To open a restaurant in Romania, entrepreneurs follow a series of steps, starting with company incorporation and continuing with adequate and complete licensing for their establishment. Our team can help you register a company in Romania and provide ongoing guidance to ensure full compliance with the licensing requirements for the hospitality sector set forth by various authorities.
How to open a restaurant in Romania
Before entrepreneurs can start work on the design and the menu of their new restaurant, they are required to register a legal entity in Romania that will be used for their business.
For those who set up a restaurant in Romania, the private limited company (SRL) and the joint-stock company (SA) are the two commonly used business forms. Each of these offers limited liability to the founders, meaning that they are only liable to the extent of the capital they invest in the business.
The following steps for company creation are required:
- Select the business form: SRL or SA, any of which can be opened by local and foreign investors;
- Choose and reserve the company name: this is the legal entity’s name, as used for business registration. It does not have to be the same name as that of the future restaurant in Romania;
- Prepare the documents: these include the application form, the name confirmation, the articles of association, documents identifying the company founders and others;
- Register the company: business registration in Romania is performed with the National Trade Register Office (the regional branch in the city or county where the restaurant will be based).
Once the company incorporation phase is complete, entrepreneurs can start applying for the business licenses and permits, which are mandatory for an establishment that will prepare and sell food to customers.
Special permits and licenses for restaurants in Romania
Investors who open a restaurant in Romania must adhere to the national laws concerning such premises. The law regulates not only the safety of the space itself (via approvals concerning fire safety, for example), but also the adequate preparation of food offered for human consumption (via special sanitary approvals).
Below, our team that can help you open a Romanian company lists the key licenses and permits that are currently required by restaurant owners in the country.
After following the general steps for company formation in Romania, those who open a business in the restaurant or catering sector must comply with the licensing requirements. Our team lists some of the most important applications expected in this business sector:
- The sanitary – veterinary authorization from ANSVSA – The National Sanitary Veterinary and Food Safety Authority, through DSVSA – Sanitary Veterinary and Food Safety Directorate;
- The environmental permit from NEPA – National Environmental Protection Agency;
- The Inspectorate for Emergency Situations authorization, concerning the establishment’s ability to ensure fire protection;
- The operating authorization from the Mayor of the District where the restaurant is located;
- The license to broadcast ambient music;
In addition to obtaining the aforementioned authorizations, entrepreneurs who open a restaurant in Romania are required to make sure that they comply with the following:
- Sign an agreement with a company that will ensure pest control, disinfection, and disinfestation;
- Conclude a sanitation contract;
- Sign occupational health contracts for the employees;
- Ensure proper staff training on sanitary standards and other industry-specific issues.
Entrepreneurs who open a restaurant in Romania will also have to conclude specific insurance agreements (such as a policy for civil liability, health and accident insurance, inventory insurance, etc.).
Tax and financial reporting compliance for restaurants
A restaurant in Romania follows tax payment, reporting, and auditing requirements (as may apply in the case of its business form). As a general rule, companies in Romania are subject to the following tax rates, as listed below by our experts in company formation in Romania:
- 16% corporate income tax rate;
- 10% dividend withholding tax rate;
- 11% VAT rate for restaurants. The VAT rate for these types of establishments was subject to changes in recent years. We encourage investors to discuss the latest tax changes applicable in the hospitality sector with our local team of experts.
For further information, as well as specialized legal assistance when opening a restaurant in Romania, obtaining the specific operating permits from the competent authorities, and concluding the necessary contracts for the operation of the restaurant, do not hesitate to contact our team.
by Cristian Darie