If you have never thought of starting a business in Romania, now you should take this option into consideration. And there are some strong reasons to do so.
In Romania, since 2018 there is a special exception on the tax regime: paying only 3% of taxes on a turnover of up to €1,000,000. This makes Romania an attractive option. Moreover, those that decide to hire a local Romanian worker can enjoy a 1 to 3% reduction. Taxation depends on sales instead of being on the basis of profits (as is usually the case).
In accordance with the regulation for small entrepreneurs in Romania, up until said 49,000 euros you wont have to charge your customers VAT.
Romania does not have controlled foreign corporation (CFC) rules, which are features of an income tax system designed to limit artificial deferral of tax by using offshore low taxed entities. So, you ca manage companies abroad.
Also, since 2018, the income tax is only 10%. There is no known tax on wealth in Romania. There are no known inheritance and transfer taxes in Romania. There is a real property tax.
So, Romania has introduced a number of new facilities for people interested in investing here, an attractive destination for investors who are looking for a strong base for their operations throughout the EU and globally.
The low corporate tax, the facilities in the process of registration of a company, the low costs of maintaining a company, as well as the affordable labor are all strong reasons that potential investors should consider when looking for viable destinations.
The process of registering a Romanian company is an easy one, with local directors not a requirement and 100 % non-Romanian shareholding allowed.
The two main types of companies are the SRL (limited liability company) and SA (joint-stock company) and the main difference is in the low share capital the first type requires (200 Lei, less than 50 Euro) as well as the ability of having anywhere between 1 and 50 shareholders. The SA, on the other hand, requires a minimum share capital of 90,000 Lei (around 20,000 Euro) and allows registration with a minimum of two shareholders.
The information above is not tax or legal advice for your company circumstances. We can further answer all your questions related to this subject. Want to work together?
