Practical guides for foreign investors in Romania

1. Why foreign investors choose Romania

Romania has become an increasingly relevant destination for foreign investors and international businesses looking to establish a presence in Central and Eastern Europe. Its position within the European Union, its qualified workforce, and a relatively competitive cost structure have made it an attractive option for companies across a range of sectors — from manufacturing and technology to professional services and trade.

For many foreign investors, Romania represents either a direct market opportunity, a base for regional operations, or a staffing and service delivery hub. Each of these scenarios brings different setup requirements and ongoing compliance needs.

However, attractiveness does not mean simplicity. Romania has a specific legal, fiscal and administrative framework that requires proper preparation before operations begin. The country's regulatory environment has evolved significantly, but navigating it still demands reliable local knowledge and structured support.

2. Company formation is only the first step

One of the most common misconceptions among foreign investors entering Romania is that company registration is the primary challenge. In practice, registration is a relatively straightforward process. The real complexity begins after the company is registered.

A newly registered Romanian company immediately has accounting, tax and reporting obligations. Fiscal registrations must be completed. Banking must be set up. If employees are to be hired, payroll and HR obligations must be prepared. Document flows need to be established. Authority communication must be planned.

Setting up in Romania is not just a registration process. For foreign investors, it is the foundation for future compliance, administration and operational efficiency. Companies that treat registration as the endpoint often find themselves unprepared for the ongoing obligations that follow.

3. Key decisions before setting up

Before beginning the setup process, foreign investors and companies should clarify several key questions that will shape both the legal structure and the ongoing operational requirements:

• Legal form: The most common form for foreign investors is the SRL (Societate cu Răspundere Limitată — limited liability company). Other structures exist, including branches and representative offices, each with different implications for liability, taxation and registration.
• Ownership and administrators: Who will own the company, who will act as administrator, and what documentation will be required from foreign shareholders and directors.
• Planned activity: The CAEN code (activity classification) affects fiscal treatment, regulatory requirements and certain licences that may be needed.
• VAT status: Whether to register for VAT from the beginning, and what implications this has for reporting and compliance obligations.
• Staffing plans: Whether and when employees will be hired in Romania, and what payroll and HR obligations this creates.
• Banking: Opening a bank account in Romania requires specific documentation and can take time — this should be planned early in the process.

Clarifying these questions before starting the setup process significantly reduces delays and misaligned steps later.

4. What needs to be coordinated

The setup process for a foreign company in Romania typically involves coordination across multiple areas:

• Company registration — through the National Trade Register, handled through a local notary and typically coordinated through a legal partner.
• Fiscal registrations — including registration with the tax authorities and, where applicable, VAT registration.
• Accounting setup — establishing document flows, accounting records and reporting routines from the beginning.
• Payroll and HR preparation — if employees are to be hired, setting up payroll, employment contracts and HR documentation before the first contract is signed.
• Banking — opening corporate bank accounts, which may require additional documentation for foreign shareholders.
• Administrative setup — registered address, document management and communication routines with Romanian authorities.

Each of these areas has its own timeline, documentation requirements and dependencies. Managing them in isolation often creates delays and administrative gaps.

5. Common mistakes to avoid

Based on working with foreign companies entering Romania, several recurring patterns create difficulty:

• Treating setup as purely a legal process. Company registration is a legal step, but the accounting, fiscal and administrative preparation that follows is equally important and should be planned from the start.
• Underestimating banking timelines. Opening a corporate bank account in Romania can take longer than expected, particularly for foreign-owned companies. This should be started early and not left for after registration.
• Hiring employees before payroll is set up. Employment obligations in Romania begin from the first employment contract. Payroll, HR documentation and employer registrations should be prepared before the first hire.
• Fragmented service providers without coordination. Using separate providers for legal, accounting, payroll and administrative needs without a coordinating point of contact often leads to misaligned processes, missed deadlines and unclear responsibilities.
• Assuming Romanian compliance works like home-country compliance. Reporting deadlines, document requirements and fiscal treatment in Romania are specific and require proper local knowledge — not assumptions based on other jurisdictions.

6. How Consultrio supports the process

Consultrio works with foreign companies, investors and international business owners at different stages of their Romanian journey. Our role is to provide one coordinated point of contact for back-office, accounting, tax, payroll and administrative support — while coordinating trusted local partners for specialised services such as legal support, company formation and translations.

For companies entering Romania, we help coordinate the setup process and prepare the business for compliant operations from the beginning. For companies already operating in Romania, we help manage ongoing accounting, tax, payroll and administrative obligations in a structured and reliable way.

Our approach is practical, compliance-first and oriented towards long-term support — not just the initial registration step.