Welcome to Legispedia, the Romanian company encyclopedia.

Through our pages and information, we hope to discuss the benefits and downsides of Romania as a jurisdiction, and choose if this is for you, or not.

When not to open a company in Romania?

A Romanian company isn't for everyone, so before delving into the benefits, let's quickly address who Romania may not be a good fit for. Won't do. for your business.

Getting a visa or residency permit for immigration into Europe or to travel

Opening a company without planning to run it, with the sole purpose of getting a VISA is prohibited by the law.

However, if you want to immigrate to start a business, or need a temporary visa, we have a guide here.

Planning to earn over 500,000 EUR yearly in the short term

The 1% income micro-company tax only applies to companies making under 500,000 EUR yearly, and we don't recommend opening in Romania without clearly reading about the benefits of Bulgaria, where profit tax is 10%, and dividend tax is 5%, which may, in these cases, be more beneficial, provided you're willing to deal with the more bureaucratic system.

Making under 2.000 EUR monthly:

While Romania is one if not the lowest taxed jurisdiction as % of the GDP in the EU, you'll have to pay accountants, consultancy, registration, and headquarters hosting. If you're not planning to make over 2.000 EUR monthly, then running a Romanian business might not be the best option.

Budget between 1,500 and 2,500 EUR annually for company upkeep, encompassing bank account fees, accounting services, and so forth.

Când ar trebui să deschideți o companie românească?

Planning to run an E-Commerce Business

Antreprenorii români pot opta pentru plata unei taxe de doar 1% din veniturile lor, inventarele fiind deduse din această sumă.

This is a huge opportunity, even more so when you realize Romania has access to the Danube, the Black Sea, and major trade routes in Europe, making it a major European logistics hub.

Not only that, but with the relatively high digitalization of the field, and the constant struggles of our teams to automate more and more of the relevant aspects of business handling in Romania, we believe it's a good option vs Estonia (which is positioned in a disadvantageous region), Bulgaria.

Software Development

Software developers can again benefit from the 1% income tax rate, which is significant for a high-profit margin field such as software development.

Couple it with the facilities for developers being excused from paying salary taxed, and you get a huge facility which few companies benefit from.

Convinced yet?

We hope not, because there's a lot to uncover. We believe that registering in Romania can benefit your business, and we've gathered information to make the process easier.

But if you feel you are.....

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