Romania Entity Selector Quiz 2026

Yes. There are no residency or citizenship requirements for SRL shareholders or administrators. The entire process can be completed remotely via attorney power of attorney (împuternicire avocațială) under a legal assistance contract — no notarised power of attorney is needed. Your attorney handles Trade Registry filing, ANAF registration, and bank account opening on your behalf. Setup takes 1–2 weeks and starts at €500 with Mihai Attorneys.

No, unless they already have a valid Romanian residence permit. Under OUG 44/2008, only Romanian citizens, EU/EEA citizens, and non-EU nationals with legal residence in Romania can register a PFA. If you don't live in Romania, an SRL is your only practical option — and it offers better liability protection and tax treatment (1% micro) anyway.

The SRL pays 1% tax on revenue (not profit). When the owner distributes dividends, an additional 16% dividend tax applies on the distributed amount, plus CASS 10% if total annual income exceeds certain thresholds (6/12/24 minimum gross wages). For revenue of €50,000 with 60% distributed as dividends, the total effective tax rate is approximately 17–19%, which remains among the lowest in the EU.

CAS (pension, 25%): Optional if net income < 12 minimum wages (RON 48,600/year). Fixed on 12 wages if income is 12–24 wages. Fixed on 24 wages if income > 24 wages (RON 97,200). CASS (health, 10%): Minimum on 6 wages (RON 24,300/year = RON 2,430 tax). Actual 10% if income is 6–72 wages. Capped at 72 wages (RON 291,600 = RON 29,160 max). CASS is deductible from the PFA income tax base since 2024.

Only in specific cases: raising venture capital or private equity (S.A. allows issuing tradable shares), planning an IPO on the Bucharest Stock Exchange (BVB), or operating in regulated sectors that legally require an S.A. (banking, insurance, investment funds). For all other situations — including startups, freelancing, e-commerce, IT services, and consulting — the SRL is simpler, cheaper, and offers the 1% micro tax advantage that the S.A. cannot access.

Yes. Since October 2024, Romanian law explicitly allows PFAs, Individual Enterprises (II), and Family Enterprises (IF) to convert into SRLs through a formal procedure at the Trade Registry. This is useful if your business outgrows the PFA structure (e.g., you need more than 3 employees or want liability protection). Contact us for assistance with the conversion.

For SRLs: yes, mandatory within 60 business days of incorporation (Law 239/2025). Fines for non-compliance: RON 3,000–10,000. For PFAs and S.A.s: strongly recommended but the 60-day deadline applies specifically to SRLs. We assist with bank account opening at major Romanian banks as part of our incorporation packages.

From 1 January 2026: new SRLs require minimum RON 500 (~€100) share capital at incorporation. If annual turnover exceeds RON 400,000 (~€80,000), the share capital must be increased to RON 5,000 (~€1,000) by the end of the following financial year. Existing SRLs with the old RON 200 capital are unaffected unless they exceed the turnover threshold. See our full guide on the capital increase.