Guide to Establishing Foundations and Associations

Who can establish a nonprofit organization?

Government Ordinance No. 26 of 2000 on Foundations and Associations stipulates that a foundation can be established by one or more private or legal persons, whether Romanian or foreign citizens. An association can be established by at least three founding members.

Step-by-step procedure

The first step in establishing any nonprofit organization is reserving the name. In addition to completing the name reservation form, the applicant is required to pay a fee of 36 lei. The name reservation certificate issued by the Ministry of Justice can be extended once for a period of 3 months.

Note: The name can also be reserved in Hungarian, but a Romanian translation must be provided.

Headquarters

An essential condition for establishing the organization is securing a headquarters. A lease or loan-for-use contract and a valid land registry extract must be attached. If the headquarters is in an apartment building, the consent and signatures of the homeowners’ association and the immediate neighbors are required.

Constitutive documents

The next step is drafting the founding document and statutes. In the case of a foundation, the founding document must be authenticated as a notarial deed, while for an association, it can be either a notarial deed or a document countersigned by a lawyer. The essential difference between these two documents is that the statutes primarily regulate the operational aspects.

Content elements

The founding document must include: the founders’ details and addresses, the declaration of intent to establish the organization and its set goals, the name, the headquarters, the duration for which the organization is established, the capital, the signatures of the founding members, the composition of the first governing and control bodies, and the details of the person authorized to register the organization. Except for the last two elements, the statutes must include all other listed content elements, under the penalty of nullity, specifying the organization’s goals and objectives, how membership is acquired and terminated, members’ rights and obligations, the organization’s funding sources, the powers of the governing and control bodies, and the allocation of assets in case of dissolution.

Capital requirements

After signing and authenticating the founding documents, the capital must be deposited. For an association, a minimum capital of 200 lei is required, while for foundations, the amount is significantly larger, being at least 100 times the minimum wage (1250 lei), which can be in the form of a registered monetary amount or in-kind contributions.

Tax certificates

The next step is obtaining tax certificates for the founding members, which can be requested in person or through a representative. This process is currently free and the certificate is valid for 30 days from issuance. For foreign citizens, a notarial declaration under their own responsibility is sufficient.

Filing documents with the court

The above-mentioned documents, accompanied by a 100-lei stamp duty, must be submitted to the court competent based on the headquarters of the foundation/association. If the request meets the legal requirements, the judge will issue a reasoned decision ordering the registration of the organization in the register of foundations and associations.

The organization gains legal personality from the moment of registration.