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Four Ways To Set Up Business in Romania

  1. You can set up a new trading company, a Romanian legal entity

 

It will operate based on cooperation, association agreements and so on with foreign companies. It may have only foreign associates.
The legal status of the company may be:
Limited partnerships: minimum 1 associate, €50 minimum capital;
Joint-stock companies: minimum 2 associates, €25,000 minimum capital;
European company: to be set up according to EC Regulation No. 2157/2001 and Law No. 31/1990 – within the terms of trading companies.
Unlike the other types of trading companies that may be set up in Romania, this is the only entity that can transfer (shift) its head office to another member state.

 

  1. You can set up a subsidiary of a foreign trading company

 

The subsidiary is an agent of the parent company and can be set up only if the statute of the foreign company allows it.
It doesn’t have its own legal entity or a capital distinct from that of the parent company. The parent company establishes the scope of the business for the subsidiary, the assets that are assigned to the activity thereof, the organization and operating mode etc according to the Association Articles of the subsidiary.
As it doesn’t have a distinct capital, the subsidiary can’t have its own creditors and debtors and can enter into commercial relations only on behalf of the parent company.
Its relative independence derives from the fact that it may sell assets, carry out work or provide services from the equity granted by the parent company.
The subsidiary can be sued for the operations performed in the country of residence.
The accounts should be kept in Romania although the subsidiary will be an entity without legal status. It will be a tax payer for the profit assigned by the parent company to the subsidiary.
Note: non-resident companies have the legal capacity of acquiring the title to land in Romania. The procurement of land is allowed only to the extent necessary to carry out the business of the company.
 

 

  1. You can open a branch of a foreign company in Romania

 

You can open a branch of a foreign company in Romania if the statute of the foreign company allows this.
Characteristics:
The branch has legal status, its own capital and management bodies, as well as operative independence established in the Association Articles, but it is subject to the control of the parent company.
As it has its own capital, it may act in the commercial relations on its own behalf and on account of itself.
It is considered an entity resident in Romania so it elaborates its own financial documents and presents them to the tax bodies in Romania. Provisions regarding the avoidance of double taxation are applied where appropriate.
It may be set up with capital from the parent company alone or together with another contribution.
The share capital of the branch is subscribed and paid by the founding parent company.
The branch’s scope of the business can’t exceed the limits of that of the parent company.
Note: The Romanian companies with partial or even full foreign participation have the legal capacity of acquiring the title to land in Romania. The procurement of land is allowed only to the extent necessary to carry out the business of the company.

 

  1. You may open a commercial representative office in Romania (which is currently referred to as an “agency”)

 

You can open a commercial representative office even if it is not the appropriate formula to the type of activity you intend to carry out. It applies very well to foreign trade, tourism and press agencies.
Characteristics
The representative office is a secondary seat of the parent company: it doesn’t have its own legal status nor does have a distinct capital. It can only represent the parent company to its partners in Romania. The parent company assigns assets to it.
The representative office will perform only the authorized activities and legal deeds, keeping the legal provisions in Romania.
The financial-banking operations of the representative office are made via accounts opened with the Romanian banks.
The staff of the representative office is employed by the parent company and can be made up of Romanian or foreign citizens.

 

If you are interested to set up your business in Romania, please get in touch with us. We have a dedicated team in Bucharest, Iulia and Cozmina, willing to assist you all the way and make sure you avoid time and cost challenges. You can read more about Iulia and Coszmina by visiting our “About” page.

The post Four Ways To Set Up Business in Romania appeared first on BRC.



This post first appeared on Blog Archives - BRC, please read the originial post: here

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