I opened my business in Romania. What then? IMPORTANT FISCAL STAGES

Good to Know Before Opening a Company in Romania

- IMPORTANT FISCAL STAGES -

In the previous article, we talked about stages of company registration at the National Trade Register Office (O.N.R.C.). Now let’s see what other steps must be completed by anyone who wants to open a commercial company in Romania.

Hiring an accountant

In the case of a Limited Liability Company (SRL), according to the law, it is mandatory to organize the accounting activity, by one of two methods:

• by a person employed according to the law (with an individual employment contract), who has higher economic studies and who has duties regarding the management of the entity's accounting;

or

• through a person/firm authorized by the Body of Chartered Accountants and Chartered Accountants from Romania (CECCAR).

Useful advice: Hiring an accountant will be useful not only because the law obliges you, but also to receive useful and relevant advice in the other stages that will follow, such as:

• registration in SPV (Virtual Private Space)

• preparation/acquisition of mandatory registers

• submission of tax declarations

• employee registration

• submission of the file for registration

• other accounting and fiscal operations

That is why it is recommended to consult an accountant even before going through the stage of company registration with the O.N.R.C. We collaborate with various accountants and fiscal consultants to help you run your business in Romania smoothly.

Obtaining the Fiscal Registration Number (NIF)

A tax identification number (NIF) is a numerical code that is used by natural or legal persons for tax purposes. This is usually used to declare any tax obligations to the Romanian tax authorities.

Careful! There are serious consequences for not obtaining the NIF code. First of all, without the NIF, it will not be possible to pay taxes or submit tax declarations, thus risking high fines from National Tax Administration Agency  (A.N.A.F.).

It is also possible that banks will refuse to open a bank account for you, especially a personal bank account. So you might not be able to complete the steps of opening the company. That is why it is important to prioritize obtaining the tax registration number, even at the early stage of opening the company, to ensure that you will not experience delays due to it.

You can obtain the NIF code at the A.N.A.F. headquarters or by delegating a Romanian citizen as a representative.

The first step is to fill in Form 030 for tax registration/declaration of mentions for foreign natural persons. This form can be found both at the headquarters of the fiscal body in physical format and online in Romanian and English.

Form 030 must be completed and also sent when changing the essential aspects of its content (such as the source of receipts or total income). The form must be completed with all the information mentioned in it, and a series of documents will be attached to it, as follows:

·        copy of the foreign natural person's passport and copy of the Romanian representative's bulletin;

·        power of attorney for representation, in original;

·        supporting documents regarding the foreigner's reasons for requesting the NIF code.

The documentation can be submitted in original at the headquarters of the fiscal body, but also remotely, by postal letter with proof of receipt.

Useful advice: It would be best to obtain the code through a lawyer so that any problem communicated by the ANAF representatives is resolved promptly.

Opening an SPV (Virtual Private Space) account

By G.D. no. 11/2021 for the amendment and completion of Law no. 207/2015 regarding the Fiscal Procedure Code and the regulation of some fiscal measures, starting from March 1, 2022, all companies have an obligation to submit any requests, documents, or other documentation to the central fiscal body only via the Virtual Private Space. 

Thus, companies, authorized natural persons (PFA), and other taxpayers carrying out authorized economic activity are obliged, from March 1, 2022, to be registered in the Virtual Private Space, which allows the submission of tax returns online.

Registration in the SPV based on the qualified digital certificate

The qualified digital certificate for electronic signature is obtained from one of the certification providers, accredited under the conditions of Law no. 455/2001 regarding the electronic signature.

The list of these providers can be found on the website of the Ministry of Communications and Information Society, www.mcsi.ro, section Register of providers of certification services, or on the website of the National Tax Administration Agency (A.N.A.F.), www.anaf.ro, section - Electronic declarations, Declaration submission information category.

The registration procedure is relatively easy to follow, and for non-residents, there is this special link, with all the steps explained in English.

Registration for intra-Community VAT

The intra-community (special) VAT code is a code that is used by companies that are not registered for VAT purposes in Romania - in other words, by non-VAT-paying companies. This code is necessary to be able to collaborate with companies from the European Union.

Important! Obtaining an intra-Community VAT code is not equivalent to registration for VAT purposes in Romania. The business will continue to be VAT-exempt (so it won't issue VAT invoices and won't deduct VAT on its purchases). The intra-community VAT code will only be used concerning other companies in the intra-community area.

How to obtain the intra-community VAT code?

The registration certificate for intra-community VAT purposes and the intra-community VAT Code are obtained by submitting to A.N.A.F., through the SPV, declaration 700, together with a copy of the registration certificate (company's C.U.I.). In some cases, the submission of additional documents is also required, such as the last balance sheet (in the case of companies with a history) or a supporting memorandum.

Important! The documents are submitted through the SPV, with an electronic signature. The 700 declaration is an electronic declaration (intelligent PDF form) that, in order to be validated, must be signed electronically. Thus, to be able to apply to obtain the intra-community VAT code, it is necessary to have an electronic signature and access to the SPV on the company's C.U.I.

If you have an accountant who takes care of the monthly bookkeeping, he can take care of obtaining the intra-community VAT code for you based on his electronic signature and a power of attorney you gave him to access the SPV. An attorney-at-law can also help you with this service. 

The registration certificate for intra-community VAT purposes is issued within a few working days and collected by the administrator/holder or by a person authorized by him, from the A.N.A.F. office to which the company belongs.

The content of this article was developed by Legally Remote and has a strictly informative and general purpose, the information contained does not constitute legal advice.

If you need legal assistance for your business at the beginning of the journey, schedule a consultation call. Together with my team, I help you get rid of the stress of documents and give you time to deal with the important things for your business.