Romania company formation

Romania taxes small companies not on profit but on turnover: micro-enterprises with turnover of up to €100,000 pay 1%, regardless of how much of it is profit. All other companies pay 16% profit tax. At the same time, the country has consistently digitalised its tax administration – invoices between businesses have been routed through the state e-Factura system without exception since 2024. Anyone considering company formation in Romania should know both sides.

Turnover or profit

Choosing between micro status and profit tax is above all a matter of calculation:

From a profit margin of around 6%, 1% on turnover is cheaper than 16% on profit. If a micro-enterprise exceeds the €100,000 limit, it switches to profit tax from the quarter concerned. There are no local surcharges on profit; distributions have been subject to a 16% dividend tax since 2026. Taxes are administered by the tax administration ANAF.

Limits of micro status

Micro status has clear limits, and not every company can use it. Companies that predominantly provide consulting and management services are excluded. In addition, a shareholder holding more than 25% may claim the status for only one company – splitting a business across several micro-enterprises is therefore not possible.

Anyone planning company formation in Romania with micro status should therefore check in advance whether the planned activity would be classified as consulting.

e-Factura and SAF-T

Since 2024, invoices between businesses in Romania must be transmitted via the state e-Factura system; an invoice without this report is not valid for tax purposes. Companies also submit their accounting data to the tax administration in the standardised SAF-T file (D406).

For founders, this means accounting and invoicing must run from day one through software connected to e-Factura. Romanian accountants work with these systems routinely.

VAT and capital

The standard VAT rate has been 21% since August 2025. VAT registration is mandatory from turnover of RON 395,000 a year. The company files its annual accounts within 150 days of the end of the financial year.

Since 2026, the minimum capital of an SRL depends on turnover; from turnover of RON 400,000, RON 5,000 is required.

IT hub with a track record

As an IT hub, Romania has a track record of more than two decades: Bucharest, Cluj-Napoca, Iași and Timișoara have many well-trained software developers, many of whom speak English to a high level. For companies building a development or support team, the location combines low labour costs with EU law and short flights to the DACH region.

Registration with the ONRC

Company formation in Romania registers the SRL in five steps; the process in detail:

1. Reserve the name: with the trade register office ONRC.
2. Articles of association: seat, shareholders, management and activity codes.
3. Prove the registered office: with a lease or use agreement for an address in Romania.
4. Pay in the capital: in the turnover-dependent amount.
5. Registration and tax status: tax number, election of micro status and connection to e-Factura.

With complete documents, formation is usually completed within one to two weeks.

Accounting and obligations

The key obligations for bookkeeping, accounts, audit and VAT at a glance – so you know from the start what running your company involves.

As of 2026. Bookkeeping and filings are usually handled by specialised accountants in the target country.

Is Romania right for you?

Whether Romania pays off and is right for you depends mainly on turnover, margin and activity:

For a low profit tax with the euro, Bulgaria offers 10%; if you want to retain profits, compare Estonia. The overview of all locations and the tax comparison put Romania in context; whether micro status is cheaper in a specific case can be calculated in an initial call.