Create a Micro-Enterprise in Romania
Why create a micro-enterprise in Romania? One of the best options for digital nomads, freelancers, and software developers in the EU
- Tax on turnover of only 3% up to 1,000,000 euros in revenue.
- If you employ at least one person, then the tax rate drops to 1%.
- You can bill your customers with an EU invoice.
- Access to banking in Romania which has both Paypal and Stripe access, as well as multicurrency accounts and great online banking.
- Offers limited liability.
- Until what you can find online, there are no restrictions on billing management and consulting services through such an entity; all such restrictions were removed.
- Can be opened remotely.
- Low labour costs, yet highly qualified and multiligual workforce.
What incorporators typically WON’T tell you when you seek to create a micro-enterprise in Romania
- After a certain amount of turnover, it starts to make sense to hire yourself and pay the social security taxes on your salary in order to reduce the turnover tax from 3% to 1% if you don’t already have an employee.
- A dividend tax rate of 5%.
- If your turnover is more than 12 minimum legal salaries (22,800 Romanian Lei which are about 5,000 euros ) then you must pay a fixed 10% healthcare contribution of that amount (2,280 Romanian Lei or about 500 euros) on a yearly basis.
- If you want to open a Romanian business bank account, your physical presence is required. You can open a business account remotely in other European countries.
- Once the turnover of the micro-enterprise reaches 300,000 Lei per year (about 60,000 euros) then you must register for VAT. At this point, you must sign a lease agreement for a real, physical office, as the lawyer’s address is only valid for micro-enterprises with a turnover of less than 300,000 Lei. The lawyer can help you find a cheap office somewhere.
- It does not entitle you in any way to Romanian residency. But it doesn’t matter, as you can run such a business entirely remotely.
- Make sure that having a Romanian micro-company does not break CFC rules in your country of tax residency.
1. Micro-Enterprise Formation in Romania
My lawyer Dan in Romania can help you set up your micro-enterprise and all the related services.
Create a Micro Enterprise in Romaniaalso commonly called a micro-company
- Reserving the company name
- Drafting and notarizing official company documents (articles of association, statutes)
- Drafting documents such as the Power of Attorney and Affadavit
- Official registered company address for 1 year
- Submission of company documents to the Bucharest Trade Register
- Registering your company with the tax authorities
- Notary fees
- Submitting the share capital (50 euros)
|Accounting services||from €90/month|
Send an email to firstname.lastname@example.org or contact him below if you have any question whatsoever or would like to speak to Dan, my lawyer.
Meet Dan, my Lawyer in Romania
You’re in good hands with Dan, I’ve known him for a few years. He is based in Bucharest and has a team of young lawyers working for him.
Dan is well-known in Romania for his activism for Christian causes. So don’t be surprised if you suddenly see your lawyer on national TV
A Word of Caution
I am not an expert in company formation. I just have a great network of people who can get things done at fair prices thanks to all the travels and deals I’ve done internationally. Maybe Romania is not the best jurisdiction for your business – I don’t know. Dan is an expert on Romania, but not necessarily on all the other structures available worldwide.
Also, maybe Romania is a great option, but if your country of residence has tough CFC rules (controlled foreign corporation) and rejects your company, you could be in for some issues. I don’t know, and nor will any Romanian incorporator.
If you want to discuss your structure and all the tax implications before making a move, you can discuss with Kathleen, a Swiss tax consultant that helps people with all their international tax issues and questions. Click here to find out more about her services.
If you are confident Romania is right for you, then do get in touch with me and let’s get started!
Important to understand: The company formation services in Romania are performed by a Lawyer. We at The Wandering Investor are just a middleman and therefore have no liability.