Types of companies in Romania. In Romania, there are several types of companies that can be formed based on the requirements of the owners and the intended business activity.
Here are the most common types of companies in Romania:
Sole proprietorship (PFA)
A sole proprietorship is a business owned and operated by one individual.
The owner is personally liable for all business debts and obligations.
Limited liability company (SRL)
A limited liability company is a legal entity with a separate legal personality from its owners.
The owners’ liability is limited to the amount of their capital contribution.
Read more about Limited liability Company (Societate cu raspundere limitata) on this article.
Joint stock company (SA)
A joint stock company is a type of company that is owned by shareholders, and the liability of the shareholders is limited to the amount of their capital contribution.
The minimum share capital required for an SA is 90,000 RON.
Limited partnership (SCS)
A limited partnership is a type of partnership where the liability of some partners is limited to the amount of their capital contribution, while others have unlimited liability.
General partnership (SNC)
A general partnership is a type of partnership where all partners have unlimited liability for the company’s debts and obligations.
Branch office
A branch office is a legal extension of a foreign company in Romania.
It has no separate legal personality, and the foreign company is liable for the branch’s debts and obligations.
Representative office
A representative office is a non-trading entity that represents a foreign company in Romania.
It cannot carry out commercial activities, and its activities are limited to marketing and promotional activities.
Company types in Romania summary
It is essential to carefully consider the advantages and disadvantages of each type of company before deciding on the most suitable structure for your business in Romania.
Our accounting firm mostly recommends a Limited liability company as being the best choice for most businesses because of the legal facilities that come with it.
The requirements for each type of company may vary, and it is advisable to seek professional advice from a lawyer or an accountant.