Anyone who wishes to start a business in Romania will need to go through a number of steps, which will take both time and investment of money. When it comes to how easy this process is, Romania ranks 62 out of 190 countries according to a Report made by the World Bank called ‘Doing Business.’ Below are the six basic steps which are necessary to open an LLC-type business in Romania, as listed by the WB report.
Verifying and reserving of Company Name
To reserve a company name, you need to contact the Commercial Registry Office (ONRC). The application is checked so that company names are protected on a national level. The company name must not include words such as”științific”, ”academie”, ”academic”, ”școală”, ”școlar”,”universitate”, ”universitar”, or any of their derivatives.
Names including words such as ”național”, ”român”, ”institut” or their derivatives require approval from the General Secretariat of the Government or the Prefect. A certificate giving such approval is only valid for a period of 3 months.
Depositing Funds and Obtaining Confirmation
The deposit can be made at any bank branch. The company’s administrator or an authorized person should give certified copies of the following documents:
- Name availability certificate
- Articles of Incorporation
- Proof of the registered offices
- Power of attorney (if applicable).
Upon receipt, the documents will be reviewed by a bank’s representative and the deposit will be granted. The company’s administrator or authorized person will receive documentation confirming sufficient funds have been deposited. Note, the bank may charge a commission.
Registering at the Commercial Registry
Before registering at the Commercial Registry, the company‘s administrator will need the articles of incorporation. Within 15 days of receiving them, they must register the company at the trade register in the area of the company’s registered office. This process will be conducted within 3 days from the application. Currently, the World Bank reports the total cost of this to be 585.RON. However, Law 1/2017 has recently reduced the number of taxes and fees due, so it is now free of charge.
Acquiring the Unique Registry for Controls
By law, all legal entities registered in the Trade Registry are obliged to purchase a Registry for Controls from the National Agency of Tax Administration (ANAF) for their seats. This must be done within 30 days of the company being registered at the Trade Registry, otherwise, the company may be subject to penalties. It costs RON 31 and can be purchased on the same day with no previous application required. The Registry is used to document all inspections, including financial, urban planning, consumer protection, labor, fire protection.
Registering for VAT
The registration for VAT purposes is carried out at the ANAF territorial office and is free of charge.
Online Registration of the Employees Contracts with the Territorial Labour Inspectorate
Every employer must complete an electronic internal general register record for all employees. It should be sent to the Territorial Labour Inspectorate in the area the employer has its registered office. The registration of the employees’ labor contract may be completed online after the employer has received a password for the online registry form at the Territorial Labour inspectorate.