ESTABLISHING AN NGO IN ROMANIA

ESTABLISHING AN NGO IN ROMANIA

In Romania NGO’S are non-profit purpose, private legal entities.  However, a Romanian NGO can establish commercial companies, with profit purpose to finance their activities.  They are also granted various tax benefits by law to support their activities.

Romanian NGO’s can be established both by Romanian or foreign citizens and companies.

In Romania an NGO can be established as an Association or a Foundation. Additionally, targeting a higher social impact, two or more associations or foundations can form a Federation, which, along with its constituent entities, has separate legal personality and assets.

To successfully achieve your specific objectives, choosing between an association and a foundation requires a comparative analysis.

Here are some guidelines to consider:

• Purpose: Excluding purposes alike trade unions, political parties, and religious organizations, both types of NGO’s can operate in fields such as art, culture, environmental protection, social protection, promotion of fundamental rights, sports, recreation, health, education, research, business interest representation, international cooperation, religion, etc.

Foundation: has a narrower scope - carrying out activities for the general interest or for specific communities.

Association: In addition to the Foundation's scope, it also can promote the non-patrimonial personal interest of its members or defense, preservation, development, and promotion of the identity of a national minority represented in the Romanian Council of National Minorities and the public representation of citizens belonging to these minorities.

• Minimum Number of Founders:

Association: Minimum of 3 physical persons and/or legal entities.

Foundation: Even a single founder, either a physical person or a legal entity.

• Initial Assets:

Association: As of 2024, there is no minimum threshold – contributions can be exclusively in kind.

Foundation: Generally, goods in kind or cash, with a minimum value of 10 minimum gross base salaries at the time of establishment; exception – minimum value threshold of 2 minimum gross base salaries at the time of establishment, if its exclusive purpose is fundraising for other associations or foundations.

Foundations can also be established through legal acts for cause of death – testament - which also ensure the source of the initial assets needed.

• Governing Body: General Assembly for Associations; Directorial Board for Foundations

Establishment Procedure:

1. Choosing and reserving the name at the Romanian Ministry of Justice, considering legal prohibitions in this aspect, for a fee, with extension possibility.
2. Establishing the headquarters.
3. Signing up the Constitutive Act and Statutes, regulating all elements prescribed by law. These are concluded as private signature documents - exception: authentic form required if real estate is contributed.
4. Making the contributions for the initial assets, as defined in the Statutes.
5. Submitting to the court the application for granting legal personality, by registration in the Registry of Associations and Foundations held at the Court within whose jurisdiction the headquarters is located, along with all legally required documents.
6. Obtaining the decision to admit the aforementioned application and an Extract from the Registry of Associations and Foundations regarding the registration.
7. Obtaining the Fiscal Registration Certificate – by submitting Form 010.

At Legal Pro Advisory, we provide full legal support for the establishment of Associations, Foundations, or Federations, ensuring assistance for compliance in their operations and obtaining public utility status.