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Oversea businesses are enabled to open subsidiary administrative centers in Romania, according with the specifications of Decree – Law No.122/1990. They cannot perform commercial activities on their behalf but they have the right to market and oversee the trade of their mother companies. A representative office in Romania, with its position of agent for an overseas body, cannot produce revenues in local money. It is necessary that the office opens a RON bank account, which is funded only by its foreign currency account in order to imbrues 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 simple thing. The license must be renewed yearly against payment of the corresponding fee. 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 every one of the represented business.
A minimum taxation is applied to the majority of the representative offices because their individual " revenue " is their support by the mother company. Starting with January 1st, 1997, representative offices have to keep constitutional accounts in accordance with the legislation that applies to companies.
For any further details or information please do not hesitate to contact us.
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