Company Formation Romania
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Foreigners Guide - How to navigate Romanian legislation
We support foreign investors
Essential steps for starting a business in Romania
To successfully navigate the legal system in Romania, it is essential to follow these steps:
- Identify the right type of legal entity for your business. (SRL (LLC), SA (JSC), branch, representative office).
- See tax law and compliance rules.
- Prepare the necessary documentation for registration with the Trade Register.
- Work with local experts to open a bank account, register for VAT in Romania and obtain other approvals.
Our team provides full support at every stage, taking the complexity out of the process.
Legislative obstacles and how we overcome them
Romanian legislation may seem complex to foreigners, but the main challenges include:
- Lack of knowledge of local requirements: Our team provides clear and up-to-date legal consultancy
- Incomplete documentation: We draft and verify all necessary documents for compliance.
- Bureaucratic process: We manage interactions with the Trade Registry and other institutions to eliminate delays.
Vulpoi & Associates simplifies the entire process, saving you time and resources.
Why Start a company in Romania
Find out why Romania is the best place to start a company
The economic and fiscal advantages of Romania
Romania offers a favorable environment for foreign investors due to its strategic geographic location, membership in the European Union, and significant tax advantages. With a competitive tax regime,
Romania allows the establishment of legal entities that benefit from reduced taxes, including a 16% corporate tax rate and a special regime for microenterprises, with rates of 1% or 3%, depending on revenue.
Additionally, the VAT system provides reduced rates for certain essential products and services, and investors can access facilities for specific strategic industries. These features make Romania an attractive destination for business expansion.
Gateway to the European market
Romania represents a gateway to a market of over 500 million consumers in the European Union.
The benefits include access to EU trade agreements, simplified customs procedures, and export opportunities without additional taxes.
Investors who choose Romania can leverage low operational costs and a skilled workforce, thus contributing to long-term profitability growth.
Extensive experience
Vulpoi & Associates provides comprehensive assistance for starting a company in Romania, with extensive experience working with foreign investors from both the EU and non-EU countries.
Our team helps you choose the appropriate legal form, taking into account specific tax and legislative implications.
Simple and fast process, without physical presence
Thanks to our expertise, the process of forming a company in Romania is managed entirely remotely.
We prepare the necessary documentation, facilitate the opening of a bank account, and handle VAT registration without requiring the client’s physical presence in Romania.
Fiscal, accounting, and legal support
In addition to legal assistance, we collaborate with specialists in taxation, accounting, and human resources to provide comprehensive and customized solutions, including the contracting of a registered office and post-establishment consultancy.
Results-oriented and professionalism
Our team focuses on delivering efficient solutions tailored to each client.
By meeting deadlines and providing clear support, we turn complex processes into a manageable experience.
Types of legal entities in Romania
And their advantages.
LLC (Limited Liability Company)
The Limited Liability Company (LLC) is the most common legal form in Romania, ideal for small and medium-sized enterprises.
An LLC can be established with a minimum share capital of 1 leu and has a flexible structure suitable for various commercial activities.
The required documents include the articles of incorporation, proof of the registered office, and declarations from the shareholder(s).
Microenterprise
Microenterprises benefit from a favorable tax regime, with an income tax of only 1% or 3%, depending on the turnover.
To be registered as a microenterprise, the entity must not exceed an annual turnover of 250,000 EUR.
This is an excellent option for startups or businesses with low revenue.
JSC (Joint-Stock Company)
The Joint-Stock Company (JSC) is suitable for large companies with significant capital and requires a minimum share capital of 25,000 EUR.
Shares can be traded on the capital market, and the JSC structure allows for attracting investors through the issuance of shares.
Branch of a foreign company
Branches allow foreign companies to expand their operations in the Romanian market without establishing an independent legal entity.
They operate under the name and liability of the parent company, providing a quick and efficient solution for testing the local market.
Representative office of a foreign company
Representative offices are primarily used for promotional activities, market research, or support for the parent company, without engaging in direct commercial activities.
Steps required to form a company in romania
We assist you every step of the way
Choosing the right legal form
The first step in establishing a company in Romania is selecting the appropriate form based on the specifics of the activity and the business objectives.
In Romania, investors can choose between LLC (Limited Liability Company), Microenterprise, JSC (Joint-Stock Company), Branch, or Representative Office. Each form has its own legal, fiscal, and operational requirements, and the correct choice can influence long-term success.
Preparation of the required documentation
The necessary documents for forming a company in Romania include:
- The company’s articles of incorporation.
- Proof of the registered office (lease agreement, loan-for-use agreement, or ownership document).
- Signature specimens of the administrators.
- Declarations from the shareholders regarding compliance with legal requirements.
Vulpoi & Associates ensures the complete drafting of documents to simplify the process and avoid potential errors.
Opening a bank account in Romania
To operate legally, any legal entity must have a bank account in Romania. This account is used for depositing share capital and for subsequent commercial transactions.
Our team assists clients in selecting the appropriate bank and completing the necessary formalities.
VAT registration
VAT registration is required for legal entities that exceed the turnover threshold set by tax legislation (300,000 RON).
The procedure involves submitting the application and accompanying documentation to ANAF (the National Agency for Fiscal Administration).
We provide full support throughout this process, including obtaining the VAT code.
Obtaining a virtual/physical office
Obtaining a virtual or physical office is a mandatory requirement for the registration of any legal entity in Romania.
Our team provides customized solutions, including lease or loan-for-use agreements, to meet this legal requirement.
Company Formation in Romania Services
Do you want to start a business in Romania? Our team offers complete assistance in the process of establishing a company or branch in Romania, handling all necessary legal and accounting aspects.
We take care of everything, so you can focus on growing your business.
Quick Company Formation in Romania
Get quick company formation in Romania with the help of our team of experts.
Legal Entity Formation in Romania
We provide complete assistance in opening a company in Romania (LLC, Sole Proprietorship, Microenterprise, JSC), ensuring a fast and hassle-free process.
100% Online Formation
Achieve 100% online formation of a company in Romania without requiring physical presence in Romania. Simple, efficient, and fast.
Opening Branches, Subsidiaries & Representative Offices in Romania
We support the opening of branches, subsidiaries, and representative offices in Romania, expanding your business into the local market.
Obtaining Permits & Licenses in Romania
We help you obtain permits and licenses in Romania, necessary for the legal operation of your business.
VAT Registration in Romania
We support your approach. for VAT registration of the company in Romania, facilitating fiscal compliance and optimizing your company's fiscal obligations with the help of our external collaborators.
Accounting & Tax Services in Romania
We recommend top professionals for accounting and taxation services in Romania, in order to ensure in good conditions the financial-accounting compliance, as well as the fiscal optimization of the company.
Bank Account Opening in Romania
We provide support for opening a bank account in Romania, essential for your company's financial operations.
Labor Law Consultancy in Romania
We provide labor law consultancy in Romania, ensuring efficient human resource management and compliance with regulations
Residence Permit in Romania
We assist you in obtaining a residence permit in Romania, facilitating the relocation process and compliance with immigration legislation.
Physical & Virtual Office in Romania
We offer solutions for physical and virtual office in Romania, both on the basis of a legal assistance contract, as well as through our clients who offer spaces for rent in order to register the registered office of the company, offering you a professional and credible local presence.
Full-Service Solutions
Benefit from complete services: obtaining certificates, licenses, virtual office, banking solutions, multilingual accounting, legal and business consultancy, networking, and much more.
Important Tax Aspects for Businesses in Romania
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Corporate Profit Tax Regime
Companies in Romania are subject to a standard corporate profit tax of 16%, which also applies to foreign companies operating through a permanent establishment (PE).
For activities such as nightclubs and gambling, the tax rate is 5% of revenues or 16% of taxable profit, whichever is higher.
As of January 1, 2025, companies with a turnover exceeding 50,000,000 EUR, credit institutions, and companies in the oil and gas sectors are subject to a minimum turnover tax of 2%
Tax Regime for Microenterprises
Microenterprises can opt for this tax regime if they do not exceed an annual revenue of 250,000 EUR and meet the following conditions:
- Private share capital.
- At least one employee.
Applicable taxes are:
- 1% for revenues up to 60,000 EUR.
- 3% for revenues above 60,000 EUR or for specific activities such as IT services, restaurants, hotels, and medical activities.
VAT In Romania
In Romania, the standard VAT rate is 19%, with reduced rates of 9% and 5% for specific goods and services. The 9% rate applies to foodstuffs, pharmaceutical products, hotel accommodations and photovoltaic panels, while the 5% rate covers school textbooks, museum admissions, and the supply of thermal energy.
A zero VAT rate is applicable to exports, intra-community supplies, and international passenger transport.
VAT registration is mandatory for companies whose turnover exceeds the threshold of 300,000 RON.
VAT returns must be filed monthly or quarterly, depending on the annual turnover and business activities
Social Contributions and Other Taxes
Social contributions are paid monthly and include:
- 25% for social insurance.
- 10% for health insurance.
- 2.25% for the labor contribution.
- 10% income tax
- The gross minimum wage for 2025 is 4050 Ron
Employers in construction, agriculture, and the food industry benefit from exemptions for salaries under 10,000 RON, provided that revenues from these sectors account for at least 80% of their turnover.
Dividend Tax
Dividends paid by a Romanian company are taxed at 10% for both residents and non-residents, with exceptions applicable under EU directives or double taxation treaties.
Since 2018, dividends can be distributed quarterly, depending on net profit.
Other Taxes and Duties
Withholding taxes for non-residents:
- 16% for interest and royalties, with exceptions under international treaties.
- 10% for dividends.
Other income:
- 16% for services provided in Romania, commissions, or fees from management and consultancy, proceeds from the liquidation of Romanian companies..
Would you like to learn more about how we can help you establish a company in Romania?
Or perhaps you need consultancy and support in other legal areas?
Our team is ready to answer all your questions. Contact us today, and let’s discuss your project.
- Street Dr. Iacob Felix 87, Bucharest, Romania
- office@vulpoisiasociatii.ro
- +40 21 650 00 71 - int 36
You can also contact us using the contact form below. We will get back to you as soon as possible.
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