This guide provides key steps and requirements for registering a company in Romania, along with valuable tips to help you set your business up for success.

Are you considering expanding your business to European markets? Or perhaps you're looking to start a brand new venture in a fast-growing and largely untapped business environment? Romania has become an attractive destination for entrepreneurs and investors alike, with its competitive tax rates, strong workforce, and strategic location. In this comprehensive guide, we will walk you through the key steps and requirements for registering a company in Romania, offering valuable tips to help you navigate the process and set your business up for success.

Choosing the right type of company

Before you can begin the registration process, it's crucial to decide on the right legal entity for your business. In Romania, the most common types of companies are the Limited Liability Company (SRL), the Joint Stock Company (SA), and the Branch or Representative Office. The SRL is the most popular choice for small and medium-sized businesses, as it offers limited liability for shareholders while requiring a minimum share capital of only 200 RON (approximately 45 EUR). The SA, on the other hand, might be a better choice for larger enterprises, with a minimum share capital of 90,000 RON (around 19,000 EUR).

Preparing the necessary documentation

Once you've decided on the most suitable legal entity for your business, the next step is to gather and prepare the necessary documentation. At a minimum, you'll need to provide the following items:

Articles of Association, which outline the company's rules and regulations

Proof of share capital, such as a bank deposit slip or confirmation letter

Identification documents for all shareholders and directors

Proof of a registered office, which can be either a rental agreement or ownership deed for the chosen property

A fiscal record certificate for Romanian companies (if any of the shareholders already have businesses in Romania)

Registering with the Trade Registry

After compiling all the required documents, you can move forward with registering the company at the Trade Registry. You'll need to submit all of the above-mentioned documentation, along with a registration form and the required registration fees. The fees can vary depending on the type of company, but for reference, an SRL usually costs around 460 RON (approximately 100 EUR), while an SA costs around 1,700 RON (around 360 EUR).

Obtaining a unique registration code (CUI)

Once your company has been registered with the Trade Registry, you will be issued a Unique Registration Code (Cod Unic de Înregistrare or CUI). This serves as your company's tax identification number and is required for all official documentation and interactions with Romanian authorities. With the CUI in hand, you should open a bank account for your newly registered business.

Registering for VAT, labor, and other relevant authorities

Depending on the nature and size of your business, you may also need to register with various other authorities. For example, if you plan to employ staff, you must register with the appropriate labor authorities. Additionally, if your business is expected to generate a turnover exceeding 300,000 RON (approximately 64,000 EUR) in a year, you will need to register for Value Added Tax (VAT). Each registration process can differ, so it's essential to research and identify the specific requirements applicable to your company.

Conclusion

Registering a company in Romania can be a rewarding and beneficial move for entrepreneurs looking to expand or establish a presence in Europe. By following the steps detailed in this guide, you will be well on your way to setting up a legally compliant business in a thriving economic environment. Take the time to research and understand each of the steps fully, and seek the advice of local experts if necessary, to ensure a seamless registration process and lay the foundations for a successful business venture in Romania.