Our company formation experts assist legal entities interested in expanding the scope of their operations in Romania through a branch.
| Quick Facts | |
|---|---|
| Applicable legislation (home country/foreign country) |
Local |
|
Best Used For |
Expanding the same business activities performed by the parent company to Romania |
|
Minimum share capital for the company branch in Romania (YES/NO) |
No |
| Time frame for the incorporation (approx.) | 3 or more business days |
| Documents to be filed by parent company | Registration form, proof of fiscal registration in Romania, the parent company's constitutive documents, documents emplowering the branch representatives and their IDs, proof of registered office in Romania, the parent company's financial situaion, other documents and local authorizations (for branches in regulated fields) |
| Management (Local/Foreign) |
Foreign |
| Legal representative required (YES/NO) |
Yes |
| Local bank account (YES/NO) | Yes |
| Independence from the parent company | No |
| Liability of the parent company | The parent company is fully liable for the debts and obligations incurred by the company branch in Romania |
| Corporate tax rate in Romania | 16% |
| Annual accounts filing requirements | Yes |
| Possibility of hiring local staff in Romania (YES/NO) | Yes |
| Travel requirements for incorporating branch/subsidiary (YES/NO) | No |
| Double tax treaty access (YES/NO) | No |
| Business activities the branch can engage in | The same as the parent company |
| Industries in which the branch is used | Banking and financial services, IT and software, pharma, etc. |
| Mandatory branch name requirements | The same as the parent company's |
| Branch name restrictions | As applicable in Romania |
| Branch Memorandum and Articles of Association | The branch does not have its own constitutive documents. |
| Other documents | Information about the parent company, the branch representative in Romania, details about the parent company's financial situation (as applicable), etc. |
| Mandatory document translations | In Romanian |
| Legal capacity | The branch does not have legal capacity |
| Procedural capacity | No |
| Judicial capacity | No |
| Minimum number of employees | Not applicable |
| Can the representative office be used instead of the branch? | No, the representative office cannot be used for trading |
| Mandatory foreign company size | No, however, public limited companies are the ones to expand through a branch. |
| When to contact us for branch creation | Once the Board of the foreign company has decided to open a branch in Romania |
| Other services offered by our team | Subsidiary and local limited liability company/micro-company incorporation, other services for investors in Romania. |
What are the characteristics of the branch in Romania?
A branch is an extension of an already-registered company, whether it is incorporated in another jurisdiction or in Romania. The following characteristics apply:
- The branch is involved in the same business activities/industry as the parent company;
- The name of the branch is the same as the foreign company’s (an exception applies in this case, as it is not mandatory to check the name’s availability beforehand);
- The Branch does not have the legal personality of the company, being autonomous within the limits stipulated by the company.
- It does not participate in the legal circuit in its own name, and the legal acts are concluded by the representatives appointed by the mother company;
- The branch is subject to the national law of the company that has established it, being identified by reporting to its registered office.
What types of companies can open branches in Romania?
There are no limitations in terms of company type, size, or ownership structure. Any foreign company can set up a branch in Romania in 2026 by observing the local requirements for its incorporation.
At the same time, Romanian-registered companies may also scale up their activities through a branch office, such as when they expand from Bucharest to another county.
The branch has a set of clear characteristics that make it suitable for use in certain business fields, such as the financial sector. Indeed, there are many bank branches present in Romania, counterparts of larger international banks.
Do branches require special permits and licenses?
Yes. When opening a branch in Romania, foreign companies will need to obtain the needed licenses from the authorities.
One example is the Romanian Financial Supervisory Authority, in charge of licensing and supervision for a number of industries, including but not limited to insurance companies.
How do I open a branch in Romania when the parent company is a foreign company?
To open a branch in Romania in 2026, irrespective of the location of your company’s headquarters, you will have to submit the following documentation to the Trade Register Office:
- The power of attorney;
- Translated and authenticated copies of the Articles of Association of the company;
- Documents related to the Romanian branch;
- The decision of the company board to set up the branch, indicating the address, the activity object, and the person that represents the branch, including an identification document and the mandate limits;
- Translated and authenticated copies or original affidavits of the person who will represent the branch that show they have legal authorization for this position and their specimen of signatures;
- Copy of Article of Registration, holographic certified by the applicant, the text must be translated by an authorized translator, the copy must be authenticated by a notary, and signed by the translator as well;
- Special attorney’s POA in original for the nominated person to handle the legal formalities;
- The last financial situation of the company that is approved, verified, or published according to the legislation of the state in which the company resides. The document must be authenticated by a notary, translated by an authorized person, and signed by the translator as well;
- Proof of fee payment;
- An original affidavit regarding operation authorization.
An application for tax registration in Romania is mandatory, and it includes the following information:
- Type of taxation: profit tax or micro-company tax (for branches, the expected selection is profit tax as the micro-company regime has a specific income threshold);
- Data on the selected tax period for the branch;
- The estimated average number of employees;
- Information on the tax on income from salaries, for taxpayers required to provide information on the taxes payable on behalf of their employees.
The application form for branch registration in Romania is signed via an electronic or a handwritten signature. The form, which is submitted along with the other mandatory set of documents, includes the following information:
- Company name and legal form of the foreign legal entity;
- Company name of the branch;
- Representatives of the legal entity directly involved in the branch’s activity;
- National law applicable to the legal entity (in the case of branches of legal entities from states that are not member states of the European Union or states participating in the European Economic Area);
- Registration of company details;
- Self-declaration on the fulfilment of operating conditions;
- Copies of the submitted documents (each submitted document is listed in the application form);
- Data processing approval.
Our team of experts who specialize in Romania company formation can help you prepare the documents for the branch and submit them to the authorities.
We also invite you to watch a short video about the branch:
How do I open a branch in Romania when the parent company is a Romanian company?
For companies that have their headquarters based in Romania, the branch incorporation process is simplified. However, they are still required to present the following documents to the National Trade Register Office:
- The decision of the Associates’ General Assembly for setting up the branch which mush include the address, activity object, identification document of the person appointed to represent the branch and the mandate’s limits, all of this must be presented in original
- Registration Certificate of the company, certified copy
- Articles of Association, updated in a certified copy
- Evidence for the headquarters
- Evidence for approvals of the competent authorities to register (when required by the law) in certified copy
- Tax record information for the branch’s representative, in an original copy
- Affidavit of the person representing the branch as proof that they meet the legal conditions for their position, certified and authenticated by a lawyer, in original
- Affidavit regarding authorization of operations
- Signature specimen of the person representing the branch, in original
- Proof of payment of the legal fees, in original
- Special attorney’s POA (power of attorney) in original for the nominated person to handle the legal formalities
For a foreign company to be able to carry out its activities on the territory of Romania, it is necessary to open a branch or a representative office. In order to establish a branch, the following documents are required:
- Establishment Act and Certified Legal Status, along with all modifications to these documents
- Documents certifying the registered office of the foreign company, its object of activity and the value of subscribed capital annually for foreign companies that are not members of the EU or EEA (if this information is not included in the articles of association or status of the legal person )
- Certificate from the register where the legal person is registered, to certify its existence, certified translation
- The annual financial statements of the company, approved, verified and published in accordance with the law of the statute in which they have their registered office, subject to the formalities of advertising of Romanian legal persons
- Proof of the branch office
- Financial statements, if the legal entity has its registered office in one of the EU countries
How are branches taxed in Romania in 2026?
Another issue to keep in mind when opening a branch in Romania is the taxation regime applicable to this business form.
A branch is considered a permanent establishment for taxation purposes and it is subject to the full scope of the corporate income tax. It calculates and declares the profits tax according to the provisions set forth in the Fiscal Code by using the forms provided by the authorities.
The foreign company can apply for a tax certificate for the profit paid in Romania, so that it may deduct it/obtain fiscal credit in its country of origin.
Our Romanian company formation agents list the most important types of taxes below:
- 16% branch tax rate;
- 16% withholding tax on the dividends paid to a non-resident company, unless reduced under a double tax treaty;
- 21% standard value-added tax rate, with a reduced rate;
- No branch remittance tax.
What are the accounting and reporting requirements for the branch?
As far as the accounting principles are concerned, a branch has the obligation to prepare the annual financial statements and accounting reports. When the foreign company has more than one branch in Romania, these documents will reflect the activity of all its registered permanent establishments.
Contact our team specializing in Romanian company formation. We can help you with additional information about the Romanian branch, its registration, licensing, control, and taxation.