Advantages of Setting Up a Company in Romania

With taxes ranging from 1% to 16%, a differentiated VAT depending on the type and field of activity, a simplified process for setting up a limited liability company in Romania, as well as the possibility of accessing qualified labor, among others, foreign investors put Romania on the map of business hubs in Europe. In this context, they benefit from a simplified company registration process and a favorable tax regime, beneficial to the development of a business.

What types of companies can be established in Romania?

The most popular form of legal organization for opening a company in Romania is the SRL (LLC).

If a person has never owned a company before or was not a shareholder in a company from Romania or from a country of the European Economic Area, there is the possibility to opt for SRL-D. Through the government program to stimulate and develop business starters, one can have access to several facilities, including zero costs for setting up your company.

A more complex form of organization that involves at least two associates is the SA, that is, the joint-stock company. It is suitable for larger businesses and requires the deposit of a larger share capital than in the case of an LLC.

Depending on the particularities of the activity, one can also opt for cooperative company, freelancer/ authorized natural person and family enterprise.

What are the main advantages of setting up a company in Romania?

There are several advantages of setting up a company in Romania, including the following ones:

• Favorable business environment: Romania offers a conducive environment for starting new companies with a growing economy and entrepreneurial people.

• Low costs: The costs of setting up and running a business are lower in Romania compared to other EU countries.

• Access to European markets: Romania is a member of the European Union, which provides access to markets and resources in Europe.

• Skilled labor force: Romania has a well-skilled and trained workforce that can support business growth.

• Tax incentives: The government offers a number of tax incentives to encourage the establishment of new businesses and the development of existing ones (deduction of investment expenses, profit tax reductions, VAT exemption, tax exemptions for new employees, deduction of expenses for research and development).

• Investment opportunities: Romania offers significant investment opportunities in areas such as information technology, green energy, and the automobile industry.

• Strategic location: Romania is strategically located at the crossroads of Europe, Asia and the Middle East, providing easy access to multiple markets.

• Supportive legal framework: Romania has a supportive legal framework that provides a clear and predictable regulatory environment for businesses.

• Cultural diversity: Romania is a culturally diverse country, with a rich history and a vibrant cultural heritage that can offer new business owners a unique and enriching experience.

If you want to establish a company in Romania, a lawyer specialized in commercial law can streamline the entire process and help you save time and resources. In order to do this, you can schedule a consulting session by clicking here.