Setting up foreign-owned companies in Romania, among fastest in the world, World Bank says
It takes 7 procedures and 11 days to establish a foreign-owned limited liability company (LLC or SRL) in Romania (Bucharest), slightly faster than the regional average for Europe and Central Asia but much faster than the IAB global average, according to a recent report published by the World Bank. This sends Romania on the second place, with an index of 89.5 out of 100 points. Slovakia got 92.1 points.
Foreign companies do not need to seek an investment approval. At the other end is Angola, where obtaining an investment approval takes 180 days. In Ethiopia, it takes only one day to obtain the same approval.
Romanian legislation, applicable to both domestic and foreign investors, prohibits a sole shareholder LLC to be the sole founder and shareholder of another LLC. The Trade Registry judge must hold a public hearing on the company’s application for registration within 5 days of submission of the required documentation. The registration documents can be submitted, and the status of the registration request monitored, online.
Companies in Romania are free to open and maintain bank accounts in foreign currency, although, in practice, Romanian banks offer services only in certain currencies (including euros, U.S. dollars, and Swiss francs). The minimum capital requirement for domestic and foreign LLCs is RON 200 (around USD 65).
Romanian law (Government Emergency Order No. 92/1997) provides for national treatment of foreign investors with regard to the establishment rights of companies. Foreign investors are generally allowed to invest in any sector open to private domestic companies. Thus, with the exception of the domestic and international air transportation industries, all sectors covered by the Investing Across Sectors indicators are fully open to foreign equity ownership.
The World Bank report listed information on how foreign investments can be incorporated in 87 countries in the world.
You can read the entire report here: Investing Across Borders
Read about the steps to setting up a SRL firm in Romania here.
