Our valued sponsor

Question Offshore company (Romania) with local director, how to secure bank account?

netizen

New member
Sep 2, 2021
10
3
3
34
Kathmandu
Visit site
Hi everyone,

I have been researching quite a bit about Romania. Here is my idea, though still have one issue that is not clear to me.

- I plan to setup a company in Romania. I will be director initially.
- I will hire at least one employee (might hire more later) and also make her/him director in the future so that effective place of management remains in RO.
- The company will have a small office (economic substance) but employees can work from home.

I will be UBO in another EU country. So far, so good. Problem is, as far as I understand, to comply with tax authorities in my home country, the local director needs to be single signatory for the bank account. So I can't ask bank to put myself as co-signatory.
In this situation, is there any way to secure company funds from misuse?

I asked this to company formation service and their answer was not satisfactory (basically said not to give access to him/her). I would really appreciate your thoughts/inputs.
 
All you need to know about a Romanian Micro company including, phone numbers to professionals and contact details are available here

Requires Mentor Group Gold access.

In regards to banking, you need some nominee service you can trust, I admit, that's not an easy part if you look at Romania. However, maybe contact a local law firm that is a member of a Global law network. They could possibly refer you to someone trustable.

Anyway, it is going to be difficult if the whole setup is about avoiding taxes locally.
 
Thanks, @uplana, I already have list of formation services. Only issue is that they mainly focus on formation only. Especially, hiring a local director and issues related to it.

I admit tax is major motivation, but I am also looking to hire few people in the future, so having access to affordable workforce is great, especially for a new founded company.
 
Thanks. I already have list of formation services. Only issue is that they mainly focus on formation only. Especially, nothing around hiring a local director and issues related to it.

I admit tax is major motivation, but I am also looking to hire few people in the future, so having access to affordable workforce is great, especially for a new founded company.
 
  • Like
Reactions: uplana
- I plan to setup a company in Romania. I will be director initially.
At which point the company is tax resident where you live, most likely.

- I will hire at least one employee (might hire more later) and also make her/him director in the future so that effective place of management remains in RO.
If they are the sole director, yes.

I will be UBO in another EU country. So far, so good. Problem is, as far as I understand, to comply with tax authorities in my home country, the local director needs to be single signatory for the bank account. So I can't ask bank to put myself as co-signatory.
That's a good rule of thumb, but there are more aspects that can determine effective control and management, so make sure you've checked it with a local attorney as well.

For example, if you are seen calling the shots on a day to day basis, it doesn't really matter who's on the bank account.

In this situation, is there any way to secure company funds from misuse?
Make sure you have view rights on the account and check it routinely.

Aside from that, it's down to trust. You can have documents in place to fire the director at any time and appoint yourself or someone else as director in case you suspect or detect malfeasance.
 

Latest Threads