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Note The information provided is based on the most recent data at the time of writing and may be subject to change. For accurate and up-to-date information, it is recommended to consult relevant authorities and stay informed about applicable laws and regulations. Welcome to Legispedia, the comprehensive encyclopedia for Romanian companies.

Through our informative pages, we aim to explore the benefits and potential drawbacks of establishing a business in Romania, helping you decide if this jurisdiction aligns with your goals.

When Might Opening a Company in Romania Be Inadvisable?

While Romania offers many advantages, it may not be the ideal choice for everyone. Before delving into the benefits, let's address some of the limitations: Visa and Residency Concerns.

If your primary goal is to obtain a visa or residency permit for immigration purposes or unrestricted travel within Europe, opening a company in Romania may not be the best approach. It is important to note that establishing a company solely for the purpose of obtaining a visa without intending to actively run the business is prohibited by law. However, if your intention is to immigrate and start a genuine business, or if you require a temporary work visa, we provide a guide to assist you with the process.

High Revenue Expectations

For businesses expecting to earn over 500,000 EUR annually in the short term, Romania may not be the most tax-efficient choice. The 1% income tax benefit for micro-companies only applies to those with annual revenues below 500,000 EUR. In such cases, Bulgaria may offer a more favorable tax environment with its 10% profit tax and 5% dividend tax. However, it is important to consider that Bulgaria also has a more complex bureaucratic system.

Low Revenue Projections

While Romania boasts low taxation compared to other EU countries, there are still costs associated with running a business, including accounting, consultancy, registration, and headquarters hosting fees. If your projected monthly revenue is less than 2,000 EUR, operating a Romanian business might not be the most cost-effective option. Expect to incur approximately 1,500 to 2,500 EUR in annual expenses for maintaining your company, including bank account fees and accounting services.

So, When Is Opening a Romanian Company a Good Idea?

Planning an E-Commerce Venture

Romanian entrepreneurs have the advantage of opting for a 1% income tax rate on their revenues, with inventories deductible from this sum. This is a significant opportunity, especially considering Romania's strategic access to the Danube, the Black Sea, and major European trade routes, making it an important logistics hub. Combined with the relatively high level of digitalization in the field and ongoing efforts to automate business processes, Romania offers a compelling alternative to countries like Estonia and Bulgaria.

Software Development Endeavors

Software developers can also take advantage of the 1% income tax rate, which is highly beneficial for a field with typically high profit margins. When coupled with tax exemptions for developers' salaries, this creates a very attractive package that only a handful of companies currently utilize.

Are You Convinced Yet?

We hope that you're not entirely convinced yet because there's still much to consider and learn. While we believe that registering a business in Romania can offer certain advantages, we also want to provide you with comprehensive information to make an informed decision.

If you're feeling intrigued, remember that you can always simulate the process of filling out the registration forms for your business without any financial commitment.

Straightforward Business Registration

- You are free to discontinue at any time. You only pay when you're ready to finalize the registration!

- Begin the business registration process by filling out a form.

You can always simulate filling out the forms for registering your business, before paying anything!