To set up a company in Romania, foreigners choose a business structure, reserve a company name with the Trade Register, prepare notarized documents, obtain a Unique Registration Code, and complete tax and banking formalities.
This article explains the main steps of setting up a company in Romania, including the available business structures, costs, documents, and timeline.
It also outlines the tax regime and compliance requirements, and answers common questions for both local entrepreneurs and foreign investors.
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Why Do Business in Romania?
Romania has become an attractive destination for company formation in recent years due to its location, costs, and business-friendly policies.
As a member of the European Union, companies registered in Romania benefit from full access to the single market while operating at significantly lower costs compared to Western Europe.
The country offers a highly skilled, multilingual workforce at competitive wages, which is particularly appealing for startups and small enterprises.
Its tax regime is also favorable: the corporate tax rate is 16%, but small businesses qualifying as micro-companies may pay only 1% of turnover, and dividends are taxed at a reduced rate.
Foreign investors face no restrictions on ownership. Both directors and shareholders can be non-residents, and companies can be managed entirely from abroad if desired.
Romania also has an expanding digital infrastructure and strong support services, making it possible to incorporate a company remotely with the assistance of local legal or accounting firms.
For entrepreneurs seeking low costs, EU market access, and a straightforward incorporation process, Romania offers a compelling environment to start and grow a business.
How to Open a Company in Romania
To start with, entrepreneurs must register the type of company they plan to operate. Romania allows several types of business structures, but the most common is the Limited Liability Company (SRL).
It requires very little share capital, sometimes as low as 1 RON, and offers liability protection to its shareholders, making it the default choice for most entrepreneurs.
Other options include:
- Joint-Stock Company (SA): Designed for larger businesses that need to raise capital. It has a much higher share capital requirement, around 90,000 RON (about €20,000).
- Sole Proprietorship (PFA): A simple structure for individuals who want to operate under their own name, but it does not provide limited liability.
- Partnerships (SNC and SCS): Less common, these involve two or more partners with shared liability structures.
- Branch or Representative Office: Useful for foreign companies that want a presence in Romania. A branch can engage in commercial activities, while a representative office is limited to support functions like marketing or research.
For most small and medium-sized businesses, the SRL offers the best balance between flexibility, low cost, and protection. The next steps are as follows:
Reserve a Company Name
The first formal step in incorporation is reserving your company name with the National Trade Register Office (ONRC). Entrepreneurs are required to submit up to three preferred names in order of priority. The ONRC will check availability and issue a reservation certificate for the accepted name.
This certificate is valid for a limited period, usually 3 months, and must be included in the company formation documents. Without this step, registration cannot proceed.
Prepare Documents
Company formation in Romania requires a set of documents that must be prepared, signed, and in some cases notarized. The core documents include:
- Articles of Association (or incorporation agreement), detailing the company’s structure, ownership, and operations.
- Identification documents for shareholders and directors, such as passports or national ID cards.
- Proof of registered office, which can be a lease contract, property ownership document, or virtual office agreement.
- Bank certificate showing the initial share capital deposit.
- Affidavits and declarations from directors confirming compliance with Romanian law and acceptance of their positions.
Foreign shareholders may need to provide sworn translations of documents into Romanian, and some jurisdictions also require an apostille or consular legalization.
These formalities ensure that the ONRC can verify both the legitimacy of the company and the legal capacity of its founders.
Register with the National Trade Register Office (ONRC)
Once the company name is reserved and the documents are ready, the full application is submitted to the National Trade Register Office. This authority handles all company incorporations in Romania.
The file must include the Articles of Association, identification of shareholders and directors, proof of office, bank certificate for share capital, and the ONRC-issued name reservation certificate.
The ONRC reviews the documents, and if everything is in order, issues the Unique Registration Code. This code confirms that the company is officially incorporated and can legally conduct business in Romania.
In most cases, the process is completed within a week, provided all documents meet the legal requirements.
Register for taxation
After incorporation, every company must register with the tax authorities, the National Agency for Fiscal Administration (ANAF). This step ensures that the company is recognized for tax purposes and can obtain a fiscal identification number.
Compliance does not end with registration. Romanian law requires every company to maintain proper accounting records and submit periodic tax filings.
For this reason, most companies appoint a certified accountant immediately after incorporation to ensure smooth compliance with fiscal regulations.
Romanian law requires all companies to maintain proper accounting records and submit tax filings on a regular basis.
Even small businesses must appoint a certified accountant to handle bookkeeping, financial statements, and tax compliance. Many firms offer accounting packages tailored to startups and foreign-owned businesses, ensuring compliance without the need for an in-house finance team.
What taxes do you pay in Romania?
Romania’s tax system is considered favorable by European standards. The general corporate tax rate is 16%, but small businesses qualifying as micro-companies may pay only 1% of turnover if they meet certain conditions.
Dividends are taxed at a reduced rate, making Romania attractive for both reinvestment and profit distribution.
If the company exceeds the VAT threshold or chooses to register voluntarily, it must apply for a VAT number. Some industries, such as finance, healthcare, or food services, may also require special licenses or permits before operations can begin.
How much does it cost to open a company in Romania?
Between €600 and €1,200, including fees, translations, and legal assistance. The minimum share capital can be as low as 1 RON.
The cost of company formation in Romania is relatively low compared to other EU countries. For an SRL, the minimum share capital can be as little as 1 RON (less than €1), though in practice, banks may require a slightly higher deposit, around 200 RON (€40–45).
Additional expenses include notary fees, sworn translations, and registration charges at the Trade Register. When combined with legal or accounting assistance, the total cost of setting up an SRL usually ranges from €600 to €1,200.
How long does it take to register a company in Romania?
The timeline is also efficient. Once the documents are prepared and submitted, registration typically takes 3 to 10 business days.
This makes Romania one of the faster jurisdictions in the region for company incorporation.
How do you open a business bank account in Romania?
Opening a bank account is an essential step after incorporation. A corporate account is required to deposit the company’s share capital, receive client payments, and handle daily transactions.
Most Romanian banks allow foreign shareholders and directors to open accounts, but identification and company registration documents are mandatory.
These typically include the Articles of Association, the Unique Registration Code (CUI), and proof of the company’s registered office. Some banks may also request notarized copies or sworn translations of foreign documents.
The account must be opened in the company’s name, and the deposited capital remains available for business use once the company is fully registered.
Many banks also offer online banking services, which make it easier for non-resident owners to manage finances remotely. However, it is important to note that most banks in Romania need a local presence.
Can you open a company in Romania remotely?
Yes. Romania allows full remote incorporation, making it possible for foreign entrepreneurs to establish a business without traveling. This is done through a notarized power of attorney that authorizes a local lawyer or service provider to act on your behalf.
The representative handles name reservation, document preparation, filing with the National Trade Register Office (ONRC), and tax registration. Sworn translations of identification documents are usually required, and in some cases foreign documents must be legalized with an apostille.
Once the process is complete, you can manage your company and bank account from abroad. Many banks also provide online banking services, which simplifies operations for non-resident owners.
Remote company formation has become a common choice for international investors, particularly those looking to test the Romanian market before relocating.
Do you need a local director in Romania?
No. Romanian company law does not require directors or shareholders to be residents. Both positions can be filled entirely by foreign nationals, and companies can be managed remotely if desired.
This flexibility makes Romania an accessible jurisdiction for international entrepreneurs who may not want or be able to relocate.
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Adam è un autore riconosciuto a livello internazionale in materia finanziaria con oltre 830 milioni di visualizzazioni di risposte su Quora, un libro molto venduto su Amazon e un contributo su Forbes.
