How to Set Up a New Company in Romania

Romania has become an increasingly attractive destination for entrepreneurs and investors. With its strategic location, skilled workforce, and access to the European Union market, the country offers a promising environment for starting a business. But, as with any new venture, the process of company formation in Romania involves several steps and legal formalities. If you are considering setting up a company, here’s a friendly guide to help you understand the essentials.

Choosing the Right Business Structure

The first step in setting up a company is deciding on the type of business entity that suits your needs. Romania offers several options, but the most common are:

• SRL (Limited Liability Company): This is the go-to choice for small and medium-sized businesses. It offers limited liability to its shareholders and requires minimal share capital (1 RON).

• SA (Joint Stock Company): Designed for larger businesses, the SA structure is ideal for companies planning to attract significant investment or list on the stock exchange.

• PFA (Sole Proprietorship): Perfect for freelancers or individuals offering professional services.

Choosing the right structure depends on factors like the size of your business, the number of shareholders, and your long-term goals.

The Steps to Set Up a Company in Romania

Once you’ve decided on the business structure, the actual registration process begins. Here’s an overview of the steps:

1. Reserve Your Company Name
   You need to choose a unique name for your company and reserve it with the National Trade Register Office (ONRC). It’s important to ensure the name aligns with Romanian regulations and doesn’t conflict with existing businesses.

2. Prepare the Required Documents
   The paperwork typically includes:

   • Articles of incorporation

   • Proof of registered office (you’ll need to provide a lease agreement or ownership documentation)

   • Identification documents for shareholders and directors

   • Proof of initial share capital deposit

3. Register with ONRC
   Submit your documents to ONRC for review. Once approved, you’ll receive a registration certificate, making your company official.

4. Obtain a Tax Identification Number
   Register with the local tax authorities to obtain your tax identification number and VAT number (if applicable).

5. Open a Business Bank Account
   A corporate bank account is necessary for conducting business transactions and managing your finances.

6. Obtain Permits and Licenses
   Depending on your industry, you may need additional permits or licenses to operate legally in Romania.

Common Challenges and How to Overcome Them

Starting a company in Romania is relatively straightforward, but there are some common hurdles:

• Language Barriers: Many official procedures are conducted in Romanian, which can be challenging for foreign entrepreneurs. Working with a local advisor or lawyer can simplify communication.

• Understanding Tax Obligations: Romania’s tax system includes corporate tax, VAT, and other contributions that may be unfamiliar to foreign investors.

• Navigating Bureaucracy: The process involves multiple steps and institutions, which can be time-consuming if you’re unfamiliar with the system.

These challenges can be easily managed with the support of professionals experienced in company formation in Romania.

Why Romania is a Great Place to Start a Business

Romania offers a range of advantages for entrepreneurs:

• Low Operating Costs: From wages to office space, operational costs in Romania are lower compared to many Western European countries.

• Access to the EU Market: Being part of the European Union, Romania provides businesses with seamless access to a market of over 450 million consumers.

• Skilled Workforce: The country boasts a highly educated workforce, particularly in fields like IT, engineering, and finance.

• Support for Startups: Romania is home to a growing startup ecosystem, offering networking opportunities and resources for new businesses.

How Legal Experts Can Help

Navigating the legal and administrative requirements of setting up a business can be overwhelming, especially for those new to Romania. This is where legal experts, like the team at Buju, Stanciu & Asociatii, can make a difference.

Here’s how they can help:

• Document Preparation: Ensuring all paperwork is accurate and compliant with Romanian laws.

• Registration Assistance: Guiding you through the ONRC registration process and handling communications with authorities.

• Tax and Accounting Advice: Providing insights into Romania’s tax system to help you structure your business efficiently.

• Ongoing Support: Offering continued legal and administrative support as your business grows.

Ready to Start Your Business in Romania?

Setting up a company in Romania is an exciting opportunity, but navigating the legal and administrative processes can be challenging. With the right support, entrepreneurs can focus on growing their business while leaving the complexities of company formation in Romania to experienced professionals.

Buju, Stanciu & Asociatii is a trusted partner for company formation in Romania, known for offering personalized solutions tailored to the unique needs of each client. Their expertise ensures a seamless and efficient process, whether for local entrepreneurs or foreign investors looking to establish a presence in Romania.