How to Create a Micro-Enterprise in Romania (SRL): Step-by-Step Guide

Are you a freelancer, consultant, or digital entrepreneur looking for the most tax-efficient company structure in Europe? The Romanian SRL under the micro-enterprise regime is probably your best bet. With only 1% tax on turnover and 8% on dividends, your total tax burden sits around 11%. Hard to beat that anywhere in the EU.

In this guide, we cover everything: why Romania, how to set up your SRL, what it costs, and how to optimize your taxes. For a broader overview of Romanian taxation, check our complete guide to Romania's tax system.

1. Why Romania for Your Business?

Romania ticks all the boxes for a European entrepreneur. Here are the main reasons:

• Ultra-competitive taxation: 1% tax on turnover, 8% on dividends
• EU member: freedom of movement, intra-community VAT number, European legal protection
• Very low cost of living: Bucharest is 50-60% cheaper than Paris
• Fast company setup: 3 to 5 days, for EUR 500 to 1,500
• Among the fastest internet in the world: 200 Mbps average, fiber at EUR 8-12/month
• Dynamic tech ecosystem: Bucharest, Cluj-Napoca, and Timisoara are recognized tech hubs

Compare Romania with other popular destinations in our best countries for freelancers ranking or check the Romania country page.

2. How to Create an SRL in Romania: The Steps

Creating an SRL (Societate cu Răspundere Limitată, the equivalent of a Limited Liability Company) is straightforward. Here is the step-by-step process.

Step 1: Choose a company name

You need to check name availability with the Registrul Comertului (Trade Registry). This can be done online on the ONRC website. Reserve 3 names in order of preference. The reservation costs approximately RON 50 (EUR 10).

Step 2: Prepare the documents

Here is the list of required documents:

• Passport or ID card (certified copy)
• Registered office agreement: lease or domiciliation certificate (a virtual office works, expect EUR 50-100/month)
• Articles of association: your accountant or lawyer drafts these
• Sworn statement: certifying that you have no criminal record for economic offenses
• Signature specimen: before a notary

Step 3: Deposit the share capital

The minimum share capital is RON 200 (approximately EUR 40). Yes, you read that right. You deposit this amount into a temporary bank account opened in the name of the company being formed.

Step 4: Registration at the Trade Registry

Submit the complete file to the Oficiul Registrului Comertului in the county where your registered office is located. Processing takes 3 to 5 business days. You receive your CUI (unique identification code, the equivalent of a company registration number) and your registry extract.

Step 5: Opt for the micro regime

During registration, you tick the micro-enterprise option. If you forget, you can do it within 30 days of incorporation by filing with ANAF (the Romanian tax authority).

3. The 1% Micro-Enterprise Regime: How It Works

The micro regime is Romania's biggest advantage. Instead of paying 16% corporate tax on profits, you pay tax on turnover. The difference is huge, especially for service businesses with high margins.

Conditions for the 1% rate

• Annual turnover below EUR 500,000
• At least 1 employee (you can be the employee of your own SRL)
• Not operating in an excluded sector: banking, insurance, gambling, regulated tax and legal advisory
• Share capital not held more than 25% by the state

Without an employee, the rate goes up to 3% of turnover. But in practice, you hire yourself at minimum wage. That is the standard strategy.

Concrete example: freelance developer at EUR 100,000 turnover

Let's take a freelance developer billing EUR 100,000 per year through their SRL:

• Micro tax (1%): EUR 1,000
• Annual minimum gross salary: approximately RON 4,050/month = ~RON 48,600/year (~EUR 9,800)
• Net salary received: approximately RON 2,650/month (~EUR 5,400/year)
• Social contributions (CAS 25% + CASS 10% + income tax 10%): ~EUR 4,400/year
• Employer contribution (CAM 2.25%): ~EUR 220/year
• Distributable profit as dividends: ~EUR 84,500
• Dividend tax (8%): EUR 6,760
• CASS on dividends (10%, capped): ~EUR 1,800

Note that since 2024, ANAF applies CASS (10%) on dividends, capped at 10% of 24 national minimum gross salaries. This is an important change to factor in.

4. Social Contributions: The Real Cost

This is the part many guides skip. Social contributions in Romania are not trivial on salaries. But the trick is to pay yourself minimum wage and supplement with dividends.

Contributions on salary

• CAS (pension, employee side): 25%
• CASS (healthcare, employee side): 10%
• Income tax (employee side): 10%
• CAM (work insurance, employer side): 2.25%

On a gross salary of RON 4,050, the employee receives approximately RON 2,220 net (about EUR 450). The total employer cost is approximately RON 4,140 (about EUR 835).

Contributions on dividends

Since 2024, dividends are subject to:

• Dividend tax: 8%
• CASS (healthcare): 10%, but capped at 10% x 24 x national minimum gross salary

For 2026, the CASS cap on dividends is approximately RON 24,000 (~EUR 4,850). Beyond that dividend amount, you pay no additional CASS.

The classic optimization strategy

Minimum salary + dividends. This is what 90% of expat freelancers in Romania do. The minimum salary gives you access to social security (healthcare, pension). And dividends are taxed much less heavily than salaries.

For a deeper understanding of social contribution impacts, check our complete guide on expatriation and taxes.

5. VAT: Exemption Threshold and Obligations

Standard VAT in Romania is 19%. But good news: micro-enterprises can be exempt.

VAT exemption

If your annual turnover is below RON 300,000 (approximately EUR 60,000), you can opt for VAT exemption. In practice, this means:

• You do not charge VAT to your clients
• You do not reclaim VAT on your purchases
• Your accounting is simplified

For a freelancer selling services with few expenses, this is usually the best option.

When to register for VAT?

You must register for VAT if:

• Your turnover exceeds RON 300,000 over any consecutive 12-month period
• You invoice Romanian VAT-registered clients (in some cases, voluntary registration may be beneficial)
• You sell physical goods within the EU (OSS regime thresholds)

VAT and foreign clients

If you invoice B2B services to EU clients, VAT is reverse-charged by the client. You issue an invoice without VAT, noting "reverse charge." You do not need to be VAT-registered for this, but you do need an intra-community VAT number. Your accountant can register you on VIES (the EU VAT verification system).

6. Banking and Accounting

Opening a bank account

You will need a professional Romanian bank account. The main options:

• Traditional banks: Banca Transilvania, ING Romania, Raiffeisen Bank. Account opening in 1-3 days with physical presence. Monthly fees of EUR 5-15.
• Online banks: Revolut Business works well in Romania and can serve as a secondary account. However, tax authorities prefer to see a local Romanian bank account.

Documents needed for opening: Trade Registry extract, CUI, articles of association, manager's ID.

Accounting: mandatory and affordable

Every SRL in Romania must have a licensed accountant. Micro-enterprises benefit from simplified accounting (single-entry bookkeeping). Typical fees:

• Micro-enterprise without VAT: EUR 100-200/month
• Micro-enterprise with VAT: EUR 150-300/month
• Firm specializing in expats (English/French-speaking): EUR 200-400/month

Your accountant handles quarterly ANAF filings, payroll calculations, and annual financial statement preparation.

Filing obligations

• Quarterly micro declaration (Form 100): due by the 25th of the month following the quarter
• Monthly payroll declaration (Form 112)
• Annual financial statements: due by May 31
• EU recapitulative statement (if invoicing intra-community clients)

7. Pros and Cons of a Romanian SRL

Pros

• 1% micro tax on turnover. The lowest rate in Europe.
• 8% dividend tax. Combined with the 1%, total burden stays under 15%.
• Fast and affordable setup (3-5 days, EUR 500-1,500).
• Minimal share capital: RON 200 (EUR 40).
• EU member: intra-community VAT, simplified B2B invoicing, legal recognition across Europe.
• Low cost of living: with EUR 1,000-1,500/month, you live very well in Bucharest.
• No need to reside in Romania to be the SRL manager (but you must establish tax residency somewhere).

Cons

• High social contributions on salaries (about 45% of gross between employee and employer portions).
• CASS on dividends since 2024 (10%, capped but not negligible).
• Frequent legislative changes. The Romanian government modifies tax rules almost every year. In 2023, the micro threshold dropped from EUR 1,000,000 to EUR 500,000.
• Sometimes slow bureaucracy. Some administrative processes require patience.
• Language barrier: most official documents are in Romanian only.
• Mandatory accountant (though fees are reasonable).

To compare with other destinations, check our guide on tax-free countries or our article on Dubai taxation.

FAQ

Do I need to live in Romania to create an SRL?

No. An EU citizen can create an SRL in Romania without residing there. You need a registered office (a virtual office works) and a local accountant. However, watch your tax residency: if you live in France, SRL profits could be taxed in France. Check our guide on tax mistakes to avoid when expatriating.

How long does it take to set up an SRL?

Allow 3 to 5 business days for Trade Registry registration. With document preparation (notary, bank, registered office), the full process takes about 2 weeks through a specialized provider. In person and well prepared, it can be faster.

What is the real total tax rate with a micro SRL?

For a freelancer at EUR 100,000 turnover paying minimum salary and the rest in dividends: about 14% total tax burden. At EUR 50,000 turnover, it is closer to 16-17% (fixed costs weigh more). Compare that with 45-55% in France for a similar profile.

Will the micro regime stay at 1%?

Nobody can guarantee it. The Romanian government has already changed the rules several times (threshold drop from EUR 1,000,000 to EUR 500,000 in 2023, CASS on dividends added in 2024). However, the micro regime has existed for over 15 years and remains a pillar of Romanian economic policy to attract entrepreneurs. Follow updates on the ANAF website.

Can I invoice French clients from a Romanian SRL?

Yes, it is perfectly legal. Your SRL is a European company; it can invoice any client worldwide. For B2B clients in the EU, you invoice without VAT using reverse charge. For non-EU clients, you invoice without VAT. The key is that you actually conduct your business from Romania (or another country, as long as your tax residency is consistent).