Salut! If you’re a business owner based in Romania but operating in the USA, you may already be familiar with the unique challenges that come with navigating compliance, legal, and beneficial ownership reporting requirements in both countries. From dealing with the complexities of GDPR to understanding the nuances of US tax laws, staying on top of these regulations can be overwhelming. In this blog, we’ll explore how you can ensure your business remains compliant and successful in both Romania and the USA, so you can focus on growing your international operations with confidence. Așteaptă să descoperi informații valoroase care te vor ajuta să navighezi cu succes prin aceste provocări!

Registration Requirements

The United States consists of 50 states and 5 territories, each with its own set of business regulations. To operate legally, businesses must adhere to both state-specific rules and federal laws.

State-Level Registration:

When establishing a business presence in the United States, businesses from Romania must complete state-level registration in any state where significant business activities occur. This requirement typically applies if your company:

• Has a physical presence in the state
• Frequently meets with clients in the state
• Derives a significant portion of revenue from the state
• Has employees working in the state

Incorporating your Romanian Company in the US

Even if none of the specific criteria apply, a Romanian company must still choose a home state for registration when conducting business in the US. This involves forming a U.S. entity, such as a corporation, LLC, or other business structure, in that state. This registration ensures that the company is officially recognized and compliant with US regulations, regardless of its level of business activity in any individual state.

The newly formed U.S. entity will operate as a subsidiary of the foreign company. This means that while the U.S. entity is legally independent, it remains under the ownership and control of the parent company based in Romania. This structure allows the company to conduct business in the US while maintaining its international headquarters.

We recommend using Northwest Registered Agent if your foreign company needs to incorporate. They offer expert guidance and can serve as a reliable registered agent for your business, ensuring compliance and smooth operations.

Federal Requirements

In addition to state requirements, Romanian companies must also comply with federal regulations:

• Federal Tax ID: Obtain an Employer Identification Number (EIN) from the IRS. This number is essential for tax reporting and opening U.S. bank accounts.
• Industry Regulations: Companies may need to follow specific federal regulations depending on the industry. For example:
• Import/Export Laws: If the company is involved in importing or exporting goods, it must meet U.S. customs regulations. This includes adhering to rules for tariffs, duties, and necessary documentation.

Beneficial Ownership Information Reporting Requirements

For Romanian businesses conducting operations in the U.S., adhering to Beneficial Ownership Information Reporting (BOIR) requirements is crucial. The Corporate Transparency Act mandates that companies disclose the individuals who own or control them. This applies to most entities, including those that are incorporated or registered in any U.S. state. The goal is to enhance transparency and combat illicit activities such as money laundering and terrorism financing.

A beneficial owner is an individual who controls the company or owns 25% or more of its shares, either directly or indirectly. For compliance with BOIR requirements, businesses must report information about these individuals, including their names, addresses, and identification details. Failure to file this report can result in significant penalties and legal consequences. Therefore, companies from Romania need to ensure they meet these reporting obligations promptly and accurately.

For your convenience, you can file your Beneficial Ownership Information Report directly on our website. Click here to complete the process in just a few minutes and ensure your business complies with U.S. regulations.

Additional Considerations for Romanian Businesses:

Tax Treaties

The tax treaty between the USA and Romania offers significant advantages for businesses operating across both countries. It helps prevent double taxation, ensuring that income is not taxed twice by both nations. Additionally, the treaty provides reduced withholding tax rates on various types of income, such as dividends, interest, and royalties. For more detailed information about the specific provisions and benefits of this tax agreement, click here to access the official IRS documents related to the USA-Romania tax treaty.

Trade Considerations

When conducting business with the USA, Romanian companies should be aware of the Trade and Investment Framework Agreement (TIFA) between the two countries, which aims to strengthen economic ties and promote trade. Additionally, Romania, as a member of the European Union, benefits from the EU-US trade relationship. However, specific industry regulations may apply depending on the nature of the business. It’s crucial for Romanian companies to thoroughly research and comply with US import/export regulations, customs procedures, and any sector-specific requirements. This may include obtaining necessary licenses, certifications, or adhering to safety standards. Consulting with trade experts or legal professionals familiar with US-Romania trade relations can help ensure compliance and smooth business operations. Companies should also stay informed about any changes in trade policies or agreements that may affect their specific industry or products.

Your Path to Compliance: Key Takeaways for Romanian Businesses in the U.S.

Operating a Romanian business within the USA requires careful attention to legal obligations, from establishing your home state to incorporating and filing a beneficial ownership report. Meeting these requirements is essential for ensuring compliance and securing your business’s success in the American market. By understanding and adhering to these steps, you can confidently navigate the complexities of doing business in the U.S. and focus on growing your enterprise.

Ready to get started? Click here to file your BOIR in just a few short minutes. We make the process easy, fast, and secure so you can focus on what matters—your business.