An association is a legal person set up by three or more persons who, by agreement, pool — without a right of restitution — their material contribution, knowledge or work to carry out activities in the general interest, in the interest of a community or in their own non-financial personal interest.
A foundation is a legal person set up by one or more persons who, by an act between living persons or on death, create a fund permanently and irrevocably dedicated to a purpose of general or community interest.
The formation of associations and foundations is governed by the Government Ordinance on associations and foundations (OG no. 26/2000).
The name for both an association and a foundation is reserved with the Ministry of Justice and the reservation is valid for three months.
There are notable differences between the two.
An association needs at least three founding members; a foundation does not.
An association must have initial assets of at least one gross national minimum wage, while a foundation needs one hundred gross minimum wages.
An association is run by its General Assembly, while a foundation is run by its Board of Directors.
The application to enter the association or foundation in the Register of Associations and Foundations must be accompanied by the constitutive act and the statute, proof of the registered office and initial assets, and the Ministry of Justice’s confirmation of name availability or, where applicable, its reasoned refusal.
The constitutive act and the statute are concluded in authenticated form or certified by a lawyer.
The file for setting up a foundation, association or NGO in Romania is filed with the district court for the area of the registered office.
Within three days of filing, the judge appointed by the court president checks the documents and orders the entry in the Register of Associations and Foundations.
Associations and foundations acquire legal personality on entry in the Register of Associations and Foundations, kept at the registry of the district court for their registered office.
The decision ordering the entry is sent automatically to the local tax authority, for tax records, with the entry number in the Register.
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