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.

Short review

• 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).

Similarities

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.

1. 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:
   – Trade;
   – 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%;

2. 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.

3. Real estate property tax – 0.25-0.5%
4. Tax on dividends – 5%
5. Local taxes – 4000 EUR
6. 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!