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How to setup company in Romania for UAE entrepreneurs

Romania, located in the heart of Eastern Europe, has become one of the fastest-growing destinations for foreign investors looking to expand their businesses in the European Union (EU). With its strategic location, competitive tax system, skilled workforce, and investor-friendly policies, Romania offers immense opportunities for entrepreneurs from the UAE.

If you are considering starting a company in Romania from the UAE, this guide will give you a complete roadmap—from understanding the legal framework to choosing the right business structure, required documentation, and the benefits of company formation.

At Al Tawkel Center UAE, we specialize in guiding UAE-based investors through international business setups, including company formation in Romania.

Why Choose Romania for Company Formation?

Romania is not only part of the European Union but also enjoys access to a large consumer market. Here’s why UAE entrepreneurs are increasingly choosing Romania:

  • EU Membership – Gateway to the European Union’s single market with over 500 million consumers.
  • Strategic Location – Positioned between Central and Eastern Europe with access to Western markets.
  • Low Corporate Tax – Flat corporate income tax rate of 16%, one of the lowest in the EU.
  • Affordable Workforce – Skilled, multilingual employees at competitive labor costs.
  • Ease of Doing Business – Simplified procedures for foreign company registration.
  • Double Taxation Treaties – UAE and Romania have agreements to prevent double taxation.

Types of Companies in Romania for UAE Entrepreneurs

Before you begin, you must decide on the right business structure. The most common types include:

  1. SRL (Societate cu Răspundere Limitată) – Limited Liability Company
    • Most popular option for foreign investors.
    • Minimum share capital requirement: 1 RON (Romanian Leu) (effectively negligible).
    • Requires at least one shareholder (individual or corporate).
  2. SA (Societate pe Acțiuni) – Joint Stock Company
    • Ideal for large businesses or those planning stock market listing.
    • Minimum share capital: 90,000 RON (~€18,000).
    • Requires at least two shareholders.
  3. Branch or Subsidiary
    • If you already own a UAE company, you can register a branch office in Romania.
    • Operates under the parent company’s liability.
  4. Representative Office
    • Cannot engage in direct business but can promote your UAE company in Romania.

Step-by-Step Guide: How to Setup a Company in Romania from UAE

Step 1: Choose Your Business Activity

  • Define the type of business (IT services, trading, manufacturing, consultancy, etc.).
  • Romania uses the NACE code system to classify activities, and you’ll need the right code for registration.

Step 2: Reserve a Company Name

  • Submit your chosen company name to the National Trade Register Office (ONRC).
  • The name must be unique and compliant with Romanian rules.

Step 3: Draft the Articles of Association

  • Includes details such as:
    • Company name
    • Shareholder details
    • Registered office address
    • Business activity codes
    • Share capital structure
  • This document must be notarized.

Step 4: Register the Company with ONRC

  • Submit the incorporation documents to the Trade Register.
  • Required documents:
    • Application form
    • Articles of Association
    • Proof of registered office (rental contract or ownership documents)
    • Proof of share capital deposit
    • Identification documents of shareholders and directors

Step 5: Obtain Tax Registration

  • After incorporation, the company must be registered with the National Agency for Fiscal Administration (ANAF).
  • Obtain a Unique Identification Code (CUI) for tax purposes.

Step 6: Open a Corporate Bank Account

  • Choose a Romanian bank that allows foreign ownership.
  • Deposit the minimum share capital and set up business banking facilities.

Step 7: Register for VAT (If Applicable)

  • VAT registration is required if turnover exceeds 300,000 RON (~€60,000).
  • Standard VAT rate in Romania: 19%.

Step 8: Employment and Payroll Registration

  • If hiring staff, register with the Territorial Labor Inspectorate and social insurance authorities.
  • Romania offers competitive wages compared to Western Europe, making it attractive for outsourcing and shared services.

Costs of Company Formation in Romania

The costs vary depending on the business structure. Approximate expenses:

  • Company Registration Fee: €200–€500
  • Notary & Legal Fees: €300–€800
  • Corporate Bank Account Setup: €100–€200
  • Office Rental (Virtual or Physical): €50–€500/month

Benefits of Starting a Company in Romania for UAE Entrepreneurs

  • 100% foreign ownership is allowed.
  • Low operational and labor costs compared to Western Europe.
  • Strategic access to the EU, Balkans, and Eastern European markets.
  • Attractive corporate tax and VAT framework.
  • Opportunity to benefit from EU funding and grants.

Challenges to Consider

While Romania is business-friendly, there are some considerations:

  • Language Barrier – Most documents are in Romanian; translation may be required.
  • Bureaucracy – Some processes still involve paperwork and physical presence.
  • Local Representative – Foreign investors may need a legal representative in Romania.

How Al Tawkel Center UAE Can Help

Setting up a company in a new country can be overwhelming. At Al Tawkel Center UAE, we make the process smooth and hassle-free by providing:

  • Company Formation Support – End-to-end guidance for SRL, SA, branch, or representative office.
  • Document Preparation & Legalization – Drafting and translating documents for Romanian authorities.
  • Bank Account Assistance – Support in opening business accounts with leading Romanian banks.
  • Tax & Compliance Advisory – Ensuring your company meets all Romanian tax obligations.
  • Ongoing Business Support – Visa, residency, accounting, and HR services.

We ensure UAE entrepreneurs can start and grow their business in Romania without unnecessary delays.

Conclusion

Romania is emerging as one of the most attractive destinations for UAE investors looking to expand into the EU. With low taxes, a skilled workforce, and access to European markets, it offers both stability and growth opportunities.

If you’re planning to setup a company in Romania from the UAE, Al Tawkel Center UAE is here to provide complete guidance—from registration to expansion.

Contact us today to start your Romanian business journey with expert support.

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