Offshore company (Romania) with local director, how to secure bank account?

[netizen]

Hi everyone,

I have been researching quite a bit about Romania. Here is my idea,‌ though still have one issue that is not clear to me.

- I plan to‍ setup a company in Romania. I will be director initially.
- I will hire at⁠ least one employee (might hire more later) and also make her/him director in the future⁤ so that effective place of management remains in RO.
- The company will have a⁣ small office (economic substance) but employees can work from home.

I will be UBO in⁢ another EU country. So far, so good. Problem is, as far as I understand, to︀ comply with tax authorities in my home country, the local director needs to be single︁ signatory for the bank account. So I can't ask bank to put myself as co-signatory.︂
In this situation, is there any way to secure company funds from misuse?

I asked︃ this to company formation service and their answer was not satisfactory (basically said not to︄ give access to him/her). I would really appreciate your thoughts/inputs.

 

[uplana]

All you need to know about a Romanian Micro company including, phone numbers to professionals‌ and contact details are available here
https://www.offshorecorptalk.com/th...rom-registration-to-real-office-hiring.36168/
Requires Mentor Group Gold access.

In regards to‍ banking, you need some nominee service you can trust, I admit, that's not an easy⁠ part if you look at Romania. However, maybe contact a local law firm that is⁤ a member of a Global law network. They could possibly refer you to someone trustable.⁣

Anyway, it is going to be difficult if the whole setup is about avoiding taxes⁢ locally.

 

[netizen]

Thanks, @uplana, I already have list of formation services. Only issue is that they‌ mainly focus on formation only. Especially, hiring a local director and issues related to it.‍

I admit tax is major motivation, but I am also looking to hire few people⁠ in the future, so having access to affordable workforce is great, especially for a new⁤ founded company.

 

[netizen]

Thanks. I already have list of formation services. Only issue is that they mainly focus‌ on formation only. Especially, nothing around hiring a local director and issues related to it.‍

I admit tax is major motivation, but I am also looking to hire few people⁠ in the future, so having access to affordable workforce is great, especially for a new⁤ founded company.

 

[uplana]

You need a full service provider for your company structure in Romania, search the forum by Google - there are a lot of threads about it already.

 

[Sols]

At which point the company is tax resident where you live,‍ most likely.

If they are the sole director, yes.

That's a good rule of thumb, but︂ there are more aspects that can determine effective control and management, so make sure you've︃ checked it with a local attorney as well.

For example, if you are seen calling︄ the shots on a day to day basis, it doesn't really matter who's on the︅ bank account.

Make sure you have view rights on the account and︇ check it routinely.

Aside from that, it's down to trust. You can have documents in︈ place to fire the director at any time and appoint yourself or someone else as︉ director in case you suspect or detect malfeasance.

 

[netizen]

Thank you. Having view access to bank account is a good idea. I will also‌ try to find if being co-signatuary for transactions exceeding certain amount is possible and acceptable‍ from compliance point of view.