Holding company in Romania
A holding company is a type of firm that allows you to hold shares of other companies. Usually, the board of directors of holdings may have control over other companies.
One of the most significant factors in registering a holding in Romania is that a foreign citizen can be a shareholder. However, the country has a law on companies that must be followed by both local businessmen and foreign investors. Companies located in offshore jurisdictions can also be the shareholders of holding companies in Romania.
Besides, holding companies in Romania have a special tax regime – the dividends are not taxed. According to the Law on Income Tax in Romania, dividend payments are exempt from taxation if they are paid to a shareholder, member of the executive or supervisory body of a Romaniacompany. This also applies to holdings holding shares in their subsidiaries.
Setup a holding company
Our lawyers will be glad to assist in setting up a company in Romania. We will help you to collect all packages of documents, and open a holding company in Romania, as soon as possible. Please contact us.
Procedure and requirements
Main characteristics of holding companies in Romania:
- the holding plays the role of a parent company and may have one or more subsidiaries;
- the holding company must have a sufficient number of shares and capital that guarantees it the right to vote in subsidiaries;
- the holding has the right to control the policy and management decisions of the subsidiary, but cannot carry out its day-to-day activities;
- holding companies can own various types of assets, including real estate, shares, and even intellectual property rights.
Documents required for registration of a holding company
The creation of a holding company in Romania implies the preparation of a package of documents that must be submitted to the Commercial Register. Among them, we recall the following:
- information about the shareholder;
- the confirmation of the contribution of the authorized capital;
- the confirmation of the legal address in Romania;
- statutory documents of the holding.
The documents must be submitted to the Register of Companies in Romania depend on the structure of the holding company. It is important to note that the Romaniaholding must register with the tax authorities of this country.
Taxes
Income tax of 16% is levied on dividends paid to non-resident companies (reduced to 10% for payments to other EU countries in 2009), unless an exemption is provided for by the provisions of the EU Parent and Subsidiary Directive.
In addition, withholding tax of 16% levies interest or royalties paid to non-resident companies. However, in accordance with the transitional rules contained in the Interest and Royalty Directive, Romania was authorized not to apply the withholding tax exemption until December 31, 2010. During this transition period, Romanian withholding tax on payments made to companies in another member state can be up to 10%, although existing treaties with other countries may affect this.
Accountancy
Get a bookkeeping solution with our help. We will take care of all the paperwork and business accounting. Financial reporting, management report, and auditor’s report – we are ready to provide you with all these services for your business.
Bank account
After the successful founding of a company, we will help open a bank account in Romania. We will be glad to assist you to find a reliable bank in the Romaniaian jurisdiction exactly for your requirements and business goals. And also open a corporate bank account in Romania for a non-resident.
Consultation
The Romanian Republic is one of the most attractive countries for setting up a holding company. However, opening a company requires knowledge of the regulatory framework, the selection of shareholders, directors. If you feel that you need more information about business registration, contact us with a consultation request.
Other types of companies
If you feel like Holding company does not fit your needs, click the button below and you will see other legal forms like Limited Liability Company, Joint Stock Company, Branch office and more.
Holding company registration
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