Company Registration in Romania: Complete Guide for Foreign Entrepreneurs in 2026

Foreign entrepreneurs place the country among the most desirable nations within the EU for setting up or moving their business operations with a gateway to the EU market.

Due to the flexibility, the simplified internal administration, and the possibility to benefit from the EU trade flows, Romania company registration has become the instrument of choice for the trading, digital services, logistics, and holding companies.

In 2026, the tax system continues its shift towards improved digital surveillance, separation of the small-scale fiscal system from the standard one, and more careful review of financial transparency. Concurrently, the country maintains the provisions that are appealing to small organizations through the simplified taxation of the structures that are eligible.

Quick Facts About Company Registration in Romania 

Why Foreign Entrepreneurs Choose Company Setup in Romania

The country’s geographical location in Eastern Europe makes it a natural gateway to Western Europe and, at the same time, a bridge to the emerging economies in the region. This unique position greatly improves its attractiveness for transnational trade and service-offering industries.

The country throughout the years has been characterized by quite competitive operating expenses, which are lower than those of many other EU countries. It also provides access to a well-trained and highly competent labor force, especially in the fields of IT, engineering, and manufacturing.

One more feature that makes Romania company registration highly appealing to foreign investors is its extensive treaty network covering double taxation with more than 80 countries. This enables the optimization of financial movements across borders and at the same time helps to lessen the tax burdens on international operations.

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Company Registration and New Tax Rules in Romania in 2026

The tax system in 2026 is based primarily on two models: the conventional 16% tax rate and a simplified micro regime for smaller entities.

Main tax indicators:

• Standard corporate income tax fixed at 16%;
• The micro system calculated at 1% on the taxable basis;
• The 3% micro system being totally phased out;
• Dividend tax gone up to 16%;
• VAT kept at 21% (with a reduced category of 11%).

The significant reform implemented in 2026 is mainly related to the internal cost deductibility. Only the expenses associated with intellectual property, consulting, and management services supplied by affiliated non-resident companies will be considered for tax purposes to the extent of 1% out of their total value.

This adjustment significantly impacts international group structures that rely on international service flows and internal cost allocation models. 

Company registration in Romania 2026: SRL/LLC Model and Demands

The Romanian SRL/LLC is the structure chosen by a majority of local entrepreneurs and foreign investors.

This model allows full foreign participation and limits financial exposure to contributed funds within the structure. 

Some important components of the set-up:

• One or multiple founders (a maximum of 50 participants can be registered);
• To have at least one director;
• An enrolled workplace in the country in question;
• Declaration of the beneficial ownership;
• Registration at the national fiscal authorities.

Due to its adaptability and growing potential, this business form attracts predominantly small and medium-sized operators.

How to Open Your Romania Company

Romania company registration is a formal procedure and contains the following steps:

1. Choosing and reserving a business name;
2. Preparing foundational paperwork;
3. Setting internal rules of operation;
4. Defining ownership structure;
5. Sending details to the local trade register;
6. Receiving fiscal and VAT identification (if needed);
7. Opening a business account;
8. Activating accounting and fiscal systems.

Company registration in Romania for non-residents can be done online, except for identity proof which is usually performed at the financial institution.

Main Government Rules and Fiscal Oversight

Among other steps, the country has developed its fiscal oversight regime to ensure that the entities regularly disclose their activities in a clear and traceable manner by using the digital channels.

Inactive organizations, failure to file promptly, and no activity in bank accounts are examples of matters which may result in cancellation from the tax record after an organization receives a warning and the tax authorities consider the inactivity.

Key obligations include: 

• Mandatory electronic invoicing via RO e-Factura;
• SAF-T (D406) reporting to tax authorities;
• Regular financial statements submission;
• VAT reporting (monthly or quarterly depending on activity);
• Maintaining active banking presence in the country.

Should one not meet those obligations, the tax authorities are empowered to impose different limitations or administrative sanctions.

Tax System Overview 

Standard CIT (16%)

The standard 16% system applies to structures that exceed simplified thresholds or do not meet conditions for the micro regime.

It is calculated based on net financial results after operational expenses.

Micro System (1%)

The simplified 1% system applies if several conditions are met:

• Annual inflow does not exceed €100,000 equivalent;
• At least one employee is hired within 30 days;
• The employee can be an EU citizen;
• Social contributions are paid within the country.

VAT System

The country applies:

• 21% standard VAT rate;
• 11% reduced VAT level for selected goods and services.

VAT enrollment becomes mandatory once turnover exceeds the legal threshold, and companies must adhere to strict digital reporting standards. 

Digital Fiscal Monitoring 

The country has significantly expanded its digital fiscal infrastructure.

Key systems include:

• SAF-T (D406) electronic data transmission;
• RO e-Factura mandatory invoicing system;
• e-TVA digital verification tools.

SAF-T is particularly important as it allows authorities to analyze detailed financial structure, transactions, and internal flows.

Errors or inconsistencies in SAF-T submissions may lead to additional fiscal checks or penalties.

This system increases the importance of precise internal financial organization and structured data flow.

Advantages of Company Registration Romania

Reasons foreign business owners are still attracted to Romania business registration include:

• Enabling entry to the entire EEA;
• Lower expenses of running a business compared to Western Europe;
• More adaptable structure for foreign founders;
• Extensive network of double tax treaties;
• Growth of IT and industrial sectors at a fast pace;
• Easy establishment of a Romanian SRL/LLC type of organization;
• Fiscal systems’ digitization is on the rise.

That is why all these factors combined make Romania company registration a very attractive option for those looking to expand worldwide.

Besides, our team helps in enrollment of organizations in other nations, e.g., BVI or Anguilla. 

Conclusion

In 2026, the country continues shifting toward a more transparent and digitally controlled fiscal environment while maintaining attractive conditions for small and medium-scale business structures. 

The simplified 1% system is still one of the main benefits for eligible entities whereas the regular 16% taxation system provides certainty to bigger businesses.

On the other hand, the availability of digital tools such as SAF-T and e-Factura is changing the mode of the financial business. Thus, accuracy, consistency, and an internal flow of well-organized procedures are necessary elements for a firm to remain stable and grow.

FAQ

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