The Main Types of Companies in Romania and Their Advantages
The Romanian Commercial Code provides for various types of entities that can be created by natural persons and companies, local or foreign. Each of them has its own particularities, which can give it various advantages. How do you choose…
The Romanian Commercial Code provides for various types of entities that can be created by natural persons and companies, local or foreign. Each of them has its own particularities, which can give it various advantages. How do you choose among them? We will review the main types of companies and their pros to help you get an idea of what works best for you.
The legal entities you can register in Romania
Here are the main types of entities you can choose from if you want to start a business in Romania:
- the private limited liability company (SRL);
- the joint stock company (SA);
- the general or collective-name company (SNC);
- the limited partnership (SCA);
- the sole proprietorship (PFA).
How do you choose between these business forms?
If you wonder how to choose an appropriate legal entity, so that you can carry out your activities with the least hassle, here are some key points to consider:
- the capital you have;
- the type of activities you want to carry out;
- meeting the registration requirements in terms of shareholding and management structures.
With respect to the incorporation formalities, they are simple to complete if you use a local service provider such as Infiintare firma, which can complete the procedure on your behalf. La Registru will help you overcome language barriers and make the registration process as easy as possible.
By far, the private limited liability company is the most popular business form in Romania, however, you can also choose between other legal entities, as you will find more of them below.
The Romanian private limited liability company
From a shareholding and management structure, the SRL resembles similar types of companies in other European countries. This is one of its main advantages, as you will know what to expect and how it works once you incorporate it. Let’s explain:
- this business form requires at least one shareholder and one director;
- it can have multiple directors, if you choose so;
- its incorporation relies on the creation, notarization, and filing of the Articles of Association;
- as any other local company, you will also need to establish a local registered address.
The main advantages of an SRL are:
