Company registration and support in Romania: opportunities for investors

Romania is gradually establishing itself as one of the most attractive centers for business development in Eastern Europe. Transparent legislation, favorable geographical location and competitive tax system make the country attractive to both local and international investors. In this article, we will look at the advantages of opening a company in Romania, the steps to register a business, taxation features, available legal forms and the specifics of doing business.

Advantages of opening a company in Romania

European market without restrictions. As a member of the European Union, Romania provides access to the EU internal market and the possibility of freely exporting goods and services to member countries.
Competitive taxation. The corporate tax rate is 16%, and for companies with revenues of less than 1 million euros, a reduced income tax rate (from 1% to 3%) is available.
Developed infrastructure and IT industry. Romania is one of the leaders in Europe in terms of the pace of development of the IT business, opening up opportunities for outsourcing projects and startups.
Financing and subsidy opportunities. Companies can access European grants and national business support programs.
Relatively low labor costs. Compared to other EU countries, hiring costs remain low while the as specialists.

Step-by-step procedure for registering a company in Romania

Select the organizational and legal form. The most common forms are:

SRL (Societate cu Răspundere Limitată) — analogue of LLC;
SA (Societate pe Acțiuni) — a joint-stock company for large businesses.

Choosing a unique name and checking it in the National Trade Register ( ONRC). must be unique and not violate intellectual property rights.

Opening a bank account for contributing the share capital. The minimum capital for SRL is 1 RON (symbolic amount), while for SA the minimum threshold is 25,000 euros.
Preparation of constituent documents (charter, resolution on establishment) and their notarization.
Submission of documents to ONRC. The package of documents includes constituent documents, bank statements on capital contribution, confirmation of the company’s location and copies of the founders’ identification documents.
Obtaining a registration certificate. After that, the company receives an EUID code, allowing it to operate within the EU.
Registration with the tax authorities to obtain a VAT number (if necessary) and registration as a payer of social contributions and taxes.

Taxation features

Corporate tax: the standard rate is 16%. For companies with an annual income of up to 1 million euros, a special tax is provided:

1% of turnover if there are employees;
3% of turnover without employees.

VAT (TVA): basic rate — 19%. Reduced rates (9% and 5%) apply to certain categories of goods, such as medicines and food products.
Dividends: the tax rate on dividend payments is 5%, but this rate may be reduced in the presence of double taxation agreements.
Social contributions: the general rates of contributions to social security are 25%, and to health insurance – 10%. The employer additionally pays 2.25% to cover employment risks.

Available legal forms for non-residents

SRL (Limited Liability Company) — the most popular choice among foreign investors due to its ease of management and low minimum capital.
SA (Joint Stock Company) — suitable for large projects with a large number of investors and access to the stock market.
Permanent Establishment — for companies that do not wish to open a separate legal entity, but require a physical presence in the country.
Branch of a foreign company — suitable for companies wishing to operate in Romania under the brand of the parent company.

Features of doing business in Romania

Transparent reporting and audit. SRLs with income over 1 million euros must undergo mandatory audit. This ensures transparency of financial reporting and trust from counterparties.
Advantages of electronic document management. Romania is actively implementing digital tools that simplify the registration and management of companies.
Flexible employment conditions and labor legislation. The legislation allows for both long-term and temporary contracts, and provides for relatively short dismissal procedures for employees.
Access to EU markets. Romania is a party to a number of EU trade agreements, which opens up opportunities for businesses to reduce customs barriers.
Risks of currency fluctuations. Although the country has a stable economy, the local currency, the Romanian leu, can be influenced by external factors. Registering a company in Romania is a strategic decision for businesses seeking access to the European market. A competitive tax system, an open environment for investors and opportunities for attracting financing make this country attractive to international entrepreneurs. The right choice of legal entity forms and consideration of local peculiarities will help to optimize costs and reduce risks. Finance Business Service team is ready to provide a full range of services for registration and support of your company in Romania, ensuring a professional approach at every stage.

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