How to Register a Company in Romania? Costs, Taxes, Setup & More

Are you planning to start a business in one of the EU countries? You should take a close look at Romania because it’s a great business environment not only for Romanian entrepreneurs but for non-residents, too.

What can you expect? Reduced taxes, high-quality professionals, low-cost business operations, and the most important thing, diversity. Thanks to its favorable geographical location, Romania has a dynamic economy that makes it a great business hub.

So, if I’ve caught your attention then you should read the whole article to find out how to open a company in Romania and what you need to know about building a successful business here.

Is Romania a good place for business?

I’m sure that your first question is about the reasons to open and operate a business here. ​Even if the legislation is often changing, Romania is still an excellent option to start your entrepreneurial journey. So, let’s take a look at the benefits of starting a company in Romania: 

• Favorable geographical location
• Diversity in business
• Extremely low tax rates from 1% up to 250.000 € in revenue (for 2026 it’s 100.000 €)
• Very low dividend tax rate of only 10% (for 2026 it’s 16%)
• Limited Liability for the shareholders
• Progressive and politically stable EU jurisdiction
• Lightening fast and affordable communication technology
• A very business-friendly environment, including from a fiscal perspective
• No pre-payments of VAT or Income Tax
• Affordable accounting and fiscal representation
• Access to funds from Romania and the European Union
• Access to skilled professionals in all domains

Who can register a company in Romania?

First of all, I need to clarify an important thing for all those who are interested in doing business in Romania. You can only register a company in Romania if you:

• exceed the legal age of 18 years, 
• can provide a clean criminal and tax record (you have not committed any deeds sanctioned by the financial, customs, and financial-fiscal discipline laws, such as those registered in the fiscal record) – for non-residents this takes the form of a „sworn statement” (affidavit)

One important aspect is that foreigners with or without residence in Romania can also open a business in Romania, based on their Passports (National IDs are also accepted for citizens of EU member states) and proof of residence.

How to set up a business in Romania? 

Starting a business in Romania means the first thing you need to do is to register your company. Having your business legally registered gives you the opportunity to acquire more financing for your activity: you can take bank credits, hire people, and of course, you can sell your products/services to customers.

How to register a company in Romania? 

All Romanian companies have to be registered with the National Trade Register Office, an institution that operates under the Ministry of Justice.

​To register a company in Romania, first of all, it is necessary to decide what type of company you want to register: SRL, SA, PFA. The most common type is SRL (the equivalent of an LLC) because: 

• provides limited liability to the shareholders
• in most cases, you don’t need a certification, as is the case with a PFA
• you can hire an unlimited number of employees
• it can be set up both for Romanian citizens and expats
• you can extend your business as much as you want
• you will have reduced taxes, so you will pay only 1% or 3% income tax (depending on your main activity), if you have at least one employee, or 16% profit tax if you don’t have any employees
• and most importantly, you have an unlimited choice of business activities that you can perform with your company (you can add as many CAEN codes as you need, whereas a PFA can only have 5 CAEN codes).

If you need more info about the differences between SRL and PFA, you can check our full beginner guide that details everything related to PFAs and SRLs or take a look at this article which explains the legislation differences for 2025 and 2026.

What are the tax rates in Romania?

In the case of a SRL you can expect the following tax rates:​

1. Corporate Income Tax

For a micro-enterprise you will pay:

• 1% of revenue if your revenue is up to 60.000 € and your main activity is not one of the banned domains (HoReCa, IT)
• and 3% of revenue if your revenue is between 60.000 € and 250.000 €, or if your main activity is one of the banned domains (HoReCa, IT).

Of course, you have to meet all the conditions for inclusion in the micro taxation regime:

• at least one employee
• turnover not to exceed 250,000 euros (or 100.000 € starting from January 2026)
• you own over 25% of the shares in just 1 company that applies the micro taxation regime

Otherwise, you will pay 16% of profit if:

• you don’t have any employees
• you exceed 250.000 € in revenue (or 100.000 € starting from January 2026)
• you have more than one micro taxation company in which your share exceeds 25%.

2. Dividend Tax​​

• The dividend tax rate is 10% on dividends paid to shareholders (goes up to 16% in 2026)

3. Value Added Tax

• The standard VAT/TVA rate is currently 21% 
• but we also have a reduced rate of 11%

The standard VAT rate (21%) applies to all products and services that are not explicitly listed in the reduced 11% VAT category or under special exemptions. In practice, any commercial area that does not benefit from preferential tax treatment falls under this standard VAT rate. Here are some examples:

• Most general consumer goods – clothing, electronics, furniture, cosmetics, etc.
• Professional services – consulting, accounting, marketing, construction (if not eligible for reduced rate)
• Alcoholic beverages and sweetened drinks (NC 2202)
• Dietary supplements & veterinary medicines
• Ornamental plants; confectionery products containing sugar > 10 g/100 g
• Transport, rentals, and electricity
• All supplies of goods and services that were previously taxed at reduced rates (5 % or 9 %) will automatically move to the 21 % standard rate.

If you are a VAT-registered taxpayer, you must apply the 11% VAT rate when invoicing for the delivery of the following goods and services:

• Human-use medicines only
  • Strictly for human use; veterinary medicines and dietary supplements do not qualify under this rate.
• Food and drink for human and animal consumption, professionally delivered
  • Includes fruits, vegetables, meat, cereals, bakery products, seeds, honey, oils, etc.
  • Excluded from the 11% rate are:
    • Alcoholic beverages
    • Non-alcoholic beverages under the HS code NC 2202 (e.g. sweetened juices)
    • Foods with added sugar ≥ 10 g/100 g (except infant formula milk powder)
    • Dietary supplements
• Potable water and sewerage services, as well as water for agricultural irrigation
• Agricultural products and services for agriculture:
  • Fertilizers, pesticides, seeds, and other agricultural inputs necessary for production, as well as associated services
• School textbooks, books, newspapers, magazines (both physical and electronic formats)
  • Excludes audio/video materials and items intended for advertising
• Access to cultural or historical sites: castles, museums, monuments, zoos, and botanical gardens
• Firewood – delivery to private individuals and institutions (schools, hospitals)
• District heating in the cold season, provided to certain categories of consumers (social welfare groups)
• Accommodation in the hotel sector, camping, and similar services

Want to know more about how VAT works in Romania, how it’s collected or deducted? Check out this in-depth guide that includes everything you need to know about VAT.

What is the minimum wage in Romania?

If you plan on having employees, it is important to know what the minimum salary is.

The minimum (gross) salary in Romania is 4.050 RON. From this base salary, there is an income tax and social contributions deducted:

• Individual Income Tax – The income tax for individuals in Romania is 10%
• Social Security Contributions – The Social Security Contributions amount to 35% (CAS and CASS, meaning health and social insurance)

Starting a business in Romania as a foreigner – Actionable steps

So, if you decide in favor of a SRL, here’s a short to-do list for opening your business in Romania:

1. Start by choosing a name for your company
2. Then select your CAEN codes (these codes represent the activities that your company will generate revenue from)
3. Find a legal address for your company – you can lease a space or, if you’ll be working remotely you can purchase a „virtual legal address”. This is a physical address where you’ll have the right to establish your company’s legal address but which you won’t be able to use otherwise. A third option is to establish your legal address at a lawyer’s office. However, this option is available only for one year, after which you will need to change your address elsewhere.
4. Decide if you want to start this business alone, or you will co-opt some other founders
5. Decide the amount of the share capital (the legal minimum is 1 RON per shareholder)
6. And after that, you can apply for registration at the National Trade Register Office

Once you’ve established all these aspects, you can proceed to the business registration procedure. Even though bureaucracy can make the registration process a bit difficult, there are solutions that can help you eliminate the stress and allow you to register a company in Romania 100% digitally, from the comfort of your home (wherever that may be).

StartCo is the first and biggest complete digital solution that can help with everything from:

• Initial support regarding the choice of legal form, CAEN Codes, legal address, etc.
• Preparation of the entire documentation needed to register the company
• Virtual legal address in all major Romanian cities
• Submitting the application with the Trade Register
• Ongoing support for business setup in Romania

And with our awesome and easy to navigate web app you can manage every aspect of your business with just a couple of clicks. You can have your business up and running in just 3-7 days.

So if you’re looking to start a business in a fiscal-friendly, low-tax EU country with a skilled, English-speaking workforce and plenty of opportunities, then Romania should be one of your top choices. When you’re ready, start your company setup in Romania right here.