by | Nov 9, 2022 | Uncategorized

by | Nov 9, 2022 | Uncategorized

A limited liability company, or Societate cu răspundere limitata (S.R.L.) is one of the most popular and effective forms of doing business in Romania. Similar to the Polish Commercial Companies Code, Romanian law defines S.R.L. as a form of business in which the entrepreneur’s liability for the company’s obligations is limited to the amount of the company’s own contribution. Obviously, within the borders of Romania, the requirements for the establishment of an S.R.L. are different from other countries.

Requirements of a S.R.L. establishment

In order to establish a limited liability company in Romania, several basic requirements must be met:

  • The business must be owned by at least 1 person (regardless of origin) or 1 legal entity;
  • The business must be managed by at least 1 director, but he/she does not have to reside in Romania;
  • A share capital of RON 1, or approximately €0,25, must be contributed.

Taxes for an S.R.L in Romania

One of the significant benefits of setting up an S.R.L. in Romania is the significantly lower cost of doing business. For small-scale businesses, i.e. up to €500 000 turnover per year, taxes are as follows:

  • 1% income tax (regardless of the number of employees)
  • 8% tax on dividends
  • 0% tax on contributed capital

If the company’s annual turnover exceeds €500 000 turnover per year, the tax figures are as follows:

  • 16% tax on profits
  • 8% tax on dividends
  • 0% tax on contributed capital.

How to set up a limited liability company in Romania?

Registering a company in Romania is not the simplest of tasks. Setting up a company on your own is feasible, but at the same time very time-consuming. The company registration process itself consists of 5 steps;

  1. Checking the availability of the name chosen for the company in the commercial register ONRC – according to Romanian law, the name in question is unique and not used by other companies. If the originality of the name is confirmed, reserve it for 3 months;
  2. Registration of the limited liability company, i.e. providing the necessary documents. Among others, the memorandum of incorporation, certified by a notary public; declarations of the future shareholders with proof of identity cards and certification of the board of directors;
  3. Probably the longest stage of company registration, as it can take up to 4 weeks. First, choose a bank and set up a company account. Then deposit the initial capital. Then you can move on to filing the documents with the Trade Register, which involves several additional procedures, e.g. obtaining a decision on registration with the Trade Register, obtaining a CUI number for tax purposes and registration for social security purposes;
  4. Signing the employment contract with the employees and registering them with the Employment Office (this step must be done at the latest on the day the employee starts work);
  5. Submission of a tax declaration to the Tax Office within the first 30 days of running the company.

Company registration service by Romanian Company

An alternative way to register a limited liability company in Romania is to use the services of companies such as Romanian Company. Our team of experts has been working in this area since 2010, so we have the experience that contributes to a significantly shortened company registration process in Romania.

Thanks to our mutual commitment, we are able to set up a client’s business within 10 working days. Then, the entrepreneur’s role is limited to providing us with, among other things, personal data, a scan of an identity card and information on the company’s profile. Finally, it is enough to electronically sign the documents prepared by the Romanian Company team without leaving home.

Why is it worth establishing a limited liability company in Romania?

The undeniable advantages of doing business in Romania are some of the lowest tax rates compared to other countries in the European Union and the simple business environment. However, the advantages of doing business in Romania can be found not only in the legal aspects, but also when looking at the current state of the Romanian economy in general, as the market is very receptive and growing rapidly. Thus, there is still low competition in many industries in the country. Furthermore, it is worth pointing out that Romania is home to almost 20 million consumers, and within this group, more than 9 million are counted among the, much appreciated nowadays, e-consumers. This leaves plenty of opportunities to fill, still existing gaps, with the right business idea.

Who can become the owner of a limited liability company in Romania?

A minimum of one shareholder is required to establish a limited liability company. The maximum can be 50. The owner of the company can be a legal or natural person, with or without residential status in Romania.

Does a person living abroad have to come to Romania to set up a limited company?

No, the process of registering a company in Romania can be done fully online using the RomanianCompany service. We will take care of the paperwork, and from the client’s side, you are required to complete the basic information and submit electronic signatures.

How much does it cost to register a limited liability company using the RomanianCompany service?
At RomanianCompany, we focus on offering affordable services with satisfactory quality. We are committed to meeting the individual requirements of our clients, therefore the prices of our services depend on the choice of the scope of services provided – we provide assistance in comprehensive incorporation of companies, as well as support in issues selected by the client.
How long does it take to incorporate a limited liability company in Romania?

The time it takes to incorporate a limited liability company in Romania depends on the choice of registration method. If you decide to register the company yourself, the process itself can be very time-consuming and take up to 2-3 months. Using RomaninaCompany’s company incorporation service, this process can be simplified and shortened to 10 working days.

Does a limited liability company need to have a physical presence in Romania?

Yes, every company in Romania must have a current registered office address (it cannot be a post office box address). Romanian law requires the physical location of the company’s office to receive legal notices, etc.

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Register a Company in Romania

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Romanian Company

We provide affordable incorporation services via Romaniancompany.com from 08.2022 however we work in the field from 01.2010.

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    Register a Company in Romania

    1234 sAn Francisco, CA 12345
    +1 555 0394 848
    info@diviconsulting.com