Company Formation & Tax in Romania
A large, EU single-market base with a distinctive small-company regime — the SRL, the micro-enterprise turnover tax, and a recently reformed VAT.
Romania has been an EU member since 2007 and offers full access to the single market, a sizeable domestic economy and, for smaller companies, one of the bloc's most distinctive tax regimes. The framework changed meaningfully in 2025–2026, so it is worth modelling the current rules rather than older figures.
Choosing an entity
The standard vehicle is the SRL (societate cu răspundere limitată, private limited company). From 2026 a newly formed SRL must have at least RON 500 (around €100) in share capital, replacing the former symbolic RON 1; an SRL whose turnover exceeds RON 400,000 must raise capital to at least RON 5,000. Registration is via the ONRC (National Trade Register Office), which issues the registration certificate and the company's tax identification number (CUI); tax matters are administered by ANAF. Every company must maintain a Romanian bank account, or it risks being declared fiscally inactive.
Corporate tax, micro-enterprise regime and VAT
| Tax | Rate |
|---|---|
| Corporate income tax (standard) | 16% |
| Micro-enterprise tax (on turnover) | 1% or 3% |
| VAT (standard) | 21% |
| VAT (reduced) | 11% |
| Dividend tax | 16% |
The standard corporate income tax is 16% on profits. Many small companies instead qualify for the micro-enterprise regime, which taxes turnover rather than profit at 1% or 3% — but its eligibility cap has been progressively lowered in recent reforms, so current qualification should be checked before relying on it. VAT was raised to a 21% standard rate (from 19%) in 2025, with reduced items consolidated into an 11% rate; mandatory registration applies once turnover exceeds roughly RON 395,000 (about €78,000). The dividend tax on distributions rose to 16% from 1 January 2026. Romania also operates mandatory e-invoicing (RO e-Factura).
Frequently asked questions
What is the corporate tax rate in Romania?
16% on profits under the standard regime; many small companies instead pay 1% or 3% on turnover under the micro-enterprise regime, subject to eligibility caps.
How much capital do I need for a Romanian SRL?
From 2026, at least RON 500 (about €100) for a new SRL; companies above RON 400,000 turnover must hold at least RON 5,000.
What is the Romanian VAT rate?
21% standard (raised from 19% in 2025), with an 11% reduced rate; registration applies above roughly RON 395,000 turnover.
Official sources
This guide is general information prepared by ARM Management and is current as at June 2026. It is not legal or tax advice; rules, rates and especially the micro-enterprise thresholds change frequently. Confirm against ANAF, or with an advisor, before acting.
Set up in Romania with confidence.
ARM Management advises international companies on Romanian entity formation, the micro-enterprise regime and tax compliance, alongside wider CEE structuring. Begin with a confidential conversation.