Question: What do I need to do in order to open a representative office in Romania? And what are the characteristics of this type of company?
Answer: Foreign companies are allowed to open representative offices in Romania, according to the specifications of Decree – Law No.122/1990. These entities are not allowed to conduct commercial activities on their behalf, but they have the right to market and oversee the trade of their mother companies.
The decision to open a representative office Romania is connected in a mutually dependent manner to profound understanding of its general profile. With its position of agent for an overseas body, it cannot produce revenues in local money. It is necessary for the office to open a RON bank account, which is funded only by its foreign currency account in order to imbrue in local currency.
Setting up a representative office in Romania, with the approval of the Ministry of Industry and Commerce and with the Department of Foreign Trade, is a manageable process. The license must be renewed yearly.
If the registration doesn’t take place in the first quarter of the opening year, the annual fee is prorated correspondingly. If a representative office stands for more than one foreign company, a supplementary fee of 10% must be disbursed for each of the represented businesses.
Question: What are the necessary documents for opening a representative office in Romania and how long does the registration process take?
Answer: The necessary papers needed in order to open representative office Romania are the following:
- the official document confirming the legal existence, the activity and the capital of the mother company;
- a good standing certificate from the bank used by the mother-company for financial transactions;
- a certified copy of the statute of the company indicating the specific type of the business entity;
- the official power of attorney document for the director of the representative office released by the mother company and certified by a notary.
The above mentioned documents together with the certified translations and the tenancy agreement contract (where the registered office will be listed) must be submitted to the registry of the Ministry of Economy when deciding to set up representative office.
It has to be submitted a certificate as well, issued by the National Agency for Fiscal Administration (ANAF), The General Directorate of Public Finances - the Department for Foreign Missions and Embassies, certificate which confirms that the business operating fee was paid.
The operating permit should be issued in 30 days after submitting all documents.
When choosing to incorporate Romanian representative offices, clients must know that a minimum taxation is applied to the majority of the representative offices because their individual " revenue " is considered as support, provided by the mother company.
Do not let any legal matters stand in the way of opening or expanding your business. Our lawyers in Bucharest are here to help and make the incorporation process of a representative office hassle-free. Call us now for free consultation!