Romania is a state in Southeast Europe on the Balkan Peninsula, a member of the EU since 2006. Due to the pace of its development in 2005-2007, the Romanian economy received the title of “Balkan Tiger”. Today, Romania is one of the most attractive countries in Europe for investment. Registering a company in Romania seems to be a very profitable decision in favor of business, as the country is considered the largest economic center in the region.
Romanian tax system
In addition to the obvious economic advantages, Romania is interesting for its tax system. The basic corporate tax rate is 16%, but this only applies to companies with an annual turnover of more than 1 million euros. If the company's turnover is less than 1 million euros per year, then the company is subject to corporate tax at a rate of 1-3%. Other taxes:
- on dividends - 5%;
- a VAT - 19%, but there are preferential rates - 9% (pharmaceuticals, hospitality, museums, books, cinema) and 5% for building materials.
Thus, if you register a company in Romania, you can conduct a very economical, from the point of view of taxes, business.
What is needed to set up a company in Romania?
Companies are most often registered in the following legal forms in Romania:
- SRL is an analogue of LLC;
- SA is an analogue of JSC.
To register SRL in Romania you need:
- 1-50 founders;
- an authorized capital about 50 euros, but to increase the chance of opening a bank account in Romanian bank, you need to think about a larger amount;
- a company must also have its own legal address;
- a mandatory submission of financial reporting.
Registering a Romanian SA requires a minimum of 2 founders (individuals or legal entities). A registered capital is from 4,620 euros. A financing through bonds (or other financial instruments) is possible. It is possible to bring such a company to the stock market. It should also be noted, that it is possible to establish a company in Romania remotely.
We have prepared three best offers to open a corporate account in Romania:
- Libra Internet Bank. A Commercial Bank, founded in 1996 in Bucharest. It is a settlement agent of the Financial Investment Services (SSIF), an intermediary in the secondary government securities market, a depository for an investment fund, a member of the Romanian Banking Association since February 1998. Opening a corporate account for a company in Libra Internet Bank (Romania) will cost 2100 euros (for support of a company, registered in the EU) or 3100 euros (for LP support).
- Garanti Bank (Romania). The bank began operating in 1998, has a strong infrastructure throughout Romania and is owned by Turkiye Garanti Bankasi AS (TGB), Turkey's second largest bank. In 2012, the bank was recognized for its innovations, that distinguish it from other financial institutions. For the same and other reasons, he was repeatedly awarded. Opening a corporate account for a company in Garanti Bank (Romania) will cost 2100 euros (for support of a company, registered in the EU) or 3100 euros (for LP support).
- Banca Transilvania (Bank of Transylvania). It was founded in 1993 in the city of Cluj-Napoca, Romania. Today, the bank has about 1,8 million customers, which are served by about 6 thousand employees. It is the 3rd largest bank in Romania. Recognized as a “reliable brand”, as it did not suffer from the financial crisis in 2014. The bank opens accounts for local companies. It is also possible to open a corporate account for a company in Banca Transilvania (Romania) remotely. The cost of supporting the opening of an account for a company in Romania is 900 euros.
Registering a Romanian enterprise
IQD Consulting is ready to provide detailed advice on the subject of this article, to assist in registering a company in Romania, as well as to accompany at all stages of opening an account with a Romanian bank.