Corporate/commercial law in Romania
Company formation in Romania
Complete limited liability and joint-stock company set-up. Our team of Romanian lawyers from MHC Law Firm can provide in-depth legal assistance on these business forms, which are generally selected by local and foreign investors, interested in company formation in Romania. Our attorneys can also represent businessmen in starting any other types of companies prescribed by the national law.
Investors who want to open a business in Romania have other options, besides the 2 company types presented above.
They can operate a business in this country through a branch office or a subsidiary, and they also have the possibility to set up a partnership (general partnership or limited partnership). Romanian legislation also regulates the sole trader, the simplest form of business.
For each of these business types, the procedure for company incorporation in Romania is the same, but the requirements can be different. For instance, in the case of a company set up as a partnership, there aren’t any capital requirements.
The same applies to a branch office. On the opposite side, a company operating as a joint stock company will require a capital of minimum EUR 25,000.
Establishment of Romanian branches of foreign companies, that can be registered without a legal personality. Investors can request our lawyers advice on the documents that must be presented when opening a Romanian branch, as well as on the steps that have to be completed with the local authorities for company formation in Romania.
Special permits & licenses
Assistance in obtaining permits and licenses needed in order to conduct business activities in Romania. Our team of Romanian lawyers from MHC Law Firm can present the types of business permits and licenses that are usually required after company formation in Romania. Our lawyers can also provide information on the costs associated with the issuance of licenses, as well as on the institutions where investors must apply.
Depending on the nature of the economic activity that is developed in Romania, investors can be required to obtain multiple licenses and permits for their newly founded company. For example, in the case of a company carrying business activities in the construction sector, numerous permits and certificates can be required, especially when starting a greenfield project.
Some of the institutions that are involved in the issuance of the permits and certificates are the following: the Office for Cadaster and Real Estate Registry, the Ministry of Regional Development and Housing or the Regional Environmental Protection Agency. Other institutions can also be involved, for example, when connecting to the energy or water supply. Our team of Romanian lawyers can present more information on this subject.
Mergers & acquisitions
Mergers and acquisitions, as well other corporate restructuring on the Romanian market. Our lawyers have the necessary legal expertise in representing investors in the steps associated with mergers and acquisition procedures, following the legislation in the field with regards to the restructuration of a local business.
Bankruptcy & corporate dissolution
Our law firm in Romania – MHC Law Firm – has provided legal assistance for the liquidation process of one of the former largest steel producers in Romania. Investors can request information on the legislation in the field, as well as on the steps that have to be followed when a company enters the bankruptcy procedure.
Real estate law in Romania
It refers to the procedures considered absolutely necessary in order to safely purchase a property in Romania. We recommend Romanian citizens, as well as foreign persons, to perform the due diligence procedures when purchasing any type of real estate property in this country (industrial, residential, commercial) and to request legal advice on the sale contract.
Our team of lawyers can represent foreigners in all the procedures concerning the purchase of a property. We can help you buy a house in Romania or any other type of property designed for residential purposes.
Of course, you can always contact us in the case in which you want to purchase a property that will be used as the headquarters of a business or one that will be used for industrial purposes.
Real estate litigation
We are specialized in complex real estate litigations. Our team of Romanian lawyers from MHC Law Firm is prepared to represent natural persons and legal entities involved in real estate litigation cases, but it is necessary to know that our attorneys can provide legal advice on other types of litigation cases that can occur in this country.
Assistance & negotiation
We provide assistance and representation in the negotiation stage and public notary procedures involved with real estate purchases. We can offer consultancy services on the documents that have to be signed with the Romanian public notary, as well as on the compulsory provisions that have to be included in any real estate purchase.
Taxation in Romania
Tax advice
Advice on any Romanian tax and taxation methods. Our lawyers in Romania can offer tax consultancy services related to the taxation of both natural persons and legal entities. Investors can also request information on the taxation of a foreign permanent establishment operating on the Romanian territory. With regards to the taxation of companies, the following taxes are available in Romania in 2019:
- the standard corporate income tax is applied at a rate of 16%;
- a micro-company in Romania benefits from lower taxes, if its annual revenue is of maximum EUR 1 million;
- a micro-company hiring at least 1 employee is taxed at a rate of 1% on its income;
- a Romanian micro-company that has no employees is taxed with a rate of 3% on its annual income;
- the taxation of dividends is done at a standard rate of 5%;
- however, a lower withholding tax on dividends is applicable at a rate of 1% in the case of revenues obtained from gambling activities.
Tax planning
Planning for the minimization of taxes represents a legal method through which companies are entitled to reduce their overall level of taxation. Our Romanian law firm can advise on the main methods that are recognized under the Romanian tax legislation (for both natural persons and legal entities). Our lawyers can also provide information on the steps and the documents that are needed for VAT registration in Romania.
Real estate taxes
The taxes involved with the ownership and the transfer of real estate can be presented at length by our team of Romanian lawyers. Our attorneys can present the legislation on this matter and can provide information on which types of taxes have to be paid by the buyer, and which by the seller.
Other legal services in Romania
Our law firm can assist you in aspects related to debt collection. Through our services, local companies can recover their debts from natural persons and legal entities, clients or business partners. Investors can request advice on the main types of debt collection procedures that can be applied in this case.
Intellectual property
We can offer information on the aspects of IP law, such as trademarks, inventions, patents and others. We can represent companies or natural person interested in protecting their intellectual property on the Romanian territory and can also offer advice on the main rights companies have once their trademark was registered here. Please contact us for more information.