REGISTRATION OF A BUSINESS (FIRM) IN ROMUNIA

BUSINESS REGISTRATION AND SUPPORT IN ROMANIA

Due to the full-scale invasion of Russia into Ukraine, businesses have to adapt to new realities, including considering the issue of opening or transferring business to European countries, in particular to Romania. Why Romania? The lawyers of Prikhodko and Partners have a well-founded answer. Above all, this country has had one of the highest rates of registration of representative offices, branches or new companies by Ukrainians. In addition, a large number of Ukrainians have migrated to Romania (as of May 29, almost 1 million people).

Why Romania is one of the best business solutions in Europe?

• Convenience of logistics and transportation through the northern border with Ukraine
• Favorable tax system
• Clear and simple organizational form of doing business
• Entering the EU market

The main advantages of creating a business directly include the quick process of company registration, ease of compliance when opening an account, as well as when making payments, and the absence of currency controls for operations in euros and dollars.

In addition, tax conditions are of particular interest to any business. Romania has the most attractive tax regime in the EU for small businesses – companies with a turnover of up to 1 million euros per year. In this case, the corporate income tax will be: 1% of the turnover for an enterprise with one or more employees; 3% of turnover for a company that does not have employees. The standard corporate income tax rate is 16%. VAT – 19% with the possibility of applying reduced rates of 9% and 5% for restaurant, tourism, medical and other types of business. Tax on dividends for individuals is one of the lowest in Europe – 5%, including for non-residents. The obligation to register as a VAT payer arises when the threshold of 300,000 RON is exceeded, which is roughly equivalent to 62,000 EUR. Romania is a party to more than 80 agreements on the avoidance of double taxation, including with Ukraine since 1996.

The most common organizational form of doing business in Romania is a limited liability company – SRL (Societate cu Raspundere Limitata), an analogue of a Ukrainian LLC. Analogues of the self-employed person and the individual entrepreneur (FOP in Ukraine) are not popular in Romania, as they cannot take advantage of the preferential tax regime of 1/3%.

Romania has been a member of the EU since 2007 and therefore, opening a business in this country, you get free access to the market of European countries with their 450 million consumers. At the same time, the cost of skilled labor in Romania is one of the most affordable in Europe.

CONCLUSION

Summing up, it is safe to say that Romania is one of the most attractive European jurisdictions for Ukrainian business today, given its geographical proximity, logistics and favorable taxation.

This is especially true for small businesses, IT companies and trading companies that plan to enter the EU markets.

Registering a business in Romania gives you the following advantages

• Cancellation of requirements for minimum authorized capital from 2020.
• The possibility of registering a company remotely using a notarized power of attorney, including a foreign one with an apostille.
• Guaranteed opening of a bank account in a European bank in local currency RON, Euro and USD.
• The director of the company can be a non-resident natural person, without the need to obtain an additional work permit.
• Possibility of issuing a European residence permit for the director or employees.

How to register a business in Romania, what you need to know about how to start a business, what taxes and what nuances arise when creating or transferring a business to Romania – these are exactly the questions to which the lawyers of Prihodko and Partners Law Firm clearly know the answers and are ready to provide them to you . For 5 years, our company has been supporting international companies, including those located on the territory of Romania.