Opening a Business Account in Romania Made Easy
Did you know that Romania ranks 55th in the world for ease of business, making it a popular destination for entrepreneurs? With over 19 million residents and access to the EU market, the country offers immense opportunities for businesses of all sizes. However, managing your finances effectively starts with opening a business account, which over 70% of new companies prioritise in their first month of operations. In this blog post, we will learn how to open a business account in Romania, including the steps, documents required, and tips to streamline the process.
Why Open a Business Account in Romania?
Romania’s strategic location in Europe makes it a gateway to a market of over 500 million consumers in the European Union. Opening a business account ensures smooth financial transactions within this vast market.
A Romanian business account also allows companies to operate in local currency (RON) and other major currencies like EUR and USD, which is essential for efficiently managing international and local payments.
Having a business account also builds your company’s credibility. Many Romanian clients and suppliers prefer working with companies that maintain local banking accounts.
Furthermore, it ensures compliance with local tax and financial regulations. Meeting obligations such as VAT payments and corporate taxes can become simple with a business account.
Eligibility Criteria for Opening a Business Account
To open a business account in Romania, your company must meet specific criteria.
- First, the business must be registered with the Romanian National Trade Register. Both resident and non-resident individuals or legal entities can register businesses, making Romania an attractive option for foreign entrepreneurs.
- The company’s legal representative must provide valid identification documents to be eligible.
- Sole proprietors, partnerships, and corporations all qualify for business accounts. Entities with multiple shareholders typically require each shareholder’s identification documents.
- Additionally, the business’s activities must align with Romanian laws, and the necessary permits should be in place for industries requiring specific authorisation.
Types and Features of Business Accounts in Romania
Traditional Bank Accounts
Traditional bank accounts in Romania are well-suited for established businesses. They offer features like multi-currency IBANs, access to SEPA and SWIFT networks, and a wide range of financial tools for managing payroll, invoicing, and more. Major banks like Banca Transilvania provide dedicated business packages tailored to different industries.
Fintech Solutions
Fintech solutions, on the other hand, are ideal for startups and SMEs seeking flexibility. Platforms like Wise and Satchel enable businesses to open multi-currency accounts and manage funds online quickly. These accounts often include virtual IBANs, low-cost international transfers, and 24/7 access via mobile apps.
Which One is Better?
Fintech solutions like Wise and Satchel have revolutionised how businesses manage finances. These platforms allow companies to open accounts quickly without needing physical branches. Multi-currency accounts make holding, sending, and receiving payments in over 40 currencies easy, significantly reducing exchange rate costs.
Another advantage is the transparency in pricing. Unlike traditional banks, fintech platforms provide transparent information about transaction fees, ensuring businesses avoid unexpected charges. Moreover, advanced features such as virtual IBANs, API integrations, and automated payment systems enhance efficiency, making FinTech solutions particularly appealing for startups and SMEs.
Pricing and Fees
The costs of opening and maintaining a business account in Romania vary depending on the provider. For traditional banks, initial setup fees range from €50 to €200, with ongoing monthly maintenance fees averaging €10 to €30. Share capital requirements for SRL companies are minimal, typically around 200 RON (approximately €45).
Fintech providers often charge lower fees. For instance, platforms like Wise and Satchel provide transparent pricing for international transfers with no hidden costs. While these services may not require an initial deposit, they might charge for certain premium features, such as physical payment cards or API integrations.
Comparison Table Highlighting Key Features of Prominent Romanian Banks
| Bank | Monthly Fee | Transaction Fees | Online Banking | Multi-Currency Accounts | Additional Services |
|---|---|---|---|---|---|
| Banca Transilvania | From 20 RON | Domestic: 0.15% (min 5 RON); International: 0.1% (min 15 EUR) | Yes | Yes | Business loans, merchant services, dedicated relationship managers. |
| BCR (Banca Comercială Română) | From 25 RON | Domestic: 0.2% (min 4 RON); International: 0.15% (min 10 EUR) | Yes | Yes | Overdraft facilities, investment services, insurance products. |
| BRD – Groupe Société Générale | From 30 RON | Domestic: 0.1% (min 3 RON); International: 0.1% (min 12 EUR) | Yes | Yes | Cash management, trade finance, leasing services. |
| ING Bank Romania | From 18 RON | Domestic: 0.1% (min 2 RON); International: 0.15% (min 10 EUR) | Yes | Yes | Payroll services, savings accounts, credit facilities. |
| Raiffeisen Bank | From 22 RON | Domestic: 0.15% (min 3 RON); International: 0.12% (min 15 EUR) | Yes | Yes | E-commerce solutions, POS services, financial advisory. |
Comparison Table Highlighting Key Features of Prominent Fintech Providers
| Provider | Monthly Fee | Account Opening Fee | Transaction Fees | Multi-Currency Accounts | Additional Services |
|---|---|---|---|---|---|
| Wise Business | None | £45 (one-time fee) | International payments from 0.41% | Hold and manage 50+ currencies | Integration with accounting software, batch payments |
| Revolut Business | Free, £25, or £100/month (based on plan) | None | Free allowances vary by plan; excess charged (e.g., £3 per international payment on free plan) | Hold and exchange 30+ currencies | Expense management, corporate cards, API integrations |
| Satchel.eu | From €9/month | €50 | SEPA: €0.20; SWIFT: €5 | Hold and manage multiple currencies | Dedicated IBANs, payment cards, merchant accounts |
Please note that fees and services are subject to change. Contact the provider directly or visit their website for the most current and detailed information.
Required Documents to Open a Business Account in Romania
Opening a business account in Romania requires specific documentation. These include:
Identification Documents
Valid passport or ID for the legal representative and shareholders. Non-EU nationals may need a residence permit.
Company Registration Documents
Articles of Association, Certificate of Registration from the Romanian National Trade Register, and proof of the company’s registered office address.
Proof of Share Capital Deposit
A document showing the initial share capital has been deposited in the chosen bank.
Financial Documentation
Tax identification numbers, if applicable, and financial statements for existing businesses.
For Non-Residents
Legalised and translated versions of all required documents. A VAT registration certificate from the company’s home country may also be necessary.
Step-by-Step Process to Open a Business Account in Romania
Choose a Bank or Financial Provider
The first step is selecting a bank or financial provider that aligns with your business needs. Major Romanian banks like Banca Transilvania and ING Bank offer robust business banking services. Alternatively, fintech solutions like Wise or Satchel provide digital banking options with added flexibility for startups and international businesses.
Prepare the Required Documents
Compile all necessary documentation, ensuring each is accurate and properly certified. This step is significant for foreign entrepreneurs who may need to translate and legalise certain documents.
Apply
Depending on the bank, applications can be submitted online or in person. Many banks now offer video verification processes, allowing non-residents to complete their applications without visiting Romania.
Open the Account
Once approved, deposit the minimum share capital required for the account type. The bank will issue your IBAN, enabling your company to start managing its finances.
Time Taken to Open a Business Account in Romania
Opening a business account in Romania depends on the bank, the completeness of your documentation, and whether you choose a traditional bank or a fintech provider.
| Step | Estimated Time |
|---|---|
| Choosing a bank or provider | 1-2 days |
| Gathering and preparing documents | 3-5 days (longer for non-residents if translations or legalisations are required) |
| Submitting the application | 1 day (online) or 2-3 days (in person) |
| Account review and approval | 5-10 business days |
| Receiving account details (IBAN) | 1-2 business days after approval |
Note: Delays can occur if documentation needs to be completed or additional verification is required. Fintech platforms often offer faster processing compared to traditional banks.
Common Challenges and Solutions
Handling the Intricacy of Documentation
One of the primary challenges for businesses opening accounts in Romania is ensuring all required documents are accurate and complete. The process often involves gathering company registration certificates, Articles of Association, proof of address, and shareholder identification. For non-residents, these documents may also need to be translated and legalised. Missteps in preparing or submitting these documents can significantly delay the account opening process.
Consider consulting with a legal expert or a professional service provider familiar with Romanian banking requirements to address this. They can ensure your documentation aligns with the bank’s standards, reducing the risk of errors. Additionally, carefully review the bank’s checklist before submission to avoid missing paperwork.
Handling Account Approval Delays
Delays in approval can stem from various factors, including incomplete applications, compliance reviews, and verification procedures. For foreign entrepreneurs, these delays can be longer due to extra scrutiny of cross-border activities or the need for additional documentation.
Select a bank or fintech provider with a reputation for quick processing times and clear communication. Banks offering online applications or video call verifications are particularly efficient. Be proactive in following up with the bank if you are still awaiting timely updates about your application status.
Getting Past Language Obstacles
Language barriers can pose a significant hurdle, especially for foreign entrepreneurs who speak something other than Romanian. Important forms, contracts, or communications may only be available in Romanian, leading to misunderstandings or errors.
Opt for banks or financial providers that offer services in English or other major languages. If unavailable, hiring a translator or engaging a bilingual consultant can ensure clarity in communication. Many fintech platforms like Wise or Satchel provide multi-language support, simplifying interactions.
Understanding Regulatory Compliance
Compliance with Romanian banking and financial regulations can be complex, particularly for non-residents unfamiliar with local laws. Requirements like tax registrations, obtaining VAT numbers, or adhering to anti-money laundering (AML) checks can feel overwhelming.
Consult reputable sources or work with local legal experts to stay informed about regulatory updates. Many banks also have dedicated advisors who guide new clients through compliance processes. A fintech platform can simplify this step, as they often streamline compliance checks during account creation.
The Key Takeaway for a Smooth Account Opening Process
Opening a business account in Romania can be seamless with the right preparation. Start by choosing a bank or fintech provider that aligns with your needs, ensuring your research thoroughly. Prepare all required documents meticulously, and don’t hesitate to seek professional assistance for complex requirements. Technology-driven solutions can further simplify the process, especially for startups and SMEs. Maintain proactive follow-ups with the bank and stay informed about evolving legal requirements to keep your account running smoothly.
FAQs
How much does it cost to open a business in Romania?
The cost of incorporating a company in Romania varies depending on the services utilised. For instance, some firms offer company formation services starting at €500. However, comprehensive packages that include incorporation, local bank account opening, and governmental fees can average around €8,820. It’s advisable to consult with a local legal expert to obtain an accurate estimate tailored to your specific business needs.
Can a foreigner open a bank account in Romania?
Yes, foreigners can open a bank account in Romania. The process typically requires presenting a valid passport, proof of address, and, in some cases, a tax identification number. Some banks may request additional documents, such as an employment contract or previous bank statements. It’s recommended that the chosen bank be contacted beforehand to confirm the specific requirements.
Which bank is best for foreigners in Romania?
Several banks in Romania are known for accommodating foreign clients. ING Bank is often recommended due to its efficient online banking system and English-speaking staff. Banca Transilvania and Raiffeisen Bank also have a significant presence and offer services tailored to expatriates. It’s advisable to compare different banks’ services, fees, and customer support to determine the best fit for your needs.
How much bank balance is required for Romania?
The minimum share capital required to register a limited liability company (SRL) in Romania is RON 1. However, the initial deposit requirements for opening a bank account vary by bank and account type. Some banks may require a minimum deposit, while others may not. It’s essential to consult with the specific bank to understand their policies regarding initial deposits and minimum balance requirements.
What banks are in Romania?
Romania’s banking sector comprises both local and international institutions. Prominent banks include Banca Transilvania, BCR (Banca Comercială Română), BRD – Groupe Société Générale, ING Bank, and Raiffeisen Bank. These banks offer services catering to residents and non-residents, including personal and business banking solutions. Each bank has its own set of services, fees, and account options, so it’s advisable to research and choose the one that best aligns with your financial needs.
