Romania Company Formation
Romania Company Formation: Your Gateway to Affordable EU Business Expansion Main Characteristics and the basic rules of a Company registration in Belgium
BRIS Group provides expert Romania company formation services for entrepreneurs and international investors seeking opportunities in Eastern Europe. Establishing a Romanian Limited Liability Company (SRL) offers limited liability protection, access to EU markets, and a cost-effective business environment. Our specialists handle the full Romania company registration process remotely, including corporate banking support, compliance, and ongoing administration, ensuring your company in Romania is fully compliant and ready for European and global operations.
Start your Romanian company with BRIS Group today — trusted experts in global incorporation.
Guide to Forming a Company in Romania:
Romania has emerged as one of Eastern Europe’s most dynamic and cost-effective destinations for international business setup. With its strategic location, fast-growing economy, and competitive corporate tax rates, Romania company formation offers entrepreneurs and investors a strong platform for entering the European Union market.
This comprehensive provides a detailed overview of forming a company in Romania, covering its advantages, company types, registration requirements, corporate taxation, and setup procedures.
Why Choose Romania for Company Formation?
Romania combines affordability with full EU access — making it one of the most appealing jurisdictions for both startups and established global enterprises.
Key Advantages of Setting Up a Company in Romania
- EU Membership: Full access to the European Single Market and EU trade benefits.
- Low Corporate Tax Rate: One of the lowest in the EU — only 16%.
- Strategic Location: Positioned between Western Europe, the Balkans, and the Black Sea region.
- Skilled Workforce: Highly educated professionals with multilingual capabilities.
- Low Operating Costs: Affordable wages, office rentals, and business services.
- Tech and Industrial Growth: Rapidly growing technology, automotive, and manufacturing sectors.
- Double Tax Treaties: Over 85 treaties reducing tax burdens for foreign investors.
Types of Companies in Romania
|
Company Type |
Description |
|
Limited Liability Company (Societate cu Răspundere Limitată – SRL) |
The most popular structure for local and foreign investors. Requires a minimum share capital of just RON 1. |
|
Joint Stock Company (Societate pe Acțiuni – SA) |
Suitable for larger enterprises; minimum capital RON 90,000. |
|
Branch Office |
Extension of a foreign company registered in Romania. |
|
Representative Office |
For marketing and non-commercial operations of a foreign entity. |
|
Sole Trader (PFA) |
Individual entrepreneur registration with simplified reporting. |
Advantages of Romania Company Formation for Non-Residents
|
Advantage |
Details |
|
100% Foreign Ownership |
Non-residents can fully own Romanian companies. |
|
Low Entry Barriers |
Minimal capital and straightforward setup procedures. |
|
EU VAT Number |
Easy access to EU trade under a single VAT number. |
|
Competitive Tax System |
16% corporate tax, with reduced rates for micro-enterprises. |
|
No Local Director Requirement |
Directors can be non-residents. |
|
Access to EU Funding Programs |
Eligible for development and innovation grants. |
Requirements for Company Registration in Romania
To form a company in Romania, you’ll need to meet the following requirements:
- Company Name – Must be unique and approved by the National Trade Register Office (ONRC).
- Registered Office Address – A local business address in Romania is mandatory.
- Shareholders – Minimum one shareholder (individual or corporate).
- Directors – At least one director; no nationality or residency restrictions.
- Share Capital – Minimum RON 1 for SRL.
- Articles of Association – Must be drafted in Romanian and notarized.
- Company Bank Account – Required to deposit share capital and handle financial operations.
- Tax Registration (CUI) – Tax Identification Number issued by the National Agency for Fiscal Administration (ANAF).
- VAT Registration (if applicable) – Mandatory if turnover exceeds EUR 88,500.
Business Licenses – Specific activities may require additional permits or sectoral licenses
Step-by-Step Procedure for Romania Company Formation
Step 1 – Choose the Company Type
Select the right structure (SRL, SA, or branch) based on your goals and capital.
Step 2 – Reserve the Company Name
Submit your preferred company name to ONRC for approval.
Step 3 – Draft the Articles of Association
Define company objectives, ownership, and management structure.
Step 4 – Open a Bank Account and Deposit Share Capital
Deposit the initial capital (minimum RON 1 for SRL).
Step 5 – Register with the Trade Register (ONRC)
Submit all notarized documents for registration.
Step 6 – Obtain Tax Identification Number (CUI)
Register with ANAF for tax purposes.
Step 7 – VAT Registration (if applicable)
Register for VAT if your company’s activity or turnover requires it.
Step 8 – Social Security and Labor Registration
Register employees with Romanian social insurance institutions.
Step 9 – Start Operations
Once approved, your company can begin trading across the EU.
Timeframe for Company Formation in Romania
|
Stage |
Activity |
Estimated Duration |
|
Name Reservation |
Approval from ONRC |
1–2 business days |
|
Document Preparation |
Drafting and notarization |
2–4 business days |
|
Company Registration |
Filing and approval with ONRC |
3–5 business days |
|
Tax and VAT Registration |
CUI and VAT issuance |
2–4 business days |
Total Estimated Time: 7–14 business days (1–2 weeks)
Romania Corporate Tax System
Romania offers one of the most competitive tax regimes in the European Union.
Key Highlights
- Corporate Income Tax (CIT): 16% standard rate
- Micro-Enterprise Tax:
- 1% for companies with turnover up to EUR 500,000 and at least one employee
- 3% for companies without employees
- VAT: 19% standard rate (reduced rates of 9% and 5% for certain goods/services)
- Dividend Tax: 8% (reduced under EU directives or tax treaties)
- Withholding Tax: 16% (reduced or exempt under treaties)
- Social Contributions: Employer contributions total around 6.25%; employee contributions around 35%.
- Tax Incentives:
- R&D and innovation credits
- Tax exemption for IT professionals
- Reduced corporate tax in underdeveloped regions
How We Can Help You
Our team of Romania company formation specialists assists international investors with seamless incorporation and compliance.
Our Services Include
- Company structure advisory and tax planning
- Company name reservation and ONRC registration
- Drafting and notarization of Articles of Association
- Bank account opening and capital deposit support
- Tax and VAT registration with ANAF
- Accounting, payroll, and compliance setup
- Legal, HR, and ongoing business consultancy
- Virtual office and registered address solutions
Start Your Romania Company Formation Today
With its low taxes, strategic EU position, and cost-effective setup options, Romania offers one of the best business formation opportunities in Europe.
Whether you’re an entrepreneur, investor, or corporation, our experts will guide you through every step of your Romania company formation journey — ensuring efficiency, compliance, and long-term success.
Contact us today to start your business in Romania and unlock the full potential of one of Europe’s fastest-growing economies.
Questions & Answers
1. What is Corporation Tax in Romania?
Corporation Tax in Romania is a tax imposed on the income of corporate entities. As of October 2023, the standard rate is 16%, applicable to profit made by companies. Small enterprises with revenues under €1 million may opt for a micro-enterprise tax regime, with rates of 1% or 3% based on the number of employees.
2. How are dividends taxed in Romania?
Dividends distributed by Romanian companies to both resident and non-resident shareholders are subject to a 5% withholding tax. However, this rate may be reduced under applicable double taxation treaties, provided that relevant documents are submitted to prove residence in treaty countries.
3. What is the Income Tax rate in Romania?
Income Tax in Romania is generally levied at a flat rate of 10% on most income types, including salaries and self-employment earnings. Additional local taxes may apply depending on the municipality. Specific income types like dividends and capital gains are also taxed at this standard rate.
4. How does VAT work in Romania?
Value Added Tax (VAT) in Romania is charged at a standard rate of 19%. Reduced rates of 9% apply to certain sectors, such as food and medical supplies, while a lower 5% rate is applicable for social housing and certain educational services. Businesses must register for VAT if their taxable turnover exceeds €88,500.
5. Are there other taxes in Romania that I should be aware of?
Yes, besides Corporation Tax, Income Tax, Dividends Tax, and VAT, Romania imposes several other taxes. These include property tax (ranging from 0.1% to 1.5% of property value), road tax, and excise duties on goods like fuel and tobacco. Additionally, local authorities may impose different taxes and fees.
This FAQ aims to clarify the main taxation aspects in Romania. For detailed inquiries or personalized advice, consulting a local tax advisor is recommended.
Learn more: Visit our Full Frequently Asked Questions (FAQ) page
or contact our tax and company formation team at [email protected]
What are the benefits of forming a company in Romania as a non-resident?
Forming a company in Romania offers several advantages for non-residents, including a strategic geographic location within the European Union, access to a large market, and a favourable tax regime. Romania has a flat corporate tax rate of 16%, making it an attractive destination for businesses. Additionally, the country provides incentives for certain industries, such as technology and renewable energy. Non-residents can also benefit from the relatively low operational costs compared to other EU countries.
What type of company can non-residents form in Romania?
Non-residents can establish several types of companies in Romania, with the most common being the Limited Liability Company (SRL) and Joint Stock Company (SA). An SRL is ideal for small to medium-sized businesses and requires at least one shareholder. A Joint Stock Company is suitable for larger enterprises but has more regulatory requirements. Each option has its own advantages, depending on the business goals and the scale of operations.
What are the requirements for non-residents to register a company in Romania?
To register a company in Romania, non-residents need to provide a few essential documents, including a valid passport, proof of the registered office (e.g., a property lease or ownership document), and the company’s Articles of Association. Additionally, they may need to appoint a local representative or legal advisor who understands the Romanian business environment and regulations, and who can assist with the registration process.
How long does it take to register a company in Romania?
The process of registering a company in Romania typically takes around 5 to 10 business days, provided all necessary documentation is in order. However, if there are any discrepancies or additional information is required, this timeframe may extend. It’s important for non-residents to work with a local legal expert or business advisor to navigate the registration process efficiently and ensure compliance with Romanian laws.
What are the ongoing compliance requirements for companies in Romania?
Companies in Romania, regardless of the residency status of their owners, must comply with various regulations. This includes maintaining books of accounts, submitting annual financial statements, and ensuring tax compliance. Additionally, companies are required to hold annual general meetings and keep their registrations updated. Non-resident company owners should be aware of these compliance requirements to avoid penalties.
Are there any challenges non-residents may face when forming a company in Romania?
While Romania offers a conducive environment for business formation, non-residents may face challenges such as navigating the local legal system, language barriers, and understanding tax obligations. Establishing a local presence can also be a hurdle as companies may need to hire local staff or representatives. Partnering with a local expert can greatly mitigate these challenges and facilitate a smoother company formation process.
Learn more: Visit our Full Frequently Asked Questions (FAQ) page
or contact our tax and company formation team at [email protected]
This publication is provided for information purposes only. This info should not be treated as a substitute for a tax or legal consultation or legislation. You should not act on the basis of the information contained in this publication without having obtained individual advice from the professional expert.
BRIS GROUP does not assume responsibility for any damage resulting from decisions made by the reader on the basis of this publication.
About Romania
Country: Romania
Capital: Bucharest
Continent: Southeastern Europe
Language: Romanian is the official and main language of Romania and the Republic of Moldova.
Currency: The Romanian leu (RON)
Time Zones: GMT +2
Dial Code: +40
Abbreviations: RO
Helping Your Company Thrive in Romania With us, starting and running a business in Romania will be easy and efficient!
- Full support of the company’s registration in Romania: from the preparation of documents to their submission.
- Remote registration: all processes are online, wherever you are.
- Secretary and Treasurer: we can take on these important roles.
- Nominal directors and shareholders: we will ensure the confidentiality of your information.
- Help in opening a bank account: we will simplify this complex process.
- Registration for taxes, VAT and EORI: ensure all requirements are met.
- Website development: we will create a professional online representation for your business.
- Logo creation: we will design a unique and memorable logo for your brand.
- Full administrative support of the company: we will take over routine tasks.
- Mailing address organization: we provide a reliable mailing address for your business.
- Organization of the virtual office: we will ensure the professional image of your company.
- Telephone answering service: we will answer calls on behalf of your company.
- Accounting, audit and reporting: ensure accurate and timely accounting.
- Preparing and filing a VAT declaration: let’s save you the trouble.
- Interaction with local authorities: take over communication with state institutions.
- Trademark registration: protect your brand.
- More Emphasis on Customer Input.