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Company Formation Romania

Company Incorporation in Romania - Transport Licenses, Employment & Taxes

Romania has pulled off a minor economic miracle in recent years, sweeping aside the remnants of socialist planning and instead transforming itself into a model of free-market reform. Now a full member of the EU, authorities have promised to maintain the low level of VAT and tax rates which is why Romania is one of Europe’s most promising locations for investors wishing to set up a new company.

How has EU membership changed Romania’s business climate?

In order to qualify for EU accession, Romania has had to speed up its economic reform process along the following lines:

  • liberalization of foreign trade
  • development of the private sector
  • privatization of state-owned companies
  • modernization of the banking and tax systems

What about corporation tax in Romania?

The standard rate of corporation tax has been reduced. An exception applies to nightclubs and gambling operations where it is at least 5% of gross revenue. However, corporation tax is much lower for micro-companies, defined as businesses with annual turnover of less than €100,000 and with fewer than ten employees.

What are the most common types of company in Romania?

The two most popular forms of business entity in Romania are:

  • Limited liability company (SRL)
  • Joint stock company (SA)

What are the requirements for a joint stock (SA) company?

  • Minimum Share capital LEI 90.000 (around €20.200)
  • At least 2 shareholders
  • At least 1 Director
  • Appointment of Censors to overview the administration of the company
  • You will need to sign a declaration in front of a UK Notary.
  • No visit required for bank (Power of Attorney is sufficient)
  • A Registered Office is required
  • VAT Registration is done in 2 steps: 1. VAT Registration for non-EU region (done upon incorporation of the company); 2. Intra-Community VAT (done after incorporation of the company) Documents needed: Power of Attorney, Copy of Birth Certificate of each shareholder and administrator, Criminal Record Certificate
  • To obtain a VAT number in Romania, you will need to have the following: the company should have its own main or secondary headquarters; none of the directors and/or shareholders of the Romanian company can have criminal records; successful result of a physical verification of the company’s main or secondary headquarters on whether the company’s activity can take place at those premises; special evaluation based on the information provided by the Romanian company

What are the requirements for a limited liability (SRL) company?

  • Share capital LEI200 (around €45)
  • You will need to sign a declaration in front of a Public Notary in your country of residence
  • No visit required for bank (Power of Attorney is sufficient)
  • No restriction regarding the shareholders’ nationality / residence.
  • The company registration number is the same as the tax and VAT number
  • To obtain a VAT number in Romania, you will need to have the following: the company should have its own main or secondary headquarters; none of the directors and/or shareholders of the Romanian company can have criminal records; successful result of a physical verification of the company's main or secondary headquarters on whether the company's activity can take place at those premises; special evaluation based on the information provided by the Romanian company
  • An accountant must be appointed to handle monthly accounting and compliance

What other types of company are there in Romania?

  • The other main forms of business entity are:
  • partnership
  • branch
  • representative office

What is the regulatory environment like?

Romania has been ranked first in Eastern Europe and second globally in a World Bank report on regulatory reform, praising Romania for making it simpler, faster and cheaper to set up a new business and start trading. As well as reducing corporation tax to a low flat rate the government has eased regulatory requirements across the board, ranging from building permits to customs procedures and labour laws.

How easy is it to recruit staff in Romania?

With a large workforce and low average salaries, there should be no difficulty for foreign companies when it comes to recruitment. The challenge, as always, is to ensure that applicants are of the highest quality and that the recruitment process is efficient. This is just one of the aspects we can help you with, along with expert advice on Romania’s employment laws.

Are there financial incentives available?

Romania offers a wide range of financial incentives to foreign investors. These include tax breaks, cheap loans and free access to public utilities, with particular benefits for investors seeking to create employment in disadvantaged areas.

What about banking facilities?

Almost all of Romania’s commercial banks have been privatized, and foreign banks now play a major role in the country’s financial sector. This has helped to improve the breadth, quality and efficiency of financial services available to the international business community, and investors wishing to start a business in Romania will find a comprehensive array of services available to them. We can easily guide you through the process of opening a bank account in Romania.

For more information about opening a bank account, along with any other details about company incorporation in Romania including transport licenses, employment & taxes, please contact us on 0033 (0)1 53 57 49 10 or email us from our contact pageand we’ll be happy to help.

Euro Start Entreprises SARL – Limited Liability Company (“SARL”) with capital of 8,000 Euros incorporated in Paris, France under the registration number 500 820 410.
17 Avenue George V, 75008 Paris, France
Tel : (France) 00 33 (0) 1 53 57 49 10
Tel: (UK) 0044 (0) 203 445 0916
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