Quick and Efficient Company Formation
in Romania

With the lowest taxation for “micro-companies” in Europe, Romania is a great location to set up your headquarters due to its easy rules and 100% respect for the law. The registration of a company in Romania is the right choice for those wishing to enter a dynamic market and benefit from its unique taxation (1 – 3% on income, for revenues up to 1 million Euros), its vibrant economy and its strong potential for further growth. One of the strongest economies of SE Europe, flexible procedures and affordable company maintenance are only some of the benefits you will get when you register your company in Romania.

When naming a Romanian company, you must make sure that the name ends with ‘S.R.L’ which has the same status as a Limited Liability Company. All business names in Romania must be authorized and reserved with the registration office. There are a few banned terms in Romania, including geographical places, and using the word ‘Romania’ requires specific permission. Your company name can be obtained following a request to verify the availability of the name and its reservation.

The normal corporate tax rate for Romanian companies, foreign businesses working through a permanent establishment (PE), and overseas businesses that are tax resident in Romania due to a place of active management is 16%. Micro-businesses must pay a revenue tax rate in addition to the standard corporate tax rate.

A company must have a maximum income of EUR 1 million at the end of the preceding year to be counted as a micro-company.
The following are the tax rates for a micro company:

• 1% for small companies with one or more workers
• 3% for small businesses with no employees

The dividend tax rate in Romania, applicable to the gross dividend paid or distributed is 5%. The shareholder is entitled to receive dividends paid after the tax is calculated and withheld in order to be paid to the tax authority. Usually, the dividends are paid yearly, after the financial statements for the previous year are prepared. They can also be paid on a quarterly basis, during the financial year. The dividend tax is utilized in accordance with the main rule, which states that when a Romanian company offers or pays dividends paid to a Romanian business entity, the company is required to withhold, declare, and pay the dividends withheld tax to the state budget until the 25th of the month following the month.

Directors may be either legal entities or individuals and managers must be individuals in the case of a Joint stock company (JSC). The directors of a limited liability company (S.R.L.) can be either legal bodies or individuals. An LLC company can be established by one participant who is a natural person or legal entity.

An LLC can have as little as one shareholder but the maximum number of shareholders cannot go past fifty. The Managers or Directors who violate their obligations are accountable for the consequent damages caused to the firm.

No, you don’t require the presence of a company secretary when you form a company in Romania. The appointment or termination of a company secretary is typically controlled by the articles of association of the company and is generally the obligation of the directors. Romanian limited liability companies are not required to have a company secretary. 

You certainly can register an offshore company in Romania without visiting the country. Simply complete our online application form and leave the rest to Formationwise. We will help you through the whole process of registering a company remotely and will prepare, and obtain the documentation required for you to form a company in Romania. You can sit back and relax, and let us handle the company formation process in Romania.

Yes, you need a local registered address to incorporate an offshore company in Romania. Company formation with a registered office is necessary when you want to form a new entity in Romania. A local registered office address is necessary where the authorities can send official documents, demands for tax control and process services. All relevant corporate records must be kept at the registered office. Post office addresses are not acceptable and are prohibited. Proof of the registered address is mandatory at the time of signing the rental agreement. The contract must contain a copy of the landlord’s property title.

The National Trade Register Office in Romania is a legal entity that reports to the Ministry of Justice. Legal publicity, legal standing and financial information of all businesses, monetary and statistical data, business details, simplification of strategies for company registration and approval for operation, information, and assistance are among the functions of the National Trade Register Office.

The Trade Register Office has control of the National trade register office, which is linked to courthouses on a municipal level. Regional offices are required to notify any registration or other change relating to this activity within 15 days of the date of the change.

Registration is required for all legal companies and our Romanian legal experts can help you regardless of the sort of business you are registering.

Entrepreneurs must open up a bank account in Romania as part of the company formation process. Foreign investors may choose to open up a personal bank account, subject to a few conditions. Opening up of a bank account in Romania is not a challenging task, though, global investors may require support when filling out the form and submitting the Romanian-version of the company formation documents.

All of the major banks in Romania provide internet banking services, which are designed to provide optimal resources in order to ensure safe payments and monitoring. Individuals must bring a copy of their passport to the bank to open a bank account in Romania.

We will send you a complete list of the required documents, which can include bank statements from old accounts, proof of residency, and other identifying paperwork.

Your presence is not required to set up your company in Romania. Furthermore, the shareholder’s physical presence is not compulsory at any time. However, the administrator or general manager should remain in contact with the authorities on a regular basis.

It is also a good idea to choose a local natural person to represent the administrator’s goals. A comprehensive set of powers of attorney is applied, allowing the Formationwise team to act on behalf of the founders of the Romanian company at authorities and numerous institutions, such as the Trade Register.