Company in Romania
Nowadays, Romania is one of the most attractive countries in terms of economics and international investments. Most comfortable conditions are created therein for development, stable work of companies. The country has loyal legislation and attracts foreign investors under favorable terms. There is no offshore zone in Romania as it is understood. At the same time, every foreign entrepreneur has the chance for substantial benefits from the state.
Types of Companies
In Romania, all companies choose the type of legal corporate form at registration as follow:
- LLC or SRL. This option is the most demanded where the size of the least share capital is only 60 Euro. The company should consist of 1 to 50 shareholders whose liability directly depends on the amount of contribution;
- Joint-stock company. Mandatory conditions include the authorized stock capital sized at least 25 000 Euro, as well as at least 2 shareholders;
- Partnership. There is no binding minimum amount of stock capital for this type of company. The only requirement is presence of 2 partners with unlimited liability;
- JSC without restrictions on volume of liability. Conditions to open such a company are absolutely identical to those to open partnerships.
SRL (LLC) in details
This form of doing business in this European country is the most common. A SRL may be registered even by a sole shareholder, while the maximum number of them is 50. With the number of members over 15, the special supervisory body is created. As for the authorized stock capital, it is paid in full at the registration of the company.
In addition, each company should have a legal address in Romania. This is not a problem for experts from the Private Financial Services. For this purpose, the office is leased or the nominee representative with the personal real estate is outsourced. We should also remember of reporting every quarter.
The amount of income tax in this country is 16% with VAT equal to 24%. Only small businesses can rely on tax benefits. These include companies with an annual income of not more than 100 thousand Euros, and the number of staff not exceeding 9 people. In this case, the amount of income tax shall be only 3%. Only companies operating in trading, production of goods, provision of certain types of services can get the status of a “small business”.
ADVANTAGES OF JURISDICTION
For most investors, Romania is one of the best places to do business. This is due to the following:
- stable economic environment;
- loyal legislation;
- availability of benefits subject to certain conditions;
- governmental support;
- affordable cost to open a company;
- double taxation agreement. It is valid with more than 70 countries.