What is the procedure for opening a company in Romania?

 As an investor who wants to open a company in Romania, at first you should know the process of setting up a new enterprise and the steps you need to follow.

There are 6 steps that are mandatory to follow:

• Get your reservation of company name – form found at Trade Registry, you need to fill in 3 names in order of your preferences and the process takes about an hour. The issued name reservation certificate is valid for 3 months.

• After the name availability certificate is issued, the constitutive act is written, the authorized person of the company must file the documents at a bank where the social capital will be deposited (a minimum of 200 RON).

• Register the company at the Trade Registry – the process takes about 3 days and it is free of charge, you only need to pay the taxes for the Official Monitor publishing. Here you must present your articles of incorporation, constitutive act, social capital deposit proof from the bank and an application form which you can find there.

• Buying the unique registry for controls – provided by the law, it is mandatory to have a unique registry for controls from ANAF in 30 days from registering the company to Trade Registry.

• Register for VAT purposes – if you want, this is not mandatory for a new company. There are no costs, and this is also done at ANAF.

• Register employees’ contracts – if the case, this must be done online with the Territorial Labor Inspectorate (IML). The employer is obliged to keep track of all employees’ records internally, electronically and transmit them to IML.

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5 reasons why you should consider doing business in Romania. Primary tabs View(active tab) Edit

 When looking for up-and-coming European Union (EU) countries that have started to catch the eye of investors over the last few years, you should take a close look at Romania. In recent years, the country has become a magnet for those attracted by the growing startup ecosystem, especially within large cities like Bucharest and Cluj-Napoca.

Below are 5 reasons why you should consider doing business in Romania.

Low taxes

The standard corporate income tax rate of 16% is one of the lowest in Europe, well below the EU27 average of 20.71%. In addition, Romania has singed various double taxation agreements through which protect companies and their profits from double taxation. This means that taxes will be paid only once, in the country where the profits are recorded.

At the same time, the Romania Fiscal Code includes a 16% corporate tax relief for profit reinvested in new technological equipment, as well as a personal income tax exemption for IT employees or those who carry out research & development and innovation projects.

Another fiscal incentive in Romania is related to the turnover tax rates used for micro-enterprises. A company (Romanian legal entity) is considered a micro-enterprise if its maximum turnover is up to EUR  1 million at the end of the previous year. According to the current rules, the turnover tax rates used for micro-enterprises are just:

• 1% for micro-enterprises with one or more employees
• 3% for micro-enterprises with no employees

In other words, if you own a start-up or a small to medium company, you should definitely come to Romania and benefit from one of the lowest taxation systems in Europe.

Budget-friendly country

Another advantage for doing business in Romania resides in its potential of highly skilled workforce at competitive prices (third lowest minimum wage in EU). This means that a company incorporated here will benefit from low-cost business operations.

In addition, companies that want to start or bring their business in countries like Romania have much to gain from its economic status. Reduced prices for office rents, salaries and accountant expenses combined with the low corporate taxes, and an important number of double taxation avoidance treaties, make Romania a perfect destination for starting or moving a business from abroad.

Affordable, high-quality professionals

Despite the reduced cost of workforce, Romania has a well-educated workforce with good knowledge of foreign languages. Around 80% of the schools in Romania teach English as a second language, making it the most studied foreign language in the country. Many Romanians also know German, French, Italian, Spanish or Hungarian.