Starting a Business in Romania
Romania offers one of Europe’s most attractive environments for entrepreneurs: a 1% micro-company tax, low operating costs, a skilled workforce, and EU market access. This guide covers everything you need to know about starting and running a business in Romania.
Why Start a Business in Romania?
- 1% micro-company tax – On revenue up to €500,000
- Low labor costs – Skilled workers at competitive rates
- EU membership – Access to 450 million consumers
- Fast internet – Ideal for tech businesses
- Growing economy – 4-5% GDP growth in recent years
- Strategic location – Gateway between East and West
Business Types
SRL (Societate cu Raspundere Limitata)
Limited Liability Company – Most common business structure
| Best for | Most businesses, multiple owners |
| Minimum capital | 1 RON (symbolic) |
| Liability | Limited to company assets |
| Taxation | 1% micro or 16% corporate tax |
| Shareholders | 1-50 |
SRL-D (Debutant SRL)
Special structure for first-time entrepreneurs under 40
| Best for | Young entrepreneurs, first business |
| Benefits | State grants up to €10,000, tax exemptions |
| Requirements | Under 40, no previous business ownership |
PFA (Persoana Fizica Autorizata)
Authorized Natural Person – Sole proprietorship
| Best for | Freelancers, consultants, single-person activities |
| Liability | Unlimited personal liability |
| Taxation | 10% income tax + social contributions |
| Registration | Simpler than SRL |
II (Intreprindere Individuala)
Individual Enterprise – Can hire employees
| Best for | Small businesses needing employees |
| Liability | Unlimited personal liability |
| Employees | Yes, can hire |
Company Registration Process
Step 1: Reserve Company Name (1-2 days)
Check availability and reserve your company name at the Trade Registry (ONRC). Names must be unique and can be in any language.
Step 2: Prepare Documents (2-3 days)
- Articles of Association (Act Constitutiv)
- Founder identity documents (passport, ID)
- Proof of registered office (rental contract or ownership)
- Specimen signatures from administrator(s)
- Declaration of founders (no criminal record, etc.)
Step 3: Register at Trade Registry (3-5 days)
Submit documents to ONRC. You’ll receive:
- Certificate of Registration (Certificat de Inregistrare)
- CUI (Tax Identification Number)
- J number (Trade Registry number)
Step 4: Open Bank Account (1-2 days)
Deposit share capital and open corporate bank account.
Step 5: Register for VAT (if applicable)
Mandatory if revenue exceeds €88,500/year or if trading with EU.
Total Time: 1-2 weeks
Costs
| Item | Cost (€) |
|---|---|
| Name reservation | 10-15 |
| Trade Registry fees | 50-100 |
| Notary fees | 50-150 |
| Legal assistance | 200-500 |
| Virtual office (optional) | 30-100/month |
| Total (DIY) | €150-300 |
| Total (with lawyer) | €400-800 |
Taxation
Micro-Company Tax (Most Startups)
If revenue under €500,000 and at least 1 employee:
- 1% of revenue (no employees: 3%)
- No VAT collection required under €88,500
- Dividends taxed at 8%
Standard Corporate Tax
For larger companies or by choice:
- 16% of profit
- Deductible expenses reduce tax base
- Dividends taxed at 8%
VAT (TVA)
- Standard rate: 19%
- Reduced rate: 9% (food, hotels), 5% (books, housing)
- Registration threshold: €88,500/year
Social Contributions (For Employees)
| Contribution | Rate |
|---|---|
| Pension (CAS) | 25% (employee) |
| Health (CASS) | 10% (employee) |
| Work insurance (CAM) | 2.25% (employer) |
| Total employer cost | ~37% above gross salary |
Banking for Business
Popular Business Banks
- ING Business – Good online banking, expat-friendly
- Raiffeisen Business – Extensive branch network
- Banca Transilvania – Largest Romanian bank
- BCR – Part of Erste Group
What You Need
- Certificate of Registration
- Articles of Association
- Administrator ID
- Company stamp (optional but common)
Hiring Employees
Employment Law Basics
- Minimum wage: ~€700/month gross (2024)
- Standard workweek: 40 hours
- Minimum annual leave: 20 days
- Probation period: up to 120 days
- Notice period: 20-45 days depending on seniority
Hiring Process
- Draft employment contract (CIM)
- Register employee with REVISAL (electronic registry)
- Register for payroll tax
- Conduct occupational health check
- Provide occupational safety training
Accounting Requirements
Mandatory
- Monthly tax declarations (for VAT payers)
- Quarterly declarations (non-VAT)
- Annual financial statements
- Keep records for 10 years
Accounting Costs
- Micro-company (no employees): €50-100/month
- Small company (1-5 employees): €100-200/month
- Medium company (5-20 employees): €200-500/month
Special Considerations for Foreign Entrepreneurs
Residence Requirements
- EU citizens: No restrictions
- Non-EU: Need residence permit (business visa or investor visa)
- Company can be formed remotely with power of attorney
Administrator Requirements
- Any nationality can be administrator
- Need legal residence for in-person company management
- Can appoint Romanian administrator if non-resident
Industries to Consider
Strong Sectors
- IT & Software – Romania’s specialty, tax incentives for IT workers
- Outsourcing/BPO – Call centers, shared services
- Tourism – Growing sector, especially rural/eco tourism
- E-commerce – Growing domestic market
- Manufacturing – Automotive, electronics
- Agriculture – EU subsidies available
IT Tax Incentives
IT workers meeting certain criteria are exempt from income tax (10% saving):
- Must have IT-related degree or 4+ years experience
- Company must have IT as main activity
- Significant tax savings for tech companies
Common Mistakes to Avoid
- Ignoring social contributions – They’re high and mandatory
- Underestimating bureaucracy – Build in extra time
- Skipping legal advice – €300-500 upfront saves headaches later
- Mixing personal/business finances – Keep them separate
- Late tax payments – Penalties add up quickly
- Not understanding micro vs. standard tax – Calculate which is better for you
Useful Resources
- ONRC (Trade Registry) – onrc.ro
- ANAF (Tax Authority) – anaf.ro
- Romanian Chamber of Commerce – ccir.ro
Get Professional Help
- Business Lawyers – Company formation, contracts
- Accountants – Tax planning, bookkeeping
- Business Consultants – Market entry, strategy
