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Romania is situated in south-eastern Europe just north of the Balkan Peninsula and is the second largest country in Central and Eastern Europe with an area of 237,500 sq kilometres. The country is divided into three areas the central and north-western region comprising Transylvania, Crisana and Banat and encompassing the Carpathian Mountains; the southern region comprising the Wallachian Plain with the river Danube forming the country’s southern border; lastly, the eastern region comprises the Moldavian Plain bordering Moldova and Ukraine. The Capital is Bucharest with a population of approximately two million.
The total population of Romania is approximately twenty two million, 55% of which live in urban areas. Ethnic Romanians make up about 89% of the population, Hungarian 7% followed by Rroms, Germans, Russians and Serbs.
Romania is a Constitutional Republic. The present Constitution was adopted by the Parliament on 21 st November 1991. The Legislative power is vested in a bicameral Parliament which is made up of a lower house of 345 seats (Chamber of Deputies) and an upper house of 140 seats (Senate). Parliamentary elections are held every four years whilst presidential elections are held every five years.
Romania has an extensive road and rail network. The main Romanian providers of scheduled passenger air transport are Tarom and Carpatair, several international airlines serve Romania and there are daily flights to most European capitals. Airfreight is handled exclusively in Bucharest.
Since the beginning of 1990, Romania has had a free market economy countered by a continuous government presence in the industrial sector. Romania sits at the crossroads of many traditional commercial routes that allow access to over 200 million consumers within a 1,000 km radius of Bucharest. Romania has six designated Free Trade Zones, mainly located around ports: Constanta Sud-Agigea (on the Black Sea), Sulina (at the mouth of the Danube), Braila, Galati, Giurgiu (on the Danube), and Curtici-Arad (on the Hungarian border).
The official and spoken language is Romanian although Hungarian and German are spoken in the North West and central regions.
The Ron.
No.
Civil Law, the modern legal system in Romania dates back to the mid-19th century. The Romanian justice system is based on French, Belgian, Italian and German models.
The Companies Act 31/1990 modified by Law 441 /2006.
Limited Liability Companies (SRLs) are the most popular vehicles for carrying on business activities in Romania by local and foreign investors because of the low administrative requirements, greater flexibility and low initial capital requirements compared to other types of companies.
This entails the deposit of the paid-up share capital into a bank account and filing of the Memorandum and Articles of Association with the Registry of Commerce. Shareholders, if corporate, are required to submit their statutory documents, Certificate of Incorporation, a Bank Reference and a Decision of the Shareholder Assembly in order to incorporate the Romanian entity. If the shareholders are physical persons a copy of their passport is required together with confirmation from the local police authorities confirming their good standing or an extract from the Criminal Records Register.
Limited Liability Companies are not permitted to:
A Romanian company has all the powers of a natural person.
Romanian.
Companies must maintain a registered office in Romania.
7 to 10 days, subject to name approval.
A name, that is similar to or identical to an existing company or is known to exist elsewhere. A name which may imply illegal activities.
Names can be expressed in any language using the Latin alphabet.
The following names or their derivatives require consent or a licence: bank, building society, savings, loans, insurance, assurance, reinsurance, co-operative, council, Chamber of Commerce, trust, municipal and finance or their foreign-language equivalents.
SRL (Societate cu Raspundere Limitata).
The identity of the beneficial owners of the Romanian Limited Liability Company is not confidential.
Limited Liability Companies have a minimum authorised share capital of Ron 200 or its currency equivalent, this being the maximum for the minimum capital duty payable upon incorporation. The minimum issued capital is one share of Ron 10 value.
Limited Liability Companies may have registered shares, preference shares, redeemable shares and shares with or without voting rights.
With effect from 1 st January 2007 the standard tax rate of 16%.
If certain conditions are met, companies may opt for the micro-company regime, under which a 2% (2.5% in 2008 and 3% in 2009) income tax rate is applied to revenues derived by the Company. The conditions to qualify for the micro company regime are as follows:
Romanian companies may be registered for VAT purposes.
Romania is a party to over 78 tax treaties.
All Limited Liability Companies, SRLs, if registered in Romania, are considered as resident in Romania for tax and currency purposes and must comply with statutory requirements for book and record keeping as detailed in the Accounting Law of 2005. If a limited liability company has more than 15 shareholders, it is obliged to appoint company censors.
The minimum number of directors is one; they may be of any nationality or residence. Bodies corporate may be appointed as directors.
A Company Secretary is not required.
The minimum number of shareholders is one, maximum number 50. A person, either natural or legal, cannot be the sole shareholder of more than one SRL.
Information Downloads & Order Forms Romanian Limited Liability Company (SRL) Fact Sheet Romanian Limited Liability Company (SRL) Enquiry Form Romanian Limited Liability Company (SRL) Order Form Comparison Chart
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