Romania had become one of the most wanted country to have a company in, at least on this continent 🙂 That is because of the small taxes and easy incorporation process that Romanian Government has developed and implemented in the past few years.
Even if now we are living in a strange period of time, Romanian Government has made everything easier in order for the investors to open a company from abroad. This makes the first advantage, easier steps to incorporate a company:
- You now have the possibility to open a Limited Liability Company (L.L.C. / Ltd.) even if you don’t want to travel to Romania during this time;
- All the incorporation steps and procedures can be made online and the company can be incorporated in one week after we submit the documents to Trade Registry;
- We can help you incorporate the company from a distance by preparing all the documents that are necessary for the company incorporation and guiding you through all the process, until you receive the final documents of registration.
In order to open a company, you will need to have a minimum 50 euro share capital, which is a small amount of share capital comparing to other countries. This share capital can be deposited to any Bank you choose in Romania. The share capital account can be opened with a Power of Attorney, so this also doesn’t require your physical presence in the country.
For a Limited Liability Company the fiscal taxes in Romania had become very small, for example:
- If your company has one or more employees the fiscal tax is 1% of the company’s income and
- If the company doesn’t have any employee, the fiscal tax is 3% of the company’s income.
This taxes can be applied for a long period of time, more exactly until the Company makes a total income of 1.000.000 Euro in one year. After this fiscal value is exceeded in one year time, a corporate fiscal tax will be applied in value of 16% of the company’s profit.
Also, the Value Added Tax (V.A.T.) that in Romania is 16% doesn’t have to be paid by the companies that didn’t reach a limit of 88.500 Euro in a period of one year (or 300.000 lei – this amount is calculated based on the Euro/Lei exchange value from the time Romania has joined the European Union). Even if your company’s income is reaching this limit of income but this is collected in more than one year time, then your company will not have to pay the V.A.T. tax to the fiscal authorities.
For most of the investors that decide to incorporate a company in Romania, the most important advantage that determines them to invest in a Romanian company or even start a business in Romania, is the small amount of the fiscal taxes that they have to pay to the Romanian authorities.
Another reason and advantage would be that you can authorise activities that can be provided by your company to third parties. Meaning that you can have the Headquarters of the company in Romania but you can work remotely, anytime and for any client, even outside of Romania.
The Head Office of the company can be established to a Lawyer’s office for a period of one year, this means that your company can legally have the Headquarters in Romania, even if you decide to work from another country.
Let us know if you have any questions about the Romanian company incorporation and we will be happy to answer 🙂