The SRL (limited liability company), equivalent to the SARL in France, is the form of organization of a company most used in ROMANIA.
It has limited liability before the law and its owners.
It is also one of the safest arrangements for associates.
LLC “SRL” is also the cheapest way to set up a business with a share capital of 200 RON (about 45 EUR).
The creation of this type of company can be carried out within 3 working days following the filing of the file with the commercial register in the area where the registered office of the company is located.
Legislation of LLC “SRL” in ROMANIA
The law governing the acts and steps necessary for the establishment of the LLC “SRL” is the Companies Law no. 31/1990 – with amendments (Law no. 163/2018).
Furthermore, associations within an LLC “SRL” are only responsible for the registered assets of the company.
The number of partners is limited to 50.
However, a natural or legal person can be the sole shareholder.
Steps to follow for the creation of an LLC “SRL” in ROMANIA
In order to be able to create a LLC “SRL” in ROMANIA, the following steps must be taken:
- Establish the corporate purpose of the company;
- The main and secondary activities must be established in accordance with the classification of the “CAEN” code;
- You must reserve the name of the future company (once the verification on the Trade Register site has been made);
- Specify the legal form of the company, in this case a SARL “SRL”;
- You must establish the registered office of the company registered with the “ANAF” (provide proof of address such as a deed of ownership or lease);
- Draft the articles of association and deposit the share capital (minimum 200 RON or approximately 45 EUR) with a bank;
- Submit the entire file to the commercial register for the purposes of registration of the company.
The methods of taxation of an LLC “SRL” in ROMANIA
There are two tax options:
The LLC “SRL” will have to pay a 3% tax on turnover
For example, if a product or service is sold at 100 RON (approximately 22 EUR) + VAT (for companies subject to VAT) or at 100 RON final price (for companies not subject to VAT ), a tax of 3 RON (about 0.67 cents).
The payment of taxes is quarterly in the month following a calendar quarter.
The LLC “SRL” will have to pay a tax of 16% on the profit
The LLC “SRL” will have to pay a tax of 16% on the profit, i.e. the difference between income and expenses.
For example, if we have an income of 100 RON and expenses incurred to obtain this income, amounting to 90 RON, the profit is 10 RON and a quarterly tax of 1.6 RON will have to be paid.
In either case, after paying this tax to the state, you must also pay 16% dividend tax.
In order to decide which type of tax is right for your business, you need to calculate in advance the profit margins that you will be working on.
However, if you exceed a turnover of €65,000, you will automatically be included in the profit tax payment category.
The cost for the creation of a ROMANIAN LLC “SRL”
The cost for the creation can vary between 400 RON and 1000 RON or between 90 EUR and 225 EUR.
The cost of the domiciliation of a SARL
The cost of the domiciliation of a SARL varies between 150 and 300 EUR per year.