The Benefits of Registering a Romanian Company

Introduction

Romania is attracting foreign companies looking to either relocate within the EU or to enter the European market. A strategic location, reasonable tax system, talented workforce, and business-friendly climate make it an excellent alternative for company formation.

On a different note, registering a Romanian firm can also allow US, Canadian, and Japanese nationals to relocate and live in Romania and freely move around the EU.

Strategic Geographical Location

Situated in Southeastern Europe, Romania serves as a gateway between Western Europe and emerging markets in Eastern Europe and Asia.

As a member of the European Union (EU) and the Schengen Area, businesses operating in Romania gain access to the EU’s single market, encompassing over 500 million consumers.

The EU single market is based on free movement of goods, services, capital and people.

Favorable Taxation System

Romania boasts one of the most competitive corporate taxes in Europe. The country employs a flat profit tax rate of 16%, which is among the lowest in the EU.

If you plan to have a revenue of below EUR 250,000 per year, then you can opt for the 3% turnover tax, instead of the profit tax. As of 01 January 2026, this legal threshold will be lowered to EUR 100,000.

If the revenue in a given year is below EUR 60,000, then the turnover tax can be even lower, 1%.

If you combine the Romanian favorable taxation system with the free access to the EU single market, then you can have a powerful advantage.

Because your business will be able to freely transport goods within the EU without paying customs taxes and effortlessly receive commercial profits in the Romanian company, where you will pay low taxes.

In other words, the Romanian company might be viewed as a vehicle for conducting business in the EU.

There is also a 10% dividend tax, in case you will want to extract dividends out of the Romanian company.

A Romanian Company can be Formed by Anyone

Non-Romanians can fully own and control Romanian companies without the need for local Romanian partners.

The incorporation process can often be completed within a few days, with minimal bureaucratic hurdles.

Moreover, there are no residency requirements for shareholders or directors, providing flexibility for non-Romanian entrepreneurs.

Opening a Romanian Company is Cheap

The costs for forming a Romanian company are low.

The Trade Registry tax is around EUR 30.

The minimum share capital for the most popular company type (limited liability company) is approx. EUR 0,2.

Access to European Union Funding and Incentives

As an EU member state, Romania is eligible for various EU funding programs aimed at promoting regional development, innovation, and sustainability.

Foreign investors can tap into these funds to support projects in sectors such as technology, infrastructure, and renewable energy.

Thus, by registering a Romanian company and completing program-specific requirements, you can participate in certain EU funding programs.

Residency Card valid Across the Whole EU

Romanian legislation provides specific benefits to US, Canadian, and Japanese citizens.

They can form Romanian companies and get the Romanian business temporary residence card, which is valid for 1 year.

They are exempted from providing proof of investments of at least EUR 100,000, which is required for other non-EU citizens.

Once the residency card’s validity period has expired, it can be renewed.

Because Romania is part of the Schengen Area, you can freely travel within the European Union with your Romanian residency card.

Professional Help

If you would like to learn more about forming a company in Romania, you can reach out to Counselors law firm, a Romanian legal practice specializing in corporate law and catering to English-speaking clients.

In Romania, only licensed lawyers are authorized to handle company formations on behalf of clients. Counselors law firm, as a registered member of the Bucharest Bar, is fully qualified to provide these services.

Author Profile

Adam Regan

Deputy Editor

Features and account management. 3 years media experience. Previously covered features for online and print editions.

Email Adam@MarkMeets.com