16 Frumoasă Street, Bucharest 010987, Romania
Telephone: +40 21 318 9150 / +40 372 731 131
Fax: +40 21 318 9151
6-8 Moților Street, Cluj-Napoca 400001, Romania
Telephone: +40 364 110 791
International contact partner
Doing business in Romania
Romania is an emerging market with a strategic location, huge growth potential and a business environment that offers opportunities. Located in Central-Eastern Europe, with easy access to the most important European cities, Romania is also a member of the European Union, NATO, OSCE, WTO and the United Nations.
After several years of strong growth, Romania entered into recession in 2009 but after the Government implemented efficient anti-crisis measures, the country has seen a constant return to positive growth. Forecasts for the following years are even more encouraging, predicting that the rate of economic growth will accelerate further, mostly due to the growth in exports and in the automotive and IT industries.
Advantages of doing business in Romania
Relatively Low Business Set-up/Closing down Costs
The costs of setting up a company in Romania are comparably low: the minimum share capital for limited liability companies (SRL) is 200 Lei (less than 50 Euro) and for an SA is 25,000 Euro. In regards to closing down costs, Romania does not have an exit tax.
Well educated and less expensive work force
Young Romanians are well educated multilingual people; in the last years, English has become the second language for most of the young Romanians. The labour costs are competitive and relatively lower compared to those incurred by businesses in other EU countries.
Relatively Low Direct Taxation
In Romania, the tax system is based on a flat rate of 16%, which applies to corporate income tax, personal income tax and withholding tax on the revenues derived from Romania by non-residents (with exceptions).
Other Tax Incentives/Advantages
More favourable taxation, tax credits and exemptions are available if the provisions of the Double Taxation Treaties are applicable and if the taxpayer proves its residency in a country with which Romania has concluded a treaty on the avoidance of the double taxation. Currently, Romania has more than 80 such conventions in force. Advance price agreements (APA) and advance tax rulings are available to companies and individuals, as well.
All the economy sectors (with the exception of very few specific activities) will benefit until 2020 from a state aid scheme, which consists in the partial reimbursement of salary expenses generated by the creation of new jobs. The percentage of reimbursement differs throughout the regions, the highest being of 50%.
Small businesses that plan to make investments can opt, based on certain criteria, for the tax on micro-companies, with a rate from 1 to 3% on revenues.
The research & development sector benefits from an accelerated depreciation on assets used in the R&D activity and from an additional fiscal deduction of 50% for theexpenses incurred in the R&D activity.
Favourable Business Environment for IT & C
Romania has developed a favourable environment for business in the technology information and communication field: some categories of employees in this field are exempt from the salary income tax, while freelancers may benefit of capped income tax bases.
Working with us
Our mission is to empower our clients to move forward with confidence. We are passionate about working closely with them so we can understand their business, their strategies, and their aspirations. We offer valuable expertise, combining local knowledge with the know-how of our global network of professionals. This in-depth knowledge of our clients’ businesses allows us to address their specific needs, to identify future challenges, and to find new opportunities for them to grow.
Since our company’s incorporation, we have been providing a full range of professional audit, accounting and tax consulting services, assisting our clients in a complex and emerging market, and advising them each step of the way, as they develop their businesses. Our local company has more than 20 years of experience in the Romanian market and, since 2011, has been a full member of RSM - the world’s sixth largest audit, tax and consultancy network, with 763 offices in 120 countries.
We have been members of the Romanian Body of Chartered and Authorised Accountants (CECCAR) since 1994, members of the Romanian Chamber of Financial Auditors since 1999, and members of the Romanian Chamber of Tax Advisers since 2007. We are also members of the American Chamber of Commerce in Romania, the British-Romanian Chamber of Commerce and The Foreign Investors Council.
We act as a “One-Stop-Shop” company, providing our clients with a full range of professional services, from incorporating, to restructuring and conglomerating their business structures. We ensure professional accounting and audit services in accordance with the Romanian GAAP.