Why do business in Romania?
Being ranked No. 55 in the World Bank’s Doing Business ranking, among 190 economies in the ease of doing business, Romania ensures a great environment for developing your business relationships and multiplying your income.
As part of European Union since 2007, Romania has been benefiting of large amounts of money being invested in a wide range of areas such as digital, infrastructure, real estate and energy.
How do I set up a Romanian Company?
Just tell us some information about your business idea or pick a price plan that suits your interests best. Afterwards, we will contact you to discuss the last details. Anyway, please keep in mind that we will draft all the necessary documents and submit them with the Trade Register, without the need for your physical presence.
Is Romania a tax paradise?
Not really, but you should consider establishing or relocating your business in Romania as one of the lowest tax treatment countries in European Union.
At the beginning, until you reach a turnover of EUR 1.000.000/year your Company will be considered a micro-company so the only taxes will be:
- 1% of the net income if the company has at least one full time employee paid with the minimum wage
- 3% of the net income if the company doesn’t have any employees
- 5% from the gross amounts distributed as dividends by the company to its shareholder(s).
Who can own a business in Romania?
Almost everybody can own a business with.
Any natural person who is at least 18 years old and/ or any foreign company which can provide its establishment documents.
How much are the operational costs for a Romanian Company?
The costs are quite low, there are no mandatory annual or hidden costs. You should consider just the accountancy fees and the bank’s commissions.
Is your presence required?
For the company establishment procedures your presence is not required. Also the shareholder(s) presence will not be required any time. However, the administrator(s) or the general manager should keep in touch with the authorities once in a while.
It is also a good idea to empower a local natural person to represent the administrator interests.
Is there a public notary involved?
Yes, we will take care of all the necessary documents but you will have to pay a short visit to the nearest public notary office from your country in order to sign a power of attorney.
What documents do you need?
Go see our questionnaire for more details. Make sure you have a copy of your national ID/ Passport.
How long does it take to establish the company?
3 working days since the documents are submitted with the Trade Register Office.
Virtual or physical office?
Virtual office is the best option in case your type of business is conducted mainly online or without the need of a working space.
Physical office will ensure a proper working space inside a corporate building which can be modeled according to any particular needs of your business type such as meeting halls, secretary services and private office spaces.
Ultimate Beneficiary Owner
UBO declaration regulated by the Law no. 129/2019 aims to create a national database containing the identification data for the natural persons who own or control a business in Romania. Is considered UBO of a company all natural persons holding at least 25% of the shares plus one share or by participating to the entity’s share capital by more than 25%. If such a person doesnt exist or cannot be identified, the UBO of the company is considered the natural person or persons who ensure the leadership of the entity.
This declaration must be submitted every time changes interfere in the company’s ownership/ management.
EU VAT Number - is the intra-community VAT number applicable to Romanian companies buying products and services within the EU countries. If your company is subject to this kind of trading activities, the registration for EU VAT number is mandatory, if the company did not obtain the Local VAT number.
Local VAT Number - is the national VAT number applicable to all the companies which intend to issue invoices with VAT for the provided services/products and to benefit from VAT deduction tax provisions.
The standard VAT rate is set at 19%.
For varied product deliveries related to agriculture and local utility services the VAT rate is set at 9%.
For school supplies, entertainment events, accommodations, restaurants and catering, transportation, etc the VAT rate is set at 5%.
EORI code is the unique identification number for the European Union customs territory.
The unique EORI number must be used in all transactions and customs activities in the territory of the European Union.
All the legal entities involved in import, export, transit, warehousing, representation, as well as operations prior to the arrival/ departure of goods entering/ leaving the territory of the European Union are required to hold an EORI code.
Accounting service needed?
Every Romanian company must keep its books and it’s recommended to use the services of an accountant for keeping up the relationship with the tax authority. If requested, we can provide such services.