Romania is a European country with a dynamically developing new economy, loyal taxation and fair business legislation for foreigners. The official currency of the country is RON (LEI). The state is a member of the EU from 2007. The minimum gross salary wage in 2019 was 2080 RON and the inflation rate – 3,5%.
Among the advantages of the opening companies in Romania are:
- the high economic growth (above the average among the EU members);
- low public debt ( below the average among the EU members);
- elimination of double taxation with > 70 states.
- One of the largest spheres of the republic economy is oil exploration. A significant proportion of the production is occupied by “Rompetrol”.
- The leading branch of agriculture is crop production and grain farming.
- Being the owner of an outlet to the Black Sea, it has developed tourism.
- After the legalization of the gambling market in the Republic in 2015, the gambling business is developed strongly there.
Business in Romania is governed by part 4 “Economy and public finance” of the Constitution. The major financial regulator in the country is the Romanian National Securities Commission (CNVMR).
The legislation offers 5 organizational forms, where the most beneficial for non-resident founders are the first two:
- Limited Liability Company (SRL);
- Joint Stock company (SA);
- General Partnership (SNC);
- Limited Partnership (SCS);
- limited Partnership by shares (SCA).
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Both SRL and SA must have:
- the registered address;
- the registered administrator legal or natural person;
- an activity object, formed with the main activity.
Both, a citizen of the republic and its non-resident, pay the same taxes for the same amount in Romania.
- Corporate income tax – 16%
- Entrepreneurs pay only 3% on their profit in the a case of:
The company operates in one of the following areas:
– Production of goods;
– Execution of works/provision of services;
– They are holders of a “small business”:
– Annual income < 100.000 EUR;
– Staff < 9 people;
– Small business, religious organizations, educational institutions and some others – 0%;
- VAT – 19% (registration of this tax isn’t required if the annual turnover < 88,500 EUR)
- for sellers of building materials / providing entertainment services (clubs, museums, hotels, cinemas, sport events / selling newspapers, books, magazines) – 5%;
- for sellers of essentials (not alcoholic drinks, food, medicines, prostheses) – 9%;
Tax benefits are not eligible for insurance, stock or banking organizations.
- Real estate property tax – 0.25-0.5%
- Tax on dividends – 5%
- Local taxes – 4000 EUR
- Gambling business tax – 2%
The Prifinance specialists quickly and efficiently will consult you about details of calculating and paying all of the necessary taxes.
Documents, required for registration of a company to a foreigner:
- Memorandum of association.
- Certificate, confirming the legal status of the owner and founder of the enterprise.
- Registration certificate.
- Confirmation of the absence of debts in the home state.
- Information about the new company and its founders (copies of passports, company name, kind of activity, authorized capital).
- A letter of recommendation from a banking institution in Romania.
- Founders’ agreements to comply with all Romanian legislation.
- Office lease agreements.
For long-term business ( > 90 days), foreign entrepreneurs must:
- apply for a long-term visa (type D) at the Romanian Consulate in their country;
- obtain a temporary residence permit from the Immigration Department under the local Ministry of Internal Affairs ( valid for up to one year, with the right to renew);
- obtain permission from the local center for the promotion of trade and foreign investment;
- get approval from the Directorate of Immigration under the Ministry of Internal Affairs of Romania.
The following persons have the right to renew a temporary permit:
- entrepreneurs, investing > 150.000-200.000 EUR/ providing > 25 workplaces (the extension period – 1 year);
- entrepreneurs, investing > 500.000 EURO/ providing > 50 workplaces (the extension period – 3 years).
Our Prifinance specialists can help you choose the most suitable option for business immigration to Romania.
How to open a company in Romania within 2 weeks:
- Visit the International Trade & Investment Center to review the proposed business plan;
- Visit the General Inspectorate for Immigration and obtaining approval for registration of the company;
- Verification and registration of a unique company name through the National Trade Register Office (72 RON);
- Opening a deposit account in a Romanian bank and depositing the required amount of funds (0 RON);
- Registration in the Romanian Trade Register at the location of the company’s head office and obtaining a certificate of incorporation (700 RON);
- Registration a company in the tax office (0 RON);
- Online registration of company employees at the territorial State labor Inspectorate (0 RON).
What are the advantages of our company for registering and opening your business?
- The professionalism of our staff.
- Fast response.
- Reasonable prices.
- 24/7 online support and consulting.
To contact us, click on the pop-up window “call back in 28 seconds” or contact a consultant and we will be happy to help you!