Setting Up a Joint Stock Company in Romania – General Information
Romania is a southeastern European country and a full member of the European Union (EU). It is confirmed as the fastest-growing economy in the EU, with a GDP of $186.7 billion and a growth rate of 5.5%, thus becoming one of the most attractive countries for doing business. The country (which ranked 45 on World Bank’s Ease of Doing Business survey, 2018 – out of a possible 190) offers corporate benefits, strategic location, good communication networks, R&D incentives, tax incentives, and skilled workforce. All these culminate in an excellent and healthy environment that facilitates business growth and sustainability.
Among the types of commercial companies that may be established and operated in Romania, is the Joint Stock Company. A joint stock company is one of the two most frequently used types of companies in the country and this is due to the ease with which one can be set up. Also, this is as a result of the vast amount of advantages and benefits it offers to its owners and shareholders.
A joint stock company is a limited liability company with a registered capital of a minimum of 90,000RON (the equivalent of around 20,000 Euro) and is divided into shares having a minimum value of 0.1RON. It has a minimum of two shareholders. The registration procedure for setting up a joint stock company is similar to that of an LLC, with few particularities for each type of company.
Governed by a law called a “”Societate Pe Actiuni” (S.A), foreigners are allowed to own up to 100% of the company’s shares, under joint stock companies. This means that foreign investors are given the same treatment as their Romanian counterparts under the law, with equal rights to have complete ownership of the entire business.
Stocks have an equal nominal value resulting in equal rights for owners. They are also negotiable as they incorporate patrimonial value. Therefore, they are considered securities of bonds and can be traded on regular markets.
For a joint stock 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, for a joint stock company, only a minimum of one director is required.
Setting up a joint stock company in Romania is a very fast and straightforward process, as registration can be completed within three business days. This helps to save time and avoid unnecessary delays in kick-starting operations in the company.
One more vital benefit of setting up a joint stock company in Romania is due to the fact that the country is a full member of the European Union (EU). This factor without any doubt comes with many attached benefits.
So, for those with big businesses and very important investments, setting up a joint stock company in Romania is one significant step you will want to take in obtaining the best regarding your business.