Welcome to the Legispedia, the Romanian company encyclopedia.

Through our pages and information, we hope to discuss the benefits and downsides of Romania as a jurisdiction, and choose if this is for you, or not.

When not to open a company in Romania?

A Romanian company is not for everyone, so before we delve into the benefits, let's address the elephant in the room: what's it like doing business in Romania? won't do for your business.

Getting a visa or residency permit for immigration into Europe or to travel

Opening a company without planning to run it, with the sole purpose of getting a VISA is prohibited by the law.

However, if you want to immigrate to start a business, or need a temporary visa, We have a guide here..

Planning to earn over 500,000 EUR yearly in the short term

The 1% income micro-company tax only applies to companies making under 500,000 EUR yearly, and we don't recommend setting up in Romania without first reading about the benefits of Bulgaria, where the profit tax is 10% and dividend tax is 5%, which may, in these cases, be more beneficial, provided you're willing to navigate the more bureaucratic system.

Making under 2.000 EUR monthly:

While Romania is one of the lowest-taxed jurisdictions as a percentage of GDP in the EU, you will still have to pay for accounting, consultancy, registration, and headquarters hosting services. If you're not planning to make over 2,000 EUR monthly, then running a business in Romania might not be the best option.

You can expect to pay around 1,500 to 2,500 euros per year for the maintenance of your company, including bank accounts, paying an accountant, etc.

When should you open a Romanian company?

Planning to run an E-Commerce Business

Romanian entrepreneurs can opt to pay only 1% income tax on their revenues, with inventories being deducted from this sum.

This is a huge opportunity, especially when you consider that Romania has access to the Danube, the Black Sea, and major trade routes in Europe, making it a major European logistics hub.

Not only that, but with the relatively high digitalization of the field, and the constant efforts of our teams to automate more and more of the relevant aspects of business management in Romania, we believe it's a good option compared to Estonia (which is located in a disadvantageous region), and Bulgaria.

Software Development

Software developers can once again take advantage of the 1% income tax rate, which is significant for a high-profit margin field such as software development.

Couple it with the facilities for developers being excused from paying salary taxed, and you get a huge facility which few companies benefit from.

Convinced yet?

We hope not, as there's a lot to learn about. We believe registering in Romania can indeed benefit your business, and have gathered information to assist with that.

But if you feel you are...

You can always simulate filling out the forms for registering your business, before paying anything!