Phone:   +40 (0) 728 175 406
You can contact us for further assistance/information regarding the formation of a Romanian micro-enterprise on the above email.



One of the main advantages of Romania on the European and International market is represented by the lowest tax in the world on micro-enterprises – these are small businesses (LLCs for example that employs few people and has up to 1 million Euro yearly turnover).

A micro-enterprise in Romania can be taxed at:

  • only 3% of turnover if you have no employees
  • if you have at least one full-time employee, you can pay 1% income tax.

1.      What does it mean to have at least one employee?

The following must be taken into account:

  • in the case of newly established persons, employment must take place within 60 days from the date of registration of the legal entity
  • an employee means a person employed under a full-time individual employment contract, but also a person employed under a part-time individual employment contract, if the total number of part-time employees is equivalent to one full-time employee. The condition is also considered to be met in cases where management or agency contracts are concluded, in accordance with the law, if their remuneration is at least at the level of the minimum gross basic wage at Romania’s level.
  • for micro-enterprises that have no employees, if they employ an employee, in order to change the tax rate from 3% to 1%, the new employee must be hired with an individual employment contract for an indefinite period or for a fixed term of at least 12 months.

Taxes to the state will be paid from the first fiscal year (which is the same as the calendar year) in which the company started operating.

2.   Withholding profits from a micro-enterprise in the form of dividends

Profits can be withdrawn from a micro-enterprise in the form of dividends, either quarterly or annually, depending on the company’s choice. The dividend tax in Romania is taxed at 5% or 0% for re-invested profits (e.g., real estate acquisitions).

3.    Deductible expenses for your micro-enterprise

The following main expenses are deductible for taxation in case of micro-enterprises so you can reduce your final amount taxable with a 1% or 3% income tax for a micro-enterprise:

a.   employees of micro-enterprises who also use company cars for personal purposes cannot be taxed for this benefit, as is already specified for employees of companies paying corporation tax

b.   dividends received from a Romanian legal person

c.    cost of stocks of products;

d.   costs of services in progress;

e.    income from the production of tangible and intangible fixed assets;

f.    revenue from subsidies;

g.   income from exchange rate differences;

h.   dividends received from a Romanian legal person.

4.    Ongoing costs with micro-enterprises

To keep a micro-enterprise ongoing in Romania you don’t need to support many administrative costs – you might need a virtual office  (please see our page for more services in this respect at this link: ), which may costs you only a few Euro a month.

Our virtual office services offer the benefits of office space at lower costs. This office is aimed at entrepreneurs who want to work from home or remotely and want a professional image for their business.

On top of that, you might need an accountant – their expenses range only between 70 Ron/month (14 euro) -120 Ron/month (25 euro).

And that’s mainly it!

5.    What about VAT?

A micro-enterprise becomes a VAT payer if it exceeds the turnover threshold of 300,000 lei.

6.    Can a non-VAT paying micro-enterprise purchase services from the EU?

Yes, a micro can do this but first it must apply to the National Fiscal Authority ANAF for a special VAT code. It will have to communicate this code to the supplier and will receive a VAT-free invoice from the supplier. It will then calculate the 19% VAT on the value of the services and pay it to the budget, while submitting the 301 and 390 declarations.

7.    Documents required for setting up a micro-enterprise

In addition to the steps mentioned above, you need to choose one or more NACE codes. You may find them here:

Make sure you choose the 4-digits code.

Also, all persons and legal entities carrying out economic activities must have a tax identification code. This is the CUI in Romanian (or unique registration code), which is assigned by the tax authority to legal persons and other entities without legal personality. The unique registration code (CUI) is given to legal entities and entities that register with the Trade Register according to the special law. We may help you register with the Trade Register. Check our services here:

For any assistance in micro-enterprises formation please drop us a line at or WhatsApp:  +40 (728) 175 406

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