Romania is one of the leading markets in Europe when we refer to the IT sector, which has been encouraged by the local authorities in a variety of ways, including with various tax exemptions that are generally applicable to other economic sectors; our law firm in Romania can present the main types of taxes that are imposed to local businesses, as well as the tax exemptions that can be applied to specific economic activities.
Considering this, numerous entrepreneurs were encouraged to open a startup in Romania, which is a type of company incorporated following the standard registration procedure, but which has as a particularity the fact that it invests in developing a high-tech product or service that can be used in the financial, medical, banking sectors and basically, in any other sector that can benefit from the usage of technology.
It must be noted that those who want to open a startup in Romania can participate in various programs created by the local authorities with the purpose of accelerating the development of the respective startups; for advice on the steps one should take in order to open a startup in Romania, you may address to our team of Romanian lawyers.
How can an investor open a startup in Romania?
In order to open a startup in Romania, a local or foreign investor must follow the basic incorporation steps that are prescribed by the Romanian commercial law. For this purpose, one must select a company type and our Romanian lawyers can help you select a suitable business form. In Romania, there are several types of legal entities available for incorporation, company types that one can incorporate in other European countries as well.
However, in most cases, investors will prefer to register a limited liability company or a private limited company-debutant (SRL-D). The latter resembles with the standard limited liability company and it was created with the purpose of helping young persons enter the business environment; our team of lawyers in Romania can present the advantages of the SRL-D.
Regardless of the company type selected for incorporation, one will need to register it with the local institutions, such as the National Trade Register Office and the National Agency for Fiscal Administration. Some of the basic steps applicable for those who want to open a startup in Romania are presented below:
complete the application for incorporation and the application form for the fiscal registration;
preparing the company’s statutory documents – the articles of association;
having a registered office, as well as evidence on the fact that the company’s representatives have the right of using the respective office;
evidence that the company’s founders have paid their contributions to the company’s capital.
The above mentioned documents represent only a part of the papers one should prepare when opening a startup in Romania. Investors should present their personal identity documents and the identity documents of the company’s administrators, the specimen signatures of the company’s representatives and others. For a complete list of the documents that must be presented upon the incorporation of a local company, you can address to our Romanian law firm.
You can watch below a short presentation on how to set up a startup in Romania:
Why open a startup in Romania?
Although Romania is not as developed as the Western European countries are, it has become one of the most attractive countries in its region for investing in the startup market and the IT sector. Currently, Bucharest and Cluj Napocaare the cities with the highest number of startups, startup events, business accelerators and other advantages. Below, you can find some of the top reasons for opening a startup in Romania:
Romania has 5th best broadband internet speed at a global level;
Cluj Napoca is the home of approximately 15,000 IT specialists and it has approximately 1,300 IT businesses;
in 2019, Bucharest was the home of 259 startup businesses;
Bucharest ranks as the 16th IT hub at a European level and the 4th in the Eastern Europe;
another reason to open a startup in Romania is given by the fact that the country has approximately 800,000 tech talent, a number which is similar with several Western countries that have a much larger population.
We invite you tocontact our law firm in Romania for advice on the business licenses and permits one may need when opening a startup. Our Romanian lawyers can present any additional information related to this subject and can help investors with professional legal assistance on any procedures involved in this process.