Romania, situated in Eastern Europe and part of the European Union, has become an increasingly attractive destination for foreign entrepreneurs. While the business landscape is still developing compared to Western European countries, Romania provides a favorable environment for foreign investors due to its growing economy and supportive legislation. The Romanian government has created a legal framework that encourages entrepreneurship, which is appealing for those looking to establish a business in various sectors.
Can Foreigners Own a Business in Romania?
Yes, foreigners are allowed to fully own businesses in Romania. Romanian law grants non-citizens, whether from the European Union or outside of it, the right to become shareholders in a Romanian company. Foreigners have the same rights and obligations as Romanian nationals when it comes to company ownership. Non-EU citizens do not face additional restrictions, but they may need to consider visa requirements if they plan to live or work in Romania for their business activities.
Process of Business Registration in Romania
Registering a business in Romania involves several essential steps. The first decision to make is choosing the type of company you wish to establish. In Romania, the most common business entities are the Limited Liability Company (SRL) and the Joint Stock Company (SA). For most foreign entrepreneurs starting small or medium-sized businesses in Romania, the SRL is often the preferred choice. This is mainly due to its low capital requirements and the limited liability it offers to shareholders.
Steps for Business Registration in Romania
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Select the Business Structure: Choose between an SRL, SA, or another company form, depending on your business goals and the scale of operations.
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Reserve the Company Name: You can check the availability of your desired company name and reserve it through the National Trade Register Office (ONRC) online portal.
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Prepare the Required Documents: This includes drafting the Articles of Incorporation, the head office agreement, and other documents necessary for the registration.
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Submit the Registration Application: Once your documents are ready, submit them to the ONRC. This includes your Articles of Incorporation, proof of the company’s headquarters, and identification documents for the shareholders.
Once registered, your company will be assigned a fiscal identification number. If needed, you can also apply for a VAT number after registration, depending on the type of business.
How Long Does it Take to Register a Business in Romania?
The business registration process in Romania is generally fast, typically taking around 3 to 5 working days to complete once all the required documentation is submitted. However, the exact time frame can depend on the complexity of the documents and the specific nature of the business being registered. If additional permits or licenses are required for the type of business you are starting, this may extend the registration time.
Cost of Starting a Business in Romania
The cost of registering a business in Romania is relatively low compared to other European countries. Here are the key costs to consider:
- Trade Registry Fees: The fee for registering a company is typically 128 Lei.
- Share Capital Requirements: For an SRL, the minimum share capital is only 1 Lei. For an SA, the minimum capital requirement is 90,000 Lei.
- Legal Fees: These may vary depending on the complexity of the registration and the legal services you require.
- Other Costs: Additional expenses may include document translation, acquiring necessary permits, or setting up a registered office.
Get Professional Assistance for Your Business in Romania
Business registration in Romania as a foreigner can seem challenging, but with the right guidance, it can be a straightforward process. If you need help navigating the registration process, our experienced team is here to assist. Contact us today to schedule a consultation and ensure that your business registration in Romania is handled efficiently and correctly.