The Romanian individual enterprise functions at a specific routine
that must be explicitly illustrated. Understanding the legal apparatus behind
this structure becomes an essential condition for the financial success of each
business project.
Among options that the Romanian law
provides for small business alternatives we would like to mention as well the
sole proprietorship. Being included in a particular category and frequently
raising various types of questions, this specific form of enterprise has an
almost similar profile to what is known as the Romanian authorized physical
person. Starting a sole proprietorship in Romania clearly implies the fact that
you have chosen a small-scale economic activity which allows a more individualistic
approach. Setting up a business in Romania according to this particular
framework comes with certain duties that must be fulfilled. Probably one of the
most important features relates to providing a document which proves the fact
that you are professionally trained for the activity that you will conduct.
Setting up a Business in Romania – documents needed for establishing a sole proprietorship
Documents which must be provided
in order to establish the sole proprietorship (in Romania called Intreprindere
Individuala) include a copy of the identity card, papers offering information
related to your professional training, a bailment contract, a document proving
the fact that you are certified to use the future registered office, a specimen
signature, evidences that taxes were paid. The main steps to be followed, for
starting a sole proprietorship in Romania, indicate as an initial phase the reservation
of the name. In order to check the name availability you will have to submit a
request to the National Trade Register (ORCT). In the same day you will be
provided with the result that must be added to the file which is to be
submitted in order to open the sole proprietorship. The name of the company has
the same structure as that imposed for PFA meaning the name and surname of the
owner adding as well the collocation “intreprindere individuala”.
The sole proprietorship structure
allows hiring employees and cooperation with other entrepreneurs avoiding to
change the legal status of the entity itself. Starting a sole proprietorship in
Romania involves a particular tax regime which applies to this unique
framework. The owner must pay the state income tax and the social security
contributions required by the public pension system and the health bureaucratic
apparatus. If employees with individual employment contract are to be hired
than all taxes connected with an optimal function of the agreements must be
paid. The income tax is determined by taking in account the 16% rate. The basis
for calculating the income tax is to be established according to the system
chosen by the payer: the real system or at income norm. Tax returns are to be
explained by a professional and that is why our experts support the approach
that always involves the certified legal help. Asking an expert’s opinion completely
changes the perspectives, accurately emphasizing significant details and also
introducing the possibility of identifying another alternative for your
business plan. Setting up a business in Romania may become an effortless
approach when benefitting from the appropriate legal assistance which is able
to simultaneously secure the overall investment.
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