Is it profitable to open a business in Romania in 2022
There are many advantages to opening a business in Romania in 2022. The country is part of the EU, which automatically opens up access to the EU market. There are low taxes, low cost of living, and qualified personnel. A favorable geographical location opens the gateway to the Middle East and the Black Sea. In recent years, the country has become a magnet for startups, especially cities such as Bucharest and Cluj-Napoca.
Taxes in Romania
The standard corporate tax rate in Romania is 16%, one of the lowest in Europe. The rate affects businesses whose maximum revenue is more than €1 million.
Small businesses whose profits are no more than €200 thousand can operate at a rate of:
- 1% for companies with several employees;
- 3% for businesses with no employees.
To get the benefits, the company must not belong to a state or municipal organization and not conduct activities that must be licensed in Romania.
The country gives a 16% corporate tax exemption on income that was invested in new technological equipment. In addition, there is an exemption from personal income tax for IT employees and people who are engaged in research and development of innovative projects. VAT in Romania is 19%, but there are preferential rates: 9% (pharmaceuticals, hospitality, museums, books, movies) and 5% on construction materials.
Another plus - the country has signed a double taxation agreement with many countries, which allows you to save significantly.
How to start a business: step-by-step instructions
To register a company in Romania in 2022 it is necessary to make 6 main steps.
1. Reserve a unique name
In order to do that you have to apply to the Commercial Registry Office. If the name is unique a certificate will be issued, which is valid for 3 months. During that time the company must be registered.
2. You have to deposit your money in a bank and get a certificate
You can open an account in any bank. The company administrator must provide the original or certified copies of the following documents:
- certificate of name;
- articles of association;
- constituent documents;
- a certificate confirming the existence of a registered office;
- power of attorney (if required);
- registration paper from the National Commercial Registry (original);
- proof of company details (Certificate of Incorporation, issued by the National Board of Trade Register), which shows the current status of the company;
- documents certifying the identity of the company's representative.
If the papers are in order, the bank opens a deposit. The authorized person receives a certificate, which confirms that the money has been deposited.
3. Registration in the Trade Register
To be entered in the Trade Register, the Memorandum of Association must be executed. After the articles of association have been approved, the company must be registered at the Trade Register in the seat of the physical premises within 2 weeks. The registration takes 3 days from the date of filing the application.
4. Acquisition of the Single Register of Means of Control of the company
After registering with the Trade Register within one month you have to apply to the tax office and purchase the Unified Register of Means of Control of the company. The Register is necessary for registering all inspections by controlling bodies. If the company fails to do so, it may be subject to sanctions.
5. Register as VAT payer
To open a company in Romania 2022 you have to register free of charge at the local tax office.
6. Register your employee contracts with the Labour Inspectorate
Every employer has to register the employees at the Labor Inspectorate of the district where the legal office is located. The procedure can be done online.
In which bank to open a corporate account
Opening a bank account in Romania 2022 is advantageous at such institutions:
- Libra Internet Bank;
- GE Garanti Bank (Garanti Bank România);
- Banca Transilvania.
How to start a business in Romania
To quickly open a company in Romania 2022, contact IT-OFFSHORE specialists.