Setting up a new business is usually a time-consuming process. Hence, we jotted down a step-by-step guide on how to register your company in Romania;
Before jumping into steps for the business set up in Romania. First, we will go through benefits a Romanian government offers to business:
- 1% revenue tax up on 1 million euros;
- 5% dividend tax lowest in EU;
- The lowest company set up cost in the EU;
- 16% income tax;
- No tax on R&D.
Step 1: Company Name
The first and the most crucial step in the registration process is setting a name for your business.
A name represents a business and helps in future growth and branding. For registering your company in Romania you need to submit a name in the trade register. In case of rejection, it is ingenious to have 3 to 4 backup names.
Step 2: Company structure
After filing for name availability, the next step is to decide the type of organization a company needs to register itself. The most common form of business in Romania is :
- Limited liability companies (SRL)
- Joint-stock companies (SA)
- Limited partnerships (SCS)
- Sole entrepreneurship
- General partnership (SNC)
- Company limited by share (SCA)
- Branch
Companies can be founded by natural or legal entities and must be registered in the Romanian Trade Register.
Certain activities need prior authorization (e.g. credit institutions, insurance brokers, companies that produce, sell firearms and ammunition, pension entities). Certain activities need to be authorized after the registration of the company (e.g. work agent, transportation license).
Step 3:Incorporation file
The next step is to register a legitimate business in Romania, for that, an incorporation file must be submitted to the trade registry. It can be submitted in person or online.
The file contains the extensive document for registration purposes.
Following are the document that needs to be submitted:
- articles of incorporation;
- certificates of incorporation of shareholders;
- articles of incorporation of shareholders;
- excerpts issued by the Trade Register where the shareholders are incorporated;
- a creditworthiness letter for shareholders;
- passport or ID of the future Director of the Romanian company;
- lease agreement for headquarters and landlord property documents;
- application forms.
This is a comprehensive list, for more detailed documents you can visit this article
The incorporation request proceeds in 3 working days and it can be delayed.
Step 4: Registration of employment contract
Every employer or business owner must submit internal general register records of all of his employees to the territorial labor inspectorate.
The employer must do this when the employee starts work at the latest. The registration of the employees’ labor contracts can be done online or in person. This is one of the essential steps during or after corporate registration.
Step 5: Opening a bank account
For a Romanian company, it is mandatory to have a bank account. Opening a bank account can be difficult for a foreigner who wants to run a business in Romania. There is only one authentic company that provides company formation services with full transparency.
CompanyRomania has industry experts, tax advisors, and law specialists, who make the registration process easy and clear. They provide guidance on the business formation and take care of all the procedures required for business setup in Romania.
The company is based in Romania; hence you do not need to be there for registration. They will take care of all the legal proceedings and work on your behalf.
Their exclusive deals include:
- Company set-up
- Virtual office & address
- Tax certificates
- Vat registration
- Bank accounts
- Financial and legal services
- Car registration in Romania
- Business licenses in Romania
However, if you look for a cheap alternative you may use an affordable semi automized registration service available under the web address romaniancompany.com.
There are many other local incorporation service providers but we advise caution as foreigners can be easily misled as for the scope, quality and price of the service.
