Romania is becoming an increasingly attractive destination for foreign entrepreneurs due to its business-friendly environment, competitive tax system, and access to the European Union market. Whether you’re looking to expand an existing business or start a new venture, the big question is: Can a foreigner own a business in Romania? The answer is a resounding yes! In fact, Romania offers multiple opportunities and simplified procedures for foreigners interested in establishing and owning businesses.
In this article, we’ll walk you through the key aspects of owning a business as a foreigner in Romania, including legal requirements, business structures, and tips for success.
Can a Foreigner Start a Business in Romania?
Yes, foreigners can fully own and operate businesses in Romania, just like Romanian citizens. Whether you’re an EU citizen or from a non-EU country, Romanian legislation grants equal rights when it comes to company ownership.
As a foreign entrepreneur, you can:
- Establish and fully own a Romanian company, such as an SRL (Limited Liability Company).
- Invest in an existing business.
- Register as a sole trader (PFA), provided you meet specific requirements.
Romania does not impose restrictions on foreign ownership, making it a welcoming environment for international investors.
What Are the Requirements for Foreigners to Open a Business in Romania?
While Romania is open to foreign entrepreneurs, there are a few steps you’ll need to follow:
- Obtain a Tax Identification Number (NIF):
All foreigners must obtain a NIF to be able to conduct business in Romania. This number is required for tax purposes and can be obtained from the local tax authority. - Choose a Business Structure:
The most common legal structures are:- SRL (Societate cu Raspundere Limitata): Ideal for small and medium-sized businesses, offering limited liability to shareholders.
- SA (Societate pe Actiuni): Suitable for large businesses planning to attract multiple investors.
- PFA (Persoana Fizica Autorizata): A form of self-employment, often used by freelancers and consultants.
- Register Your Company:
Registration must be completed at the Romanian Trade Registry. This involves submitting the articles of incorporation, providing proof of a registered office, and paying the necessary fees. - Open a Bank Account:
A corporate bank account is mandatory for depositing the initial share capital and conducting business transactions. - Obtain Specific Permits or Licenses (if applicable):
Depending on your business activity, you may need additional approvals from local or national authorities.
What Business Opportunities Exist for Foreigners in Romania?
Romania’s economy is diverse, offering opportunities in sectors such as:
- IT and Technology: Romania is known for its skilled IT workforce, making it an ideal location for tech startups.
- Real Estate and Construction: The growing demand for residential and commercial properties creates opportunities for investment.
- Renewable Energy: With its focus on sustainability, Romania is attracting investors in solar and wind energy projects.
- Agriculture: Rich agricultural land provides opportunities in farming, food production, and export.
- Tourism: Romania’s natural beauty and historical landmarks make it an attractive destination for tourism-related businesses.
Advantages of Owning a Business in Romania
Owning a business in Romania comes with several benefits:
- Access to the EU Market:
As an EU member, Romania provides seamless access to the entire European market, with no trade barriers within the bloc. - Favorable Tax Rates:
Corporate tax is a flat 16%, and micro-enterprises benefit from lower rates of 1% or 3%, depending on the number of employees. - Competitive Costs:
Romania has some of the lowest operational costs in Europe, including affordable wages and office spaces. - Skilled Workforce:
The country is home to a highly educated and multilingual workforce, particularly in sectors like IT and engineering. - Government Support for Foreign Investors:
Romania offers various incentives, including grants, subsidies, and tax breaks, for foreign investors in key sectors.
Challenges to Consider
While Romania is a business-friendly destination, it’s important to be aware of potential challenges:
- Bureaucracy: The registration process, while straightforward, can still involve paperwork and occasional delays.
- Language Barrier: Some official procedures may require Romanian-language documents or assistance from a translator.
- Tax Compliance: Navigating the Romanian tax system can be complex without professional guidance.
How Can a Legal Expert Help You?
Navigating the intricacies of starting a business in Romania can be daunting, especially for foreigners unfamiliar with local regulations. This is where a legal expert becomes invaluable.
Here’s how an experienced legal advisor can assist you:
- Choosing the Right Business Structure: They’ll recommend the best legal form based on your business goals.
- Handling Documentation: From drafting the articles of incorporation to liaising with authorities, they’ll ensure everything is in order.
- Ensuring Tax Compliance: A legal advisor can guide you through tax obligations, helping you avoid penalties.
- Obtaining Permits: They’ll identify any necessary permits or licenses and assist in securing them.
- Ongoing Support: From contract reviews to dispute resolution, legal experts provide continuous support as your business grows.
Can a Foreigner Own a Business in Romania? Absolutely!
Romania offers an open and accessible environment for foreign entrepreneurs, with no restrictions on ownership and numerous opportunities across various industries. While the process may seem complex at first, having the right guidance makes all the difference.
If you’re considering starting a business in Romania, don’t hesitate to seek professional assistance. The team at Buju, Stanciu & Asociatii specializes in company formation for foreign investors, providing tailored solutions to ensure your venture is a success.
Contact us today to learn more about how we can help you establish your business in Romania!
