Representative

 

Open Representative Office Romania

 

According to Romanian legal regulations, the representative office functions as an intermediary agent between mother companies and other external business partners. In broad terms it can be considered a broker for the main company. If interested to open representative office Romania, clients should know that such a secondary establishment cannot engage in commercial revenue-generating activities such as concluding contracts and opening of letter of credit. Any company choosing to set up representative office in Romania may take into consideration some specific roles that can be fulfilled by these business entities. Through these offices, the mother company can promote its brand and, as previously mentioned, can work with local agencies and distributors. The representative office has no separate social capital and, if willing to create representative office Romania, individuals need to know that this type of business entity must not be registered with the Trade Register Office. A representative office is not an independent legal entity and therefore the mother company must be held responsible for actions taken by the representative office.

 

 

Setup Representative Office in Romania – Characteristics

 

If interested to open representative office Romania clients should know that there are specific regulations to follow in this particular case. First of all there should be submitted a dossier file to the Ministry of Economy, Commerce and Business Environment (according to Decree-Law No. 122/1990). This dossier must contain specific details such as: the location of the representative office’s headquarters, the expected duration of the office’s operations, the number and positions of personnel that will be employed and the object of activity. Procedures to create representative office Romania indicate that the operating permit is issued within 30 days of the submission. According to legal requirements, within 15 days of the issuance of this authorization, the representative office must be registered with the Tax Office where is located.

In order to set up representative office in Romania, any foreign legal entity who owns this kind of secondary office must pay an annual tax in RON equal to the equivalent of EUR 4.000. If a foreign legal person establishes or closes an office in Romania, during a fiscal year, the tax payable for the year is calculated taking into account the number of months during which the company conducted activities.

The necessary papers needed in order to open a representative office in Romania are the following: the official document confirming the legal existence, the activity and the capital of the mother company; a good standing certificate from the bank used by the mother-company for financial transactions; a certified copy of the statute of the company indicating the specific type of the business entity; the official power of attorney document for the director of the representative office released by the mother company and certified by a notary. The above mentioned documents together with the certified translations and the tenancy agreement contract (where the registered office will be listed) must be submitted to the registry of the Ministry of Economy. It has to be submitted as well a certificate issued by the National Agency for Fiscal Administration (ANAF), The General Directorate of Public Finances – the Department for Foreign Missions and Embassies, certificate which confirms that the business operating fee was paid. The operating permit should be issued in 30 days after submitting all documents.

So if deciding to create representative office Romania, the mother company should be rigorously assisted by a legal professional, trained and familiar with the business environment in this area. Our company is able to provide comprehensive approaches fitting all expectations and always serving our clients’ best interests. Our lawyers develop unique strategies which will result in great financial rewards.