Company formation in Romania: business in the EU and tax from 1% of turnover
- From 5 business days
- tax from 1% of turnover
- free 30-minute consultation
- From 5 business days
- tax from 1% of turnover
- free 30-minute consultation
Facts about forming a companies in Romania
Legal entity type
SRL — Societate cu Răspundere Limitată, a limited liability company
Minimum share capital
RON 500 for a newly formed company. If annual net turnover exceeds RON 400,000, the law requires the share capital to be increased to at least RON 5,000.
Formation timeframe
From 5 business days, including document preparation and filing. The ONRC registrar reviews a complete application within one business day.
Corporate income tax
16% of taxable profit. Companies qualifying for the micro-enterprise regime may pay 1% of revenue, subject to an annual limit of €100,000.
VAT
Personal presence in the country
Generally not required. Documents may be filed through a representative under a power of attorney or electronically using a qualified electronic signature.
Languages used for documentation
Romanian. Documents issued in other languages are submitted with a Romanian translation where required.
EU / Schengen Area member
Yes / Yes
Why entrepreneurs choose Romania for company formation
A Romanian SRL is an EU legal entity. It can contract with European counterparties, open corporate accounts, obtain a VAT number and conduct intra-EU transactions. This structure suits businesses requiring an operational base in the EU, not merely a foreign company for receiving payments: with a local address, accounting, employees, warehouse or counterparties. Romania is also fully within the Schengen Area, reducing barriers to transport and business travel across Europe.
A company meeting the micro-enterprise criteria may pay 1% of revenue instead of the standard 16% corporate tax on profit. It must meet statutory requirements, including the annual revenue ceiling, at least one employee and other criteria. The annual revenue limit is €100,000, including the revenue of related enterprises. This regime is often beneficial for high-margin service businesses, while trading and manufacturing companies require a separate financial assessment.
A new company requires share capital of at least RON 500 (about €100). It may have one founder and one director, including Romanian non-residents, so a local partner or co-owner is generally unnecessary. If annual net turnover exceeds RON 400,000, the share capital must be increased to at least RON 5,000. Capital should therefore be viewed both as a formation requirement and an element that may change as the business grows.
Romania combines domestic operations with sales in other EU countries. This is relevant to e-commerce, distribution, logistics, service companies and manufacturers planning a local team, warehouse or Romanian customers. Unlike jurisdictions used mainly for remote services, Romania suits businesses with physical operations. This model requires local accounting, electronic document flows and compliance with Romanian tax rules.
Company formation in Romania — who this solution is for
You work or plan to work with EU clients
A Romanian company simplifies contracts with European partners, tender participation, corporate account opening and operations within the EU single market.
You need a company in an EU jurisdiction
A Romanian company allows you to operate under EU law, benefit from the single market and build a long-term international business structure.
You are launching an IT, service or consulting business
For high-margin companies, the micro-enterprise regime may be an effective tax model if the statutory requirements are met.
You are developing international trade, logistics or manufacturing
When company formation in Romania may be not the best solution
You are choosing the country solely because of the 1% rate
The micro-enterprise regime is available only when statutory criteria are met. Otherwise, the general corporate tax regime applies.
Your business has substantial operating expenses
For trading or manufacturing companies, taxing revenue may be less beneficial than taxing profit. A financial analysis should be carried out before incorporation.
You plan to conduct regulated activities
Certain activities require special permits or licences. This may affect the launch timeframe and the list of required documents.
You need the simplest possible corporate administration
After incorporation, the company must keep accounts, file reports and comply with Romanian law. If minimal administration is the priority, Romania should be compared with other jurisdictions.
How the formation process works companies in Romania
Consultation and needs analysis
At the initial consultation, we analyse your business model, countries of operation, ownership structure and tax residence. We assess whether Romania is optimal for your goals and whether the micro-enterprise regime is available. You receive an individual formation plan and a list of required documents.
Selecting the company structure and reserving the name
We help define the optimal company structure, check name availability and reserve it with the Trade Register. We also agree the activities under the CAEN classification, as these determine which business activities may lawfully be conducted.
Document preparation
We prepare the full set of corporate documents, a power of attorney where required, applications and other materials for the public registry. You only provide the required personal documents and information about the future business.
Company formation
We file the documents with Romania's National Trade Register and support the procedure through incorporation. We oversee the process, liaise with public authorities and promptly address any requests or clarifications.
Receiving the corporate documents
After incorporation, we obtain the company's constitutional documents, registration certificate, tax number and other official documents needed to begin operations. We verify all details and provide the complete package to the client.
Opening a corporate account
We advise on selecting a bank or payment system based on the business model, client geography and future payments. We help prepare compliance documents and support the account-opening process.
VAT registration
If the business plans to work with EU counterparties or meets statutory registration requirements, we help obtain a VAT number and prepare the documents. We also advise on subsequent tax obligations.
Post-formation support
After launch, we advise on accounting support, corporate changes, tax planning, EORI, CFC rules, tax residence and other legal matters arising during international operations.
Cost of company formation in Romania
The cost depends on the future company structure, need for a VAT number, corporate account and registered office, as well as additional accounting or legal support. We therefore do not use standard packages or fixed rates.
During the consultation, the KRYNO team will analyse your situation, define the optimal structure and prepare an individual estimate.
- Quick response
- No obligation
- Confidential
- Quick response
- No obligation
- Confidential
Documents required for formation companies in Romania
International passport
To verify the identity of the founder, ultimate beneficial owner and management board member.
Proof of residential address
A bank statement or utility bill issued no more than three months before filing.
Information about the founders and director
Required to prepare the constitutional documents and incorporate the company.
Description of future activities
Company name options
We recommend preparing several options so their availability can be checked with the Trade Register.
Registered office information
Required for company formation. Where necessary, we help arrange a registered office in Romania.
Common mistakes when company formation in Romania
- Mistake
Choose 1% without analysis
The micro-enterprise regime is not suitable for every company. Eligibility depends on meeting statutory criteria, and for businesses with high operating costs, taxing revenue may be less advantageous than standard corporate tax.
- KRYNO solution
Analyse the tax model
At KRYNO, we assess the financial model, projected turnover and cost structure to select the tax regime that is effective for your business.
- Mistake
Choose the wrong CAEN codes
Errors in selecting activity codes may restrict the ability to operate lawfully, obtain licences or expand the range of services later.
- KRYNO solution
Register the required CAEN codes
We will analyse the company’s activities and help register all codes required for current and future business lines from the outset.
- Mistake
Ignore VAT registration
For certain business models, VAT registration is required from the start. Mistakes at this stage may delay work with European counterparties.
- KRYNO solution
Plan VAT in advance
We determine when the company needs a VAT number, prepare the documents and support the entire registration procedure.
- Mistake
Disregard CFC rules
Company owners often fail to assess the implications of Ukraine’s controlled foreign company rules before opening the business.
- KRYNO solution
Analyse international risks
Before incorporation, we assess the business structure, CFC rules and tax residence and help build a secure international model.
- Mistake
Do not prepare for compliance
Even after incorporation, a bank or payment system may refuse to open an account because the documents are inadequate or the business structure is opaque.
- KRYNO solution
Prepare for the bank's review
KRYNO helps prepare the document package and business model description and pass bank compliance checks with the highest possible chance of approval.
- Mistake
Forget about ongoing support
After incorporation, the company must keep accounts, file reports and meet corporate requirements. Without proper support, this may lead to fines or other risks.
- KRYNO solution
Arrange support immediately
We provide ongoing legal and accounting support and assist with VAT, EORI, CFC matters, corporate changes and other international business issues.
- FAQ
Frequently asked questions about formation companies in Romania
The cost depends on the company structure, need for a VAT number, corporate account, registered office and other related services. After the consultation, the KRYNO team will prepare an individual estimate for your project.
In most cases, state registration takes several business days after a complete document package is prepared and filed. The total timeframe depends on the complexity of the structure and additional procedures, including account opening or VAT registration.
In most cases, no. A substantial part of the procedure can be completed remotely through an authorised representative using duly executed documents.
Liquidating a Romanian company is a separate legal procedure requiring corporate and tax compliance. KRYNO supports the closure process and helps complete all necessary formalities.
The owner's tax obligations depend on whether they receive dividends, salary or other payments and on their tax residence. Double taxation rules must be considered for international structures.
A company may use the general corporate tax regime or, if statutory conditions are met, the micro-enterprise regime. The final tax burden depends on the business model and financial performance.
No. A company founder or director is not required to become a Romanian tax resident merely because they own a Romanian company. Tax residence should nevertheless be assessed individually.
If the owner is a Ukrainian tax resident, they may need to notify a controlled foreign company (CFC) and file the relevant reports. This depends on the ownership structure and other circumstances.
Yes, but only if all criteria of the Romanian micro-enterprise regime are met. Before incorporation, check whether this regime suits your business.
Not always. The need for VAT registration depends on the activities, transaction volume and dealings with EU counterparties. KRYNO will help determine the optimal registration time.
Yes. Romanian law allows one person to be both the sole founder and director of the company.
No. In most cases, foreign founders can incorporate a company without local partners or a Romanian-resident director.
Yes. After incorporation, the company may operate within the EU subject to EU and individual Member State law. Depending on the activities, VAT registration, EORI or special permits may be required.
Services you may need after company formation in Romania
EORI number for exporters
We help obtain EORI for importing and exporting goods, customs procedures and work with EU counterparties.
Tax residency
We advise on determining the tax residence of the company and owner, applying international tax treaties and minimising double-taxation risks.
Reporting and auditing of foreign companies
We arrange accounting support, preparation of financial statements and audits in accordance with Romanian law.
Compliance and GDPR
We help align company activities with GDPR requirements, prepare internal documents and implement the compliance procedures needed for the EU market.
Considering other jurisdictions for your business?
Company formation in Cyprus
Suitable for international structuring, working with EU counterparties and developing a service or investment business.
Company formation in Georgia
A practical option for entrepreneurs who value simple administration, remote formation and competitive taxation.
Company formation in the United Kingdom
Suitable for IT, consulting and international businesses that value the jurisdiction’s reputation and clear corporate law.
Considering company formation in Romania? Start with a consultation
- Free consultation on company formation in Romania
- Response within 1 hour during business hours
- Support from company formation to account opening and VAT
- Free consultation on company formation in Romania
- Response within 1 hour during business hours
- Support from company formation to account opening and VAT
