Any investor wishing to open a business in Romania will have to undergo a number of steps, with some investment of money, but especially of time in the process. When it comes to how easy this is, Romania ranks 62 out of 190 countries in a Report made by the World Bank, under the name of ‘Doing Business.’ Here are the six basic steps necessary to open a LLC-type firm in our country, as listed by the WB report.
1 day, RON 72
The reservation of a company name is conducted at the Commercial Registry Office (ONRC) by application and is checked and made at national level so that company names are protected at national level as well. A company name shall not include words like: ”științific”, ”academie”, ”academic”, ”universitate”, ”universitar”, ”școală”, ”școlar” or their derivatives.
- A company name including words like ”național”, ”român”, ”institut” or their derivatives or words or phrases characteristic of the central or local public institutions or authorities may be used only with the approval of the General Secretariat of the Government or the Prefect. Such certificate is valid for a period of 3 months.
This is achieved at any bank branch. The company's administrator or an authorized person must deliver certified copies of: the name availability certificate, Articles of Incorporation, proof of the registered offices and the power of attorney (if applicable). After the documents are being reviewed by a bank's representative, the deposit is granted and the administrator/authorized person will receive a document confirming the deposit of sufficient funds. The bank may charge the solicitants a commission.
In order to register at the Commercial Registry, the founders of the company need the articles of incorporation. Within 15 days from the establishment of the articles of incorporation, the founders or their mandates shall be under the obligation to register the company at the trade register in the area of the company's registered office. The registration is conducted within 3 days from submitting the application. At the moment when the World Bank made the Report, the total cost of the operation was 585.RON. However, Law 1/2017 has cut a number of taxes and fees, so this operation is now free of charge.
According to the law, all legal entities registered in the Trade Registry have the obligation to purchase such a Registry from the National Agency of Tax Administration (ANAF) for each of their seats. The Registry must be purchased within 30 days after the company is registered at the Trade Registry, at a cost of RON 31. If not, the company may be subject to penalties. The registry can be purchased the same day with no previous application requested, from the local offices of the Tax Administration. The Registry is used to record all inspections carried out by different control bodies: financial, consumer protection, urban planning, labor, fire protection etc.
The registration for VAT purposes is done free of charge, also at the ANAF territorial office.
Each employer must settle an internal general register record of all of his employees, in electronic format, which shall be transmitted to the Territorial Labour Inspectorate in the jurisdiction the employer has its registered office or domicile. The registration of the employees' labor contract can be done online, after a representative of the employer obtains a password for operating the online registry from the Territorial Labour inspectorate.