Company Registartion In Romania Establishing and maintaining a business at an international level is not a cakewalk. Due to red tape and complex legislative procedures, it requires a lot of time and effort. We at Enterslice provide all the support for incorporating a company in Romania right from the start of your business and throughout its end. We have years of experience in company incorporation at the global level. Our Foreign Company Incorporation desk comprises a robust panel of experts who provide a wide range of services related to company incorporation, like tailored incorporation, free consultancy, and business research. In this service page, we shall navigate you through the intricacies of registering a company in Romania, some challenges you may encounter, and how we at Enterslice shall help you provide a hassle-free experience in writing your subsidiary company in Romania. Overview of Company Registration in Romania Romania is a highly industrialised nation with a mixed economy model and a highly skilled labour force. Romania's high Human Development Index offers vast potential opportunities. Romania achieved 10th position in terms of total nominal GDP. Therefore, there are many reasons that you must consider to incorporate a company in Romania. If you are a foreigner who wants to establish a company in Romania, then you must look for foreign direct investments. The Romanian government 2009 established an FDI screening framework to create a wide range of business opportunities for people in Romania. Along with this, the strategic location of Romania and its proximity to the black sea proves to be an added advantage for people doing business here. All these reasons make Romania one of the most preferred destinations for company incorporation. Need of Company Formation in Romania Strategic geographic location Romania acts as a gateway between the Middle East and other European countries. Additionally, access to the Black Sea leads to easy transportation for export-import purposes. Seamless Incorporation and Operation The manner of Romania Company registration is simple. It is devoid of any complex paperwork. Attractive taxation system Romania's corporate income tax slab is on the lower end compared to other countries. Benefits of Company Incorporation in Romania Taxation Romania has the lowest corporate tax of 16% in all the European countries. The country also has signed multiple double-taxation agreements. Also, the Romanian fiscal code lessens the corporate tax for businesses dealing in equipment that imparts technological benefits. Additionally, the micro-enterprises in Romania have to pay a tax of 1% for enterprises with at least one employee and 3% for enterprises without employees. Flexible Ownership It is possible to establish a company in Romania as a sole shareholder. After July 2020, entrepreneurs can develop multiple companies in Romania as sole shareholders. Also, entrepreneurs are eligible to receive dividends every three months. Banking Sector Romania's robust banking sector makes it the preferred destination for company incorporation and business ventures. Therefore, getting a loan sanctioned in your company’s name in Romania is more accessible to expanding business. EU Membership Since Romania is a member of the EU, it can trade freely with other EU countries. The company registered in Romania can sell its services and products to other EU members, resulting in a larger target market. Types of Companies in Romania Before registering a company in Romania, it's better to know the different company structures- Romanian Limited Liability Company (societate cu raspundere limitata) There should be a capital of 200 RON and at least one shareholder. There can be a maximum of 50 members. It can have one or more directors from a foreign country. Shareholders have a limited liability, i.e. they are liable for the company’s debt in proportion to their capital invested. Romanian joint Stock Company (societate pe actiuni) This kind of company is most suited for investment projects. At least two owners register it. It must have a minimum capital of 90K RON. The General Assembly of Stockholders takes all the critical decisions. Romanian collective name Company It must have at least two shareholders. No minimum share capital is required to register a collective name company. Romanian Sleeping Partnership company It must have at least two shareholders liable for the company’s debts. Company decisions are made based on the votes of the shareholders. Romanian partnership limited by shares In this company, the shareholders have different types of liability. The share capital of the company must be 90K RON. Our Services Registering a Company in Romania has been made easy by the Legal experts of Enterslice. We have experience in successfully incorporating 1000+ successful companies in Romania- Accounting Services Our accounting services are based on accuracy and precision. We provide our clients with many high-class accounting services tailored to their business needs. Business Structure evaluation Our highly qualified experts shall help you select the appropriate business models for your business needs. Shelf Company Services Some investors are not interested in establishing a new company in Romania but in buying an already incorporated company. This requires an ownership transfer, which is done in a day or two. We at Enterslice can help you in the transfer of ownership services. Our consultants shall clear all your doubts in this regard. Company name Registration We shall help you choose a unique company name and then allow you to register that company name. Company Formation We have successfully incorporated 1000+ companies and branches in Romania. Global investors prefer our company due to our highly efficient services and consultancy. Legal Consultation Our robust panel of lawyers assists our clients in registering a company in Romania. Legal Representation We represent our clients before any legal authority in Romania if any case arises. Virtual Office Services We provide our clients with virtual office services in Romania. In the case of a virtual office, you pay less than that for a traditional office. VAT Registration After the successful incorporation of the company in Romania, we provide our clients with VAT Registration services so they can get their VAT numbers. Corporate and secretarial support services We provide our clients with the maintenance of their companies' statutory records, accounting and tax compliance services, liquidation services, tax consultancy services, and payroll services. Free consultancy session We briefly analyse your company's needs through our expert call. License and Permits Our team will ensure that your proposed company acquires all the licenses and permits needed for business. Preparing checklist We will help you prepare a checklist of necessary papers that you will need to register your company in Romania. Risk Assessment We shall provide our clients with monthly and quarterly reports to assess the risk of the proposed company. Tax Benefits The corporate tax rate in Romania is 16%, which applies to Romanian and foreign companies with branches in Romania. Some conditions have to be met by the company in Romania to opt for micro-company revenue tax. The company's revenue must not exceed the threshold of EUR 500K. The company should not be under liquidation or dissolution. 80% of the company's revenues must be earned from activities other than consulting and management. Such a company must have at least one employee. The company's shareholders must have voting rights that are more significant than 25% in a maximum of three other micro-companies in Romania. Also, the share capital owners must not have any connection with state administrative units. Compliances for starting a business in Romania Company Name Registering the company name before registering a company in Romania is essential. The name must be registered at the Local Trade Registry. We at Enterslice shall help you find a unique name for your company incorporation in Romania. Company Address It is a mandatory requirement for all companies incorporated in Romania to have a local registered company address. The primary requirement of this address is to ensure that a reliable channel is created for sending all official correspondence and legal necessary papers to the company. Key Personnel & Work Permit Registering a company in Romania requires at least one director and shareholder. Citizens belonging to EU countries don’t need a work permit to incorporate a company in Romania. However, citizens of other countries need a work permit to open up their businesses in Romania. Company Registration Process in Romania Company Type Selection First, you have to select a suitable business structure for you. You must choose a business structure based on your business requirements. For local entrepreneurs, limited liability is the most appropriate business structure. Company Name Registration Please register a unique company name in the local trade registry. You must make sure that your company name aligns with your business idea. Company Incorporation necessary papers This stage involves submitting the necessary papers to the Trade Register office. These necessary papers include Articles of association and affidavits with the specimen signatures of shareholders and directors. Company Registration Approve all your necessary papers from the Trade Register's office. After that, the trade register shall establish the company as a micro-enterprise. This process usually takes up to 10 working days. Registration by Foreigners for Work Permit Foreigners can register a company in Romania by submitting a relevant work permit. The work permits include permits for seasonal workers, athletes, permanent employees, nominal workers, and cross-border workers. The following are the eligibility criteria for applying for a work permit in Romania- Foreign investors seeking registration should not have any criminal antecedents Foreign investors seeking registration must meet all the legal requirements Foreign investors seeking registration must prove that they have a sound mind and body through a medical certificate Foreign investors seeking registration must fall into the category of foreign citizens Challenges while Registering a Company Our Foreign Business Incorporation desk at Enterslice shall help you resolve the challenges you may encounter on your journey to register your dream company in Romania and create a hassle-free registration experience. There are some hindrances that you may get while registering your company in Romania, which include choosing the correct form of business structure for your company, choosing an appropriate business name, adhering to Regulatory compliances, Tax Regulations Compliance, Post Registration Compliances, Maintaining necessary papers/checklist, getting work permits and visas. Government Assistance for setting up the Company Grants The government of Romania provides investors with grants to incorporate a company in Romania. Startup Nation The Startup Nation Romania is a national program of Romania that supports startups by providing funds worth 200K Lei. This program is targeted at elderly entrepreneurs. There is a similar program for all kinds of entrepreneurs named Romania Startup Plus. Other grants Some other government assistance programs include Startmeup Romania, a non-profit program to support businesses, and Vitas Romania, which targets the start-up market. Bee Credit finances small enterprises, and ROMCOM provides short-term loans to start-ups as working capital.