Opening a Financial Company in Romania

by Vlad Cuc

Opening a financial company in Romania implies obtaining the necessary permits and authorization from the Romanian Financial Supervision Authority (ASF in Romanian).

It is very important to note that the authorizations granted by the Romanian ASF authority must be obtained during the process of company formation in Romania. Most of the conditions imposed by the Romanian Financial Supervision Authority refer to the credibility of the representatives of the future Romanian financial company.

It also refers to its history, minimum share capital and guarantees for the respective activity, type of the Romanian company which must be created (for instance, a Romanian SA joint stock company) and other aspects that are vital for the verification of a financial company when entering a new market. Our attorneys in Romania can help investors open a financial company in Romania.

What are the main categories of activities that need a financial license in Romania?

According to ASF, there are 3 primary categories of financial services that have to authorized when engaging in economic activities in Romania, and these are:

1. capital markets;
2. insurance market;
3. private pensions market.

What does the Romanian Financial Supervision Authority do?

ASF exercises the powers of licensing, regulation, supervision and control over a variety of financial operators, such as intermediaries in transactions of financial instruments in Romania, financial investment services companies in Romania or undertakings for collective investment.

It supervises the activities of investment management companies, Romanian investment advisors, financial instruments markets, market and system operators, central depositories, clearing houses and settlement, central counterparties, market operations, issuers of securities, etc.

ASF has authority over Romanian insurance companies, mutual, insurance brokers, insurers surveillance operating in or from Romania, supervision of intermediaries insurance and reinsurance, as well as other activities in connection. The private pension system, according to Law. 411/2004 on private pension funds, is also supervised by ASF.

How do I know whether my financial activity in Romania needs to be licensed by the ASF?

If your activity is related to those listed above then there is a high chance that this is required before the start-up of your Romanian company. If you are not certain please address our law firm in Romania.

What are the steps required for the licensing of my Romanian financial company?

Firstly you will need to make sure that your Romanian company needs a license from ASF. Once that is ascertained we advise you to firstly obtain a comprehensive legal report to make sure your future Romanian company will be able to fulfill the conditions. Once you are sure of this aspect you can hire our law firm in Romania for the representation throughout the legal procedures.

Note: the Romanian ASF maintains an updated list of licenses financial vehicles on their website available for verification.

Please address us if you want to know additional information with regards to the registration of a financial company. Our team of Romanian lawyers can present the tax obligations of this entity. You can get in touch with us for any concern that you may have regarding how to open a business in Romania (documentation, taxes, fees, licenses and permits and any other procedures, etc.).

When starting the process of company incorporation in Romania, you will need to address to certain institutions for the registration of the legal entity, and this procedure can be handled by our lawyers. Our attorneys will have this right once you sign the power of attorney, a legal document through which a third party has the right to legally represent another party in certain legal matters.

Do investors who need to obtain a financial license in Romania have to pay fees?

Yes, the legislation regulating the activity of financial operators in Romania imposes various fees, which depend on the type of financial activity that is developed here. For each activity, there are various types of fees, such as license fees, registration fees, fees charged for changing the initial conditions under which the legal entity was registered, fees for the issuance of various documents, winding up fees, etc.

In the list below, our lawyers in Romania present some of the registration fees foreign investors should expect top pay when they apply for a financial license:

• financial investment services companies – they need to pay a license fee of RON 15,000;
• investment consultants (RON 7,500 for legal entities or RON 2,000 for individuals who provide consultancy services);
• authorized alternative investment funds administrators – the license fee is RON 3,000;
• investment fund or a sub-fund of an investment fund – the fee is RON 10,000;
• financial audit company – RON 25,000;
• credit institutions – RON 20,000.

How long does it take to obtain a financial license in Romania for an insurance company?

Insurance and reinsurance companies represent some of the financial operations that impose the issuance of a license. According to ASF, after the company has submitted the application file, the institution will start examine the file within 15 days since the date when the documentation was received.

From the date when the file is received for examination, the company should receive a positive/negative answer concerning the issuance of a license in a period of maximum 90 days. The respective period of time can be increased with up to 30 days, provided that the institution will require additional documents.

Please know that the licensing process can be resumed if ASF requests further documentation and the company does not comply. The procedure will be stopped in a period of 30 days since the institution requested the additional documentation.

There are many conditions that vary on a case-to-case basis and this is why is highly important to address our lawyers in Romania, who can inform you on all the requirements imposed by the law.

Please know that our law firm in Romania can provide other services that are not related to the registration of a business. For instance, you can easily address to us in the case in which you want to buy a house in Romania. As a foreigner, you are entitled to owning residential or commercial properties and our team can represent you in the formalities concerning the ownership transfer.