Branch Office in Romania
Branch Office · Formation from $50
Last verified: June 13, 2026
Corporate Tax
16.0%
State Tax
0.0%
Formation Cost
$50
Annual Fee
$0
Comparison Scores
Privacy, remote setup, banking, and tax efficiency
Calculate full formation cost
Break down one-time filing fees and recurring costs for any supported entity type.
Who Should Choose This?
Profiles that typically benefit from this entity
- Foreign banks and insurance companies expanding into Romania.
- Companies wanting to avoid dividend withholding taxes on repatriated profits.
- Businesses executing specific, long-term projects in Romania (e.g., construction or engineering).
- Corporations that require strict, centralized control over their foreign operations.
Who Should Avoid This?
Scenarios where another structure may be better
- Companies seeking to ring-fence their liability and protect the parent company's assets.
- Founders planning to eventually sell or spin off the Romanian business unit.
- Businesses that intend to offer different products or services than their parent company.
Advantages
- +No minimum share capital required, as it relies entirely on the parent company's capital.
- +No withholding tax on profit remittances transferred to the foreign head office.
- +Easier consolidation of financial results with the parent company.
- +Leverages the established brand, credit history, and resources of the parent company.
- +Streamlined process for closing the branch compared to liquidating a separate subsidiary.
Disadvantages
- -The parent company bears full, unlimited liability for the branch's debts and obligations.
- -The branch can only conduct the exact same business activities as the parent company.
- -Heavy administrative burden for translating, notarizing, and apostilling parent company documents.
- -Cannot be sold or spun off easily, as it is not a separate legal entity.
Formation Steps
Gather and apostille the parent company's corporate documents (Articles of Association, Certificate of Good Standing, recent financials).
Translate all foreign corporate documents into Romanian through a certified translator and notarize them.
Draft the parent company's board resolution officially deciding to establish the Romanian branch.
Secure a registered office address in Romania via a commercial lease or virtual office agreement.
Appoint a branch manager (authorized representative) and obtain their notarized signature specimen.
Submit the complete registration file to the Romanian Trade Register (ONRC).
Register for corporate tax and VAT with ANAF, and open a local corporate bank account.
Cost Breakdown
Detailed breakdown of formation and ongoing costs
| Item | Type | Amount |
|---|---|---|
| State filing fee (Trade Register) | One-time | $90 |
| Translation and Notarization of parent docs | One-time | $400 |
| Registered office (Virtual office) | Annual | $500 |
| Legal/Agency fees for branch registration | One-time | $800 |
| Local accounting & tax compliance | Annual | $1,200 |
| First year total | $2,990 | |
| Annual ongoing | $1,700 | |
Real-World Examples
Typical use cases for this entity type
- Foreign commercial banks (e.g., ING Bank) operating in Romania through a branch structure to leverage the parent bank's capital.
- International construction firms setting up a branch to manage a multi-year infrastructure project in Romania.
- Global IT consulting companies establishing a local branch to hire Romanian developers under the parent company's direct brand.
Common Mistakes
Pitfalls to avoid during setup and operations
- Assuming the branch offers limited liability protection to the parent company.
- Underestimating the time and cost required to translate and apostille all parent company documents.
- Attempting to register NACE codes (business activities) that are not present in the parent company's articles.
- Failing to maintain separate, compliant local accounting records for the branch.
- Not accounting for local transfer pricing rules when dealing with the head office.
Other entity types
Other formation options in Romania
Limited Liability Company (SRL)
- Tax
- 16.0%
- Formation
- $30
Joint Stock Company (SA)
- Tax
- 16.0%
- Formation
- $50
PFA (Sole Proprietorship)
- Tax
- 10.0%
- Formation
- $50
Representative Office
- Tax
- 0.0%
- Formation
- $1,200
General Partnership (SNC)
- Tax
- 16.0%
- Formation
- $50
Limited Partnership (SCS)
- Tax
- 16.0%
- Formation
- $35
Partnership Limited by Shares (SCA)
- Tax
- 16.0%
- Formation
- $100
Compare with Other Countries
| Country / Type | Tax | Formation | Annual |
|---|---|---|---|
| 🇷🇴 Branch Office(Branch Office) | 16.0% | $50 | $0 |
FAQ
Is a Romanian branch a separate legal entity?
No, a branch is an extension of the parent company and does not have its own legal personality.
What is the corporate tax rate for a branch in Romania?
Branches are subject to the standard Romanian corporate income tax rate of 16% on profits generated in Romania.
Do I need to deposit share capital to open a branch?
No, a branch does not require its own share capital as it operates under the parent company's capital.
Can a branch engage in different business activities than the parent company?
No, a branch is strictly limited to the business activities (NACE codes) already authorized for the parent company.
Are there withholding taxes when transferring branch profits to the head office?
No, unlike dividends paid by a subsidiary, profit remittances from a branch to its head office are not subject to withholding tax.
Can the branch registration process be done remotely?
Yes, it can be done remotely using a Power of Attorney, though opening a local bank account may require a physical visit depending on the bank.
What is the main difference between a branch and a subsidiary in Romania?
A subsidiary has limited liability and is a separate legal entity, whereas a branch exposes the parent company to full liability for its debts.
Does a branch need to file annual financial statements in Romania?
Yes, branches must keep local accounting records and file financial statements with the Romanian tax authorities.
Detailed Tax Rates
Corporate Income Tax
| From | To | Rate |
|---|
Romania applies a standard flat corporate income tax rate of 16%. A microenterprise regime with a 1% turnover tax is available for companies with revenues under €100,000 and at least one employee, though branches may not always qualify.
Personal Income Tax (Top rate: 10.0%)
| From | To | Rate |
|---|---|---|
| $0 | No limit | 10.0% |
Romania has a flat personal income tax rate of 10% on employment income. High social security contributions apply on top of this rate.
Capital Gains Tax
16.0%
Capital gains derived by companies are generally treated as ordinary business income and taxed at the standard corporate rate of 16%.
VAT / GST
19.0%
Registration Threshold: RON300,000
Non-resident providers of digital services to Romanian consumers must register for VAT under the EU OSS scheme or locally.
Withholding Tax
Standard WHT is 16% for dividends, interest, and royalties paid to non-residents. Rates may be reduced or eliminated under EU Directives or Double Taxation Treaties.
Payroll & Social Security
Employees pay 25% for pension (CAS) and 10% for health insurance (CASS). Employers pay a 2.25% labor insurance contribution (CAM).
Other Taxes
Minimum Turnover Tax (IMCA)
A minimum turnover tax of 1% applies to large companies with an annual turnover exceeding EUR 50 million if their calculated corporate tax is lower than the minimum tax.
Local Property Tax
Municipalities levy annual taxes on buildings and land, with rates varying based on location, use (residential vs. commercial), and the taxpayer's status.
Incentives & Support
Reinvested Profit Tax Exemption
Corporate tax exemption on profits reinvested in new technological equipment, computers, and software.
16% corporate tax exemption on the reinvested amount.
Eligibility: The equipment must be kept for at least half of its useful life (max 5 years).
IT Salary Tax Exemption
Income tax exemption for employees working in software creation and development.
0% personal income tax (instead of 10%) on gross monthly salaries up to RON 10,000.
Eligibility: Employees must hold specific IT job titles and the company must generate revenue from software development.
R&D Tax Deduction
Additional deduction for eligible research and development expenses.
50% additional deduction of eligible R&D expenses for corporate tax purposes.
Eligibility: Activities must be applied research or technological development.
Formation Requirements
Minimum Capital
No requirement
A branch does not require its own share capital as it operates under the parent company's capital.
Local Director
Not Required
A branch manager (authorized representative) must be appointed, but they can be a foreign national.
Registered Office
Required
Virtual office allowed. $300 - $800 per year
Notarization Required
Yes
Power of Attorney (Remote)
Required
Required if the branch manager or founders are not physically present in Romania to submit the documents.
Timeline
Standard: 7-14 days days
Expedited: 3-5 days days ($200)
Required Documents
- 1Parent company's Articles of AssociationApostille needed
- 2Certificate of Good Standing / IncorporationApostille needed
- 3Board Resolution to establish the branchApostille needed
- 4Parent company's recent financial statements
- 5Power of Attorney for the representativeApostille needed
- 6Notarized signature specimen of the branch managerApostille needed
Compliance & Reporting
Annual Filings
Annual Financial Statements
Penalty: Fines between RON 2,000 and RON 5,000, and risk of being declared fiscally inactive.
Corporate Income Tax Return (Form 101)
Penalty: Late payment interest of 0.02% per day and penalties of 0.01% per day.
Audit Requirement
Required
Required if the parent company is audited, or if the branch exceeds certain size thresholds (turnover, assets, employees).
Accounting Standard
Romanian GAAP (OMFP 1802/2014) or IFRS
Tax Return Deadline
June 25 of the following year
VAT Filing Frequency
Monthly (if turnover > EUR 100,000 or intra-community acquisitions) or Quarterly
Data Protection
Must comply with the EU General Data Protection Regulation (GDPR).
Banking & Payments
Banca Transilvania
The largest bank in Romania, offering comprehensive corporate banking services, though physical presence is usually required for account opening.
ING Bank Romania
Highly popular among businesses for its excellent digital banking platform (ING Business) and modern infrastructure.
Revolut Business
Remote-friendlyA leading fintech offering multi-currency accounts with local RON details, ideal for remote founders and international transactions.
Wise Business
Remote-friendlyExcellent for managing cross-border payments with low conversion fees, fully supporting Romanian entities remotely.
Payment Gateways
Stripe, PayPal, Netopia Payments, PayU, 2Checkout
Currency
RON
Multi-Currency: Supported
Account Opening
Opening a traditional bank account for a branch in Romania can be challenging and usually requires the branch manager to visit the bank in person. Extensive KYC documentation regarding the foreign parent company must be translated and apostilled. However, fintech solutions like Wise or Revolut Business offer smoother, fully remote onboarding processes.
Practical Information
Timezone
UTC+2 (EET) / UTC+3 (EEST)
Business Language
Romanian (official), English (widely used in business)
Legal System
Civil law
Ease of Doing Business
#55
IP Protection
Romania complies with EU directives and international treaties (WIPO, TRIPS). Trademarks and patents are registered through the State Office for Inventions and Trademarks (OSIM), offering robust protection.
Double Tax Treaties
90 countries
Notable treaties: United States, United Kingdom, Germany, France, Turkey, China, Netherlands
Visa & Residency Options
Digital Nomad Visa
Allows non-EU remote workers to live in Romania for up to 12 months, provided they earn at least three times the Romanian gross average salary.
Commercial Activities Visa (D/AC)
A long-stay visa for foreign nationals who are shareholders or administrators of a Romanian company, requiring a solid business plan and minimum investment.
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Changelog
Data updates and changes on this page
Updated branch office formation steps, costs, and tax implications for 2026.
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