🇷🇴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.
Formation package from 2.200 €Registry fees included · see the price breakdown ↓✓EU member · Within the Schengen Area
✓Registration in 3–5 business days, remotely
✓EU VAT number and reverse charge
Company type
SRL
Micro tax
1% of turnover
Corporate tax
16%
Registration
3–5 days
Formation
Remote
Free · 5 questions · 1 minute
Is Romania the right country for you?
Answer five questions to see whether you qualify for the micro-company regime, your fit score and what will be easy or hard for you. If it is not a fit, we tell you which country is a better match.
Question 1 / 5
Where are most of your customers?
The intra-EU invoicing advantage depends on where your customers are.
No contact details needed
Your result will appear here
%Do you qualify for the micro regime?Whether you will pay 1% or 16%, based on your turnover and employees.
✓What will be easy and hard for youNot a generic list; only the advantages and watch-outs that apply to your profile.
→Next stepA quote if it fits, otherwise which country is a better match.
Romania company formation price
Know what you will pay before you start. The formation package is a one-off fee; a registered address is a legal requirement, and you add other services as you need them.
Formation package · one-off
SRL company formation
2.200 €
1-year registered addressLegal requirement1.000 €
Mail scanning and forwardingLegal requirement0 €
Starting total3.200 €
Registry fees are included in the package.
Frequently added services
Optional · add during formation or later
12-month accountingRecommendedMonthly records and declarations · local requirement2.000 €yearly
Bank account application supportRecommendedLocal bank documentation and appointment process500 €one-off
Micro-enterprise regime analysisReduced tax regime eligibility check300 €one-off
EU VAT number applicationLocal and EU VAT registration300 €one-off
From the second yearRegistered address + 12 months of accounting. The formation fee is not charged again.3.000 € / year
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 compare Romania with most often. Click a column header to go to that country’s page.
Scroll the table sideways →
🇷🇴RomaniaSRL🇭🇺HungaryKft🇧🇬BulgariaEOOD🇪🇪EstoniaOÜ🇬🇧UKLtd
Tax rate
1% of turnover or 16% of profit
9% of profit
10% of profit
0% if not distributed
19–25% of profit
Any conditions?
1 employee + €100,000 threshold
None
None
Profit not distributed
Identity verification
Dividend tax
16%
Depending on the situation
5%
Arises on distribution
Depending on the situation
VAT rate
21%
27%
20%
24%
20%
EU membership
Yes
Yes
Yes
Yes
None
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 an employee
Sells to the EU, takes profits out
Cost-focused entry to the EU
Keeps profits in the company
Quick start, global sales
Romania or Hungary?
If your turnover is below €100,000 and you will employ staff anyway, Romania’s 1% comes out ahead. If turnover is larger or you do not want employees, Hungary’s 9% is more predictable.
Romania or Bulgaria?
In Bulgaria the total burden is fixed at 10% profit tax and 5% dividend, with no conditions. Romania’s rate is lower but comes with an employee requirement and threshold risk.
What if there is no employee requirement?
The micro regime does not apply without an employee. If you will work alone, calculate Bulgaria or Hungary first; Romania’s advantage is usually lost.
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 happensDuration
Day 0–2Name reservationThe company name is checked and reserved with the Trade Registry (ONRC); the business activity (CAEN code) is determined.1–2 days1–2 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 days3–5 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 days2–3 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 days3–5 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 days3–5 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 weeks1–3 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 / thresholdNote
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.
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
Yes. There is no citizenship or residency requirement to set up a company in Romania; foreign individuals and legal entities can be the sole shareholder and director of an SRL. Additional permits or licenses may be required in certain regulated sectors.
The SRL (societate cu răspundere limitată), a limited liability company. The vast majority of foreign investors choose this structure: it can be formed with a single shareholder, liability is limited to the share capital, and it can benefit from the micro-company regime. The SA (joint-stock company) only makes sense for large-scale structures planning to go public.
When the documents are complete, registration with the Trade Registry (ONRC) is usually completed in 3–5 business days. The preceding apostille, translation, and power-of-attorney preparation takes 3–5 days, and the following bank account and employee hiring steps take another 1–3 weeks.
As of 2026, the minimum share capital for newly formed SRLs has been set at RON 500 (about €100). In addition, companies with annual turnover exceeding RON 400,000 must raise their capital to at least RON 5,000, with a deadline of the end of the following fiscal year to do so.
Most of the formation process can be handled remotely with a notarized and apostilled power of attorney. For opening a bank account, some banks may require the director to appear in person at a branch or complete a video call; this requirement generally disappears when working with electronic money institutions.
Yes. Every company must have a registered office (sediu social) in Romania; this address serves as the official address for notifications. The right to use the address must be documented. If you don't have your own office, a registered office service can be used, which also covers mail handling.
You need the passports of the shareholders and the director, proof of residential address, alternative company names, the business activity (CAEN code), and the ownership and capital structure. For remote formation, a notarized and apostilled power of attorney is added, along with sworn Romanian translations of these documents.
Voluntary liquidation takes a few months, depending on settling debts and the tax relationship. The items that most extend the process are missing periodic filings, an unclosed VAT registration, and unresolved employment contracts. That's why we also discuss the exit scenario at the formation stage.
It is a special regime under which small companies meeting certain conditions pay a low-rate tax on turnover instead of corporate tax on profit. As of January 1, 2026, a single rate applies: 1% of turnover. Entry into the regime is not automatic; the conditions must be met and the choice must be declared.
There are four core conditions: income as of the end of the previous year must not exceed the equivalent of €100,000; at least one full-time employee must be hired; the company must not be in liquidation; and the limits on ownership structure must be respected. As of 2026, restrictions based on business activity have been removed.
Three important changes took place. The turnover threshold was lowered from €250,000 to €100,000. The second rate of 3%, which applied to certain activities, was abolished, simplifying the regime to a single 1% rate. Sector restrictions based on business activity were removed entirely, meaning every CAEN code, including software and consulting, can now benefit from the regime.
Yes. To benefit from the micro-company regime, at least one full-time employee (8 hours a day) must be hired. This is the most commonly overlooked condition of the regime: the employee's gross salary and social security cost can completely offset the savings from the 1% rate for small turnovers.
The company switches to the 16% corporate tax rate starting the quarter the threshold is exceeded. More importantly, there is no way to return to the micro-company regime in later periods. That's why forecasting turnover is an integral part of the formation decision, and planning is needed for companies approaching the threshold.
The burden is not just 1%. The 1% tax on turnover, the 16% dividend tax on profit distributions, and the mandatory employee's gross cost all stack on top of each other. To see the real burden, you need to calculate these three items together with your own turnover and profit margin; the headline rate alone is misleading.
A corporate account can be opened at local banks such as Banca Transilvania, BCR, and ING; the compliance review for foreign-owned companies is detailed, and some banks require the director to appear in person at a branch. Electronic money institutions such as Wise and Revolut Business are a practical alternative for remote account opening.
Yes. Romania is among the countries supported by Stripe and PayPal; thanks to EU membership, access to payment infrastructure is seamless. Each provider conducts its own compliance review; having a consistent website, product description, and refund policy determines whether the application is accepted.
The rejection is recorded against you and makes a second application to the same institution harder. That's why we prepare a file describing your activity, customer evidence, and expected transaction volume before applying, and choose the institution based on your profile; if rejected, we direct you to an alternative institution.
For companies that do not benefit from the micro-company regime, the standard corporate tax rate is 16%, calculated on profit. Companies that meet the micro-regime conditions instead pay 1% of turnover rather than profit.
The standard VAT rate was raised from 19% to 21% in August 2025; a reduced rate applies to certain categories of goods and services. VAT registration becomes mandatory once annual turnover exceeds the RON 395,000 (about €80,000) threshold; voluntary registration below the threshold is also possible.
For profit distributions made from January 1, 2026, dividend tax has been raised from 10% to 16%. The rate applies based on the distribution date, regardless of which year the profit relates to. This change directly affects the overall advantage of the micro-company regime.
Yes. Since Romania is an EU member, an EU VAT number (VIES registration) can be obtained for use in intra-community transactions. The reverse-charge mechanism applies to service sales to businesses within the EU, in which case VAT is not charged on the invoice.
e-Factura is Romania's mandatory electronic invoicing system; it requires invoices to be transmitted through ANAF's central system. Its scope has been expanded gradually, and non-compliance results in administrative penalties. Your accounting setup needs to be configured to work with this system.
No. Filings are submitted in Romanian through ANAF's electronic systems and e-Factura; working with an accountant who keeps records under Romanian law is effectively mandatory. You send the documents, the local accountant handles the bookkeeping and filings, and we provide coordination and reporting in Turkish.
Yes. A Romanian company can purchase products from Turkey and import them into Romania or another EU country. Before importing, the product's customs code, origin, technical compliance, labeling requirements, and tax treatment should be checked. An EORI number is required for EU customs procedures.
Yes. A Romanian company can sell through its own store, Amazon, Etsy, and eBay. For sales to consumers within the EU, a single declaration is possible through the OSS system; if products are held in a warehouse in another EU country, additional VAT registration may be required there.
A registered office is mandatory, but a physical office is not; many companies work with a registered office service. However, the employee required for the micro-company regime requires a genuine employment relationship, which in some cases may require setting up a physical work arrangement.
The company's owner or director can live in Turkey and manage operations remotely. However, if the company's actual place of management, its employees, and its office are in Turkey, this can create a risk of the company also being treated as a taxpayer in Turkey. This should be assessed before setting up the structure.
A full taxpayer resident in Turkey who receives a profit distribution from a foreign company is required to declare it in Turkey. In addition, controlled foreign company rules can result in the income being taxed in Turkey under certain conditions. The double taxation treaty between Turkey and Romania is taken into account in this assessment.
Being a company owner does not automatically grant residency rights. Foreign investors who want to live in Romania need to apply separately under the appropriate residence category; the application evaluates criteria such as the company's actual activity, investment amount, and employment.
Romania became a full member of the Schengen Area, including its land borders, as of January 2025. This means easier travel within Europe for company owners and employees; however, Schengen membership alone does not grant residency or work rights.
Romania or another country — let's decide together
Tell us about your business, where your customers are, and your expected turnover; we'll tell you for free which country and setup is right for you. It's not a sales pitch — it's an elimination conversation.
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