Do you know all the ways you can withdraw money from your Romanian company, in a legal way? Find out how from our lawyers, below!
Whether you are at the beginning of your entrepreneur career in Romania or you may simply be interested in doing business here, and first collect all the valuable information required for such an adventure, this is for you!
After setting up your company and having started to run it, it should gain profits. In legal terms, the part of profit directed to any associate in a firm (including you) is called dividend and that is what you would be claiming as personal gains. According to the Company Law Act no. 31/1990, one could claim the dividends and withdraw them from the company once every three months or once a year, depending on the financial situation and the Shareholders’ Agreement regulations.
What else do I need to know about my dividend right?
Your dividend right depends on your personal contribution quota to the social capital of the company and is being taxed by the state of Romania. As a result, you don’t get 100% of your dividends, but 95%.
According to the Fiscal Code, the state requires the other 5% as tax.
Which are the other possibilities in order to legally withdraw money from the company and for what purposes?
There are other 4 legal ways to get money from your company:
1) Reimbursing the loans you made to the company
Of course, incorporating a company, putting it on the record in the National Trade Registry and setting it up is not free of expenses and there is nothing like a fresh start for an entrepreneur who does not make profit (yet).
As a result, shareholders or the sole shareholder usually take a step forward in this matter and lend money to the company in order to make up for the procedural expenses. This proves handy later in time, when you can reimburse your own loans made for the company.
2) Selling your personal assets to the company
In case you are working remotely for your business using your personal laptop, modern devices and gadgets, there is good news for you!
You can sell these assets to the firm at a right market value, so that both you and your firm win, as your company gains its own assets and you gain the urgent money you need.
3) Having set the company’s headquarters in your personal domicile
As easy and comfortable as it sounds, you should take note of the fact that one needs to sign a rental agreement with the company in order to technically give their rental service to the firm.
However, the burdens that come along with this solution imply the annual tax declaration for the state of Romania and paying a 6% tax on all the income you get from the rental services.
4) Employing yourself in the company
Becoming your own employee sounds like a dream come true, but this scenario implies paying a 41% tax on your salary to the Romanian authorities. As a result, this option should be thought of thoroughly before going for it.
Moreover, you should also take into account whether or not your residency permit allows you to be hired and have a job in Romania, since you might as well have one with a different purpose. Therefore, your residency permit should allow you not only to incorporate a company in Romania, but also to get your work agreement legally signed.
If you would like to address more questions or if you need a legal consultation, you can contact us at office@rrpb.ro or by accessing our site www.rrpb.ro for more information.
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