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Setting up a company in Romania?

Find out how to do it compliantly:

EU framework

16% corporation tax

1% micro-enterprise regime

100% foreign ownership possible

You can reduce your tax burden legally. We will be happy to advise you in detail and offer you a free initial consultation.

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Estimated Annual Revenue

Please share your Estimated Annual Revenue with us, so we know which jurisdiction is best suited for you (special taxes for certain profits).

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Pros and cons of setting up a company abroad

If you relocate your residence:

Personal income tax is 10%
Withholding tax on dividends rises to 16%

Without emigrating:

If your company is managed from your home country, it may be treated as tax resident there and taxed accordingly
The micro-company regime does not override tax rules in your home country
Ownership levels can influence how profits are taxed
A local managing director is not required

What makes Romania attractive as a business location?

Romania is an EU Member State (19 million inhabitants, currency RON) allowing 100% foreign ownership. It offers a cost-efficient EU base with EU credibility and moderate operating costs.

Standard corporation tax is 16% on profits. Small companies may qualify for the micro-enterprise regime (1% on turnover) if turnover stays below €100,000 (reduced threshold from 1 Jan 2026). Certain larger taxpayers may face a 0.5% minimum turnover tax.

Withholding tax: Dividends, interest, and royalties to foreign recipients are generally subject to 16% WHT, unless reduced by double tax treaties or EU directives.

VAT: 21% standard / 11% reduced; registration threshold ~€77,600.

Legal form (SRL): Minimum share capital ~€100 (increasing to ~€1,000 after certain turnover thresholds). Incorporation takes 1–2 weeks. No local managing director required, but a Romanian business address and full UBO disclosure are mandatory.

Romania can work well as a genuine operational EU structure, but it is not a tax haven. Without sufficient substance and clear management, foreign tax authorities may challenge it under effective management or CFC rules.

Contact us for an individual analysis and possible alternative structuring proposals.

FAQs

Is it easy to obtain a VAT number?

Yes, provided the documents are complete and credible. However, follow-up questions should be expected.

Is a local managing director required?

As a rule, not for an SRL. Foreign shareholders can also act as directors, provided all formal requirements are met.

Are there many banking options?

There are several banks with EU connectivity. However, onboarding is often highly due-diligence-heavy for non-resident beneficial owners.

Is remote incorporation possible?

Yes. Incorporation can be completed remotely by using powers of attorney and proper documentation.

How long does incorporation take?

Usually 1–2 weeks. Registration with the Trade Register can be very fast if the application is complete.

Which locations worldwide are best suited to paying as little tax as possible?

	Tax Burden	Banking	Reputation	Bureaucracy	Legal Security	Costs
USA	21-0%	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	from EUR 1,900
Singapore	0%	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	from EUR 2,950
Hong Kong	0%	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	from EUR 1,900
Cyprus	15%	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	from EUR 1,900
Malta	5%	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	from EUR 2,500
Ireland	12,5%	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	from EUR 1,950
Trust	0%	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	from EUR 4,900
England	25-19%	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	5 stars 4 stars 3 stars 2 stars 1 stars	from EUR 1,000

Tax compliance in your country of residence

Your country of residence may impose tax and reporting obligations for foreign business activities and dividend income— in certain cases even if profits are not distributed.

Depending on your personal situation, a suitable holding structure may be required to comply with tax rules and avoid unnecessary tax risks.

To determine which jurisdiction and structure best meet your requirements, please use the contact form and describe your plans in as much detail as possible.

Our advisers will be glad to review your case and advise you accordingly.

1.

Analyse your needs

We assess your situation to define goals, risk tolerance, tax exposure and asset-protection priorities.

2.

Carry out a location analysis

We compare potential jurisdictions based on tax law, banking access, compliance requirements and your country of residence.

3.

Incorporate the company and, if required, establish a foundation

Open accounts and custody accounts and, if required, implement asset management