Setting up an NGO

Legally, NGOs (non-governmental or non-profit organisations) are legal persons set up by natural or legal persons to carry out activities in the general or local interest, or in their own non-financial interest. An NGO does not carry out economic activity for profit.

NGOs promote values in society. They may have income (and may be partly or wholly funded by the state), but they operate independently of the government.

In Romania, NGOs can be organised as associations, foundations or federations.

Under the law, an association is set up by three or more persons who, by agreement, contribute material resources (without a right of restitution), 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, by contrast, is set up by one or more persons who create a fund dedicated to a purpose of general or community interest, by an act between living persons or on death.

Federations are groupings of associations or 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. That is also where the file is filed, and it must include:

• proof of name reservation — obtained by applying to the Ministry of Justice for confirmation of name availability;
• the founding members’ identity cards;
• the constitutive act and the statute — under Ordinance no. 26/2000 they must contain specific information, on pain of absolute nullity; concluding them in authenticated form (or certified by a lawyer) is essential for the association or foundation to acquire legal personality;
• proof of the registered office — since finding premises can be difficult, the Alina Szilaghi law office can provide a registered office under a legal services contract;
• proof of the initial assets — for an association, the initial assets may not be lower than one gross national minimum wage at the date of formation.

For a foundation, the initial assets must be at least 100 gross national minimum wages.

• the homeowners’ association’s consent, where applicable;
• the founding members’ tax record certificates — obtained on request from the tax office for each founder’s domicile.

You will also need a tax registration certificate to carry out any financial operations, obtained by filing a file with the tax authority.