A practical guide to getting started: choosing between a limited company and sole trader status, what registration with the Trade Register involves, the tax and employment obligations that arise immediately, and what differs for foreign founders.
At a glance
Common forms: a limited liability company for activity with partners and limited liability, or sole trader status for independent work
Registration: with the Trade Register, usually within a few working days of a complete filing
Immediately after: tax registration, accounting, and any operating authorisations
For foreign founders: the company can be set up without travelling, but it does not grant residence
Company or sole trader
Limited liability company
Suited to activity involving several people, significant contracts, employees or real commercial risk. Shareholders' liability is, as a rule, limited to their contribution.
Sole trader
Suited to independent work, with lower administrative costs. The individual is liable with their own assets, and some activities require qualifications or authorisations.
The choice follows from risk, the number of partners and the tax treatment, not just the cost of incorporation.
The registration steps
Reserving the name, drafting the articles of association, evidencing the registered office, the founders' and directors' declarations, then filing with the Trade Register.
Where the activity requires sector authorisations, transport, food service, medical services, these are obtained separately after registration.
What comes immediately after
Opening the bank account, tax registration and settling the VAT position, organising the accounting and, if you hire, drawing up contracts and registering them in the national employee register before work begins.
Tax reporting deadlines start running at once, even if the company has no revenue yet.
If the founder is a foreign national
There are no nationality restrictions on shareholders or directors. The process can run under a special power of attorney, without travelling to Romania.
Residence is a separate matter, obtained through the permit for commercial activities, with its own conditions.
Frequently asked questions
What does it cost to set up a company in Romania?
Costs include Trade Register fees, notarial costs where required, translations of foreign documents and professional fees. The exact structure depends on the legal form chosen.
How long does it take?
Usually a few working days from a complete filing.
What share capital does a limited company need?
There is no longer a significant minimum, but the capital should match the planned activity.
Do I need an accountant?
A company's accounts must be kept by an authorised professional. For sole traders the requirements are lighter, but the reporting obligations remain.
Can I incorporate without coming to Romania?
Yes, under a special power of attorney notarised locally or at a Romanian diplomatic mission.
When are additional authorisations needed?
Where the activity is regulated. Check before registration, since some authorisations condition the start of trading itself.
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