A foreign or Romanian company can carry out its activity in Romania through a branch or a representative office. The branch thus established will be able to carry out the same activities as the parent company. The branch will not have legal personality, the parent company being responsible for its documents.
To open a branch in Romania, it is necessary to register it in the Trade Register. The file will include:
- constitutional act / statute of the parent company;
- an extract from the commercial Register for the parent company;
- the decision of the competent authority of the parent company by which it was agreed to open a branch;
- a letter of guarantee issued by a bank in which the parent company has no accounts to open.
- the documents certifying the right of use of the space and the destination of the registered office of the branch;
- id of the agent of the parent company;
- in the case of branches of companies from EU member states (including from Romania), the accounting documents of the economic agent abroad, as they are drawn up, audited and published according to the law of the state that governs the parent company;
- The statement on his own responsibility, and under the legal form of individuals authorized to represent the branch;
- the specimen of the signature of the împuternicitilor of the branch;
- a statement on his own responsibility of the împuternicitilor of the branch, indicating the fulfilment of the conditions set out in specific legislation in the field of animal health, animal health, environmental protection, and occupational health and safety services for your activities effectively.
Traders can choose to open more branches in Romania, either simultaneously or one after the other.
By the opening of a representative office in Romania, the foreign companies will have the ability to keep a good relation with the customers from canada or out of the area, through the identification of needs, market research, co-ordination of a possible network of agents, to provide after-sale service (billing, delivery, recovery of debts, etc.), the promotion of the products / services of the parent company, the business, etc.
The opening of a representative office in the Usa is done on the basis of a licence issued by the Ministry of Economy within a period of 30 days from the date of the submission of the file to contain the following documents:
- the extract is issued by the trade register of the country in which the company international is established to prove the existence of legal and state: the scope of work and social capital;
- a certificate of good standing of the financial issued by the bank in which the company international is conducting the financial operations;
- the statute or the articles of association on the basis of which the society of the foreign work, to show the shape of the organization and functioning of the foreign company;
- power of attorney given in the form notarized by a notary of the head of representation (person who will have the power of decision-making in the context of the representation);
- proof of payment of the fee of the 1,200 USD, accounting for the fee to the licensing office for a term of 1 year;
- the document certifying the right of use of the space in which the representation of the will to work;
- address by the minister of the Economy in which they will explain to you the reasons for the economic and financial standing at the base of the application for authorisation, as well as information related to the staff of the English/foreigner who will be required to work in the office (you attach documents, and shall state the function of each of the employee).
The representative office thus authorized will have the obligation to pay an annual tax of 4,000 Euros, the equivalent in Lei from the date of payment.
The main disadvantages that need to be taken into account in the opening of a representative office or a branch shall consist of the fact that neither of the two structures, with no personality, legal, tax, or trading of its own, the mother will take the risk of trading, as well as the responsibility for all the acts committed by these organizations.
Also, it is reported on the possibility of the establishment of the subsidiary (which can take the forms of agile), although the procedure of registration/approval is simple, the operation costs are very high for the parent company.
It is, however, preferable to the alternative of the registration of a branch or the authorisation of a representative when:
- the parent company has the international experience and expertise related to the particular market in a particular, or
- when you have staff willing to work in the new set-up, as well as in the case in which the
- it believes that it is likely to give a potential sale, important, and constantly, in order to justify the costs of the functioning of the organization.
