Why set up an LLC (Limited Liability Company) in Romania


Romania, a southeastern European country and a full member of the European Union (EU), is one of the most attractive countries for doing business. It is confirmed as the fastest-growing economy in the EU, with a GDP of $186.7 billion and growth rate of 5.5%. The country offers strategic location, corporate benefits, good communication networks, tax incentives and skilled workforce, all culminating in an excellent and healthy environment most suitable for business growth.

Among the types of commercial companies that may be established and operated in Romania, is the Limited Liability Company (LLC). An LLC is one of the two most frequently used types of companies in the country and this is due to the fact that setting up one has become a straight forward process resulting from the reforms of the past years. Also, it offers a vast amount of advantages and benefits to its owners, managers and partners.

A limited liability company limits the liability of its shareholders while at the same time adding to them some tax benefits and avoiding some restrictions associated with such corporations. It can be set up by a sole shareholder (either a natural or a legal person, Romanian or foreign) or by several, to a maximum of 50 shareholders. The minimum share capital in LLC is 200RON (approximately 50 Euro) and is divided into social parts that cannot have value lesser than 10RON (around 2 Euros).

Governed by a law called a “Societate Cu Raspundere Limitata” (S.R.L), total foreigner ownership is allowed of a limited liability company. This means that foreign investors are given the same treatment as their Romanian counterparts under the law, with equal rights to start a business and form a legal entity.

Another benefit of setting up an LLC in Romania is that taxes and other expenses necessary for incorporating it are very low. This ultimately results in more returns and profits for the investors and shareholders in the company.

Regarding set up time, one can expect the registration process of a Romanian LLC to be completed in 3 work days and incorporated in a maximum of 7 business days from the moment all the documents required from the investors are transferred to the Romanian professional incorporating the company.

For a limited liability company in Romania, the liabilities of shareholders are limited to their subscribed capital contributions. This way, no shareholder will incur more loss than the other, with respect to their level of investments in the company. Also, LLC’s can have one director or more if desired.

Concerning privacy, shareholders enjoy freedom from the observation, intrusion, or attention of the public, as their names do not appear in public records.

One other important benefit of setting up a limited liability company in Romania is due to the fact that the country is a full member of the European Union (EU). This factor undoubtedly comes with many attached benefits.

Considering all these benefits, it will only be a smart and very profitable move to set up an LLC in Romania.