Building a startup in Cluj might be complicated for someone coming from outside Romania (starting a business in Romania is a tedious work). It might seem complicated even for romanians.
Even though the legal aspects are a bit tedious and we suggest using an intermediary company to be 100% sure everything goes smooth, there are also other aspects that you must take into consideration when building a startup in Cluj.
One important factor is the cost of running a business. In the first phase of a company, you really need to keep the costs to a minimum. That is so you don’t burn through a lot of money. Most startups fail – it’s a proven thing through statistics. You don’t want to spend all your personal money before you know if you have a chance at succeeding or not.
Renting an office for your startup in Cluj
This is one of the reasons why Cluj is a perfect location for a startup. The office rents are very small in comparison with London, Berlin or Paris. A house in city center big enough for about 50 employees would cost you about 2000 euros/month. That’s very cheap by any standards, and you probably can settle with something smaller in the beginning. It’s common for people here to start their business in an apartment. That is because the rent can be as cheap as 300 euros/month and you can easily accommodate 5 people. There are many new companies in Cluj that only have a couple of employees.
There is also the option of renting an open space in one of the many office buildings scattered all over the city center. New buildings are being built almost constantly due to a clear increase of such need.
The co-working spaces scattered through the city represent another good solution for this issue. In these places, for a relatively small fee, you can use their entire facilities. Few of them also have plans addressed to startups in Cluj with big discounts from the normal prices.
Cost of hiring for your startup in Cluj
As you probably know, salaries in Romania are one of the smallest in the EU with a minimum wage of about 350 euros/month. Taking this into consideration, don’t expect the salaries in tech sector to be at that level. You should expect to pay from 500 euros/month to 3-4000 euros/month (junior level, senior level). It actually depends on what kind of employees you need. Also there are many tech employees that are very interested in joining a startup in Cluj.
This cost of hiring is in direct link with the cost of living. Although the cost of living in Cluj-Napoca is in may aspects higher than the one in Bucharest, which is the capital of Romania, you will find out that by western standards it is still considered pretty cheap. For your startup in Cluj this is a very important aspect. By choosing to open a company in Cluj you can save a lot of money like this, and we all know what important it is to do so.
Other aspects to consider for your startup in Cluj
You will definitely need to find a good accountant as the bureaucracy in Romania is very complicated. You are required by law to get an accountant or an accountancy company when opening a startup in Cluj. There are a lot of accountancy companies, so this shouldn’t be very difficult to find. Also, it would probably be smart to hire a lawyer that can help you with a lot of things (again, laws tend to change pretty often and you should be always prepared for the worse regarding this aspect).
As you can see, there are good parts and not so good parts when deciding to open a startup in Cluj, but with good planning you can overcome all of these bad parts.
Most importantly…don’t forget to have fun too. Starting a new business in Cluj should always be fun and interesting, but there are other aspects important too. Go in pubs, clubs, explore the nearby attractions. You will meet a lot of cool people and you will have the chance to have interesting discussions with them.