Starting a Business in Romania

For many UK entrepreneurs, Romania is now a viable option. It offers easy access to the European Union’s Single Market. We guide you through the benefits, the effort, and the steps to start a business here.

Romania is known for its business-friendly environment and improving infrastructure. It has strong telecommunications, better transport links, and growing logistics networks. This makes daily operations easier than many expect.

UK entrepreneurs can set up a local entity in Romania without being a resident. This is possible if the structure and compliance plan are right.

Registering a company in Romania usually takes 5–10 working days. The time depends on document preparation and the Trade Registry’s processing speed. We ensure every detail is correct to avoid delays and keep your EU market entry on track.

Success in Romania means more than just incorporation. You need tax registration, a working bank account, reliable accounting, and on-time filings. Plus, labour compliance when you hire. Start Company Formations supports your journey and can connect you with experienced Immigration advisers for work permissions or relocation.

Understanding the Romanian Market

For UK founders thinking about setting up in the EU, Romania is a good starting point. It has clear demand, improving infrastructure, and a workforce ready for modern businesses. This overview helps us understand the market, test costs, and see how a Romanian entity can serve customers worldwide.

Economic Overview

When planning a launch, momentum is key. The 4.8% growth rate in Romania’s last financial year shows steady activity. This is good for consumer spending, business services, and investment planning.

Romania joined the EU in 2007, making it easier to move goods and services across member states. For UK teams, this can influence decisions on distribution, service delivery, and hiring. It ensures predictable trading rules.

Key Industries

We dive deep into Romanian industries, looking for areas where international firms invest long-term. Romania is growing its shared services operations and research and development centres. These support product teams across Europe.

The country also has a strong IT talent pipeline. It supports software delivery, cybersecurity, data work, and platform support. This is great for businesses needing flexible, tech-enabled ways of working without losing quality.

Trends and Opportunities

Romania’s opportunities come from its skills and location. It’s between Eastern and Western Europe, making it ideal for regional coverage within EU frameworks.

For teams expanding into Eastern Europe, we focus on areas like multilingual support, nearshore development, and regional back-office functions. These can be paired with local partnerships and gradual hiring to build a presence with less strain.

Legal Requirements for Businesses

Starting a business in Romania can seem overwhelming. We guide you through the legal steps early on. This ensures your business structure, tax, and hiring plans are in line. A clear start helps avoid delays later on.

Company Structures in Romania

Most entrepreneurs choose SRL Romania. It limits liability to the capital put in, allows up to 50 shareholders, and can be managed by one or more people, including non-residents. The minimum share capital is 500 RON.

SA Romania is better for bigger investments and growth. It needs a minimum of 90,000 RON (about 18,000 EUR) in share capital. This structure also supports future fundraising and listing.

Choosing between a branch or subsidiary in Romania is crucial. A branch is part of the parent company and lacks legal identity. A subsidiary is its own entity, offering more flexibility. A representative office is for market research but cannot trade.

• Partnerships come in general and limited forms but are less common due to shared liability.
• Your choice should match your risk level, investment, and growth plans.

Registration Process

The ONRC Trade Registry handles most registrations. We prepare the necessary documents, confirm the address, and align the company purpose with planned activities. Small mistakes can delay the process.

Planning governance details early is also key. This includes administrator powers and shareholder rules. These affect daily operations, profit sharing, and future investor involvement.

Permits and Licences

Many activities require Romanian business licences, especially in regulated sectors. The right permits depend on location, clients, and activities like personal data handling. We check these needs early to ensure your business can operate.

Some sectors need extra approvals before starting. This is common in areas like Gaming Licences and FX & Crypto Licensing Companies. Compliance and reporting are strict. Getting licences early keeps your business stable and helps with banking and partnerships.

Choosing the Right Location

Choosing a base is more than just a postcode. It affects your hiring, daily work, and following rules. A good Romania location strategy helps your business grow, especially when trading in the EU and near non-EU borders.

Major Business Hubs

Founders often start by looking at Romania’s business hubs. Bucharest is key for corporate services and has a deep talent pool. It also has good air links for trips to Germany and Italy.

Other cities suit different goals, like tech teams or manufacturing. We consider commute times, universities, and supplier access. We match these to your business needs, not just rent.

Factors to Consider

Every company needs a registered office in Romania for official notices. You must show you have the right to use the address. This choice affects your registration and ongoing admin.

• Lease a dedicated space for privacy, storage, or client meetings.
• Use co-working Romania for flexibility, shared facilities, and a local presence.
• Choose a virtual office Romania for mail handling and an address, while your team works remotely or visits on set days.
• In some cases, a law firm can host your address, and some firms offer temporary hosting for up to one year.

We also check if the location fits your NACE-coded activities. This is important for inspections, permits, or specific workspace rules. For trade and logistics, borders with Ukraine, Serbia, and Moldova affect routes, lead times, and customs planning.

Cost of Living Comparison

Costs differ by city and area, so we look at rent, utilities, travel, and salary expectations. In Bucharest, the wider candidate pool may reduce hiring time, even with higher office costs.

For many teams, the best location keeps staff happy and clients close. We balance cost of living with transport links, service providers, and the setup for your registered office Romania.

Setting Up Your Business Bank Account

For UK founders, getting a bank account feels urgent. But timing is key. A Romanian business bank account helps with local payments, collecting client money, and managing payroll. You can register a company without a bank account, so we plan incorporation first and banking next.

When you get to the bank account stage, expect familiar UK checks with some local twists. Banks will check your activity, funds source, and transaction patterns for AML Romania. Planning early can save days when invoices are due.

Types of Bank Accounts

Most firms start with a day-to-day corporate account Romania for RON payments. As trading grows, they add more features. For invoices abroad, multi-currency options can cut costs and simplify reporting.

• Operational current account for local payments and collections
• Multi-currency account for EUR, GBP, and cross-border transfers
• Optional card facilities and online banking access for administrators

Choosing the Right Bank

Choosing a bank is not just about fees. We consider branch access, onboarding speed, online banking quality, and international receipt handling. It’s also important to check if authorised signatories Romania must visit in person.

If you expect funding from a UK parent or investors, ask about transfer reviews. Good AML Romania processes are normal, but the impact depends on your documents and payment flows.

Necessary Documentation

To open a Romanian business bank account, banks need corporate and personal documents. These checks support onboarding and help the bank understand control and risk, especially for cross-border payments.

1. Incorporation documents and company registration details
2. Proof of registered office address in Romania
3. Personal identification for administrators and beneficial owners
4. Specimen signatures, with authorised signatories Romania often required to sign at the branch
5. Basic business profile details to support AML Romania screening

Preparing these items upfront makes moving from incorporation to a working account easy. The key is to match your paperwork with your trading plans, avoiding delays.

Taxation in Romania

Tax rules affect how you manage money, set prices, and pay yourself. When setting up in Romania from the UK, we first look at the tax situation. Then, we choose the right legal structure and how often to report taxes.

Corporate Tax Rates

Most companies pay Romania corporate tax 16% on their profit. This means how you spend money and when you bill clients can change what you owe.

But, if your business is small, you might pay micro-enterprise tax 1% on your sales. This is if you have at least one employee and meet certain turnover limits. It’s simpler but might not work for businesses with thin margins or high costs.

When you share profits, you’ll face Romanian dividend tax 16%. In some cases, especially with EU parent companies and subsidiaries, you might not have to pay. The structure and who owns what matters a lot here.

VAT Overview

VAT planning is as important as income tax planning. It affects how you write invoices, contracts, and manage cash flow. Most sectors use the standard rate of Romania VAT 19%. But, some goods and services might have lower rates.

You might need to register for VAT when your sales hit 395,000 RON. VAT rates and thresholds can change, so we keep an eye on them for your business and timeline.

Filing Requirements

Staying compliant is mostly about routine. You need good bookkeeping, clean records, and consistent invoicing. We suggest a monthly schedule for bank reconciliations, payroll, and VAT checks.

• Keep track of sales if you’re using micro-enterprise tax 1% instead of profit-based taxes.
• Have a clear trail for expenses and adjustments for Romania corporate tax 16%.
• Plan how you’ll distribute profits and prepare the necessary documents for Romanian dividend tax 16%.
• Watch your sales to avoid missing the VAT threshold 395,000 RON.

Understanding Labour Laws

When a UK business hires in Romania, we see labour law as a guide, not just a rule. The first hires set the tone for contracts, payroll, and management. Getting it right early helps avoid costly mistakes later.

We start with Internal Regulation Romania to make legal duties clear. It should be easy to read and shared with staff. It helps in managing performance and conduct issues fairly.

Employment Regulations

Employment compliance starts with accurate records and clear rules. ReGes Online is key because it links employment data to official reports. This ensures dates and terms match your paperwork.

When processes change, we update templates and approvals. This makes each step traceable.

• Work rules that reflect workplace health and safety Romania in daily tasks and site access
• Rights and obligations for both employer and employees, written in plain language
• An amicable dispute resolution route before issues escalate
• Work discipline rules, with defined disciplinary offences and sanctions
• A disciplinary inquiry process that follows consistent steps and timelines
• How legal and contractual provisions are applied in real scenarios
• Employee evaluation criteria and the procedure used to apply them
• Notice periods and how they are handled in practice
• A professional training policy where it applies to the role or sector

Minimum Wage and Benefits

Pay structures must meet statutory levels and be consistent. We map base pay, allowances, and benefits clearly. This makes it easier to explain to candidates and keeps payroll clean.

Internal documents support fair pay decisions and consistent treatment. A non-discrimination policy Romania is key in hiring, promotion, and pay reviews. This builds trust and makes decisions easier to defend.

Workers’ Rights

Workers’ rights are central to employee relations, from safety to equal treatment. We embed workplace health and safety Romania into onboarding and role-specific instructions. Clear duties reduce confusion, especially in fast-growing teams.

Behaviour standards must be explicit and enforceable. A harassment policy Romania sets expectations and reporting routes. It also outlines the handling process, including confidentiality and protection from retaliation. This gives managers a clear framework when concerns are raised.

Funding Options for Startups

Finding funding in Romania can seem tricky, especially for UK founders. But, once you’re set up and meet the rules, many funding options become available. These range from public schemes to private investments.

Many programs focus on growth, creating jobs, and achieving specific goals. It’s crucial to have a clear budget, timeline, and understanding of reporting needs. This is as important as your business idea.

Grants and Subsidies

Grants and EU funding in Romania are viable for foreign companies registered locally. They must meet specific criteria. Getting incorporated is often the first step, as most schemes require a Romanian entity and accurate financial records.

Romanian subsidies often target tech, agriculture, and manufacturing. They can help with buying equipment, digital tools, hiring, and preparing for exports. However, they usually require co-funding and detailed spending reports.

For firms focused on innovation, R&D incentives in Romania can be an option. These include tax breaks for research, software development, and technology upgrades. Keeping detailed records and timesheets is essential.

• Check eligibility rules early: sector, location, company size, and project duration
• Prepare auditable budgets, supplier quotes, and a simple delivery plan
• Align your reporting process with Romanian accounting and payroll practice

Private Investors and VC Firms

Private funding can be quicker than public grants. We see it as a parallel option, not a replacement. Many founders mix equity with non-dilutive funding.

Investors look for solid growth, good governance, and a clear path to EU expansion. Showing strong financials and clear IP ownership can help secure funding on better terms.

• Keep your cap table clean and your shareholder documents consistent
• Use board-ready reporting: cash runway, pipeline, and key risks
• Protect IP before deep technical discussions where possible

Bank Loans and Microfinance

Debt finance is suitable for businesses with stable cash flow, especially in services and light manufacturing. Banks will review your financials, collateral, and ability to repay. Ensure your banking and bookkeeping are in order before applying.

Microfinance and smaller loans can provide early working capital, even for startups. They can complement grants and subsidies, while keeping equity for later rounds.

• Match loan tenor to the asset life, not just the headline rate
• Plan for covenants and reporting, including VAT and payroll timing
• Keep a contingency buffer for slower customer payments

Insights into Romanian Culture

When UK founders enter Romania, culture is as important as numbers. Romanian business culture values patience, good manners, and a steady pace. We guide you to build trust, which can lead to quicker decisions.

Business Etiquette

At first, business etiquette in Romania is formal. Wear smart clothes, greet politely, and use titles until you’re told to use first names. Being on time is crucial, even if plans change.

Practical details also matter. You might need Romanian for some documents. Agreeing on document formats early helps keep communication smooth with lawyers and banks.

Networking Practices

In Romania, networking is about who you know. Referrals can open doors. Expect to meet several times before discussing business.

• Show consistency: follow up when you say you will.
• Share context: explain your decision path and timeframes.
• Build reciprocity: offer insight or a contact, not only a request.

Communication Styles

Communication in Romania is direct but respectful. Be ready for pointed questions, especially on price and delivery. Honest answers are key.

The negotiation style in Romania is practical and fact-based. Flexibility is possible when both sides are heard. Summarise agreements in writing after each call. This keeps the process smooth with local support.

Benefits of Starting a Business in Romania

For UK founders looking to set up in the EU, Romania offers many advantages. It’s easier to plan your budget because costs, staffing, and market reach are all in one place. This helps your business grow steadily without spending too much money.

Cost-Effectiveness

Romania is a cost-effective choice due to its clear tax framework and low set-up costs. Companies can plan around a 16% corporate income tax. Eligible micro-enterprises might use a 1% turnover tax with at least one employee, or 3% without.

When discussing low corporate tax options in Romania, we consider your expected revenue, staff, and expenses. We also look at double-taxation treaties to avoid being taxed twice on the same income.

• Indicative first-year cost for early budgeting: EUR 3,850
• Average “all-inclusive” process cost for modelling: around EUR 8,820, covering incorporation, bank account set-up, and governmental fees

Access to the EU Market

EU single market access can change your business strategy, especially for services and digital trade. Founders often use Romania as a stable base to serve clients across the EU. This approach simplifies distribution, contracting, and invoicing.

It also makes it easier to choose suppliers and negotiate prices. This is crucial for scaling your business beyond one territory.

Skilled Workforce

Romania is known for its technical skills, making it great for product-led businesses. We help with hiring plans that focus on software development, QA, data roles, and technical support. Many workplaces use English, making communication easier.

In tech sectors, Romania’s STEM graduates enhance the talent pool. This supports long-term team growth and keeps standards high. It also makes onboarding new team members more efficient.

Challenges Entrepreneurs Face

Helping UK founders expand, we focus on what slows them down early on. Romania’s bureaucracy can be tough, even with a good plan. A clear timeline and document pack help make early decisions smoother.

Bureaucratic Hurdles

Incorporation usually takes 5–10 working days, but delays can happen. Common causes include missing forms, name checks, and busy periods.

Overseas paperwork can also take longer. Steps like notarisation and apostille add days. A small mistake in company details can send documents back for correction.

• Prepare signatures, IDs, and corporate papers in one consistent format.
• Confirm name availability early to avoid re-filing.
• Plan for buffer time if documents need notarisation or apostille.

Language Barriers

Many advisers and bank teams speak English, but official filings need Romanian. You’ll need Romanian translations for shareholder papers, powers of attorney, and supporting evidence.

In some cases, these documents must be notarised, and the source documents may need an apostille. We manage this as a workflow, not a mystery, so each step is booked and tracked.

Market Competition

Entering the Romanian market is competitive, especially in tech, services, and manufacturing. It’s a growing EU market, so prices and talent demand can increase quickly.

We see compliance risks in Romania rise when founders move fast and assume rules won’t change. Regulations can shift, so we monitor updates and align your launch plan with stable compliance and clear positioning.

Resources for Entrepreneurs

Starting a business in Romania can be smoother with the right tools. We focus on finding reliable ways to fund, register, and enter the market. This way, you can move forward with confidence.

Government Support Programs

Romania offers incentives to ease early costs. These are especially helpful if your business fits national priorities. Often, this means support for tech, agriculture, and manufacturing.

EU grants for Romania might also be available. These grants require documenting milestones and reporting. We recommend checking eligibility early and planning budgets and timelines carefully.

• Sector-led schemes for equipment, innovation, and production capacity
• IT and R&D tax incentives and targeted exemptions, where conditions apply
• Permit and licensing pathways via the Romania Ministry of Economy for regulated activities

The Trade Registry ONRC provides essential resources. It helps verify company data and file important records. This is crucial for establishing your legal presence in Romania.

Networking Events and Conferences

Joining entrepreneur networks in Romania can speed up your learning. Especially if you’re coming from the UK. Look for events where founders share valuable insights without pressure to buy.

These events are great for refining your pitch. A few key conversations can reveal a lot about pricing and procurement habits. This can save you weeks of research.

Online Platforms

Today, digital tools make setting up a business easier. You can handle documents and work with advisers remotely. Many steps can be done online, which is helpful if you need to act quickly.

However, some banks still require you to visit in person. This depends on the bank’s policies and your business’s risk level. With the right digital tools, managing incentives and grants becomes simpler.

Hiring Employees in Romania

When hiring in Romania, speed and control are key. We guide UK founders through a clear process from the first shortlist to the first day on the job. This approach reduces surprises and simplifies paperwork.

We create a simple timeline for hiring. It includes defining the role, checking candidates, signing contracts, and completing statutory steps. This keeps your hiring plan in sync with your headcount, payroll, and start dates.

Recruitment Process

Before advertising, decide on the right COR code Romania and a practical job description. This choice affects reporting, duties, and how inspectors view the file.

We follow a simple, repeatable process:

• Confirm the role’s responsibilities, working pattern, and location.
• Define the selection steps, interview notes, and evaluation criteria.
• Agree on the start date early to avoid delays in documentation.

Employment Contracts

Romanian employment contracts must be in writing and in Romanian. They need to be signed and registered with ReGes Online at least a day before the employee starts.

Contracts can be electronic if both parties agree. We keep a detailed audit trail for all versions.

Contracts should include:

• Details of the parties and the employer’s headquarters or domicile.
• Workplace details or mobility terms and transport costs.
• A role aligned with the COR code Romania, job description, and evaluation criteria.
• Job-specific risks, effective date, and fixed-term duration if applicable.
• Holiday entitlement, notice periods, and probation terms.
• Salary details, pay frequency, and working hours with overtime rules.
• Details of any collective agreements and professional training organisations.
• Information on private medical insurance, pension contributions, or other benefits.

Training and Development

Good onboarding reduces turnover and makes reviews easier. We promote a simple training log and clear goals, especially for safety or system training.

Workplace training also supports fair evaluation. It allows employees to show what they’ve learned and when. This approach strengthens compliance and improves delivery.

Marketing Strategies for Romanian Businesses

When we plan growth for a UK venture abroad, we treat marketing as part of the build, not a later add-on. Marketing in Romania links market entry to real demand. It keeps your message aligned with EU rules and local norms. It also helps you choose channels that fit your operating model, from sales-led rollout to shared services and R&D.

Digital Marketing Trends

Digital-first habits are now standard, so we often start with search, paid social, and strong local landing pages. For go-to-market Romania, speed matters, but so does clarity: pricing, delivery terms, and returns should be easy to find and easy to read. If your offer touches regulated areas, we also check that claims, disclosures, and consent flows match EU expectations.

Romanian-language copy is not just a nice extra. For key pages, terms, and customer support prompts, reliable translation plus local review can reduce friction and avoid compliance risk.

Local vs International Branding

A Romanian branding strategy works best when it reflects your role in the region. Are you selling to local buyers, building an employer brand for a tech team, or using Romania as a distribution base? Each route changes the tone, proof points, and even the product story, especially when EU expansion marketing is part of the plan.

• Local demand: lean into trust signals, service standards, and clear after-sales support.
• Shared services or R&D: prioritise employer branding, career pathways, and workplace credibility.
• EU springboard: keep brand assets consistent, while adapting claims and packaging for each market.

Customer Engagement Techniques

Romanian customer engagement improves when we respect business culture from the first touch. Early meetings tend to start formal, and relationships grow through steady follow-up. Clear, respectful communication beats hype, especially when buyers need internal approval.

1. Build reassurance: publish service levels, response times, and escalation steps.
2. Use proof: case studies, certifications, and product documentation can shorten the sales cycle.
3. Stay consistent: keep tone and terminology the same across ads, email, and sales calls.

The Role of Start Company Formations

Starting a business in Romania can be quick, but small issues can slow things down. Start Company Formations helps UK founders by offering a reliable service. We guide you from the first idea to the first paperwork, keeping you on track.

We help pick the best structure for you, like an SRL, SA, or branch/subsidiary. We draft the Articles of Incorporation with the right details and submit them to the Trade Registry (ONRC). If needed, our support includes virtual office services.

Services Offered

Tax and admin setup can trip up new businesses. We make it straightforward. We plan your VAT registration based on your sales and trading plans. We also prepare documents for banking and help with accounting and employment needs.

Contact Information

If you’re thinking of moving, we work with immigration experts. For regulated areas, we guide you through gaming and FX crypto licensing. Contact Start Company Formations to plan your path and avoid delays.