handle company name reservation with the trade registry;
your lawyer will draft needed legal documents which you will sign;
your lawyer will prepare and submit the company incorporation file with the trade registry on your behalf;
you will wait for three days until you get the registration certificate and you can start your business.
It’s important mentioning that after incorporation, depending on company’s activities, there may be required certain authorizations according to the law. For example, a recruitment agency needs authorization from the Ministry of Labour.
Consequently, it is advisable to inform your lawyer on your business plan, in order to get proper legal advice on legally setting up a company in Romania.
What is SRL in Romania?
A SRL means Societate cu Raspundere Limitata in Romanian language, and translates into Limited Liability Company (LLC). As the name suggests, this type of company allows a liability limitation, up to the value of the share capital. It is the most frequently used type of legal entity, by both Romanians and foreigners in Romania.
How much does it cost to register a company in Romania?
Registration fees are very low, i.e. trade registry fee of around 24 EUR, the company’s share capital which can be any amount you want, and the lawyer’s fee, who provides you with legal assistance on corporate matters, drafting incorporation documentation, submitting the company formation file with the trade registry and collecting original documentation on your behalf.
If you are searching for a virtual office in Bucharest, you can use a virtual office for company registration by contacting us here.
After registration, you will need an accountant to collaborate with and also keep in touch with your trusted lawyer to receive client-oriented practical solutions.
Can a foreigner open a company in Romania?
Yes, there is no difference between Romanian citizens and foreigners. Also, if you’re asking yourself how do I get a work permit in Romania? – then the answer depends on your actual situation. There are several ways to get residency and work in Romania and you should seek legal advice to find out the most suitable for you.
How much is income tax in Romania?
Our country has a favorable tax regime, so that you can register a company in Romania and pay 1% corporate tax (if you have at least one employee). In case of no employee, the corporate tax is 3%.
Additionally, as a shareholder, when you’ll get dividends, you will pay tax on dividends of 5%.
If you are considering moving to Romania whether as an investor, as digital nomad or otherwise, feel free to contact us here.
Our Romanian law office offers assistance for both residents and non-residents on opening a business in Romania.