Registering a Company in Romania

Rising Star in Central Eastern Europe

In recent years, Romania has begun to emerge as one of the most attractive countries for investors in the Central and Eastern European (CEE) region. Several benefits make this attractive. Firstly, in terms of political security, Romania is member of the European Union and NATO, enjoys better security as its laws are in line with those of the European Union after its accession to the Union.

Secondly, Romania is in the eastern part of Europe, which is the “eastern gate” of the European Union, and is at the crossroads of the European Union, the Commonwealth of Independent States (CIS) and the Balkan countries. The country benefits from efficient transportation infrastructure, including several international corridors that pass through its territory. Additionally, it boasts the Black Sea’s primary natural harbour, the port of Constanta, which allows for direct transportation of goods from the Danube River to Western Europe.

Giant Market and Wealth of Talent

Furthermore, Romania possesses one of the most expansive markets in Central and Eastern Europe. Hence, establishing a business in Romania grants you entry into the EU market, comprising nearly 500 million consumers, alongside the potential for domestic product sales. Besides, Romanian products have the advantage of being exempt from duties or subject to low tariffs.

Romania offers a labour force that is relatively skilled and has a distinct advantage in foreign language proficiency.

It also has a well-developed technical education, with a strong reputation both domestically and internationally, particularly in the IT and software sectors. Romania’s labour costs are relatively low when compared to other EU member states, making it an appealing destination for investors.

Romania has a corporate tax rate of 16%, which is among the lowest in the EU. Furthermore, Romania has signed double taxation avoidance agreements with several countries, which provide tax breaks to multinational corporations.

4 Steps to Register a Company in Romania

The process of registering a company in Romania is relatively simple and consists of the following 4 steps:

Step 1: Choosing the Type of Company

The first step in company registration is to choose the right type of business entity. For both local and foreign entrepreneurs, a limited liability company is usually the most appropriate choice.

Step 2: Register Company Name

After choosing the type of company, the next step is to register a unique company name. This can be done by registering with the local business registry to ensure that the chosen company name effectively represents your business idea and differentiates it from other company names.

Step 3: Preparing Company Registration Documents

In the third stage, you will need to prepare the necessary company incorporation documents and submit them to the business registry. These documents include the Articles of Incorporation and an affidavit with specimen signatures of the shareholders and directors. The preparation of these documents is a crucial step in ensuring that the incorporation of your company goes smoothly.

Step 4: Incorporation

Once all the official documents are ready, you can draft and submit them to the Registrar of Commerce and Industry. The entire registration process may take about ten working days to complete.

In addition to the basic process of registering a Romanian company described above, you must also prepare your company’s operational address, register for a VAT number, open a bank account, and consult with an accountant and a legal advisor, among other things, to ensure that your company can operate smoothly in Romania. If you are interested in learning more, please contact 3E Accounting.