Is company formation in Romania a good idea?

[Usama Ahmed]

I am a total newbie to this whole taxation and was wondering if someone can shed some more light on this topic. To me Romania seems like the best jurisdiction to incorporate in EU for companies with turnover lower than 1 million. The subjected corporate tax is only 1% in such case, which seems like the lowest in EU. I came across this article which gave some good pointers --> Company formation Romania: Corporate and income tax structure updates . Any help/opinions will be highly appreciated.

 

[negon]

I don't know about Romania, however, can you setup a company remote, means no personal visit at all in order to register a company there?

What are the costs for a basic setup i.e. company + incorporation documents?

 

[superman]

The last time I checked the threeshold was 500K not 1M and you must have 1 full time employee (if not then 3% is charged), but take care about technical tax for consulting services if they make more then 20% of your income you got charged with default tax rate.
For many Online Business where turnover is near 500K and you have only few expesnes it's a well solution, you got all contracts (PayPal, credit card, App stores and and and) and benefit from low tax.

 

[Usama Ahmed]

Yes, I contacted these guys again --> Homepage - international-taxes.com - Offshore Company formation: business abroad for entrepreneurs - Now with Malta and Romania especially good tax benefits! and they said physical presence is required for Romania. However, they suggested Malta as an alternative and I think it is an ideal option for incorporating a company in EU, especially when you can get 6/7 of the corporate tax back, reducing it to only 5%. I think Romania will increase the threshold from January 2018 as I did some research online but not quite sure either. Also, I got a fair price for company formation in Malta from these guys so I will probably go for it. I contacted quite a few but they seem to be reasonably priced for such service.