Registration of enterprises abroad gives business owners a number of obvious advantages (reduced tax burden, current legislation more loyal to entrepreneurs, etc.). But the opening of the company in the well-known offshore zones due to the cost of this procedure and the complexity of the attendant factors is not available to all businessmen.
For people who do not have this opportunity (or who wish to register a company closer to their country of residence), financial experts recommend paying attention to Romania.
The main sector of the economy of this country is agrarian-industrial. In terms of economic development indicators, Romania is inferior to the rest of the European Union. But in comparison with the countries of the post-Soviet space, the welfare of Romania is at a completely different, higher level.
The growth of the Romanian economy was due to the introduction of effective reforms in the recent past, which provoked the so-called “Romanian breakthrough” and turned Romania from a poor backward country into a country with a rapidly developing economy.
The list of forms of business activities that are beneficial to the choice of foreign investors
Currently, for non-residents of Romania, the most profitable options for forms of doing business are the following types:
- Joint-Stock Company.
- Limited company.
The above legal forms today are the most profitable options for investing.
Key Aspects of Opening a Limited Company
- This type of enterprise is a separate legal entity.
- Both local residents and foreigners who are not under Romanian jurisdiction are allowed to establish enterprises. Also, a company can be registered both a legal entity and an individual.
- Directors elected by members of the governing board. Both resident and non-resident are allowed to be appointed to this position.
- The company can register corporate bank accounts with foreign financial institutions.
- In order to conduct financial and business activities, a firm, according to the current legislation, is obliged to open an office in Romania. Confirmation of the acquisition of the legal address is a contract for renting office space, signed with its actual owner.
- Romanian legislation requires companies registered in its territory to submit a report to the tax office every quarter. Reporting includes the following information: payments for deliveries, assets, liabilities of an enterprise, payments made for certain financial transactions, etc.
- The establishment of a limited liability company in Romania does not require the presence of several participants. Perform this operation can only natural or legal person. The current limit on the maximum number of participating objects is not more than 50. If the number of 15 persons is exceeded, the company is obliged to register the service responsible for controlling their interests.
- The boundaries of shareholder liability coincide with the size of the share capital. Each individual shareholder is liable within the price of its percentage part included in the declared share capital.
- The size of the authorized capital for enterprises of this type is from 200 Romanian lei. Smaller size is prohibited by the provisions of the current legislation of Romania. The share of shareholders is divided into separate securities. Their registered price is from 10 Romanian lei. During the opening of a company in Romania, full payment of the authorized share capital is required.
- Local companies pay income taxes in the amount of 16% of their income. For small companies, the current legislation prescribes a tax of 3%.
- Value Added Tax – 24%. Benefits are provided for medical goods, print media, literary products, hotel business and constitute 9%. VAT for building materials is 5%.
If you want to enter the European Union market with minimal financial costs, and provide the company with protection and support from the law – register a company in Romania. This country is a profitable option that will serve as a further springboard for the international development of your company in the future. Our lawyers will prepare the necessary papers, provide you with full support at all stages of registration and further support. For advice on issues of interest, please contact our expert department at the contacts listed on the site.