Introduction to setting up a Romania subsidiary
Romania offers various incentives to foreign investors, including reductions in tax, double taxation treaties, and repatriation of dividends and profits made in the country. Foreign investors will also be treated as equals with domicile businesses. The establishment of subsidiaries in Romania is regulated by the Law on Commercial Companies.
What are the main formalities of a Romania subsidiary?
- The minimum share capital required is only 200 RON (approx. € 40)
- The Memorandum & Articles of Association of the parent company
- Certificate of Good Standing (or equivalent current document) of the parent company
- The resolution of the parent company detailing its decision to form the subsidiary
- Signature specimens of the signatories of both the parent company and subsidiary
- An ‘administrator’ – designated signatory – for the subsidiary
- A registered or physical office – depending on the subsidiary’s activity
The documents shown above must be filed with the Trade Register in order to register the subsidiary.
All documents required to be translated into Romanian will be prepared by a Romanian agent.
What are the accounting requirements of a Romania subsidiary?
The Codul fiscal (Fiscal Code) regulates the accounts and taxation in Romania.
Subsidiaries must register with the Ministry of Public Finance to obtain a tax identification number, known as a CUI code.
Monthly VAT returns and annual tax returns should be filed. This can be done electronically through the ANAF portal National Agency for Fiscal Administration.
There is also an option not to pay VAT in which case a different tax rate is applicable.
For further information on accountancy services and tax rates in Romania, please contact us.
Subsidiary Formation Packages
We will handle every aspect of your subsidiary formation for you. Our team are expertly experienced in the requirements of Romanian incorporation and will successfully guide you through the complexities of the process.
The subsidiary formation packages that we provide organise services such as provision of a registered office and registration of VAT, comprehensively managing everything on your behalf.
For further information on Romania subsidiaries please contact us using the form below.