How to register a company in Romania?

In order to register a company in Romania, you need to choose the type of company form you want to incorporate, to prepare the necessary documents and to submit the application to the Romanian Trade Registry. Most common forms of companies in Romania are the Limited Liability Company (LLC), Joint Stock Company (SA) and sole trader (PFA).

How long does it take to open a company in Romania?

The company formation in Romania process will take 2 working days, since the date the incorporation application is submitted to the Romanian Trade Registry.

What is the main advantage to open a company in Romania?

One of the lowest taxation in EU: 1% turnover tax for the companies whose turnover does not exceed EUR 60,000 and have at least one employee or 3% turnover tax if the companies has a revenue exceeding EUR 60,000 or the companies is engaged in some specific activities.

Can I start a company in Romania as a foreigner?

Foreign citizens and legal persons can quickly and easily incorporate their own company in Romania, without any restrictions. There is no need for a Romanian shareholder and director

Best Country to Start a Business as a Foreigner EU

Choosing the right country to start, open, or expand a business is a critical decision that can significantly impact your venture's success. For entrepreneurs seeking a combination of affordability, strategic location, and a business-friendly environment, Romania is emerging as a top contender as the best country to start a business as a foreigner and definitely best country for business in European Union (EU), including its benefits for business owners, easiest and cheapest LLC registration proceedings and the advantages of registering a Limited Liability Company (LLC) in the country

best country to start a business as a foreigner cheapest llc registration doing open

Romania is increasingly becoming a top choice for entrepreneurs and businesses looking to expand into Europe. With its competitive costs, skilled workforce, and favorable business environment, Romania offers numerous advantages that make it an ideal destination for business ventures, being the best country to open a business. In this comprehensive guide, we will explore why Romania stands out as the best country to start a business as a foreigner and for doing business and startup, highlighting its key strengths and opportunities for growth.

Romania - Best Country to Start a Business as a Foreigner: An Emerging Business Hub in Europe for Cost-Effective Environment

Strategic Location and Economic Growth Makes Romania Best Country for Doing Business

Romania is strategically located in Eastern Europe, offering easy access to both Western Europe and emerging markets in Eastern Europe and Asia. This makes it an ideal location for businesses looking to tap into diverse markets. Romania is a member of the European Union (EU) and since 2024 in Schengen, providing companies with access to the EU's single market of over 500 million consumers without any custom limitations and restrictions that makes one best country to open a business.

The country's economy has been growing steadily over the past decade, with GDP growth rates often surpassing the EU average. This economic stability, coupled with low inflation rates, creates a favorable environment for business growth and investment, becoming the best EU country to start a business as a foreigner.

Cost-Effective Business Operations Makes Romania the Best Country for Business also for the Cheapest LLC Registration

One of the main reasons Romania is considered one of the best countries to start a business is the low cost of operations. Compared to Western Europe, Romania offers significantly lower costs for labor, real estate, and utilities and even for incorporation. The average salary in Romania is lower than in many EU countries, making it an attractive destination for businesses looking to reduce operational costs without compromising on quality.

Starting a business in Romania is becoming increasingly popular among entrepreneurs, thanks to its affordable company registration costs, strategic location in Europe, and business-friendly environment. If you’re looking to establish very cheap a Limited Liability Company (LLC) or any other type of business in Romania, you’ll find the process to be cost-effective and straightforward, Romania being the place with the cheapest LLC registration and company formation.

Affordable Real Estate

Romania offers affordable real estate options for businesses, whether you're looking to rent office space or purchase industrial land. Major cities like Bucharest, Cluj-Napoca, and Timișoara offer modern office spaces at a fraction of the cost found in Western Europe. This affordability allows businesses to allocate more resources to growth and expansion rather than overhead costs.

Skilled Workforce Makes Romania the Best Country for Business

Romania boasts a highly educated and skilled workforce, particularly in fields such as IT, engineering, and finance. The country has a strong tradition in science and technology, producing a large number of graduates with expertise in these areas. English is widely spoken, especially among the younger population, making it easier for international businesses to operate and communicate effectively and thus Romania the best country to start a business as a foreigner.

Educated and Multilingual Talent Pool. Romania is home to a highly educated and skilled workforce, particularly in fields such as information technology (IT), engineering, finance, and healthcare. The country produces a large number of graduates each year, many of whom possess advanced technical skills and are proficient in multiple languages, including English, French, German, and Spanish. This multilingual talent pool is a significant advantage for businesses operating in international markets.

Strong IT and Tech Sector. Romania has earned a reputation as a leading tech hub in Eastern Europe, with a thriving IT sector that continues to attract global companies. The country's IT professionals are known for their technical expertise, creativity, and problem-solving abilities. Cities like Bucharest, Cluj-Napoca, and Iași are becoming major tech centers, hosting a growing number of startups, software development companies, and R&D centers. For businesses in the tech industry, Romania offers an ideal environment for innovation and growth.

Labor Market Flexibility. Romania's labor market is characterized by its flexibility, allowing businesses to easily hire and manage employees. The country's labor laws are aligned with EU standards, providing a balance between employee protection and employer flexibility. This adaptability is particularly important for businesses that need to scale their operations quickly or adjust their workforce in response to market changes.

Infrastructure and Connectivity. The Best Country to Open a Business

Romania boasts well-developed infrastructure, including extensive road networks, modern airports, major ports along the Black Sea and the country with the highest internet speed in EU and one of the fastest worldwide. The country is continuously investing in improving its transportation and logistics infrastructure, which facilitates the efficient movement of goods and services. Romania's connectivity is further enhanced by its digital infrastructure, with high-speed internet widely available, making it an attractive destination for tech-driven businesses as the best country to open a business.

Ease of Doing Business in Romania. Why Romania is the Best Country to Open a Business

Simplified Company Formation Process. The Fastest, Easiest and Cheapest LLC Registration

Romania has made significant strides in improving its business environment, making it easier for entrepreneurs to start and operate businesses. The process of registering a business in Romania is straightforward and can often be completed within a few days. The country has streamlined its regulatory procedures, reducing the time and paperwork required to set up a business and thus the costs, becoming the country with one of the cheapest company registration proposals and the easiest countries to open a business as a foreigner.

Very Favorable Tax Policies Makes Romania the Best Country to Start a Business as a Foreigner

Romania offers one of the most competitive tax regimes in the European Union. The micro company turnover tax (1%/3%) and the corporate tax rate (16%) are one of the lowest in the EU, making it attractive for businesses of all sizes and one the best EU country to start a business as a foreigner. For small and medium-sized enterprises (SMEs), Romania offers micro-enterprise tax regimes that are even more favorable, depending on the company's turnover. This tax structure makes Romania an excellent choice for startups and entrepreneurs looking to maximize their profitability:

1% turnover tax to be paid by Romanian company whose turnover does not exceed EUR 60,000 and have at least one employee contracted within a 30 days term since the company incorporation in Romania;
3% turnover tax to be paid by: a) the company with revenues exceeding EUR 60,000 or b) the company engaged in activities corresponding to the following NACE codes: 5821 - Computer game editing activities, 5829 – Editing activities of other software products, 6201 - Custom software development (client-oriented software), 6209 - Other information technology service activities, 5510 - Hotels and other accommodation facilities, 5520 - Accommodation facilities for holidays and short stays, 5530 - Caravan parks, campgrounds, and camps, 5590 - Other accommodation services, 5610 - Restaurants, 5621 - Event catering activities, 5629 - Other food service activities not included in other categories, 5630 - Bars and other beverage serving activities, 6910 - Legal activities – only for legal entities not fiscally transparent, established by lawyers according to the law, 8621 - General medical practice, 8622 - Specialized medical practice, 8623 - Dental practice, 8690 - Other human health activities. In order to benefit of this rate the company must contract at least one employee, within a 30 days term since the company setting up in Romania.
16% corporate tax for companies whose turnover exceeds EUR 500,000 in a fiscal year or which don't have at least one employee.

You can find out more about the taxation of the company in Romania in our blog article Important tax changes for Romanian companies starting with 2024 or related to the turnover tax / corporate tax - What taxes your Romanian company pays? Chapter I and the dividend tax - What taxes your Romanian company pays? Chapter II.

Additionally, the government provides various tax incentives for companies engaged in research and development (R&D), technology, and innovation, which made Romania to become one of the best countries for startup.

Business-Friendly Legal Framework. Best Country for Doing Business

Romania's legal system is aligned with EU standards, providing strong protection for property rights and intellectual property. The country's legal framework is transparent, and businesses can operate with confidence, knowing that their investments are protected by law, becoming the best country for doing business.

Advantages of Registering a Limited Liability Company LLC in Romania. The Best Country to Start a Business as a Foreigner

Affordable LLC Registration in Romania

One of the most significant advantages of starting a business in Romania is the affordability of registering a Limited Liability Company (LLC). The cost of setting up an LLC in Romania is among the lowest in Europe, making it an attractive option for entrepreneurs and investors for the cheapest LLC registration.

Minimal Share Capital Requirements

The minimum share capital required to establish an LLC in Romania is just 1 RON (approximately 0.20 EUR), which is nominal compared to many other countries. This low capital requirement makes it easier for entrepreneurs to start a business without needing substantial upfront investment.

Being no need to subscribe a minimum share capital at the SRL in Romania incorporation moment represents another point which makes Romania the best country to start a business as a foreigner. You can choose to subscribe to the share capital even after the SRL is officially registered in Romania. However, you'll have to pay 30% of the subscribed capital within 3 months from the SRL registration date, but before starting any business activities.

Flexibility for the Limited Liability Incorporated in Romania

An LLC in Romania offers flexibility in management and ownership structure. The liability of shareholders is limited to their contribution to the company's share capital, protecting personal assets from business liabilities. This structure provides a secure and flexible way to manage and grow a business, making Romania the best country to start a business as a foreigner

The Romanian companies offer flexibility in management and operations, making them suitable for small to medium-sized enterprises, with up to 50 shareholders individuals and legal entities. An SRL can be managed by one or more administrators (individual managers) or a board of directors.

Also, there is no need for two shareholders in your company in Romania and no requirement for a Romanian shareholder or director in the Romanian company, being the best EU country to start a business as a foreigner.

Quick Company Incorporation Proceedings in Romania

Rapid setting up proceedings for the company incorporation in Romania. The Romanian company can be done swiftly, in just two working days.

Exclusively Remotely Company Incorporation Proceedings

No need for notary to handle your company incorporation in Romania. This means that you won't have to go through the hassle of finding a notary and paying their fees. No need for the presence of the shareholder or director in Romania for the business setting up process, Romania being also for this plus the best country for business.

Access to EU Funding and Incentives

As a member of the European Union, Romania offers businesses access to various EU funding programs and incentives, particularly in areas such as innovation, technology, and regional development. These grants and incentives can provide significant financial support for businesses looking to expand their operations or invest in new projects.

No Residency Requirements for Foreign Owners Shareholders and Directors

Romania does not impose residency requirements on the owners or directors of an LLC, making it easy for foreign entrepreneurs to establish and manage a business in the country. This flexibility is particularly beneficial for international investors who want to operate in Romania without relocating, being the best country to start a business as a foreigner.

Romania's Growing Business Ecosystem Makes the Best Country for Business

Thriving Startup Scene. Business Hubs for Several Industries. Romania's startup ecosystem has been growing rapidly, particularly in the technology sector. Cities like Bucharest, Cluj-Napoca, and Timișoara are becoming tech hubs, attracting entrepreneurs and investors from around the world. The country's low costs, coupled with a strong talent pool, have led to the emergence of successful startups and innovation-driven companies, Romania becoming one of the best countries for startup.

Supportive Government Policies. The Romanian government actively supports entrepreneurship through various initiatives, including grants, subsidies, and tax incentives for startups and SMEs. These programs aim to foster innovation, create jobs, and boost economic growth. Romania's commitment to developing its entrepreneurial ecosystem makes it an attractive destination for new businesses as the best country to open a business.

Access to European Markets. Starting a business in Romania provides entrepreneurs with access to the entire European Union market. This access, combined with Romania's low costs and favorable business environment, makes it the best country for doing business, as an ideal base for companies looking to expand across Europe.

Quality of Life and Living Costs Make Romania the Best Country to Start a Business as a Foreigner

Affordable Living Costs. Romania offers a high quality of life at a fraction of the cost compared to Western Europe. The cost of living, including housing, food, and transportation, is significantly lower, making it the best country to start a business as a foreigner and an attractive destination for entrepreneurs and their families. This affordability allows business owners to enjoy a comfortable lifestyle while reinvesting more of their profits into their business.

Rich Cultural Heritage and Natural Beauty. Romania is known for its rich cultural heritage, stunning landscapes, and vibrant cities. From the medieval castles of Transylvania to the beautiful Carpathian Mountains and the Black Sea coast, Romania offers a diverse range of experiences. The country's cultural diversity and historical landmarks make it an appealing place to live and work.

Safety and Stability. Romania is considered one of the safest countries in Europe, with low crime rates and a stable political environment, being the best country to start a business as a foreigner. This safety and stability contribute to a favorable business climate, where entrepreneurs can focus on growing their businesses without concerns about security.

Frequently Asked Questions: Why Romania is the Best Country to Start a Business as a Foreigner

1. Why is Romania considered the best country for foreigners to start a business?

Romania offers a combination of low startup costs, a business-friendly environment, and strategic access to the European market. With its competitive tax rates, affordable workforce, and simplified business registration process, Romania is an attractive destination for foreign entrepreneurs for doing business.

2. What are the benefits of starting a business in Romania as a foreigner?

Foreigners can enjoy numerous benefits when starting a business in Romania, including 100% foreign ownership, low corporate tax rates, access to a skilled and multilingual workforce, and the ability to operate within the European Union’s single market. Romania also provides various tax incentives for startups and businesses in certain industries.

3. How easy is it for a foreigner to register a business in Romania?

Registering a business in Romania is straightforward, with most steps completed within a few days. The process involves choosing a company name, preparing the Articles of Association, depositing the share capital, and submitting the necessary documents to the Trade Register. Romania's minimal bureaucracy makes it easier for foreigners to set up their businesses.

4. What is the cost of registering a business in Romania?

Romania is known for its affordable business registration costs. The overall cost of registering a Limited Liability Company (LLC) with Romanian Advocacy lawyers ranges from EUR 550 depending on the supplementary services provided (VAT registration, EORI custom registration, opening the bank accounts), making it one of the cheapest countries in Europe to start a business.

5. Do foreigners need to be residents of Romania to start a business?

No, foreigners do not need to be residents of Romania to start a business. They can fully own and manage a company in Romania without residing in the country. However, every business must have a registered office address within Romania.

6. What are the tax advantages of starting a business in Romania?

Romania offers one of the lowest corporate tax rates in the EU at 16%, with additional tax incentives for startups, small businesses, and companies in the tech and innovation sectors. The country also provides favorable conditions for businesses engaged in research and development (R&D).

7. Is Romania a safe and stable country for foreign business owners?

Yes, Romania is considered a safe and stable country for foreign business owners. The country has a low crime rate, a stable political environment, and a legal system aligned with European Union standards, providing a secure environment for business operations.

8. What industries are thriving in Romania for foreign entrepreneurs?

Romania has a thriving IT and tech sector, making it an ideal destination for businesses in these industries. Other growing industries include manufacturing, agriculture, renewable energy, and logistics, offering various opportunities for foreign entrepreneurs.

9. How does Romania’s location benefit foreign businesses?

Romania’s strategic location in Eastern Europe serves as a gateway to both Western European markets and emerging economies in Eastern Europe, Asia, and the Middle East. This geographic advantage, coupled with its EU membership, allows businesses to access a vast consumer base and establish strong regional connections.

10. Are there any government incentives for foreigners starting a business in Romania?

Yes, the Romanian government offers various incentives for foreign entrepreneurs, including grants, subsidies, and tax breaks for businesses involved in innovation, technology, and regional development. These incentives are designed to encourage investment and foster business growth in the country.

Conclusion: Why Romania is the Best Country to Start a Business as a Foreigner?

Romania stands out as one of the best countries to start a business as a foreigner, and grow it, offering a unique combination of low costs, strategic location, and a supportive business environment. The affordability of LLC registration, coupled with favorable tax policies and access to the European market, makes Romania an attractive destination for entrepreneurs from around the world.

Whether you're looking to launch a startup, expand an existing business, or take advantage of Romania's growing economy, the country offers a wealth of opportunities for business success. With its skilled workforce, business-friendly legal framework, and high quality of life, Romania is poised to become a leading business hub in Europe.

If you're considering expanding your business or starting a new venture, Romania should be at the top of your list. The opportunities for success in this dynamic and rapidly growing market are abundant, making Romania the best country for business in today's global economy.

For any question regarding the best country to start a business as a foreigner, feel free to reach out to us at tudor@roadvocacy.ro or use the contact form on our website at www.roadvocacy.ro. Your business, our mission

Best Country to Start a Business as a Foreigner: Why Romania Stands Out