Company Registration in Romania



 Romania is rapidly becoming a preferred destination for business investment in Eastern Europe due to its strategic location, growing economy, and membership in the European Union. The country offers a favorable business climate with competitive costs, a skilled workforce, and access to European markets.

Registering a company in Romania enables entrepreneurs and investors to leverage these advantages while benefiting from supportive government policies and streamlined incorporation procedures.

Types of Business Entities for Company Registration in Romania

Selecting the appropriate business entity is crucial for your company’s success and compliance in Romania. Below are the most common types of companies you can register:

1. Limited Liability Company (Societate cu Răspundere Limitată - SRL)

  • The most popular form of business in Romania.

  • Requires at least one shareholder.

  • Minimum share capital of 200 RON.

  • Shareholders’ liability is limited to their contribution.

2. Joint Stock Company (Societate pe Acțiuni - SA)

  • Suitable for larger businesses and those planning to list shares publicly.

  • Minimum share capital of 90,000 RON.

  • Subject to more stringent regulatory requirements.

3. Sole Proprietorship (Întreprindere Individuală)

  • Owned and operated by a single individual.

  • Simple and quick to set up.

  • Owner has unlimited liability.

4. Partnership (Persoană Fizică Autorizată - PFA)

  • A form of business for individuals with professional activities.

  • Unlimited liability.

5. Branch Office

  • Foreign companies can open a branch in Romania.

  • Not a separate legal entity; parent company is liable.

Eligibility Criteria for Company Registration in Romania

To register a company in Romania, certain eligibility requirements must be met:

 1. Shareholders and Directors

  • At least one shareholder is required.

  • Shareholders and directors can be individuals or legal entities.

  • Foreign nationals and companies are allowed to be shareholders and directors.

  • No Romanian residency is required for directors or shareholders.

 2. Minimum Share Capital

  • Limited Liability Company (SRL): Minimum 200 RON.

  • Joint Stock Company (SA): Minimum 90,000 RON.

  • Other business forms may have different or no minimum capital requirements.

 3. Registered Office Address

  • A physical office address in Romania is required for official communication.

 4. Company Name

  • The name must be unique and comply with Romanian business naming regulations.

Procedure for Company Registration in Romania

Registering a company in Romania involves several key steps to ensure full compliance with local laws:

Step 1: Name Reservation

  • Check the availability and reserve your company name at the Trade Registry.

Step 2: Preparation of Documents

  • Draft the Articles of Association or partnership agreement.

  • Obtain necessary signatures from shareholders and directors.

  • Deposit the minimum share capital into a bank account.

Step 3: Submission to Trade Registry

  • Submit the incorporation application along with required documents such as:

    • Articles of Association

    • Proof of share capital deposit

    • Identification documents of shareholders and directors

    • Proof of registered office address

Step 4: Obtain Company Registration Certificate

  • Upon approval, receive the Certificate of Incorporation from the Trade Registry.

Step 5: Register for Tax Identification Number (CIF)

  • Automatically assigned upon registration, used for all tax-related purposes.

Step 6: VAT Registration 

  • Register for VAT if the company’s turnover exceeds the threshold or engages in intra-EU trade.

Various Taxes Applicable to Registered Companies in Romania

Companies registered in Romania are subject to several taxes essential for compliance and financial planning:

 1. Corporate Income Tax (CIT)

  • Standard rate: 16% on taxable income.

  • Micro-enterprises with revenues below a certain threshold may benefit from a lower tax rate (1% to 3%) based on the number of employees.

 2. Value Added Tax (VAT)

  • Standard VAT rate: 19% on most goods and services.

  • Reduced rates of 9% and 5% apply to certain goods and services.

  • VAT registration is mandatory if turnover exceeds the threshold or the company trades within the EU.

 3. Social Security Contributions

  • Employers must contribute to social security, health insurance, and other mandatory funds for their employees.

 4. Dividend Tax

  • Dividends distributed to shareholders are subject to withholding tax at 5%.

 5. Other Taxes

  • Local taxes, property tax, and excise duties may apply depending on business activities.

Documents Required for Company Registration in Romania

To complete the company registration process in Romania, the following documents are typically required:

 1. Articles of Association

  • The foundational document outlining company structure and operations.

 2. Proof of Share Capital Deposit

  • Bank statement confirming payment of the required share capital.

 3. Identification Documents

  • Copies of passports or IDs of shareholders and directors.

 4. Proof of Registered Office Address

  • Lease agreement or ownership proof of business premises in Romania.

 5. Application Form for Registration

  • Official form submitted to the Romanian Trade Registry.

 6. Declaration of Compliance

  • Statements confirming compliance with Romanian company law.

Benefits of Company Registration in Romania

Registering a company in Romania offers several strategic advantages for businesses and investors:

 1. Access to the European Union Market

  • As an EU member, Romania provides companies with access to a large, integrated market.

 2. Competitive Corporate Tax Rates

  • Attractive corporate income tax and incentives for small and micro-enterprises.

 3. Strategic Geographical Location

  • Romania serves as a gateway between Western Europe and emerging markets in Eastern Europe.

 4. Skilled and Cost-Effective Workforce

  • Availability of qualified professionals at competitive labor costs.

 5. Growing Economy

  • Romania’s economy is expanding, offering opportunities in various sectors.

 6. Simplified Registration Process

  • Streamlined procedures facilitate faster company formation.

Why Choose YKG GLOBAL for Company Registration in Romania?

At YKG GLOBAL, we are committed to making your company registration in Romania smooth, efficient, and hassle-free.

 1. Expertise in Romanian Business Laws

  • Our team has in-depth knowledge of local regulations and procedures.

 2. Fast and Transparent Process

  • We handle all documentation and filings to ensure quick company incorporation.

 3. Comprehensive Support Services

  • Beyond registration, we provide assistance with tax registration, compliance, accounting, and more.

 4. Personalized Consultation

  • Tailored advice to fit your specific business needs and goals.

 5. Trusted International Partner

  • We have helped numerous clients worldwide successfully establish businesses in Romania.

 

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