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Romania

Steps to Set Up a Company:

Romania

Choose a Business Structure

  1. Sole Proprietorship (PFA - Persoană Fizică Autorizată): Single owner, full liability.
  2. General Partnership (SNC - Societate în Nume Colectiv): Two or more partners, shared liability.
  3. Limited Partnership (SCS - Societate în Comandită Simplă): General and limited partners.
  4. Limited Liability Company (SRL - Societate cu Răspundere Limitată): Separate legal entity, limited liability.
  5. Joint-Stock Company (SA - Societate pe Acțiuni): Separate legal entity, limited liability, shares can be traded publicly.
  6. Branch (Sucursală): A branch of a foreign company operating in Romania.
  7. Representative Office (Reprezentanță): Limited to marketing and promotional activities, cannot conduct business transactions.

Register Your Company

  1. Choose a Company Name: Ensure it is unique and follows naming regulations.
  2. Prepare the Articles of Association: Outlining the company’s structure and rules.
  3. Notarize the Articles of Association: Required for certain company types.
  4. Open a Bank Account: Deposit the initial capital required for the company type.
  5. Register with the Trade Register: Submit the incorporation documents and pay the registration fee.
  6. Obtain a Tax Identification Number (CIF) from the National Agency for Fiscal Administration (ANAF): For tax purposes.
  7. Register for Value Added Tax (VAT) with ANAF: If applicable.

Open a Romanian Bank Account

  1. Set Up a Business Bank Account: Necessary for managing business finances.

Obtain Necessary Licenses and Permits

  1. Check Industry-Specific Requirements: Depending on the nature of your business, you may need specific licenses or permits.

Comply with Romanian Employment Laws

  1. Employment Contracts: Draft contracts that comply with Romanian labor laws.
  2. Register with the National House of Public Pensions (Casa Națională de Pensii Publice - CNPP): For social security purposes.
  3. Health and Safety Regulations: Follow guidelines from the Labour Inspectorate.

Accounting and Reporting

  1. Set Up an Accounting System: Maintain accurate financial records in compliance with Romanian accounting standards.
  2. Annual Financial Statements: Prepare and file annual financial statements.
  3. File Annual Tax Returns: Submit annual tax returns to the National Agency for Fiscal Administration.

Laws and Regulations to Consider

Corporate Law

  1. Company Law (Legea Societăților Comerciale - Legea nr. 31/1990): Governs the formation and operation of companies.
  2. Civil Code (Codul Civil): Governs contracts and obligations.

Tax Law

  1. Tax Code (Codul Fiscal): Governs corporate income taxation.
  2. Value Added Tax (VAT) Law (Legea TVA): Governs VAT regulations.

Employment Law

  1. Labour Code (Codul Muncii - Legea nr. 53/2003): Governs the terms and conditions of employment contracts.
  2. Social Security Law (Legea privind sistemul unitar de pensii publice - Legea nr. 263/2010): Governs social security contributions.
  3. Health and Safety at Work Law (Legea securității și sănătății în muncă - Legea nr. 319/2006): Sets health and safety standards for workplaces.

Data Protection Law

  1. Data Protection Law (Legea nr. 190/2018): Governs data protection and privacy.

Environmental Law

  1. Environmental Protection Law (Legea protecției mediului - Legea nr. 265/2006): Governs environmental protection and sustainability practices.

Intellectual Property Law

  1. Patent Law (Legea nr. 64/1991): Governs the protection of patents.
  2. Trademark Law (Legea nr. 84/1998): Governs the protection of trademarks.
  3. Copyright Law (Legea nr. 8/1996): Governs the protection of copyrights.

By following these steps and adhering to the relevant laws and regulations, you can successfully establish and operate a company in Romania. It’s advisable to consult with legal and financial experts to ensure full compliance and smooth setup.

When to Consider Setting Up a Company in Romania:

  1. Strategic Geographic Location: Romania’s location provides access to markets in Central and Eastern Europe.
  2. Large Consumer Market: Romania has a large and growing consumer market.
  3. Favorable Investment Climate: Romania offers various incentives for foreign investment and a supportive regulatory environment.
  4. Skilled Workforce: Access to a highly educated and skilled labor pool, particularly in technology, engineering, and manufacturing.
  5. Developed Infrastructure: Romania has a well-developed infrastructure, including transportation, telecommunications, and energy.
  6. Innovation and Technology: Romania has a focus on innovation and technology, with numerous research institutions and tech hubs.
  7. Quality of Life: Romania offers a high standard of living, excellent healthcare, and a rich cultural heritage, making it attractive for expatriates and international employees.
  8. Stable Economic Environment: Romania offers a stable macroeconomic environment with opportunities for growth.
  9. Access to EU Market: As an EU member state, Romania provides access to the EU single market, facilitating trade and business operations within the EU.

By considering these factors and aligning them with your business goals, you can determine if setting up a company in Romania is the right move for your organization.

DALL·E 2024-07-08 12.02.10 - An illustration promoting Grant and Grahams global support for setting up companies. The image features a globe with various business icons around it
How to Set Up a Company

Step-by-Step Guide: How to set up a Company

Setting up a company involves a series of crucial steps that require careful planning and execution. From choosing the right business structure to understanding legal and tax obligations, each stage is vital to the successful launch and operation of your business. This step-by-step guide provides a comprehensive overview of the key processes involved in establishing a company, ensuring you have the knowledge and tools needed to navigate the complexities of business formation.