Why now? Romania offers EU market access, operating costs well below Western Europe, a skilled multilingual workforce, and a micro-enterprise tax regime that rewards early-stage businesses.
This interest isn't limited to large corporates. IT service exporters, manufacturing and export businesses, and Indian companies wanting a dedicated EU subsidiary are all exploring Romanian incorporation.
This guide walks through structures, registration, taxation, and compliance, step by step.
TL;DR
- 100% foreign ownership allowed, no residency needed; SRL fits most Indian founders
- SRL minimum share capital starts from RON 500
- Corporate tax 16% standard, or 1% for micro-enterprises; VAT 21%
- Remote registration via power of attorney; Indian documents need apostille and Romanian translation
- Name reservation to working bank account typically takes 2-4 weeks, mainly for document legalisation
What Is a Romanian Business Entity for a Foreign Founder?
"Starting a business in Romania from India" means registering a legal entity, usually an SRL, with Romania's Trade Registry (ONRC). It's not the same as exporting goods to Romanian buyers.
This process covers company formation, tax registration, and ongoing compliance. It has nothing to do with obtaining Romanian citizenship or a Golden Visa; those are immigration matters, entirely separate from business ownership.
Three structures come up most often:
- SRL – limited liability company, the default choice for Indian founders
- SA – joint-stock company, suited to larger operations with higher capital
- Branch or representative office – for Indian companies extending existing operations into the EU
What Indian Entrepreneurs Should Know Before Starting
Many founders underestimate one thing: the document legalisation timeline. Apostille processing, notarisation, and certified Romanian translation all take time before you even file anything in Romania.
Get clear on effort and timing before you file—not on whether the idea itself is viable.
Decide these points upfront:
- Document lead time – confirm how long apostille and certified translation take before filing can start
- Travel requirement – registration can run fully via power of attorney; you do not need to fly out
- Banking timeline – opening an account and issuing first invoices often takes longer than incorporation
- Delivery model – remote IT/technical delivery versus local management on the ground
- Billing entity vs operational team – an EU invoicing vehicle in Romania is a different build from a local team
Clarity on these points before you start saves weeks of back-and-forth later.
Why Start a Business in Romania as an Indian Entrepreneur (When It Makes Sense)
Romania isn't a universal answer for every Indian founder. It fits well under specific conditions.
When it makes sense:
- You need direct access to the EU single market for goods or services
- You're running IT/BPO delivery and want lower operating costs than Western Europe
- You want full ownership without bringing in a local partner
- You're an early-stage business that can benefit from the micro-enterprise tax rate
Romania's IT sector alone contributed 6.67% to GDP as of late 2025, a sign of consistent tech demand and a workforce used to servicing international clients.
Those cases rest on a few concrete setup rules:
- SRLs can form with minimum share capital from RON 500
- Qualifying micro-enterprises pay 1% tax on revenues, which protects early-stage margins
- 100% foreign shareholding is standard, with no local partner required
If your business depends on a physical retail presence or heavy local regulatory ties, Romania's advantages matter less. For remote-delivery businesses, they matter a great deal.
Early Decisions Indian Founders Often Get Wrong
Most delays Indian founders face aren't caused by Romania's local process. They come from underestimating the cross-border documentation chain.
Common missteps:
- Underestimating apostille and translation costs – passport copies, company certificates, and proof of address all need apostille in India, then certified Romanian translation
- Assuming incorporation speed equals total speed – registration itself can be fast, but banking and VAT registration for non-EU founders often take far longer
- Picking SRL when a branch fits better – if you already run an Indian company and only need an EU presence, a branch may fit better than a new SRL
- Ignoring mandatory local accounting – Romanian companies must keep statutory records in Romanian from day one, not once revenue starts
- Mixing up company registration with personal visa needs – owning a Romanian SRL and relocating to run it are separate processes with separate requirements
Plan the full India-to-Romania chain—documents, banking, tax, and people—before you file, not after.
How to Start a Business in Romania from India – Step by Step
This breaks the process into stages specific to Indian applicants. The most common mistakes: submitting non-apostilled documents, assuming no bank account is needed before invoicing, and delaying VAT registration until it's too late to switch tax regimes.
Step 1 – Choose Your Entity Type and Reserve a Company Name
Decide between an SRL, branch, or representative office based on your actual business goal. Most Indian founders choose the SRL.
Reserve your company name through ONRC, submitting three name options in order of preference. The reservation stays valid for one month.
Common miss: picking an SA unnecessarily, which triggers a much higher capital requirement of around RON 90,000.
Step 2 – Prepare and Legalise Indian Documents
Gather identification, proof of address, and (if an Indian company is the shareholder) corporate documents. Get these apostilled in India, then translated into Romanian by an authorised translator.
India has been part of the Hague Apostille Convention since 2005, and Romania recognises apostilled documents, so you don't need full consular legalisation. But apostille processing at Indian authorities still takes time.
Common miss: underestimating this lead time and starting Romanian filings before documents are ready.
Step 3 – Secure a Registered Office in Romania
You have options: lease physical office space, use a virtual office, or rely on a law firm's temporary registered address (valid up to one year).
Common miss: assuming a physical office is mandatory. A virtual or hosted address is legally sufficient for most SRLs.
Step 4 – Draft Articles of Incorporation and File with the Trade Registry
Your Articles need shareholder and capital details, business activity codes (CAEN, Romania's equivalent of NACE), management structure, and ultimate beneficial owner information.
File through a Romanian legal representative using a power of attorney, so you don't have to travel.
Common miss: choosing the wrong CAEN code, which restricts what activities your entity is legally permitted to conduct.
Step 5 – Complete Tax Registration and VAT Compliance
Your company receives a tax ID automatically upon incorporation. VAT registration becomes mandatory once turnover exceeds the applicable threshold, currently RON 395,000.
Decide upfront: standard 16% corporate income tax, or the 1% micro-enterprise regime if your business qualifies.
Common miss: not evaluating micro-enterprise eligibility early. Regimes generally can't be switched mid-year, so this decision has real financial consequences.
Step 6 – Open a Romanian Business Bank Account
Banks will want incorporation documents, proof of registered office, and ID for every administrator, as part of standard KYC review.
Non-EU shareholders often face enhanced due diligence, and some Romanian banks still expect in-person verification for account opening.
Common miss: assuming the entire account-opening process can happen remotely, with no physical presence from anyone involved.
Step 7 – Set Up Accounting, Payroll, and Ongoing Compliance
Romanian law requires a local accountant to handle monthly or quarterly filings and annual financial statements, kept in Romanian.
If you're hiring locally, employment contracts must be registered in REGES-ONLINE before the employee's start date.
You still need to align this with India-side duties: FEMA reporting, ROC filings, and outbound investment structuring. VJM Global coordinates Romanian entity formation and ongoing compliance with ODI and related FEMA documentation from the India side.
If you are not ready to incorporate yet, VJM Global's Employer of Record service lets you hire in Romania before a local entity exists.
Common miss: treating accounting as an afterthought instead of budgeting for it from day one of incorporation.
Conclusion
Starting a business in Romania from India is largely a documentation and sequencing challenge, not a legal barrier. Full foreign ownership is already permitted; the friction lies in getting Indian paperwork legalised on time, choosing the right entity, and budgeting properly for mandatory local accounting.
Long-term compliance—VAT filings, payroll registration, and annual statements—matters just as much as the incorporation certificate. Build both stages into your plan from day one so filing deadlines and local accounting costs do not catch you off guard.
Frequently Asked Questions
Can an Indian citizen get a business visa for Romania?
Company ownership and visas are separate matters. Indians can own 100% of a Romanian SRL without residency, but relocating to manage it requires a long-stay business visa through Romania's General Inspectorate for Immigration.
Is Romania a good country to invest in?
Romania's EU membership, competitive 16% corporate tax, low share capital requirements, and growing IT and manufacturing sectors make it attractive. Suitability still depends on your specific sector.
Which business is best in Romania?
IT and software outsourcing, automotive component manufacturing, and agribusiness all show strong demand, with existing Indian company presence in these sectors already.
What jobs are in high demand in Romania?
IT and software development, engineering roles, and multilingual technical positions all face skill shortages—relevant if you plan to hire locally.
How much tax does a Romanian company pay?
Standard corporate income tax is 16%, with a 1% micro-enterprise regime for qualifying small businesses. VAT is 21%, and dividend tax is 16% for distributions from 2026 onward.
Can a Romanian company be 100% owned by an Indian company or individual?
Yes. There's no local ownership requirement and no residency requirement for shareholders or administrators of a Romanian SRL.
