A limited liability company in Romania is one of the legal entities that can be incorporated as per the rules of the commercial legislation. The limited liability company (LLC) is also one of the most common ways to start a business in Romania, considering that the structure is ideally suited for small and medium-sized companies.
The LLC in Romania has to be registered following the standard rules for incorporation – draw the statutory documents, register with the local institutions, register for taxation. Our Romanian lawyers can help foreign investors throughout all the steps for company formation in Romania.
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What are the basic incorporation steps for an LLC in Romania in 2024?
There are many steps to complete during the process of company formation in Romania, and this applies to the LLC Romania as well. However, for all entities that have a legal personality (LLC Romania included), the registration starts at the local Trade Registry.
The Trade Registry is the institution where the investor will reserve a trading name for the legal entity. This procedure is completed in the region where the business will have its headquarters, thus, businesses that will operate in Bucharest will address the Bucharest Trade Registry, and so on.
The trading name of a limited liability company in Romania must be unique at a national level. It must be noted that nowadays online registration is also available, therefore investors, or their legal representative (which can be our team of Romanian lawyers) do not have to go in person to the Trade Registry for this step.
The company name should be as specific as possible, as general names will most likely not be accepted as they may already be registered, or they simply will be similar to other registered name. The company name must also include the abbreviation SRL (societate cu răspundere limitată – the name in Romanian stands for limited liability company).
You need to initiate this process first, as further on during the process of company formation in Romania, you will need to provide documents regarding the company name reservation/registration. Along with this, you must prepare a large list of documents.
The file should also contain the personal identification papers of the shareholders, directors, the payment of the processing fees. Please mind that for the registration of an LLC in Romania you will need to pay publishing fees for the announcements made in the Official Gazette (Monitorul Oficial).
The incorporation of an LLC in Romania it may take a few days, less than in other European states, such as Portugal where company formation may last 2 weeks.
Foreign investors, who want to set up other company types outside the LLC, must know that they can opt to incorporate in 2024 legal entities such as: the joint stock company, the branch office, the company limited by shares or partnerships. Our consultants can offer in-depth information on the advantages of these company types and when it would be best to opt for them.
The LLC is a popular way to start a business in Romania as it is suitable for most of the business activities that can be carried out here and it has very simple registration requirements. Please know that, once you have registered a legal entity and you employ workforce, you must take the necessary steps to address the social security authorities for the registration of the employees.
Why choose the LLC in Romania?
The LLC Romania is a company type that provides many advantages to local and foreign investors (there aren’t any distinctions concerning this matter). First of all, investors can enjoy from full foreign ownership, they do not have to associate with any Romanian resident businessman.
Another major advantage is the fact that it offers limited liability to investors, as the company’s name suggests, which is limited to the amount of capital that each investor participated when incorporating the company.
In the list below, our team of Romanian lawyers invite to discover other key characteristics of the LLC Romania:
- it can be incorporated by minimum 1 investor (known as shareholder);
- the company can have many shareholders, but not more than 50;
- those who will register an LLC in Romania in 2023 are no longer required to subscribe a minimum share capital, as per the rules of the Law 223/2020 (the capital before this law was of EUR 45);
- the company can be set up with only 1 director;
- it can benefit from a straightforward registration procedure, as the basic incorporation steps can be completed in approximately 3 working days.
We invite you to contact our law firm in Romania for in-depth legal assistance on the registration process. Our team will help you register for taxes and you can also request accounting services from us.