Eastrategies®

Country Guide · Romania 🇷🇴

Doing Business in Romania — Complete Guide 2025

Romania is one of the most dynamic economies in Central and Eastern Europe — a EU member since 2007, with a population of 19 million, a highly skilled workforce, and competitive operating costs. This guide covers everything you need to know to enter, set up, and grow your business in Romania, based on Eastrategies®'s 34+ years of on-the-ground experience.

19M
Population
16%
Corporate Tax Rate
€14,900
GDP per capita (2024)
EU
Member since 2007

Why Romania?

Why Choose Romania for Your Business Expansion?

EU Single Market Access

Full access to the EU single market with 450+ million consumers, free movement of goods, services, and capital.

Competitive Labor Costs

Average monthly wages 3–4x lower than Western Europe, with a highly educated, multilingual workforce.

Skilled IT & Engineering Talent

Romania ranks among the top countries in Europe for IT graduates and software engineers per capita.

Strategic Location

Situated at the crossroads of Central Europe, the Black Sea, and the Balkans — ideal for regional distribution.

Fast Internet Infrastructure

Romania consistently ranks in the top 10 globally for internet speed, supporting digital and tech operations.

Growing Consumer Market

Rising middle class, increasing purchasing power, and strong growth in retail, e-commerce, and services.

Company Setup

How to Set Up a Company in Romania

Romania offers several legal structures for foreign investors. The most common is the SRL (Societate cu Răspundere Limitată), equivalent to a Limited Liability Company (LLC). The registration process typically takes 5–15 business daysonce all documents are in order.

Legal Structures Available

  • SRL — Limited Liability Company (most common)
  • SA — Joint Stock Company (for larger operations)
  • Branch Office (no separate legal personality)
  • Representative Office (non-commercial activities)
  • Sole Proprietorship (PFA)

Registration Steps

  1. 1
    Choose company name & verify availability(1 day)
  2. 2
    Draft articles of association & notarize(2–3 days)
  3. 3
    Register with the Trade Register(3–5 days)
  4. 4
    Obtain tax identification number (CUI)(1–2 days)
  5. 5
    Open corporate bank account(3–7 days)
  6. 6
    Register for VAT (if applicable)(1–5 days)

Taxation

Romania's Tax System at a Glance

16%
Corporate Income Tax
Standard rate; micro-enterprise regime available at 1–3%
19%
VAT (Standard Rate)
Reduced rates of 9% and 5% apply to certain goods/services
10%
Personal Income Tax
Flat rate — one of the lowest in the EU
8%
Dividend Tax
Withholding tax on dividends distributed to individuals
~37.25%
Social Contributions
Combined employer/employee contributions (CAS + CASS)
1–3%
Micro-Enterprise Tax
For companies with revenues under €500,000/year

Expert tip: Many foreign SMEs qualify for Romania's micro-enterprise tax regime (1–3% on turnover), which can significantly reduce the effective tax burden compared to the standard 16% corporate tax. Eastrategies® helps you structure your operations to maximize tax efficiency from day one.

HR & Labor Market

Hiring in Romania — What You Need to Know

Romania has a workforce of approximately 8 million people, with strong concentrations of IT professionals, engineers, accountants, and multilingual customer service agents. Major talent hubs include Bucharest, Cluj-Napoca, Timișoara, Iași, and Brașov.

  • Average IT salary€1,500–€3,500/month gross
  • Minimum wage (2025)€700/month gross
  • Standard working hours40h/week, 8h/day
  • Annual leaveMinimum 20 days/year
  • Notice period20 working days (standard)
  • Employment contractsMust be registered in REVISAL (national system)

Top Talent Cities

Bucharest

Finance, IT, corporate services, HQ functions

2.1M
Cluj-Napoca

IT, software development, startups

320K
Timișoara

Manufacturing, automotive, IT

280K
Iași

IT outsourcing, BPO, universities

290K
Brașov

Tourism, automotive, engineering

230K

Key Sectors

Most Promising Business Sectors in Romania

IT & Software

High Growth

Romania is a top European IT outsourcing destination with 130,000+ IT professionals and world-class developers.

Automotive

High Growth

Home to Dacia (Renault Group) and Ford, Romania is a major automotive manufacturing and supply chain hub.

Agriculture & Food

Medium Growth

One of the EU's largest agricultural countries with fertile land, growing agri-food processing and export opportunities.

Renewable Energy

Very High Growth

Significant investments in wind, solar, and hydropower. Romania targets 30.5% renewable energy by 2030.

Real Estate & Construction

High Growth

Booming residential and commercial real estate market, especially in Bucharest, Cluj, and Timișoara.

BPO & Shared Services

High Growth

Major multinationals (Oracle, Vodafone, Accenture) operate large shared service centers in Romania.

Challenges & Solutions

Common Challenges — and How We Solve Them

Bureaucracy & administrative complexity
Eastrategies® manages all administrative procedures on your behalf, including notarization, registration, and compliance filings.
Language barriers
Our multilingual team (English, French, Romanian) handles all local communications, negotiations, and documentation.
Finding reliable local partners
We leverage our 34-year network of vetted local partners, lawyers, accountants, and suppliers to connect you with the right people.
Understanding local tax and labor law
Our in-house experts provide up-to-date guidance on Romanian tax law, labor regulations, and compliance requirements.
Cultural differences in business practices
We provide cultural briefings and act as your local liaison, ensuring smooth business relationships from day one.
Talent acquisition in competitive markets
Our HR team has deep networks in all major Romanian cities and can identify and hire qualified candidates quickly.

Ready to Enter the Romanian Market?

With 34+ years of experience and offices in Bucharest, Eastrategies® is your most reliable partner for business setup, HR, and growth in Romania.