How Do I Incorporate an Individual Company?
Have you thought about incorporating a company? You don’t know which type of company to choose?
Have you considered incorporating an individual company?
Do you want to find out how you can incorporate a company – individual company?
Are you wondering what incorporating an individual company implies?
In order to incorporate an individual company, firstly, you have to fulfill the following conditions:
– to be a Romanian citizens or a citizen of another UE state or of the European Economical Space;
– to not have committed actions which are punishable by the financial, customs laws or by the laws regarding the financial and tax discipline, actions which are registered in your fiscal record (beware! The Trade Registry will check your financial record at its own initiative);
– to have the necessary professional studies or working experience in the field where you want to carry out your activity as individual company.
If you are a citizen of another member state from the UE or of the European Economical Space, in addition to the above, you have to:
– be fiscally registered in Romania;
– have the documents which attest the professional studies recognized by the Romanian Education Ministry.
If you fulfill the conditions above, you can register yourself at the Trade Registry as an individual company (to incorporate a company under this form).
You will need:
-a copy of your identity card or of your passport;
-the signature specimen (you give this in front of the public notary);
-the documents which prove your professionals studies of working experience in the field where you want to carry out your activity as individual company (you can chose one main object of activity and more than one secondary object of activity, as long as you don’t need additional conditions to fulfill. For example, you aren’t allowed to commercialize weapons and ammunition).
You will also need to establish a professional headquarters so that you can present in front of the trade registry the documents proving the right of usage over that space.
As an individual company, in process of being incorporated, you will have the capacity to conclude a rental agreement, a sublease agreement, a free lease agreement with the owner of the space where you will register the office.
If you are the owner of the space where you want to set up the office you can pass this good in the patrimony of the individual company. For this you just have to give a statement in front of the trade registry.
When your future headquarters is in a building where there are neighbors/owner’s association, you will need their approval for setting up the office.
The first step you have to take at the Trade Registry for incorporating your company is to reserve a name. The possibilities are limited. You have to choose between your full name or your last name and the initial of your first name, followed by “intreprindere individuala”.
After you have the name reservation, you fill with the Trade Registry all the documents above, together with the name reservation and a series of standard requests for company incorporation. In order for the trade registry to register your request for company incorporation it will take a maximum of 5 working days.
What are the implications of incorporating an individual company?
By registering an individual company you become a merchant natural person.
The implications are:
1. You can hire people;
2. You can collaborate with other authorized natural persons, other individual companies and with other legal persons as well (limited liability companies, associations and so on). Even if your collaboration agreement is one of exclusivity you will not be considered as an employee of the other entities;
3. You will be able to be an employee as a natural person and at the same time to own the individual company, but you cannot be an authorized natural person at the same time;
4. The liability for obligations extends over your whole patrimony as a natural person (including the patrimony of the individual company);
5. Accountancy will be held in simple bookkeeping according to the Tax Code;
6. The insolvency procedure will be governed by law 85/2006 and you won’t have the option to reorganize the individual company and you will go directly into bankruptcy.
If you have additional questions, please write to my email address.