What does the incorporation procedure means?


Prior to the actual incorporation at the Trade Register, there are few steps you need to follow:

  1. establish what business type best matches your needs and goals. Advise, if necessary, with a solicitor, lawyer or an accountant! For this purpose you can schedule an appointment with one of the Reinvent consultants.
  2. stablish where the registered office will be located. You have at your disposal important information and resources on this regard. Also we provide hosting services for registered office. By having access to all those services in one place, you to get rid or worries, road-trips and headaches.  
  3. prepare 3 to 5  name options for business incorporation, and also bring all the necessary documents that are required when meeting with our consultant
  4. sign the agreement contract. This way the incorporation procedures will be initiated and handled by our specialised agents, giving you more time to focus on the future business and avoid any extra costs or further issues

Limited Liability Companies

 

Are legal entities with juridical personality that can perform any type of activity, except for those that are governed and organised under special laws, like those regulated by prohibited CAEN/NACE unique-codes.

The primary business activity is represented by a single NACE code, however for the secondary activity you may have multiple codes, going up to all NACE codes that are allowed.

For the formation of a Limited Liability Company you need to have title deeds for registering an office. If you do not posses a property we can host your registered office for you.

Company liabilities are guaranteed with company’s capital stock; The shareholders being liable only up to the value of their contribution in the shared capital.

The Limited Liability Company can have employees for the licensed activity.

 

Taxes and taxation:

  • 16 % profit tax, 3 % income tax, 16 % tax  on dividends for individuals, 10% tax on dividends for businesses.
  • VAT 24% (or 9%, or 5%, for certain situations stipulated by law
  • payroll contribution for employees:  the employer pays 16 % of the gross salary for each of its employee; out of which:  5.5 % for social and health insurance (CASS), 10.5% pension fund (CAS), 0.5% unemployment fund
  • payroll contribution as an employer: CAS 20.8% , risk fund between 0.15%-0.85% depending on the CAEN code, CASS 5.2% and FNUASS 0.85%,  unemployment fund 0.5%, salary debts-payment guarantee fund 0.25%.


In order to focus more on the business activity is important that you outsource the bookkeeping to a team of professional accountants

 

Joint Stock Company

 

Are legal entities with juridical personality that can perform any type of activity, except for those that are governed and organised under special laws, like those regulated by prohibited CAEN/NACE unique-codes.

The primary business activity is represented by a single NACE code, however for the secondary activity you may have multiple codes, going up to all NACE codes that are allowed.

For the formation of a Joint Stock Company you need to have title deeds for registering an office. If you do not posses a property we can host your registered office for you.

Company liabilities are guaranteed with the capital stock; The shareholders being liable only up to the value of their contribution in the shared capital.

The Limited Liability Company can have enployees for the licensed activity.

Taxes and taxation :

  • 16 % profit tax, 3 % income tax, 16 % tax  on dividends for individuals, 10% tax on dividends for businesses.
  • VAT 24% (or 9%, or 5%, for certain situations stipulated by law
  • payroll contribution for employees:  the employer pays 16 % of the gross salary for each of its employee; out of which:  5.5 % for social and health insurance (CASS), 10.5% pension fund (CAS), 0.5% unemployment fund
  • payroll contribution as an employer: CAS 20.8% , risk fund between 0.15%-0.85% depending on the CAEN code, CASS 5.2% and FNUASS 0.85%,  unemployment fund 0.5%, salary debts-payment guarantee fond 0.25%.

In order to focus more on the business activity is important that you outsource the bookkeeping to a team of professional accountants

 

Self-employed

 

Are legal entities without juridical personality

Under the right of free initiative and the right of business establishment, any Romanian citizen or national of another EU Member State or European Economic Area, may perform economic activities in Romania, as provided by law. Previously mentioned individuals can perform economic activities individually and independently as freelancers. They must have an registered  office in Romania, as stipulated by law.

The patrimonial liability in case of self-employed  (P.F.A.) is represented by the entire assets of the individual.

A self-employed cannot have employees.

Incorporation costs are lower than for the limited liability company and the bookkeeping duties are single-entry records. Also, administrative costs are lower than those of a limited liability company.

You can choose Reinvent Consulting for hosting your registered office, self-employed incorporation or bookkeeping service, giving you more time to focus on profitable business activities.
 

Sole-proprietorship

 

Are legal entities without juridical personality

Under the rights of free initiative, association and business establishment, any Romanian citizen or national of another EU Member State or European Economic Area, may perform economic activities in Romania, as provided by law. Previously mentioned individuals can perform economic activities as stipulated by law (OUG 44/2009). They must have an registered office in Romania, as provided by law.

The patrimonial liability in case of sole-proprietorship (I.I.) is represented by the entire assets of that person/ individual.

A sole-proprietorship can have employees, it can be member of an self-employed business entiy (P.F.A.) or family-proprietorship (I.F.). A person who is the sole-shareholder/owner of a limited liability company can incorporate a sole-proprietorship business.

Incorporation costs are lower than for the limited liability company and the bookkeeping duties are single-entry records. Also, administrative costs are lower than those of a limited liability company. After formation you must register your business at the local financial administration.

You can choose Reinvent Consulting for hosting your registered office, sole-proprietorship incorporation or bookkeeping service, giving you more time to focus on profitable business activities.

Family- proprietorships

 

Are legal entities without juridical personality

Under the rights of free initiative, association and business establishment, any Romanian citizen or national of another EU Member State or European Economic Area, may perform economic activities in Romania, as provided by law. Previously mentioned individuals can perform economic activities as stipulated by law (OUG 44/2009). They must have an registered office in Romania, as provided by law.

The patrimonial liability in case of family- proprietorship (I.F.) is represented by the entire assets of these individuals.

A family enterprise cannot have employees.

Incorporation costs are lower than for the limited liability company and the bookkeeping duties are single-entry records. Also, administrative costs are lower than those of a limited liability company. After formation, you must register your business at the local financial administration.

You can choose Reinvent Consulting for hosting  your registered office, family enterprise incorporation or bookkeeping service, giving you more time to focus on profitable business activities.