Registering a Romanian Micro Company

Choosing to register your company as a Romanian Micro Company could simply mean less taxes for small investors in Romania. These types of Romanian companies will pay 2% of the income for the year 2007, 2.5 in 2008 and 3% in 2009. It’s a question of choice whether to pay a percentage of the income or the regular 16% of the profit as any normal Romanian company. A Micro Company is a Romanian company which fulfills all the following conditions:

1. has from 1 to 9 employees;
2. it has sources of income other than consultancy and management activities, in a percentage of over 50%;
3. its income has not exceeded the amount of 100,000;

4. The State, public authorities or local authorities cannot be shareholders in the company.

The companies activating in sectors such as banking, insurance, capital market (with the exceptions of companies which activate as intermediaries in these areas), gambling, betting, casinos, or have their social capital owned by a shareholder or associate which has over 250 employees) cannot register as Micro Company per the Romanian law.

A Romanian company paying profit tax is able to register a Micro Company by communicating their option to the local tax authorities at the beginning of the fiscal year. A Romanian company incorporated during a fiscal year will register their option when incorporating the company with the Trade Register. This option is definitive for the current year.