Romania is a rapidly growing EU-member economy in Eastern Europe, benefiting from its strategic location, EU single market access, and a competitive cost base. With a well-educated workforce, strong IT and software services sector, and improving infrastructure and regulatory transparency, Romania is an attractive destination for international firms establishing regional or product teams.
Unlock growth opportunities in Romania with Cerity Global as your trusted partner. We offer end-to-end support for establishing your legal entity, navigating Romania’s often complex regulatory landscape with clarity and efficiency.
From company registration to ongoing back-office support, including HR, payroll, benefits, accounting, tax and compliance, Cerity Global simplifies the process so you can focus on growing your business.
Need to hire quickly before your entity is set up? We offer interim EOR services in Romania, enabling you to onboard talent fast. Once your entity is established, we ensure a smooth transition of your employees from the EOR Structure to your own legal entity, without disrupting payroll or compliance.
Our experts stay ahead of regulatory changes to keep your operations aligned with Romania’s employment and tax laws, helping you scale confidently and compliantly.
Similar to a public joint stock company, a Societate pe Acțiuni (S.A.) is ideal for larger operations. This type of legal entity can be publicly listed and is subject to enhanced corporate governance and disclosure regulations.
An SRL is a private limited liability company suitable for small to medium-sized businesses. Ownership is limited by shares, and the transfer of shares is more restrictive, making it a popular choice for closely held businesses.
Romania does not currently offer a direct equivalent to the simplified joint stock company (SpA). Instead, SRLs and S.A.s serve most purposes for startups and foreign investors, depending on size and complexity.
A Branch Office is an extension of a foreign parent company operating in Romania. It must comply with Romanian regulations and tax obligations but does not have a separate legal personality from its parent company.
An S.A. requires a board of directors (typically at least three members). There is no legal requirement for directors to be Romanian residents, although practical considerations (e.g., tax, banking) may favor appointing local representatives.
An SRL does not have residency requirements for directors or shareholders. However, a local legal representative or fiscal representative is generally required for tax registration and banking purposes.
A Branch Office must appoint a Romanian resident as a legal representative (permanent representative) with authority to act on behalf of the branch in Romania.
Bank account setup in Romania follows stringent procedures due to comprehensive regulatory requirements:
Bank Account Setup in Romania: Process and Requirements
Before Incorporation:
After Incorporation:
Note: A corporate bank account in Romania can only be opened after the company has been incorporated and obtained a unique tax identification number (CUI). In-person verification by the company’s legal representative or authorized signatory is often required. Account opening typically takes 1–3 weeks, depending on the bank’s internal compliance and due diligence procedures.
Required documents include certificate of incorporation and Articles of Association, extract from the Romanian Trade Register, board resolution authorizing account opening, identification documents for directors, shareholders, and beneficial owners, proof of registered office address in Romania, tax ID number (CUI) issued by ANAF, business plan and/or supporting documentation of business activity in Romania.
Cerity Global supports companies in their global expansion plans and helps in legal entity setup, registration and ongoing support services. With us, you can quickly set up a legal entity, operate compliantly, and expand globally. Banking and account activation timelines vary by bank and the completeness of documentation; allow several business days to a few weeks in practice.
Employment in Romania is primarily governed by:
Employment contracts must be in writing and in Romanian, registered with the Revisal electronic system before work begins.
Standard details included in a written employment contract:
The different types of employment relationships are:
Permanent Employment
The standard employment relationship in Romania has no fixed end date. Permanent employees enjoy full statutory protections, including paid leave, social benefits, severance rights, and notice requirements.
A fixed-term contract renewed more than three times or continued after expiry may automatically convert into a permanent (indefinite) contract.
Fixed-Term Employment
Fixed-term contracts may be concluded for a maximum duration of 36 months, typically for project-based or temporary work.
Such contracts can be renewed up to three times, within the total 36-month limit. Exceeding this limit or continuing employment after expiry converts the relationship into a permanent one.
Part-Time Employment
Part-time contracts allow employees to work fewer hours than the standard 40-hour week.
Part-time employees receive proportional pay, benefits, and leave entitlements, but retain full coverage under social insurance and labor protection laws.
Temporary Employment
Temporary work is regulated by Law No. 53/2003 and Government Decision No. 1256/2011, governing staffing agencies.
Temporary employees must receive equal pay and working conditions as comparable to permanent staff after being assigned to a user company.
Probation periods must be explicitly stated in the employment contract.
During probation, either party may terminate employment without notice, with written notification.
The standard working week in Romania is 40 hours, typically 8 hours per day over 5 days.
Overtime
The maximum weekly working time, including overtime, cannot exceed 48 hours on average over a 4-month reference period.
Notice periods in Romania depend on the employee’s length of service and type of contract, typically ranging from 20 working days (about one month) to longer for managerial positions.
Severance pay is required for dismissals without cause or for organizational reasons, usually equal to one month’s salary per year of service, capped depending on the circumstances.
If the employer fails to provide required notice, the employee is entitled to compensation in lieu of notice.
Foreign nationals can live and work in Romania by securing the appropriate work authorization. The process varies based on nationality and visa type.
Work Visa & Permit Options in Romania
Work Visa for Long-Stay
For foreign nationals with a confirmed job offer from a Romanian employer.
Temporary Residence Visa for Business
For foreign investors, entrepreneurs, and individuals with economic or professional ties to Romania.
Highly Skilled Worker Visa (EU Blue Card)
Streamlined route for highly skilled professionals in priority sectors.
Investor Visa
For individuals making substantial investments in Romanian businesses or real estate.
Key Requirements
Romania offers streamlined visa routes for qualified professionals in tech, science, and innovation sectors to strengthen its knowledge-based economy.
Permanent employees are entitled to a minimum of 20 working days of paid annual leave, which may increase based on seniority or specific collective agreements.
Female employees are entitled to 126 calendar days (18 weeks) of maternity leave:
Male employees are entitled to 5 working days of paternity leave, to be taken within 15 days after the birth of the child.
Employees are entitled to paid sick leave as follows:
Romania observes the following statutory public holidays:
Additional religious holidays may also be observed depending on local customs.
The most common pay frequency is monthly.
Payslips are mandatory and must include a detailed breakdown of gross salary, deductions (social security, income tax), and net pay.
Payslips are typically issued in Romanian, but translations may be necessary for foreign employees.
There is no mandatory bonus under Romanian law. However, it is customary for employers to grant year-end bonuses or other discretionary bonuses as part of employment contracts or collective agreements.
Romania has a comprehensive social insurance system with mandatory employer and employee contributions covering:
Accounting standards in Romania follow Romaniaan Accounting Standards (RAS) or RO GAAP for most domestic companies, while public companies must use International Financial Reporting Standards (IFRS).
Companies in Romania must file annual financial statements and corporate tax returns with the National Agency for Fiscal Administration (ANAF) and the National Trade Register Office (ONRC).
Statutory audit is required for companies that exceed two of the following three thresholds for two consecutive financial years (as per Accounting Law No. 82/1991, updated with OMFP No. 1802/2014):
Companies below these thresholds must appoint a financial auditor or expert accountant to perform a review or simplified verification (if required by shareholders or authorities).
Public interest entities, including listed companies, banks, insurance firms, and financial institutions, are subject to mandatory annual statutory audits regardless of size.
Audits must be conducted by authorized auditors who are members of the Chamber of Financial Auditors of Romania (CAFR), in compliance with International Standards on Auditing (ISA).
The standard corporate income tax (CIT) rate in Romania is 16%, applicable to most resident companies and Romanian permanent establishments of non-resident entities.
Effective 1 Aug 2025, the standard VAT rate rises to 21% and reduced rate to 11%.
Companies must file annual tax returns by 25 March of the following year.
Penalties for late filing and tax non-compliance can include monetary fines, interest on late payments, and a specific “non-declaration” penalty applied by tax authorities during an audit.
Romania has well-established transfer pricing regulations aligned with OECD Transfer Pricing Guidelines and the EU Code of Conduct on Transfer Pricing Documentation.
Key aspects include:
Romania enforces BEPS-compliant Country-by-Country (CbC) reporting for multinational enterprise (MNE) groups.
Romania follows OECD-compliant transfer pricing documentation standards, set out in Order No. 442/2016 and Order No. 3735/2015:
Master File
Local File
Romania’s data privacy framework is currently governed by Law No. 19.628 on the Protection of Private Life and is undergoing modernization to align with GDPR standards.
Romania’s AML framework is governed by Law No. 129/2019 on the Prevention and Combating of Money Laundering and Terrorist Financing, as amended, and it follows the EU’s 4th, 5th, and 6th AML Directives as well as FATF recommendations. The competent authority is the National Office for the Prevention and Control of Money Laundering (Oficiul Național de Prevenire și Combatere a Spălării Banilor – ONPCSB).
Obligated entities:
Banks and financial institutions, insurance companies, securities and investment firms, payment institutions, accountants, auditors, tax advisors, real estate agents, lawyers and notaries (for specified transactions), casinos, and dealers in precious metals and stones.
Key requirements:
Penalties:
Non-compliance can result in significant administrative fines up to RON 5,000,000 for legal entities (and higher for financial institutions under supervisory authority decisions), criminal penalties including imprisonment of up to 10 years for serious violations, and possible revocation of business licenses for repeated or systemic breaches.
Reasons you should setup legal entity in Romania:
Cerity Global ensures your business expansion in Romania is fast, compliant, and future-ready, so you can focus on growth while we manage the back-office tasks.
Economic figures are subject to change based on quarterly reports and market conditions.
Cerity Global combines deep local knowledge with proven expertise to make your Romania business establishment effortless and compliant. Whether you’re looking for legal entity setup and registration or ongoing support, we’re your trusted partner for sustainable global expansion in Romania.
Disclaimer – The information provided is for informational purposes only and does not constitute legal, business, or tax advice. Entity setup requirements, tax rates, and economic data are subject to change and may vary by location.
To discuss your needs and how we can help you achieve a compliant and efficient expansion.