An overseas corporation can conveniently conduct their business in Romania via a subsidiary. The subsidiary has a legal personality and it is regarded as a Romanian entity. According to the Law No.31/1990, a Romanian subsidiary of a foreign company has a Romanian legal personality and, consequently, it is subject to Romanian laws. It is liable, on its own behalf, for the actions taken. It is accountable for the actions taken. The Romanian subsidiary has its own patrimony and bank account.

In practice, in order to open subsidiary Romania, you have to follow the same steps as those described for the registration of a company, i.e. notarizing the statutes and registering the subsidiary with the National Trade Register Office. The formation of a subsidiary must comply with the minimum capital requirements under the Romanian Company Law. In order to incorporate Romanian subsidiary you must comply with the minimum capital requirements under the Romanian Company Law no.31/1990.