Setting up a company in Romania is not a difficult venture and can be done with or without the help of a corporate lawyer. However, company formation in Romania is a procedure in which costly mistakes can be made.
Here is a short guide on what to take into consideration when incorporating a company in this country.
Types of companies that can be set up in Romania
The Romanian law allows multiple types of companies to be set up in Romania, among which the most common are limited liability companies and joint stock companies. Law no. 31/1990 regulates both these types of companies.
Who can be a shareholder in a Romanian company
Both individuals and legal entities can act as shareholders in Romanian companies. Furthermore, foreigners do not have to meet any special requirements related to company formation in Romania.
Especially relevant in this matter are the general requirements for shareholders that are provisioned by Law no. 31/1990. Under this regulation, shareholders of a Romanian company must not have been convicted for tax evasion, money laundering, bribery, forgery and different types of fraud.
A limited liability company can be owned by 1 to 50 shareholders. A joint stock company is required to have at least 2 shareholders.
Furthermore, even if a limited liability company is allowed to have only one shareholder, this particular shareholder can only be sole shareholder in one such company.
Legal requirements for company formation in Romania
All companies must have a physical address for their headquarters and share capital deposited in a bank account.
Having a registered office or headquarters is required for all new companies and the only way to avoid this requirement is to have the company office virtually established at a lawyer’s office. However, this solution is only temporary as it is only allowed for up to one year after company formation.
As for the share capital, this has to meet the meet the minimal legal requirement of 200 RON (aprox. 45 Euros) for limited liability companies or 90.000 RON (aprox. 25.000 Euros) for joint stock companies. For limited liability companies, this amount of money has to be deposited in a bank.
Apart from the documents concerning the shareholder requirements, all that is needed are the company statutes.
How long does it take to set up a company in Romania
The short answer to this question is 3 business days. This is how long company formation in Romania should take.
However, the countdown for those three days starts when all the documents for incorporation are registered with the Romanian Trade Registry.
If you need more information about this subject, you can contact us at any time.