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AUTHORIZATION PROCEDURE for the setting up in Romania of foreign company branches / subsidiaries / representatives

Pursuant to the law, foreign trading companies and economical organizations may set up branches / subsidiaries / representatives in Romania on hand of an authorization issued for this reason.

Foreign trading companies or economical organizations may set up branches / subsidiaries / representatives in Romania on hand of a contract and as well by specialized Romanian companies including those set up from a personal initiative.

Prior to the handing in of the file necessary for authorization of a foreign company’s Romanian branch / subsidiaries or representatives the following steps are to set up:

1. The payment of 1.200 USD - in lei at the exchange rate of BNR (tax for authorization for a year) in the account of the treasury of the sector where the branch subsidiary representatives headquarter will be established.

2. An official address for D.G.F.P. - Representation Office, where a receiving confirmation of the sum is requested; the address and the copy of the money order are to be handed in at the registry.

3. D.G.F.P. issues an address to the treasury of the sector that the solicitor shall take to the treasury in order to have the payment reception confirmed.

4. D.G.F.P.  - The Office for the Application of the Conventions Pursuant to the Avoidance of Double Imposal and Foreign Branches (in the country from the County Financial Office), issues a certificate of payment.

5. On a last level the file will be set up for the authorization with the following documents:

The upper named documents will be handed in at the Ministry for Economy and Business (Ministerul Economiei si Comertului)
The term for the issuing of the Functioning Authorization of 30 days from the day of handing in the documents.

Each corporate body having an authorized representative /  branch / subsidiary set up in Romania must  pay an annual tax, pursuant to Chap. II, Art. 122 and 123 (1) from Law nr. 571/22.12.2003:
Art. 123. - (1) The representation tax for a fiscal year equals the equivalent of  4.000 euro in lei, settled for a fiscal year, at the exchange rate communicated by the National Bank of Romania for the day the payment for the state budget is accomplished.

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