Romania has emerged as an attractive destination for entrepreneurs and businesses seeking to establish Limited Liability Companies (LLCs). Its strategic location within the European Union, favorable tax regime, and cost-effective business environment make Romania a compelling choice for companies of all sizes.

At Forward Point Solutions, we specialize in guiding businesses through the process of incorporating in Romania and leveraging the advantages of its LLC framework.

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What is an LLC in Romania?

A Limited Liability Company (LLC), known as an SRL ("Societate cu Răspundere Limitată") in Romania, is the most popular legal structure for businesses due to its simplicity and flexibility.

Key Features of a Romanian LLC (SRL):

• Limited Liability: Shareholders’ personal assets are protected, with liability limited to their capital contributions.
• Flexibility: Suitable for small and medium-sized enterprises (SMEs) as well as larger businesses.
• Ease of Incorporation: Straightforward registration process with relatively low capital requirements.

Advantages of Establishing an LLC in Romania

Strategic EU Location

Romania’s geographic position offers easy access to both Eastern and Western European markets.

• EU Membership: Benefit from EU trade agreements, harmonized regulations, and free movement of goods, services, and capital.
• Transport Connectivity: Robust infrastructure connecting businesses to major European hubs.

Favorable Tax Environment

Romania’s tax system is business-friendly, providing competitive rates and incentives for LLCs.

• Corporate Tax Rate: A flat 16%, among the lowest in the EU.
• Microenterprise Tax: For smaller businesses, the tax rate is just 1% of turnover under specific conditions.
• Double Tax Treaties: Avoid double taxation with Romania’s extensive treaty network.

Cost-Effective Business Operations

Romania is known for its affordable costs across the board, from labor to infrastructure.

• Low Labor Costs: Access a skilled and multilingual workforce at competitive rates.
• Affordable Real Estate: Office spaces and industrial facilities are cost-efficient.
• Operational Savings: Lower overall costs compared to many Western European countries.

Ease of Doing Business

The Romanian government has made strides in simplifying business procedures to attract foreign investment.

• Streamlined Incorporation: Register an LLC in as little as 3-5 days.
• Minimal Capital Requirement: LLCs require a minimum share capital of just RON 200 (approximately €40).
• Digital Advancements: Access to online services for tax filings and company administration.

Investor Incentives

Romania offers several incentives to support business growth and innovation.

• R&D Tax Credits: Deductions for research and development expenditures.
• EU Funding: Access to grants and subsidies through EU development programs.
• Sector-Specific Support: Incentives for industries such as IT, manufacturing, and renewable energy.

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Steps to Incorporate an LLC in Romania

• Choose a Name: Ensure the desired name is unique and complies with Romanian regulations.
• Prepare Documentation: Draft articles of association and gather shareholder details.
• Open a Bank Account: Deposit the minimum share capital into a Romanian bank account.
• Register with Authorities: Submit incorporation documents to the National Trade Register Office.
• Obtain Tax Identification: Register for a Tax Identification Number (TIN) to start operations.

How Forward Point Solutions Can Help

Incorporating a business in Romania requires expert guidance to ensure compliance and maximize benefits. Forward Point Solutions offers comprehensive support for establishing and managing LLCs, including:

• Incorporation Services: Assistance with drafting legal documents, registering with authorities, and opening bank accounts.
• Tax Planning: Strategies to optimize your tax structure and take advantage of local incentives.
• Regulatory Compliance: Ensuring adherence to Romanian laws and EU directives.
• Operational Support: Ongoing services such as accounting, payroll, and legal advice.

Why Romania is the Future of European Business

With its strategic location, business-friendly environment, and skilled workforce, Romania is fast becoming a hub for entrepreneurs and global investors. The LLC regime offers the perfect balance of flexibility, affordability, and security for businesses looking to expand in the European market.

Start Your Romanian Business Journey Today

At Forward Point Solutions, we simplify the process of establishing an LLC in Romania, providing expert advice and personalized solutions tailored to your needs.

Contact us today to explore how Romania’s LLC regime can help you achieve your business goals. Let us be your partner in navigating new opportunities and building a successful future.

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