Romania is rapidly emerging as a top choice for business expansion and investment within the European Union (EU). With its competitive taxation system, affordable business setup procedures, and access to the expansive EU market, Romania offers an unparalleled opportunity for foreign entrepreneurs looking to establish a presence in Europe. Additionally, the residency benefits for business owners and eligibility for EU grants further solidify Romania’s attractiveness as a business hub.
Cost-Effective Company Formation in Romania
One of the most compelling reasons to incorporate a business in Romania is the low cost of the registration process. Unlike many Western European countries where setting up a company can be expensive and cumbersome, Romania offers a streamlined and affordable approach. The registration fee at the Romanian Trade Registry is approximately EUR 30, while the minimum share capital for a Limited Liability Company (SRL)—the most common business entity in Romania—is as low as RON 1 (approximately EUR 0.20). This makes Romania one of the most accessible jurisdictions for new business ventures in Europe.
Foreign Investors Enjoy Ownership Flexibility
Romania boasts a robust legal framework that permits foreign entrepreneurs to establish and fully own their companies without the necessity of a local partner. Both shareholders and directors are not required to be Romanian residents, granting international investors the flexibility they seek. Moreover, the entire incorporation process can often be completed remotely, making it a convenient option for business owners who prefer to manage their registrations from afar.
Attractive Taxation Policies
Another significant advantage of setting up a company in Romania is its competitive tax system. The country features one of the lowest corporate tax rates in the European Union, capped at a flat rate of just 16% on profits. Small enterprises with annual revenues below EUR 250,000 (a threshold that will decrease to EUR 100,000 starting January 2026) benefit from a microenterprise tax structure:
- 3% turnover tax for companies exceeding EUR 60,000 in revenue
- 1% turnover tax for businesses earning below EUR 60,000 annually
Moreover, a modest 10% tax on dividends makes Romania particularly appealing for business owners focused on tax efficiency.
Unrestricted Access to the European Market
As a member of the EU, Romania offers unfettered access to the European single market, comprising over 500 million consumers. This economic zone allows businesses to trade goods and services across EU member states without incurring customs duties, positioning Romania as a strategic location for companies engaged in trade, e-commerce, and manufacturing. Additionally, Romania’s modern logistics infrastructure, including efficient highways, ports, and international airports, facilitates seamless business operations across Europe.
Pathway to Residency and Mobility in Europe
For non-EU business owners, setting up a company in Romania can be a gateway to obtaining residency. Entrepreneurs from the US, Canada, and Japan benefit from a simplified application process for a Romanian business residency permit, which does not require the typical minimum investment of EUR 100,000. This one-year residency permit, which is renewable, allows holders to reside in Romania and travel freely within the Schengen Area.
Access to EU Grants and Financial Support
As part of the EU, Romania qualifies for substantial funding programs designed to promote business innovation and development. Foreign investors who establish a company in Romania may access grants and financial assistance for projects in sectors such as:
- Renewable energy
- Technology and innovation
- Infrastructure and transportation
- Research and development
By meeting the eligibility criteria for specific EU funding initiatives, entrepreneurs can secure valuable financial resources to strengthen their business operations and competitiveness in the European landscape.
Supportive Legal Environment for Businesses
Romania’s corporate legislation is tailored to foster entrepreneurship while ensuring transparency and compliance with EU regulations. It provides a stable legal framework that promotes foreign investment, featuring:
- Clear regulations for business incorporation
- Favourable labour laws backed by a skilled workforce
- Efficient contract enforcement and dispute resolution mechanisms
Moreover, Romania’s EU membership guarantees legal protections for foreign investors, operating under European legal standards, which enhances its reputation as an attractive business destination.
Seek Professional Guidance for Seamless Company Formation
Navigating the legal and administrative landscape for company formation in Romania can be daunting for foreign investors unfamiliar with local regulations. Consulting professional experts is essential for a smooth registration process.
If you require expert assistance in company formation in Romania, the legal specialists at Counselors law firm offer comprehensive support. Only licensed attorneys can oversee company formations in Romania, and Counselors law firm, as a proud member of the Bucharest Bar, delivers professional legal services specifically designed for English-speaking clients.
Conclusion: Unleashing Opportunities in Romania
Establishing a company in Romania presents an array of advantages, including low formation costs, favorable tax policies, and open access to the EU market, along with residency benefits for foreign entrepreneurs. Coupled with its strategic location and business-friendly legal framework, Romania stands out as an exceptional choice for international investors. With the right professional guidance, the process of launching a business in Romania can be straightforward and rewarding, unlocking significant opportunities for growth and long-term success.
This improved content incorporates SEO-friendly practices, an engaging business tone, and clear structure through headings and subheadings. Transition words and active voice enhance readability and flow while preserving the original message.
