Embarking on a business venture in Romania offers promising opportunities, thanks to the country’s dynamic market and supportive startup ecosystem. Whether you’re a local entrepreneur or a foreign investor, understanding the step-by-step process of setting up a business is of the utmost importance.
Remarkably, the entire process can be completed digitally and remotely, without the need for physical presence in Romania. The only document required from foreign investors is a copy of their passport. This guide aims to navigate you through the essential phases of legally establishing your business in Romania.
Step 1: Choose Your Business Structure
The first step in starting your business in Romania is to decide on the type of business structure. Common forms include the limited liability company (SRL), joint-stock company (SA), and sole proprietorship (PFA). Each has its advantages and legal implications, with the SRL being the most popular due to its flexibility and minimal requirements.
Step 2: Register Your Business Name
Before you can officially register your business, you need to ensure that your chosen name is unique and available. This can be checked through the National Office of the Trade Register (ONRC). Once confirmed, the name can be reserved to prevent others from taking it while you complete the rest of your registration process.
Step 3: Prepare and Submit the Required Documents
To register your business, you will need to prepare a set of legal documents, including the Articles of Association, identification documents of the shareholders and administrators, proof of share capital deposit, and the lease or ownership document for your business’s registered office. These documents need to be submitted to the Trade Register in your local jurisdiction.
In recent years, the ONRC has significantly modernized its operations, launching a new online portal that supports the electronic submission of documents. This digitalization effort aims to streamline the registration process, making it quicker and more user-friendly. Entrepreneurs can now benefit from features such as electronic signatures and digital certificates, enhancing the efficiency and security of the business registration process. The entire process of incorporating a company typically takes between 5 to 10 working days once all documents are submitted.
Step 4: Register for Taxation and Social Contributions
Once your business is registered, you’ll need to register with the Romanian tax authorities for VAT, if applicable, and set up payroll contributions for social security and health insurance for any employees. This step is vital for ensuring compliance with Romanian tax laws and regulations.
Importantly, this task must be handled by an authorized accountant who will require a notarized power of attorney to represent your business. The notarization can be performed by any notary globally, and the document can be couriered to the accountant’s office.
Step 5: Open a Corporate Bank Account
Opening a corporate bank account is essential to handle all business-related transactions. In Romania, you have two main options: a traditional local bank or a modern online solution. LegalHunt has partnerships with innovative financial platforms such as Revolut, providing flexible banking solutions that are especially beneficial for businesses that operate internationally or prefer agile financial management.
Step 6: Obtain Necessary Licenses and Permits
Depending on the nature of your business, certain licenses and permits may be required to operate legally in Romania. These can range from health and safety approvals to environmental permits and sector-specific licenses. It’s essential to research and apply for these as early as possible to avoid delays.
Conclusion
Starting a business in Romania is a structured and straightforward process that requires careful planning and attention to legal details. By following these steps, you can ensure that your business not only complies with Romanian laws but is also positioned for success in this evolving market. The fully digital and remote registration process makes it more accessible than ever for investors around the world to tap into Romania’s thriving business environment.
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