How to Establish a Company in Europe: Visa Requirements in Romania & Portugal

Starting a company in Europe is an exciting journey, especially for entrepreneurs aiming to reach new markets. Romania and Portugal stand out as top destinations for foreign investment, each presenting unique opportunities alongside various challenges. In this article, we will explore how to establish a business in these two countries while outlining the visa requirements for international entrepreneurs.

Understanding the Business Environment

When you're thinking about starting a business in Europe, it is vital to grasp the local environment. Romania and Portugal both offer distinct advantages that can ensure a smooth start for both new and established companies.

Romania is part of the European Union (EU) and features a dynamic economy that has grown by approximately 5.9% in 2021. It benefits from a skilled workforce and relatively low operational costs. The country's strategic location makes it a gateway to both Western and Eastern European markets, with cities like Bucharest boasting rapidly expanding tech hubs.

Portugal, meanwhile, is famous for its business-friendly tax policies, especially beneficial for new businesses. For instance, start-ups can enjoy a reduced corporate tax rate of 17% for profits up to €15,000, making it an attractive option for entrepreneurs seeking to relocate or expand their operations in Europe. Additionally, cities like Lisbon and Porto are noted for their lively atmospheres and quality of life, creating not just a great business environment, but also a desirable place to live.

Company Establishment in Romania

Steps to Start a Business

1. Choose your Business Structure: Two popular choices in Romania are Limited Liability Companies (SRL) and Joint Stock Companies (SA). An SRL has a minimum share capital requirement of just €200, making it accessible for many start-ups.

   
   

2. Register your Company: Registration with the National Trade Register Office (ONRC) is mandatory. This process involves submitting several documents, including identification and proof of a company address. In Romania, most registrations can be completed within 3-5 days.

   
   

3. Open a Bank Account: After registration, you will need a business bank account to deposit the minimum required share capital.

   
   

4. Obtain Licenses and Permits: Depending on your business type, you may need specific licenses. For instance, restaurants need health permits, while tech companies may need industry-specific approvals.

   
   

High angle view of Bucharest showcasing its elegant buildings

Visa Requirements for Romania

For non-EU citizens planning to start a business in Romania, it is critical to secure the proper visa. The main visa types include:

• Start-up Visa: This visa is for foreign entrepreneurs launching a business. Applicants must provide a solid business plan and demonstrate financial resources. Successful applicants can work on their projects and potentially create jobs.

  
  

• Long-Stay Visa for Business: Suitable for those intending to stay in Romania for over 90 days. This visa allows for multiple entries and has a validity of one year, making it ideal for entrepreneurs who need to manage their operations.

  
  

Applicants should ensure all documentation is complete and in line with the Romanian authorities' requirements, including proof of funds and clear business plans.

Company Establishment in Portugal

Steps to Start a Company

1. Choose a Business Structure: Common structures in Portugal include Sole Proprietorships and Sociedades Unipessoais por Quotas (SUQ), which are similar to LLCs. Picking the right structure is important for managing taxes and legal responsibilities.

   
   

2. Business Registration: Register your business at the Portuguese Companies Registrar, which often requires a few days. You will need documents such as identification, proof of address, and an acceptable business plan.

   
   

3. Obtain a Tax Number: It is mandatory for every business to get a Tax Identification Number (NIF) from the tax authorities to operate legally.

   
   

4. Licenses and Permits: Depending on your industry, you may need additional licenses. For example, a business in the food sector must comply with health regulations and inspections.

   
   

Close-up view of Lisbon highlighting its unique architecture

Visa Requirements for Portugal

For foreign entrepreneurs wanting to set up a business in Portugal, several visa options exist:

• D2 Visa: This visa targets entrepreneurs and self-employed individuals. Applicants must submit a viable business proposal and show investment capacity.

  
  

• Golden Visa Program: Designed to attract foreign investments, this program allows individuals to obtain residency permits by investing a minimum amount in real estate or by creating jobs in Portugal. Reports show that in 2021, 1,226 Golden Visas were granted, highlighting its success in attracting international entrepreneurs.

  
  

Navigating these visa requirements can be challenging, so seeking professional guidance is advisable to stay updated on regulations.

Key Differences Between Romania and Portugal

While Romania and Portugal each have their perks for business establishment, entrepreneurs should weigh various factors when choosing where to set up shop.

• Taxation: Portugal is recognized for its favorable tax environment for new businesses. For example, corporations pay a 21% tax on profits over €15,000, but new businesses may benefit from even lower rates during their initial years. Romania, while competitive, generally has a flat corporate tax rate of 16%, with fewer incentives for start-ups.

  
  

• Language: Portuguese is essential for conducting business in Portugal. While many people speak English, local language proficiency can enhance communication. Romania, on the other hand, has a considerable number of English speakers, especially in urban areas, which can ease the transition for foreign entrepreneurs.

  
  

• Regulatory Environment: Recent reforms in Portugal have streamlined business processes, improving ease of entry. Romania has made strides but still grapples with some bureaucratic challenges that may slow down business initiation.

  
  

Both countries showcase numerous opportunities for establishing a business in Europe. Understanding and evaluating the advantages and drawbacks is vital for entrepreneurs making informed choices about their future ventures.

Final Thoughts

Launching a company in Europe, particularly in Romania or Portugal, necessitates careful planning and consideration of various elements, from choosing the right business structure to navigating complex visa requirements.

Both nations offer substantial advantages, including favorable business climates and appealing living conditions, making them excellent options for ambitious entrepreneurs. By thoroughly researching and preparing for the establishment process, businesses can create a solid foundation for success in the European market.

Eye-level view of Porto showcasing its vibrant waterfront buildings

As you embark on your European business journey, investing time in understanding the legal and practical aspects will undoubtedly pay off in the future.