With its EU membership, Romania has opened itself for foreign trade, ICT sector which offers over 150 000 skilled workers, growing private sector, and developed banking systems. The standard corporate tax is 16%. However, for micro-companies can enjoy 1% tax up to 1 million turnover a year.
Requirements for new companies:
- Share capital required for SRL is 200 LEI (50 euro) and between 1 and 50 shareholders.
- Share capital required for SA is ca. 25 000 euro, 30% has to be paid up (at least)
- SA must have 5 shareholders and 1 director
- Shareholders must be Romanians or foreign nationals
- Sharholders and Directors cannot be have a criminal record
Company formation step by step in Romania
1. company name reservation in the trade register. Certain names are prohibited and most short names unavailable.
2. Bank account opening, deposit of share capital, confirmation of paid-in capital.
3. The company administrator or an authorized person must provide a certified copy of:
- Name reservation certificate.
- Shareholders details
- Corporate address, proof.
- Power of attorney (If delivered by another person)
- After bank approval the deposit is authorized. The bank can ask for a commission of 0.5% of the capital, depending on the banks. The minimum capital is RON 200.
4. Delivery of all the documents in the commercial register. The duration of the procedure is one week from the moment all the certificates are delivered. A certificate is delivered confirming the establishment of the entity, the tax registration, the finance ministry code and the publication of the constitution in the official state Gazette.
ICT & tech sector companies
International trade Administration (trade.gov) reports thaht Romania’s IT market is one of the fastest growing markets in Central and Eastern Europe forecasted to grow at a rate 3.1% over 2017-2021, reaching a value of RON 9.9 billion ($2.47 billion) in 2021.
Half of the total revenues ($2.9 billion) came from big tech companies with over 250 employees followed by small companies (up to 50 employees) that contribute with $2.2 billion, and mid-market companies (50-249 employees) which bring $1.3 billion.
The countries’ center point for IT development is Bucharest as this is a mega sity in Romania, holding 63% of revenues over other regions.
Cybersecurity is also a key component of the ICT sector in Romania.