Most common business entity in Romania
The SRL is the standard choice for most small- to mid-size businesses in Romania. Like a US LLC, it provides limited liability protection separated from the owners' personal assets. Micro-company regime requires at least 1 employee and revenue ≤ €500k.
The full menu of Romania business structures
| Structure | Liability | Tax | Best for |
|---|---|---|---|
| SRL | Limited | 16% corporate | Most operating businesses |
| Sole proprietor / self-employed | Unlimited personal | Personal income tax rates | Freelancers, one-person services |
| Partnership | Joint and several | Pass-through to partners | Professional services (law, accounting) |
| Branch of foreign company | Parent company liability | 16% on Romania-source profits | Foreign companies entering Romania market |
| Public limited company | Limited | Same as SRL but stricter | Companies preparing for listing |
Which one should you pick?
- Freelance or one-person service in Romania? Self-employed structure if simple, SRL if you want liability protection.
- Software / e-commerce / agency? SRL — standard, scalable.
- Operating an existing foreign company in Romania? Branch (simpler) or subsidiary SRL (more substance).
- Planning to raise venture capital? Confirm investors accept Romania entities. Many require a US Delaware C-Corp flip — see US company formation.
- Holding company for IP or other companies? SRL with minimal substance requirements.
The SRL in one paragraph
SRL is Romania's primary limited liability vehicle. Minimum paid-up capital: nominal. Headline corporate tax: 16%. Micro-company regime: 1% (revenue ≤ €500k with employees). Otherwise 16%.. Banking accessibility: 7/10. Privacy: 5/10 (UBO public). Remote formation: yes. Processing time: 5 business days.
For US comparison, see Romania vs USA. For non-resident formation specifics, see forming a Romania company as a non-resident.