Romanian micro-company

[kevino]

@cosmo
I'm glad you asked about the second year and maintenance fees. Actually I was almost ready to sign with the company "Enescu & Cuc Law Firm" from romanianlawoffice.com when I ask this simple question about maintenance fees. From there it's become weird and they claimed they don't want to give information for free. I was shocked, asking the maintenance fees for their service...we need to pay for that...?

Finally they answered it was for free... WHAT?! Just for make sure I wrote exactly this question to them : "There is no maintenance fees? We don't pay for second year for virtual office? We don't pay for receive mails? We don't pay for get the service someone open mail and explain what we should do with authorities regarding tax and other issues? All that things you offer for free?".
No answer and I ask another company who told me of course that service is not for free (as expected!). So I came back to them to confirm if maintenance is for free, then they just answered they don't want to make business with me.

So my understanding. This company is only here to register you at beginning (I believe they do provide this service) but at end it's not their problem anymore. When the company is done after few days, it's up to you to maintain it with the administration and taxes. According what I understand, they don't provide any support after creation, it's between you and Romania...and good luck with that!

I will not publish all my discussion here, but feel free to ask me in private the screenshots. After my research, I found this company is more a marketing agency with different websites you find on google to incorporate in Romania.
If someone has a RELIABLE supplier for incorporate in Romania which is NOT a web agency, please send the info.
That's said I congratulate them for their online marketing as they almost have a monopoly for this business.

 

[TurnedToRobot]

"Enescu & Cuc Law Firm" from romanianlawoffice.com when I ask this simple question about maintenance fees. From there it's become weird and they claimed they don't want to give information for free. I was shocked, asking the maintenance fees for their service...we need to pay for that...?

RUN, it can't be fast enough!

 

[Macky]

@cosmo
I'm glad you asked about the second year and maintenance fees. Actually I was almost ready to sign with the company "Enescu & Cuc Law Firm" from romanianlawoffice.com when I ask this simple question about maintenance fees. From there it's become weird and they claimed they don't want to give information for free. I was shocked, asking the maintenance fees for their service...we need to pay for that...?

Finally they answered it was for free... WHAT?! Just for make sure I wrote exactly this question to them : "There is no maintenance fees? We don't pay for second year for virtual office? We don't pay for receive mails? We don't pay for get the service someone open mail and explain what we should do with authorities regarding tax and other issues? All that things you offer for free?".
No answer and I ask another company who told me of course that service is not for free (as expected!). So I came back to them to confirm if maintenance is for free, then they just answered they don't want to make business with me.

So my understanding. This company is only here to register you at beginning (I believe they do provide this service) but at end it's not their problem anymore. When the company is done after few days, it's up to you to maintain it with the administration and taxes. According what I understand, they don't provide any support after creation, it's between you and Romania...and good luck with that!

I will not publish all my discussion here, but feel free to ask me in private the screenshots. After my research, I found this company is more a marketing agency with different websites you find on google to incorporate in Romania.
If someone has a RELIABLE supplier for incorporate in Romania which is NOT a web agency, please send the info.
That's said I congratulate them for their online marketing as they almost have a monopoly for this business.

@kevino How can I contact you in private ?

 

[Financelady45]

Do you know if the micro companies regime is applicable also to "consulting" firms? I remember there was a law limiting those income up to 20% of the Gross.

 

[Suzy Emerald]

Yes up to 20%. So you have to give it a twist.

 

[bpenko]

Hi all,

Has anyone managed to open a company and find suitable accountants?

I was looking online for various website and found this forum as well, where I can see we are more or less having the same information from the few website offering the same services.

 

[papacitox]

Hi,

We are considering an incorporation of micro company in Romania and are talking to several providers.
We want to open an EMI instead of a bank account.
However one thing bugging us is the mandatory bank account to open a company and deposit the share. We've been told that EMI are not accepted.

Does anyone has info regarding this?

 

[Mr Magoo]

A bank account while setting up the company in Romania isnt mandatory. Help with a bank account is an additional service they want to sell you. For sure they want you to buy that service because with one walk to the bank they can charge you a few hundred euros.
Be aware of the following: if doing business in Europe you will need a EU VAT#. Service providers may charge you 500 euro for this. If using a EU VAT#, you need a physical office in Romania (no virtual office).

 

[Mr Magoo]

However one thing bugging us is the mandatory bank account to open a company and deposit the share. We've been told that EMI are not accepted.

What provider did tell you this?

 

[kevino]

Be aware of the following: if doing business in Europe you will need a EU VAT#. Service providers may charge you 500 euro for this. If using a EU VAT#, you need a physical office in Romania (no virtual office).

Does that mean if we don't do business in Europe then we don't need a EU VAT and then we don't need a physical office? In other words can we setup a company in Romania with virtual office to do transactions with Africa without being in trouble with VAT and physical office?

Also can you tell me who is your provider? In PM if you want. It's so hard to find reliable providers in Romania...

 

[Mr Magoo]

If you dont do business in Europe you dont need an EU VAT# I think. Correction, the virtual office you can use up to a turnover of 65000 euro. After that a physical office that hasnt the same address as the lawyers office is needed. That will cost a few hundred per month.

 

[kevino]

Any supplier in Bucharest to recommend?

 

[John M]

I am commercial lawyer in Bucharest and I can help with the following:

1. Registration of the company with virtual address (the law allows it for max one year) at law office includded = 850 EUR. It includes all the taxes and fees. The presence is not required but it is required to send some documents (Notarized Statement + Apostilla of the owner and Director that he/she is allowed to be Owner/Director according to Romanian laws; Notarized PoA + Apostilla for the lawyer in order to register the company; Notarized + Apostilla Copy of your ID/Passport). If you are anywhere in Europe is cheaper to fly to Bucharest for few days.

2. Physical address contract for office = 600EUR + VAT (19%) /year (required after the first year or when the turnover of 300.000 RON (aprox 63.000 EUR) is reached and the company needs to register for VAT. This includes the forward of mails (scanned) to your e-mail

3. Assistance to open bank account in Romania. It is not mandatory, an EMI can be used but it is recommended as the tax payments from EMIs do not always arrive correctly to Ministry of Finance. The presence of the Company Director is mandatory. Also, the Debit Card, pin code and internet banking token can be received personally from the bank (they are not sent by post) few days after the account was opened. - free if you open the company with us

4. Accounting trough our partner (but you can find any another accountant) = 500 RON + VAT/month (approx 125 EUR/month). If the company becomes VAT liabile (after a yearly turnover of 300.000 RON (aprox. 63.000 EUR) another 100 RON + VAT/month (approx 25 EUR) is added
If the company issue/receive invoices to/from EU companies, it is mandatory to register for VAT before the 300.000 RON/year turnover limit in order to be able to apply inversed taxation for VAT.

If you have any other questions, I am here.

 

[John M]

Does that mean if we don't do business in Europe then we don't need a EU VAT and then we don't need a physical office? In other words can we setup a company in Romania with virtual office to do transactions with Africa without being in trouble with VAT and physical office?

Also can you tell me who is your provider? In PM if you want. It's so hard to find reliable providers in Romania...

It is not exactly correct.
If the company reaches the 300.000 RON turnover, it is MANDATORY to register for VAT.
If you do transactions in Africa, and "the place of business" for those transactions is considered in Africa, indeed you don't have to apply VAT but if your partners are EU companies you have to register for VAT before issue/receive invoices to/from these companies even before the 300.000 RON turnover is reached.
Also, the "virtual" office (the company is registered at the lawyer address) is allowed only for one year. If the company hasn't a valid contract for the office, the Trade Registry will suspend the company.

Also, just an information, a new law require all the Directors of Romanian companies to submit to Trade Registry every year a Notarized statement (if it is given in another country should have apostilla also) regarding the Beneficial Owners of the company.

 

[blizz]

Whats the main benefits of Romanian company compared to Cyprus & UK?

 

[John M]

Just a flat 3% corporate taxe on income (not on profit). For some type of income, where you don’t have expenses, it might be the best option

 

[blizz]

Just a flat 3% corporate taxe on income (not on profit). For some type of income, where you don’t have expenses, it might be the best option

What banking is available for such a company any suggestions?

 

[andres33]

Just a flat 3% corporate taxe on income (not on profit). For some type of income, where you don’t have expenses, it might be the best option

I'm interested by romanian micro company. How can I do it? Who do you recommend ? Some address to contact with lawyers firms?

 

[unicorn]

How to Register a Micro Company in Romania - 2021 Guide

Our team of Romanian lawyers can represent local and foreign investors in registering a micro company in Romania.

www.romanianlawoffice.com

the way I understand it is, that you loose 8 % if you don't have employees. yes there is VAT to charge. registered office. Accountant needed. The dividend is with held by Romenia itself. Estonia = very bad idea, 20 % is withheld if you take out your profits !

 

[unicorn]

Montenegro is not far off : 9 % flat tax on about everything (personal tax, corporate tax, ... ). Bulgaria 10 %. Any EU company gets access to any EU bank I'ld think. Plus all the fintechs.