Romania, located in Eastern Europe and a member of the European Union, has gained significant attention as a destination for international entrepreneurs. While its business environment is still evolving compared to more established markets in Western Europe, Romania offers an attractive climate for foreign investors. The country’s economy is growing, and the government has developed a supportive legal framework aimed at encouraging business development across various industries.
Can Foreigners Establish a Business in Romania?
Foreign nationals are permitted to fully own businesses in Romania. Romanian legislation allows both EU and non-EU citizens to hold shares in a Romanian company. They are subject to the same rights and responsibilities as Romanian citizens when it comes to business ownership. While non-EU nationals do not face additional restrictions regarding ownership, they may need to meet specific visa requirements if they intend to reside or work in Romania for their business.
Steps to Register a Business in Romania
The process of starting a business in Romania involves several key steps. To better understand, it is advisable to reach out to a team of lawyers in Romania. One of the first decisions you’ll need to make is the type of company you wish to create. In Romania, the most commonly established business entities are the Limited Liability Company (SRL) and the Joint Stock Company (SA). For foreign entrepreneurs launching small or medium-sized ventures, the SRL is often the preferred option due to its low capital requirements and the limited liability it provides to its shareholders.
Key Steps for Business Registration:
- Choose Your Business Structure: Depending on your objectives and the scope of your operations, decide whether an SRL, SA, or another business entity is best suited for your needs.
- Reserve a Company Name: You must check the availability of your desired company name and reserve it through the National Trade Register Office (ONRC) online platform.
- Prepare the Necessary Documents: This step includes drafting the company’s Articles of Incorporation, the head office agreement, and any other required paperwork for the registration process.
- Submit the Application: After preparing the required documents, submit your application to the ONRC. This submission should include the Articles of Incorporation, proof of the company’s address, and identification documents for the shareholders.
Once registered, your company will be assigned a fiscal identification number. If applicable, you can also apply for a VAT number, depending on the nature of your business.
Registration Timeframe in Romania
The business registration process in Romania is typically efficient, usually taking between 3 and 5 working days from the moment all required documents are submitted. However, the exact duration can vary depending on the complexity of your registration documents and the type of business you are establishing. If additional permits or licenses are necessary for your particular business, the registration time may be extended.
Costs Involved in Starting a Business in Romania
Starting a business in Romania is generally more affordable than in many other European countries. Below are the main costs to keep in mind:
- Trade Registry Fees: Registering a company usually costs around 128 Lei.
- Share Capital Requirements: The minimum share capital for an SRL is 1 Lei, while for an SA, the required capital is 90,000 Lei.
- Legal Fees: These may vary depending on the complexity of the registration and the legal services needed.
- Additional Costs: Other potential expenses include document translation, obtaining necessary permits, or renting a registered office.
Seeking Professional Help for Your Business Registration in Romania
While registering a business in Romania can appear complicated, with the right support, the process can be smooth and efficient. If you need professional assistance to understand the registration procedure, you should reach out to a team of Cluj lawyers.
