Romania's micro-enterprise regime, which taxes turnover instead of profit at a rate as low as 1%, has made it one of Europe's more talked-about destinations for small companies. The rules tightened meaningfully for 2026, so it's worth understanding exactly what changed before you plan around it. Here's what it takes to start a business in Romania in 2026.
1. Which business structure fits you?
Before you register anything, it helps to know what you're actually choosing between.
- PFA (Persoana Fizica Autorizata). An authorized individual, Romania's sole proprietorship. Simple to set up, but you're personally liable for business debts, and income is taxed as personal income at a flat 10%.
- SRL (Societate cu Raspundere Limitata). A limited liability company, and the structure most foreign founders use, partly to access the micro-enterprise tax regime described below.
2. Register your business
Company formation goes through the National Trade Register Office (ONRC), which issues your registration certificate and tax identification number (CUI). As of 2026, a newly formed SRL needs at least RON 500 (about €100) in share capital, up from the previous symbolic RON 1; if turnover later exceeds RON 400,000, the company must raise capital to at least RON 5,000. Registration typically takes a few business days, and a personal visit to Romania is often required to open the mandatory local bank account, since a company without one risks being declared fiscally inactive.
3. Get your CUI
Your CUI (tax identification number) is issued by ONRC as part of company registration; day-to-day tax administration afterward falls to ANAF, Romania's national tax authority.
4. Check licenses and permits
Romania doesn't issue a single national business license. What you need depends on your industry; regulated activities carry their own permits on top of standard registration.
5. Understand Romanian taxes
The standard corporate income tax is 16% on profit. Many small companies instead qualify for the micro-enterprise regime, which taxes turnover rather than profit, simplified to a single 1% rate for 2026 (previously a two-tier 1%/3% system depending on activity and staffing). The eligibility threshold was cut from €250,000 to €100,000 in annual turnover starting January 2026, so it's worth checking current ANAF guidance before assuming you'll qualify. Companies that exceed the threshold move to standard 16% corporate tax from that quarter onward, with no option to switch back.
Dividend tax rose from 10% to 16% as of January 2026. Larger companies taxed under the standard regime also face a minimum tax floor: if 0.5% of turnover exceeds what 16% of actual profit would produce, the higher amount applies, which mainly affects high-revenue, low-margin businesses.
VAT was raised to 21% standard (from 19%) during 2025, with reduced items consolidated into an 11% rate. Registration is mandatory once turnover exceeds roughly RON 395,000 (about €80,000).
6. Stay compliant
Every Romanian company must maintain a local bank account and keep it active, since being without one risks the company being declared fiscally inactive by ANAF. VAT-registered businesses file returns on their assigned schedule, and e-invoicing requirements apply to most active companies.
Romania business costs at a glance
| Item | Cost |
|---|---|
| SRL minimum share capital (2026) | RON 500 (~€100) |
| SRL capital (if turnover exceeds RON 400,000) | RON 5,000 minimum |
| PFA personal income tax | 10% flat |
| Corporate tax, standard | 16% |
| Micro-enterprise tax (turnover under ~€100,000) | 1% |
| Dividend tax (2026) | 16% |
| VAT, standard rate | 21% |
| VAT registration threshold | ~RON 395,000 turnover |
Frequently asked questions
What's the micro-enterprise tax rate in Romania?
A single 1% rate for 2026 on turnover rather than profit, available for companies under the €100,000 annual turnover threshold that took effect in January 2026.
How much capital do I need to start an SRL in Romania?
RON 500 (about €100) as of 2026, up from the previous symbolic RON 1. Companies exceeding RON 400,000 in turnover must raise capital to at least RON 5,000.
What's the dividend tax rate in Romania?
16% as of January 2026, up from 10%.
What's the standard corporate tax rate in Romania?
16% on profit for companies that don't qualify for or exceed the micro-enterprise regime.
When do I need to register for VAT in Romania?
Once turnover exceeds roughly RON 395,000 (about €80,000). The standard VAT rate is 21%, raised from 19% during 2025.
Fees and rates above come from the National Trade Register Office (ONRC) and ANAF as of 2026, and they do change over time, especially the micro-enterprise rules, so double check before you file. None of this is legal or tax advice. Talk to a Romania-qualified accountant or lawyer about your specific situation.