Company formation in Romania

Romania, located in Southeastern Europe, is an attractive destination for company registration due to its strategic position, being a gateway between Western Europe and the Balkans.

The country offers a favorable business environment with a relatively low corporate tax rate of 16%, which is one of the lowest in the European Union (EU). Additionally, Romania boasts a highly skilled and multilingual workforce, particularly in the IT and engineering sectors, making it an appealing location for tech companies and startups.

Romania is a member of the EU, ensuring access to a large single market and benefiting from various EU trade agreements. The country’s infrastructure has seen significant improvements, with ongoing investments in transport, energy, and digital networks enhancing connectivity and business operations. Bucharest, the capital city, serves as the main economic hub, though other cities like Cluj-Napoca, Timișoara, and Iași are emerging as significant centers for business and innovation. The banking system in Romania is robust, providing a range of services to support business activities, from local and international transactions to investment services.

Romania

Legal Opinion about Romania as a Jurisdiction for Company Formation

Ganna Voievodina

Manimama, CEO

“Romania’s strategic location, business-friendly environment, skilled workforce, and integration into the European market make it a compelling choice for company registration, offering numerous opportunities for growth and expansion. Contact us and we will help you to quickly complete the incorporation of your company in Romania”.

Our Packages

Our comprehensive packages simplify the process of setting up the perfect legal entity for your business whether you are a small start-up, a non-profit company, or an international company. Let us guide you through every step, ensuring your business begins on a solid foundation.

Company Formation

€2,500

  • Company formation in Romania
  • Opening a bank account
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Additional services

€1,000

  • Registered address for 1 year
  • VAT registration
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Documents

€600

  • Apostille corporate documents (Certificate of incorporation and Articles of Association)
  • Document delivery
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Key Numbers about Romania as a Jurisdiction for Company Formation

at least 1

director for a company

up to 2 weeks

timeline for a company registration

no

minimum share capital

16%

corporate income tax (CIT) rate

10%

personal income tax (PIT) rate

19%

value added tax (VAT) rate

Set up Your Company in Romania in Several Steps

Step 1. Initial setup

  • Initiating a preliminary project assessment
  • Preparation and filing of the package of documents

Step 2. Company registration

  • Select a unique company name and register it with the Romanian Trade Register
  • Prepare the required documents and file them with the Trade Register (company registration request may be submitted with qualified electronic signature via the Trade Register portal or at any of the Trade Register offices)
  • Get all the official documents prepared and get them approved by the Trade Registry
  • Register with the Social Security Authorities and Labour Authorities (in case it has employees)
  • Obtain a business license or permits (if applicable)

Requirements for Company Formation in Romania

Before deciding to set up a new company in Romania, read the information below to understand the characteristics of a Limited Liability Company / Societate cu Raspundere Limitata (SRL):

Shareholders: the SRL company can be founded by 1 shareholder (up to 50), who is a natural person or a legal entity. There is an opportunity to create a SRL with a single shareholder.

Director: the company is required to have at least 1 director. The director can be a resident or non-resident of the country.

Company Secretary: no requirement.

Minimum Share Capital: there is no minimum authorized share capital for a SRL.

Legal Address: the registered office of the company must be in Romania. According to the laws of the country, it is considered valid once the lease agreement has been concluded.

Liability: the liability of each shareholder is limited to the value of their own share in the declared share capital.

Accounting: company is required to prepare and submit financial statements.

Taxes in Romania

Corporate income tax (CIT)

  • The standard rate is 16%.
  • Companies whose turnover for the previous year exceeded €50,000,000 and which in the reporting year set their CIT below the minimum turnover tax are liable to pay CIT at the level of the minimum turnover tax - 1%.
  • Romanian taxpayers engaged in activities such as gambling and nightclubs are taxed at a rate of 5% of income derived from such activities or 16% of taxable income, whichever rate is higher.
Personal income tax (PIT)

  • A flat PIT rate of 10%.
  • Exemption from the taxation:
    • employees with disabilities
    • IT specialists (up to Lei 10,000 (approx. €2,009) gross per month)
    • employees who work in the construction, agriculture and the food industry (up to Lei 10,000 (approx. €2,009) gross per month)
    • employees who work in R&D or technological development field
    Value-added tax (VAT)

    • The standard rate is 19%.
    • There are reduced rates of 9% (water, food & beverage industry, medical treatments and prosthesis, hotel accommodation, restaurant and catering services, provision of social housing under certain conditions, entrance fees to sports events, castles, museums and cinemas) and 5% (school books, newspapers, magazines).
    • The mandatory VAT registration must be performed when the annual turnover of Lei 300,000 (approx. €60,277) is exceeded.

    Double taxation avoidance agreements in Romania: Albania, Armenia, Algeria, Australia, Azerbaijan, Austria, Belgium, Belarus, Bangladesh, Bulgaria, Bosnia and Herzegovina, Canada, China, Cyprus, Croatia, Czech Republic, Denmark, Ecuador, Egypt, Ethiopia Estonia, Finland, France, Germany, Georgia, Greece, Hungary, Iceland, India, Indonesia, Ireland, Iran, Israel, Italy, Japan, Jordan, Hong Kong, South Korea, Kazakhstan, North Korea, Kuwait, Latvia, Lebanon, Luxembourg, Lithuania, Macedonia, Malta, Malaysia, Mexico, Moldova, Morocco, Namibia, Nigeria, the Netherlands, Norway, Philippines, Pakistan, Poland, Portugal, Qatar, Russia, Singapore San Marino, Saudi Arabia, Slovakia, Serbia, South Africa, Slovenia, Spain, Sudan, Sri Lanka, Switzerland, Sweden, Syria, Tajikistan, Tunisia, Thailand, Turkey, Turkmenistan, UK, the UAE, United Kingdom, the USA, Uzbekistan, Uruguay, Vietnam and Zambia.

    Start Your Company Formation Process with Manimama

    There are numerous reasons why Manimama is the leading company formation agent in Romania:

    Expertise in Romanian Regulations

    • 1. Manimama has an in-depth understanding of Romania's legal and regulatory framework.
    • 2. Our team ensures all legal requirements are meticulously met for a seamless company formation process.

    Local and International Experience

    • 1. With extensive experience in both local and international markets, Manimama can cater to a diverse range of business needs.
    • 2. Our expertise spans various industries, providing customized solutions for each client.

    Efficient and Timely Service

    • 1. We pride ourselves on our swift turnaround times, ensuring your company is registered promptly.
    • 2. Our efficient processes minimize delays and get your business up and running quickly.

    Client-Centric Approach

    • 1. Manimama prioritizes customer satisfaction by offering personalized support and guidance.
    • 2. Our dedicated team is always available to address any concerns and provide expert advice.

    Robust Network of Local Partners

    • 1. We have established strong relationships with local authorities, banks, and service providers.
    • 2. This network ensures that your business receives the best possible support and resources.

    Ongoing Compliance Support

    • 1. We provide continuous support to ensure your business remains compliant with Romanian laws.
    • 2. Our team keeps you updated on any regulatory changes that may impact your company.

    Frequently Asked Questions

    • How long does it take to register a company in Romania?
      The registration process typically takes 2 weeks if all documents are in order.
    • Is a registered office required for company registration in Romania?
      Yes, a registered office address in Romania is required for the registration process.
    • How can I reserve a company name in Romania?
      You can reserve a company name through the National Trade Register Office (ONRC) online or in person.
    • Can a foreigner own 100% of a Romanian company?
      Yes, foreigners can own 100% of a Romanian company.
    • What is the minimum share capital required for an SRL?
      There is no minimum share capital for a Limited Liability Company (SRL).
    • Are there any residency requirements for directors or shareholders?
      There are no residency requirements for directors or shareholders of a Romanian company.
    • What is the corporate tax rate in Romania?
      The corporate tax rate in Romania is 16%, one of the lowest in the European Union.
    • What are the ongoing compliance requirements for companies in Romania?
      Companies must file annual financial statements, maintain proper accounting records, and comply with tax and labor regulations.
    • What is the VAT rate in Romania?
      The standard VAT rate is 19%, with reduced rates of 9% and 5% for certain goods and services.
    • What is the process for obtaining a business license in Romania?
      The need for a business license depends on the industry; specific licenses are obtained from relevant authorities after company registration.
    • What are the benefits of registering a company in Romania?
      Benefits include access to the EU market, a skilled workforce, low corporate tax rates, and various government incentives.

    Client Feedbacks

    “I liked the fact that Manimama OU always kept me informed, explained everything in plain language and acted as quickly as possible”.

    “The Manimama team's expertise, professionalism and dedication to our case resulted in a successful outcome beyond our expectations”.

    "I thank Manimama OU for their outstanding support and guidance during a challenging legal issue”.

    Manimama as the Best Solution for Your Company Formation in Romania

    Choosing the right partner for company registration is crucial for a smooth and successful business launch. At Manimama, our legal experts specialize in navigating complex legal landscapes, providing holistic solutions tailored to your needs.

    Comprehensive Legal Expertise
    Since our inception, Manimama has been at the forefront of tackling intricate legal challenges with innovative and thorough solutions. Our team of dedicated lawyers evolves alongside our firm, reflecting our people-centric philosophy and commitment to excellence.

    Results-Driven Approach
    Manimama is a results-oriented law firm that offers an extensive array of legal services to both individuals and corporate entities. We pride ourselves on maintaining the highest standards of integrity and a "client-first" approach, leveraging our extensive skills and knowledge to achieve the best outcomes for our clients.

    Global Presence and Local Expertise
    Our journey began with the establishment of Manimama OU's first European office in Estonia, a country renowned for its progressive regulation of virtual currencies, international investments, fintech, and gambling sectors. Estonia’s favorable tax system and digital-friendly investment climate provided a robust foundation for our expansion.

    Community Commitment
    At Manimama, we believe in giving back to society and making a positive impact. Our commitment to social responsibility is integral to our operations, ensuring that we contribute to making the world a better place while helping our clients achieve their business goals.

    By choosing our company formation service in Romania, you are partnering with a law firm that values integrity, expertise, and client satisfaction. Let us help you set up your company in Romania and pave the way for your business success.

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