Romania company registration

Romania company registration

DOING BUSINESS IN ROMANIA

For over a decade, Healy Consultants has been efficiently and effectively assisting our Clients with i) Romania business registration ii) business licensing iii) Romania business banking solutions iv) visa options and staff recruitment strategies and v) workspace rental solutions.

Romania is a former Soviet country, which struggled immensely in transition, but since 2000, it has regularly been one of Europe’s fastest growing economies. Romania has had strong growth due to a wealth of natural reserves fueling heavy industry and good investment in infrastructure providing for the financial sector.

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  • Advantages and disadvantages

    Advantages of Romania company registration

      business registration regulations in Romania
    1. It is easy to set up a business in Romania:

      • A Romanian limited liability company can be registered within 2 weeks, with only 1 director and 1 shareholder, who can be of any nationality;
      • The minimum paid up capital required is only €45, and our Client does not need to travel to complete corporate bank account opening and company registration;
      • Opening global corporate bank accounts to assist Romania company registration is easy. Healy Consultants works with internationally recognised banks, such as Citibank, to provide corporate bank account services.
    2. Romania is a developing economy which offers the following advantages:
      • Romania currently has a GDP of US$178 billion and is growing at a steady rate of 4.2% year on year. Private consumption and high investment rates of 24.7% of GDP (highest in the EU) are the key drivers of this growth;
      • Romania has a growing export sector. Its top export industries are i) vehicle parts, ii) insulated wire, iii) cars, iv) refined petroleum and v) wheat;
      • Due to its EU market, a Romanian company will allow our Clients i) access to a massive consumer base of 509 million people ii) free movement of goods and labour and iii) absence of withholding taxes on goods sold within the EU;
      • Additionally, the country’s strategic location in Eastern Europe allows our Clients access to Russia’s market of 144 million people. Furthermore, a collaboration agreement between Romania’s and Russia’s Chamber of Commerce and Industry was signed in 2008 to bolster trade between two countries;
      • Labour costs in Romania are low. The average hourly labour cost is €6, which is the second lowest figure amongst EU Member states;
      • Romania has considerable reserves of iron ore, tungsten, and especially, coal, with over 34 million tonnes being mined annually, making Romania an attractive location for the mining industry.
    3. Our Clients, setting up a Romania company also enjoys other benefits including:
      • The corporate tax rate in Romania is relatively low at only 16%;
      • Romania is part of the Single Euro Payments Area (SEPA) where over 20 million businesses can make fast and secured transfer between banks in the Euro zone;
      • Romania is positively ranked as the 36th in ease of doing business by the World Bank in their annual Doing Business survey.

    Disadvantages of Romania company registration

    1. The official language in Romania is Romanian. Only a small fraction of people in Romania speak English. English speaking businessman may face communication barriers;
    2. Romania is negatively ranked as the 62nd most competitive economy in the world in the Global Competitiveness Report 2016 – 2017;
    3. Romania is negatively ranked as the 58th least corrupt country in the world, according to the 2015 Corruption Perceptions Index by Transparency International, a global measure of inhibiting corruption amongst public officials and politicians.

Company registration

  • Time to incorporate: Two weeks
  • Cost to set up: €8,820
  • Minimum capital: €50
  • Physical office required: No

Required appointments

  • Shareholders: 1
  • Directors: 1
  • Company secretary: No
  • Resident director: No

Key facts

  • Corporate tax rate: 16%
  • Corporate tax base: Territorial
  • Shelf companies: No
  • Main company type: S.R.L.

Contact us

For additional information on our business registration services in Romania, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Karen Lee, directly:
client relationship officer - Karen