Setting up an NGO

An NGO (non-profit organisation) in Romania can be set up as an association, a foundation or a federation under Government Ordinance no. 26/2000. It acquires legal personality by registration in the Register of Associations and Foundations kept by the court in whose area it has its registered office. An NGO does not seek profit for its members, but it can have income, including from economic activities linked to its purpose, and can receive funding.

Association, foundation or federation

• An association is formed by at least three persons who pool material contributions (without a right of restitution), knowledge or work for activities in the general interest, the interest of a community or their own non-financial personal interest. The initial assets may not be less than one gross minimum monthly wage.
• A foundation is created by one or more persons who set up a fund dedicated to a purpose of general or community interest, by an act between living persons or on death. The initial assets must be at least 100 gross minimum monthly wages.
• A federation brings together associations or foundations for shared purposes.

The choice depends on the purpose, the number of founders and the assets available: an association is often simpler and cheaper, while a foundation suits a fund dedicated to a long-term purpose.

The steps

1. Choose the form, purpose, name and governance structure.
2. Name availability, requested from the Ministry of Justice.
3. Constitutive act and statute, with the elements required by Ordinance no. 26/2000; missing elements mean absolute nullity, and the documents are made in the form the law requires.
4. Proof of the registered office and of the initial assets.
5. File with the court and follow the application for registration.
6. After registration: tax registration, bank account, accounting records and any authorisations for the activities carried out.

Documents for the file

• proof that the name is available, from the Ministry of Justice;
• the founders’ identity documents;
• the constitutive act and the statute;
• proof of the registered office (lease, loan for use or ownership) and, where relevant, the homeowners’ association’s consent;
• proof of the initial assets (for example a bank statement or contribution deed);
• the founders’ tax record certificates, issued by the tax office at each founder’s domicile.

Hosting a registered office at a lawyer’s professional office is provided for by Law no. 51/1995 for commercial companies; for an NGO we check separately whether it is allowed, depending on the form of the organisation (see registered office hosting).

What we do

• choose the legal form that fits the purpose and the budget;
• draft the constitutive act and statute and prepare the file;
• file and follow the application at the court;
• assist the organisation afterwards, including statute amendments, changes of members and dissolution and liquidation.

If the organisation will carry out economic activity or enter commercial contracts, see also corporate and commercial law. Fees are agreed before work starts (see Fees); book a consultation.