Set up of Non-Governmental Organizations or Foundations 2018-03-06T16:33:08+00:00

Legal forms for NGO’s.

There are 2 different  nongovernmental and nonprofit organizations ( “NGOs”) which can be set up in Romania: (1) associations; (2) foundations.  After their incorporation, these become legal persons.

The association is a legal body set up by three or more persons who share without the right to a refund a material contribution, their knowledge or work in view of realizing activities of general interest or of interest to particular collectivities or in their own non-pecuniary interest, according to the Romanian law.

The association is the ‘subject of law constituted by three or more persons who, on the best is of their agreement, put together and without a right for restitution their material contribution, know how or engagement with time for the achievement of activities of general, collective or personal, but non-patrimonial interest’ (Article 4 from Law no. 246/2005).

The foundation is a legal body set up by one or more persons who, based on a legal act concluded between living persons or based on a last will, constitute a patrimony attributed permanently and irrevocably to the realization of a general interest or of an interest of a collectivity.

As to the citizenship or nationality of the founders of either the association or the foundation, can be Romanian or foreign persons. The foundation is the ‘subject of law founded by one or more persons, who, based on agreement between the living or for the cause of death (as a legacy), set aside permanently and without the right of revocation, a specific patrimony with the purpose of achieving a general or collective purpose’ (Article 15 – Law no.246/2005).

Associations and foundations can be registered by: ‘physical and juridical entities, with the purpose of carrying activities of general interest, collective interest or in their own personal but non-patrimonial interest’.

The eventual profit realized by commercial companies set up by the NGOs can be either reinvested in the activity of the companies, or can be transferred through dividends to the NGOs.

The financing resources admitted by Article 15 (2) of the Romanian Fiscal Code for the NGO’s are:

– Member subscription fee;

Interests and dividends resulting from the placing of the available amounts in bank accounts or other investments allowed by the law;

– Dividends issued by the commercial companies set up by the NGOs;

Revenues realized through direct economic activities;

Donations, sponsorships and wills;

– Resources obtained from the state budged or from the budget of local authorities;

– Other resources.

Nonprofit organizations, trade unions and owners’ associations are exempt from profit tax also for income from economic activities up to the level of RON equivalent of 15,000 EUR in a fiscal year, but not more than 10% of total profit tax-exempt income from art. 15(2) from the Romanian fiscal code. The organizations stated here owe a profit tax for the part of the taxed profit that corresponds to the income sources, which are not stated in Art. 15 (2) or (3). The current level of profit tax is 16%.

Due to Romania’s accession to the European Union there are many programs which can be developed by NGOs and which benefit from the EU funding.

The incorporation of a NGO can be done even without the physical presence in Romania of the persons who are setting up the NGO. It is necessary to contact Romanian lawyer and we will instruct on the documents and funding necessary to incorporate the NGOs.


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