8 countries covered for company formation and management
Marcaworld
Apply now
Home›Company formations›Romania
🇷🇴EU member state1% micro-company tax on turnover

SRL Formation in Romania — 1% Turnover Tax Within the EU

Romania's micro-company regime is one of the most striking models in Europe: tax is levied not on profit but on turnover, at a rate of 1%. However, in 2026 the rules of this regime changed fundamentally — the threshold dropped, a single rate remains, and the employee requirement stays in place. This page describes the regime exactly as it stands today.

Build my packageAsk on WhatsAppCalculate your price

What's easy, what's hard?

Romania's tax rate is low, but the regime comes with conditions. A company set up without understanding them starts paying 16% instead of 1% in its second year.

✓What is easy

1% tax on turnover

Under the micro-company regime, tax is calculated on turnover rather than profit, at a rate of 1%. For high-margin service companies, this produces one of the lowest effective tax burdens in Europe.

EU membership and Schengen

Romania is an EU member state and, since January 2025, a full member of the Schengen Area, including its land borders. An EU VAT number can be obtained, and the reverse-charge mechanism applies to intra-EU B2B sales.

Low formation cost

For new SRL companies, the minimum share capital is around RON 500 (about €100). Formation and annual operating costs are markedly lower than in Western Europe.

Sector restrictions removed

As of 2026, the micro-company regime no longer restricts eligibility by business activity. Every CAEN code, including software, consulting, and management services, can benefit from the regime.

Smooth payment infrastructure

Stripe, PayPal, and Wise all support Romanian companies. Thanks to EU membership, there are no additional barriers to accessing payment providers.

!What is hard

Mandatory employee requirement

The micro-company regime requires employing at least one full-time employee. For small turnovers, that employee's gross cost can completely offset the savings from the 1% rate.

What we do: Based on your expected turnover, we prepare a comparative calculation that includes employee cost, and show you in writing whether the regime is genuinely advantageous.

The €100,000 threshold and its irreversibility

The turnover threshold was lowered from €250,000 to €100,000 in 2026. If it is exceeded, the company switches to the 16% corporate tax rate starting that quarter and can never return to the micro-company regime.

What we do: We build your turnover projection together at the formation stage and warn you in advance as you approach the threshold.

Tax legislation changes frequently

2025 and 2026 brought sweeping changes back to back: VAT rose from 19% to 21%, dividend tax increased from 10% to 16%, and the micro-company regime was narrowed. This instability makes planning difficult.

What we do: We track legislative changes and notify you at the start of each period about the items that affect you.

e-Factura compliance

Electronic invoices must be transmitted through ANAF's central system. An accounting setup that isn't compliant results in administrative penalties.

What we do: We set up your accounting and invoicing to comply with e-Factura and review your first period's invoices together with you.

Language and local accounting requirement

Filings are submitted in Romanian through ANAF's systems. Your accountant in Turkey cannot handle this.

What we do: We appoint the local accountant, manage the document flow, and provide you with periodic reports in Turkish.
The most important change in 2026

Micro-company regime: 1% tax, but with four conditions

Under Romania's micro-company regime, tax is levied on turnover rather than profit. As of January 1, 2026, the regime was simplified: the former 3% rate was abolished, a single 1% rate now applies, and sector restrictions were removed entirely. In return, the turnover threshold was lowered from €250,000 to €100,000. If the four conditions below are not all met at the same time, the regime does not apply and the company moves to the 16% corporate tax rate.

Condition 1

Turnover below €100,000

Total income as of the end of the previous year must not exceed the RON equivalent of €100,000. This threshold was lowered from €250,000 in 2026.

Condition 2

At least one full-time employee

At least one employee working 8 hours a day must be hired. This is the most commonly overlooked and most costly condition of the regime.

Condition 3

Ownership structure limits

There are limits on the same person holding above a certain percentage of shares in more than one micro-company; the structure must be set up accordingly.

Condition 4

Not being in liquidation

The company must not be in liquidation, bankruptcy, or have its activity suspended.

What changed in 2026?
✓Single rate: the second 3% rate has been abolished; a single 1% rate now applies to turnover.
✓Sector restrictions lifted: all CAEN codes, including software and consulting, can now enter the regime.
✕Threshold lowered: the €250,000 limit was reduced to €100,000.
✕Dividend tax rose from 10% to 16%, increasing the cost of withdrawing profit.
Critical point: if turnover exceeds €100,000 during the year, the company switches to the 16% corporate tax rate starting the quarter the threshold is exceeded, and can never return to the micro-company regime. That's why forecasting turnover is part of the formation decision.
Tell us your expected turnover, and we'll calculate — including employee cost — whether the micro-company regime is genuinely advantageous for you, and send it in writing.Request a micro-regime calculation

Romania or another country? Comparison table

The four countries we most often compare with Romania. Click a column heading to go to that country's page.

Scroll the table sideways →
🇷🇴RomaniaSRL🇭🇺HungaryKft🇧🇬BulgariaOOD🇪🇪EstoniaOÜ🇬🇧United KingdomLtd
Tax rate
1% on turnover or 16% on profit
9% on profit
10% on profit
0% if not distributed
19–25% on profit
Any conditions?
1 employee + €100,000 threshold
None
None
Profit not distributed
Identity verification
Dividend tax
16%
Depends on the case
5%
Arises upon distribution
Depends on the case
VAT rate
21%
27%
20%
24%
20%
EU membership
Yes
Yes
Yes
Yes
No
Formation time
3–5 business days
5 business days
7–14 business days
1–5 business days
Same day
Best-fit profile
Small turnover, high margin, has employees
Sells to the EU, withdraws profit
Cost-focused EU entry
Keeps profit in the company
Fast start, global sales
Romania or Hungary?
If your turnover is below €100,000 and you're already planning to hire an employee, Romania's 1% rate comes out ahead. If turnover is higher or you don't want an employee, Hungary's 9% is more predictable.
Romania or Bulgaria?
In Bulgaria, the total burden is fixed at 10% profit tax plus 5% dividend tax, with no conditions. In Romania the rate is lower, but there is an employee requirement and threshold risk.
What if there were no employee requirement?
The micro-company regime does not apply without an employee. If you plan to operate as a one-person company, calculate Bulgaria or Hungary first — Romania's advantage often disappears.

Formation process: registration in 3–5 business days

Registration with the Trade Registry (ONRC) is fast. What determines the overall timeline is the document and translation preparation beforehand, and the bank and employee steps afterward.

StageWhat happens
Day 0–2Name reservationThe company name is checked and reserved with the Trade Registry (ONRC); the business activity (CAEN code) is determined.1–2 days
Day 2–7Document preparation and translationPassport and proof of address are gathered; a power of attorney is drawn up before a notary, apostilled, and translated into Romanian by a sworn translator.3–5 days
Day 7–10Registered office and articles of associationA registered office (sediu social) is set up in Romania, and the right to use it is documented; the articles of association and shareholder resolutions are drawn up.2–3 days
Day 10–15ONRC registrationThe Trade Registry application is filed; the company is registered, and a registration number (CUI) and registration certificate are issued.3–5 days
Day 15–20Tax registrationsThe choice of micro-company regime is declared; VAT registration and an EU VAT number (VIES) application are filed if needed.3–5 days
AfterwardBank, employee, and accountingA bank or payment institution account is opened, the full-time employee required for the micro-company regime is hired, and the accounting and e-Factura setup is established.1–3 weeks
Documents needed

Passport

For all shareholders and the director; a clear color scan is sufficient.

Proof of address

A utility bill or residence document issued within the last 3 months.

Power of attorney + apostille

Drawn up before a notary, apostilled, and translated into Romanian by a sworn translator.

Company name and CAEN code

2–3 alternative company names, along with the CAEN code describing the planned activity.

Tax and annual obligations

2025 and 2026 brought significant changes back to back in Romania: the VAT rate rose, dividend tax increased, and the micro-company regime narrowed. The table below shows the current state.

ItemRate / threshold
Micro-company tax1%Levied on turnover, not profit; all four conditions must be met together.
Micro-regime turnover threshold€100,000Lowered from €250,000 in 2026; once exceeded, there is no going back.
Corporate tax16%Applies to profit for companies outside the micro-company regime.
VAT (standard)21%Raised from 19% in August 2025; reduced-rate categories also exist.
VAT registration thresholdRON 395,000Approximately €80,000; voluntary registration is possible below the threshold.
Dividend tax16%Applies to distributions made from January 1, 2026; the previous rate was 10%.
Minimum share capitalRON 500For new SRLs; raised to RON 5,000 if turnover exceeds RON 400,000.

How is the real tax burden calculated?

The total burden under the micro-company regime is not just 1%. The 1% on turnover, the 16% dividend tax on profit distributions, and the mandatory employee's gross cost all stack on top of each other. For small turnovers, employee cost becomes the decisive factor — which is why the decision should be based on figures, not the headline rate.

Don't overlook the Turkey side

Full taxpayers resident in Turkey are required to declare profit distributions received from a foreign company. Controlled foreign company rules can also make the income taxable in Turkey under certain conditions.

Read the detailed guide →

Who is Romania right for?

A summary of what we discuss in the first half hour of a consultation.

The right choice
✓Service and consulting companies with high profit margins whose annual turnover will stay below €100,000.
✓Teams that will hire staff anyway and don't see the employee requirement as an added cost.
✓Businesses selling B2B within the EU that need an EU VAT number and the reverse-charge setup.
✓Those looking for an EU base close to Turkey, within Schengen, with low operating costs.
Look at another country
✕Businesses that will operate solo and don't want to hire an employee — the micro-company regime does not apply.
✕Businesses whose turnover will exceed €100,000 in the short term; once the threshold is exceeded, there is no returning to the regime.
✕Structures that will withdraw profit regularly and in large amounts — the 16% dividend tax reduces the overall advantage.
✕Companies that need regulatory stability and want to make long-term fixed plans.

Our clients who set up companies in Romania

This section will go live once your real customer reviews are added. The three cards below are placeholders showing what kind of review belongs here.

!Placeholder content — replace before publishing. Rating and review markup (AggregateRating / Review) may only be used for genuinely collected reviews; that's why the page currently has no rating markup.
Sample reviewDate coming soon

A review explaining how we calculated whether the micro-company regime was genuinely advantageous, and the reasoning behind the decision, goes here.

◌Customer name pendingIndustry · city
Sample reviewDate coming soon

A review describing how the formation timeline and the bank account stage matched expectations goes here.

◌Customer name pendingIndustry · city
Sample reviewDate coming soon

A review that isn't a perfect score and also mentions a point of difficulty goes here. A section made up of only five-star reviews doesn't convince readers.

◌Customer name pendingIndustry · city

Frequently asked questions about company formation in Romania

Organized into six topics: formation, the micro-company regime, banking, tax, e-commerce, and the Turkey side. Choose a topic or search directly.

30 questions