A micro-company in Romania is a limited liability company that benefits from a lower taxation regime when meeting certain mandatory criteria. Our team can help you open a company in Romania and meet the necessary requirements to have it comply with the low tax regime.
| Quick Facts | |
|---|---|
| Minimum share capital |
500 RON |
|
Number of founders |
1 |
|
Qualifying entities |
– annual turnover below 100,000 euros |
| Time frame for the incorporation |
Approximately 7 days |
| Registered/local agent | Not mandatory, appointed upon request |
| Local/resident director |
No |
| Annual meeting |
Yes |
| Annual return | Yes |
| Corporate income tax | 1% turnover tax or 16% income tax |
| Special tax incentives | Industry-specific can apply |
| Foreign ownership | Yes |
|
Micro regime maintained for inactive micro-companies |
Yes, for the duration of the inactive period. |
|
Micro regime after the end of the inactive period |
If the company continues to comply with the applicable conditions for this regime. |
| Employment condition | A micro company is obliged to hire at least one employee within 30 days from its registration. |
| Minimum number of employees |
The company must have at least one full-time employee |
| Conditions for the micro-company’s name |
Cannot infringe the name of an already registered legal entity. |
| Name registration and approval |
Yes, as part of the pre-registration requirements. |
| When can the micro-regime cease? |
Starting with the trimester in which the company ceases to meet all the mandatory conditions. |
| Assistance for switching to the regular taxation regime |
If your company no longer qualifies for the micro-company taxation regime, our company formation specialists will give you details on the requirements that must be met for corporate taxation in Romania. |
| Why work with us? | Our team specializes in company formation and the companies law (with its frequent updates and additions) and can offer complete incorporation solutions. |
| When to contact us for micro-company registration |
As soon as you decide to incorporate this business form in Romania. |
What is a micro-company?
A micro-company is a legal entity registered in Romania that meets all of the following conditions:
- Its revenue does not exceed the RON equivalent of EUR 100,000 (calculated per the exchange rate valid at the end of the financial year for which the income is recorded);
- Its share capital is held by natural persons, other than the state and administrative-territorial units;
- It has at least one employee (certain exceptions can apply);
- It is not subject to dissolution, followed by liquidation;
- Its associated shareholders hold more than 25% of the participation securities or voting rights, and it is the one micro-company established by the said shareholders/associated;
- It has submitted its financial statements according to law;
- It is not included in the category of legal entities that cannot apply for this regime.
It is important to note that the applicable conditions for the micro-enterprise regime can change and have been subject to modifications on a year-on-year basis (i.e., the annual revenue threshold may be subject to change).
Our team can provide those interested with more details about the Romanian micro company regime and the changes introduced by the National Agency for Fiscal Administration (NAFA), the Ministry of Finance and other Romanian authorities of interest.
Who can open a micro-company in Romania?
There are no restrictions on nationality or conditions for mandatory residence in Romania for those who want to incorporate a micro-enterprise in 2026. That said, the aforementioned conditions for the regime are mandatory, with no exceptions.
What steps do I need to follow to open a micro-company in Romania?
Company formation in Romania is a multi-step process that includes the following:
- Company name reservation;
- Preparing the company registration documents (the Memorandum and Articles of Association, etc.);
- Drafting special documents, such as Affidavits, translating any documents in Romanian, as may be required;
- Submitting the registration form and the documents to the National Trade Register Office (in Bucharest or another Romanian city in which the micro-company will be based);
- Opening a corporate bank account in Romania once the business registration certificate is issued;
- Handling tax registrations and any applications for special permits and licenses, as may be required on an industry level.
What is the minimum share capital?
The current minimum share capital required to open a company in Romania, including a micro-enterprise, is 500 RON (about 100 EUR).
Our team invites you to watch a video about the Romanian micro-company:
How is the micro-company taxed?
According to this regime, a qualifying company is subject to a 1% revenue tax, provided that its annual turnover does not exceed the aforementioned 100,000 EUR. The company must also comply with the other conditions for this regime in order to benefit from the reduced rate.
The Romanian Micro Company is one of the best tax structures in the world (in and outside of the EU). Just as a reference, here is a comparison between the Romanian Micro and other similar legal structures:
- Romania vs Singapore – 3% vs. 17% corporate tax (for more info see opencompanysingapore.com)
- Romania vs Malta – 3% vs. 5% corporate tax (for more info see https://cfr.gov.mt/en/Corporate/Pages/Company-Registration.aspx)
- Romania vs Dubai – 3% vs 9% corporate tax (see companyincorporationdubai.com)
What happens if the micro-company exceeds the applicable annual turnover?
If or when the company’s turnover exceeds EUR 100,000, the company will be subject to the standard 16% corporate income tax.
Companies that exceed the turnover (or opt for the regular corporate income tax) must submit a special form to the Romanian tax authorities.
Can my micro-company engage in any trading activities?
A micro-company in Romania can engage in most types of activities; however, legal entities operating in certain business sectors cannot apply for this regime. Examples include the banking sector, insurance and reinsurance business (not including secondary insurance and/or reinsurance intermediaries), the gambling sector, and the exploitation or development of oil and natural gas deposits.
Contact us for more information about the rules for the micro-income tax regime in 2026 and for assistance if you want to open a Romanian limited liability company that is subject to the micro-enterprise criteria.