Video from our friends RR Partners. Good lawyers.

Starting a Business in Romania as an Expat: A Comprehensive Guide

( as of 5th of Feb 2025, we consider the information to be accurate )

Romania has become an attractive destination for expats and foreign entrepreneurs looking to establish businesses in Europe. With its strategic location, competitive labor costs, and growing economy, Romania offers a favorable business environment. Whether you’re an expat already residing in Romania or a foreign investor exploring opportunities, understanding the process of opening a company is crucial.

This guide will walk you through everything you need to know about starting a business in Romania, including the types of business structures available, the registration process, required documents, costs, and timelines.

Why Start a Business in Romania?

Before diving into the details of setting up a business, it’s important to understand why Romania is a great choice for entrepreneurs.

1. Strategic Location in Europe

Romania is situated in Eastern Europe and provides easy access to both EU and non-EU markets. The country has well-developed infrastructure, including road, rail, and sea transport, making it a gateway to Europe.

2. Business-Friendly Tax System

Romania offers one of the most competitive tax regimes in the European Union. The corporate income tax rate is 16%, while micro-enterprises (small businesses with a turnover of up to €500,000) benefit from a much lower tax rate of 1% (if they have at least one employee) or 3% (if they have no employees).

3. Affordable Workforce and Operational Costs

Romania has a highly skilled workforce, especially in IT, engineering, and manufacturing. Labor costs are relatively low compared to other European countries, making it attractive for businesses.

4. EU Membership and Business Incentives

As a member of the European Union, Romania benefits from EU funding, trade agreements, and investment incentives. Foreign entrepreneurs can access various grants and subsidies for business development.

Choosing the Right Business Structure

Foreign investors and expats can set up different types of businesses in Romania. The most common business structures include:

1. Sole Proprietorship (PFA – Persoană Fizică Autorizată)

• Suitable for freelancers and small-scale entrepreneurs
• Personal liability for business debts
• Simplified tax regime

2. Limited Liability Company (SRL – Societate cu Răspundere Limitată)

• The most popular business type for small and medium enterprises
• Requires at least one shareholder
• Minimum share capital of just 1 RON (€0.20)
• Liability limited to the capital invested

3. Joint-Stock Company (SA – Societate pe Acțiuni)

• Suitable for large businesses
• Minimum share capital of €25,000
• Requires at least two shareholders

4. Branch or Subsidiary of a Foreign Company

• Allows foreign businesses to operate in Romania
• The parent company remains liable for the branch’s operations

Step-by-Step Process to Open a Business in Romania

Step 1: Choose Your Business Structure

Decide on the type of company that best suits your business goals. For most entrepreneurs, an SRL (Limited Liability Company) is the best option due to its simplicity and limited liability.

Step 2: Reserve Your Company Name

You must check the availability of your desired business name with the National Trade Register Office (ONRC) and reserve it. The name should be unique and not similar to existing registered companies.

Step 3: Draft the Articles of Incorporation

The Articles of Incorporation outline the company’s structure, activities, and management. This document should include:

• Company name and registered office
• Business activities (classified under CAEN codes)
• Shareholder details and contributions
• Capital structure
• Management and decision-making procedures

Step 4: Open a Bank Account and Deposit the Share Capital

For an SRL, you must open a corporate bank account in Romania and deposit the required share capital (minimum 1 RON). The bank will provide a certificate confirming the deposit.

Step 5: Register with the Trade Register (ONRC)

The company must be registered with the National Trade Register Office. Required documents include:

• Articles of Incorporation
• Proof of company name reservation
• Bank certificate for share capital deposit
• Lease agreement or proof of the company’s registered address
• Copies of shareholders’ and administrators’ ID/passport
• Specimen signature of the administrator

Step 6: Obtain a Fiscal Identification Code from ANAF

Once the company is registered, it must be registered with the National Agency for Fiscal Administration (ANAF) to obtain a tax identification number and VAT registration (if applicable).

Step 7: Register for Social Contributions and Employees (If Applicable)

If you plan to hire employees, you must register with the Romanian labor authorities and social security system.

Step 8: Obtain Special Licenses or Permits (If Required)

Depending on your business activities, you may need additional licenses, such as:

• Health and safety permits
• Environmental authorizations
• Industry-specific licenses (e.g., food service, financial services)

Step 9: Start Business Operations

Once all legal requirements are met, you can officially begin your business activities in Romania.

Required Documents for Company Registration

• Articles of Incorporation
• Proof of Business Name Reservation
• Bank Certificate for Share Capital
• Lease Agreement for the Registered Office
• Copy of ID/Passport for Shareholders and Administrators
• Specimen Signature of the Administrator
• Fiscal Registration Form (ANAF)

Timeline for Business Registration in Romania

The process of registering a business in Romania is relatively fast. Here’s a general timeline:

1. Company name reservation – 1-2 days
2. Drafting Articles of Incorporation – 1-2 days
3. Opening a bank account and depositing capital – 1-3 days
4. Registration with the Trade Register – 3-5 days
5. Tax registration with ANAF – 3-5 days
6. Additional permits (if needed) – Varies based on industry

Total Estimated Time: 7-14 business days

Costs of Opening a Business in Romania

The costs of starting a business in Romania are relatively low. Here’s an estimate of the expenses:

• Company Name Reservation: ~50 RON (€10)
• Notary Fees for Documents: ~300-500 RON (€60-€100)
• Trade Register Fees: ~200-400 RON (€40-€80)
• Legal and Consultancy Fees (if applicable): ~€500-€1,500
• Share Capital Deposit: 1 RON (€0.20) (for SRL)

Total estimated cost: €200-€2,000, depending on professional services used.

Conclusion

Opening a business in Romania as a foreigner is a straightforward process if you follow the right steps. The country offers numerous advantages for entrepreneurs, including low taxes, affordable operational costs, and access to the European market.

If you are planning to start a business in Romania, it’s advisable to consult with a local lawyer or business consultant to ensure compliance with regulations. With the right guidance, you can establish your company smoothly and start taking advantage of Romania’s thriving business environment.

 

If you want to do things the fast way….we are using https://startco.ro/

Use rebate code EXP50 for a rebate of 50 RON.