Romania Company Formation
Opening a company in Romania
Why open a company in Romania? What are the advantages in the country of Romania?
Romania, a country that is part of the European Union, is a convenient solution for many entrepreneurs.
The country borders Turkey to the southwest, with the coast of the Black Sea, which makes Romania an export gateway to countries such as Russia, Ukraine, Georgia, Turkey, and more, but at the same time also a convenient gateway to the European market.
The local currency is the Romanian leu (RON), and living in the country is very cheap.
Romania represents, with cheap maintenance costs and a local market that understands the English language excellently.
Purchase of real estate assets for investment
The law in Romania today regarding the ownership of real estate by foreign residents is that in Romania today, a person who wishes to purchase real estate must be Romanian.
The solution to this is simple: opening a company in Romania and purchasing the property through the company. The Romanian company is of course Romanian, and therefore the company can own real estate assets. Since there is no restriction with holding shares in a Romanian company, there is no problem for a foreign citizen to open a company in Romania which will then purchase the property he wishes to own in Romania.
The process of opening a company in Romania
Opening a company in Romania begins with the signing of a notarial power of attorney to open a company by a local agent. The document is then sent with a courier urgently and the company is established.
In Romania there is no need for a local director or a local shareholder. In Romania you also do not need any European citizenship to open a company. You can open a Romanian company even if you are a foreign citizen.
This means that it is possible to open the company with 100% shareholding in the name of a foreign citizen - in your name, or even in the name of a foreign company. The director can be foreign and there is no need for a local director.
As part of the process, a bank account is opened for the purpose of depositing the equity, which can be very low, up to a very small amount of the local currency.
After opening the bank account and depositing the equity capital, the company is opened and a Romanian certificate of incorporation is issued, like the one we issued:
Opening a bank account in Romania - current account for the company
After opening the company, it is time to open a current bank account in Romania for the company.
Since this is a European country, more or less starting in 2018, those who want to open a bank account are required to come to the country. However, there is an alternative, and that is opening an internet bank account. Indeed, similar to our "Zero One" bank, there are Internet banks in Europe that would be happy to accept your company in Romania as a customer.
VAT registration
After the opening of the company, at the same time as the opening of the current bank account for the company, the registration of the new company with VAT will also be carried out. The company will receive a VAT number and you can then start trading.
EORI number
If necessary, we can obtain an EORI number for you so that you can import or export with the company within Europe.
EORI is an abbreviation of Economic Operators Registration and Identification number.
Company maintenance
The company requires annual maintenance of payment of fees, annual submissions, local address (which we will provide for you), as well as submissions to the tax authority.
However, all costs in Romania are low due to the relatively cheap cost of living.
Tax in Romania
The corporate tax in Romania has been at a low rate of only 16% for years.
For sales to the local Romanian market, the VAT is 19%.
Questions and answers
Question: Is it necessary to physically fly to Romania to open a company in Romania?
Answer: The entire process is carried out remotely and at no stage is it necessary to physically come to Romania. There is no need to fly to Romania to open the company. However, it is necessary to fly to Romania to open the current bank account. The entire process of opening the company and the company's bank account is carried out remotely without setting foot on Romanian soil.
Question: Who provides the local address for the company in New Romania?
Answer: We will provide the local address.
Question: How can I find a good accountant who can take care of the company in our new Romania?
Answer: We will connect you with a local accountant.
Question: If I want to come to Romania to open a bank account, what should I do?
Answer: We will try ahead of time to arrange a meeting for you at the branch in order to sign the account opening forms, so that everything will be in order before you arrive, so that you don't just walk around the city in order to find a branch that will accept you and open a bank account for a company in your new Romania.
Question: What type of company in Romania should I open?
Answer: In Romania there is only one type of company, the S.R.L type which is actually an LLC of the simple type familiar to everyone. Therefore there is nothing to hesitate.
Question: Do you need a European passport to open a company in Romania?
Answer: There is no need for a European passport. We can open a company in Romania for any foreign citizen as long as he has a valid passport.
Question: How long does it take to open a company in Romania?
Answer: The process of opening the company, including signing the power of attorney and sending it, should take about 3 weeks. After that, the process of opening a bank account takes between 1-3 weeks, depending on the readiness of the banks to accept the new company as a customer. Of course, these are times that depend on third parties, so this is only an estimate.
Question: Is it possible to open a company in Romania for a person with American citizenship or a person living in the USA?
Answer: Yes. We know how to open a company in Romania for a person with American citizenship or a person living in the USA.
Question: How much does it cost to open a company in Romania?
Answer: Click here to contact us and get an up-to-date quote for free!