Establishing a business in Romania
Romania has been a member of European Union since 2007 and it represents an important market for the investors in Europe and an exciting opportunity to expand and develop theirs business.
Foreign investors can choose between a variety of legal forms for conducting business in Romania.The main legal forms of business entities in Romania are summarized below with their specific information ; the minimum number of shareholders/stockholders, the minimum share capital, the liability of the shareholders/stockholders.
Romanian law allows also foreign investors to form in Romania branches, permanent establishments or representative offices.
Taxation in Romania
Companies with an annual turnover equals or exceeds the exemption threshold of 220,000 lei (approx.50,000 euro) are required to register for VAT
Value Added Tax – VAT in Romania
The standard VAT rate in Romania is 19% and applies to all all other taxable goods and services
A reduced rate of 9% applies Foodstuffs; pharmaceutical products; medical equipment for disabled persons; books; newspapers and periodicals; hotel accommodation; water supplies; restaurants and catering services; some beer; soft drinks.
Extra-reduced rate 5% applies to Social housing; books (excluding e-books); newspapers and periodicals; admission to cultural events; admission to sporting events.
The standard corporate income tax rate is 16%. it is one of the lowest in Europe
Corporate Income Tax in Romania