Representative Office in Romania

Representative Office · Formation from $1,200

Last verified: June 13, 2026

Corporate Tax

0.0%

State Tax

0.0%

Formation Cost

$1,200

Annual Fee

$1,200

Comparison Scores

Privacy, remote setup, banking, and tax efficiency

Privacy4/10

Remote Setup7/10

Banking6/10

Tax Efficiency3/10

Overall Score5/10

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 companies wanting to conduct market research before expanding into Eastern Europe.
Businesses needing a local liaison to manage relationships with Romanian suppliers or distributors.
Companies looking to promote their brand and products without direct local sales.
Organizations needing a local presence to support customer service or technical support (non-revenue generating).

Who Should Avoid This?

Scenarios where another structure may be better

Startups or companies intending to sell products or services directly to Romanian customers.
Businesses looking for a low-cost entity (the 18,000 RON flat tax + $1,200 license fee makes it expensive for zero revenue).
Companies seeking limited liability protection for their local operations.

Advantages

+Excellent way to test the Romanian market without committing to a full subsidiary.
+No minimum share capital required since it is not a separate legal entity.
+Simple flat tax structure (18,000 RON/year) instead of complex corporate income tax calculations.
+Can hire local employees and sponsor work visas for foreign staff.
+Parent company retains full control over the office's activities and strategy.
+Easier and faster to close down compared to a limited liability company (SRL).

Disadvantages

-Strictly prohibited from engaging in commercial (revenue-generating) activities.
-Parent company bears full, unlimited liability for the representative office's actions and debts.
-High annual flat tax (18,000 RON) must be paid even though the office generates no income.
-Requires an annual license fee to the Ministry of Economy (equivalent to approx. $1,200).
-Cannot issue invoices, sign commercial contracts for local sales, or hold local assets independently.

Formation Steps

Prepare the parent company's corporate documents (Certificate of Incorporation, Articles of Association).

Obtain a bank letter of good standing from the parent company's bank.

Draft and notarize a Power of Attorney (POA) for the local representative in Romania.

Translate all foreign documents into Romanian and have them notarized and apostilled.

Secure a registered office address in Romania (via a tenancy or virtual office agreement).

Submit the application file to the Ministry of Economy, Entrepreneurship and Tourism (MEAT) to obtain the operating authorization (issued within 30 days).

Register the representative office with the National Agency for Fiscal Administration (ANAF) within 15 days of receiving the authorization.

Pay the annual flat tax of 18,000 RON to the Romanian tax authorities.

Open a local bank account to manage administrative and payroll expenses.

Cost Breakdown

Detailed breakdown of formation and ongoing costs

Item	Type	Amount
Ministry of Economy License Fee	Annual	$1,200
Annual Flat Tax (18,000 RON)	Annual	$4,000
Registered Office Address	Annual	$600
Document Translation & Notarization	One-time	$400
Local Representative / Agency Fees	Annual	$1,000
First year total		$7,200
Annual ongoing		$6,800

Real-World Examples

Typical use cases for this entity type

A German automotive manufacturer opening an office in Bucharest to liaise with local parts suppliers and conduct quality control.
A US software company setting up a representative office to research the Eastern European market and promote its brand before launching a full subsidiary.
A Japanese electronics firm using a representative office to provide non-commercial technical support and warranty coordination for its regional distributors.

Common Mistakes

Pitfalls to avoid during setup and operations

Engaging in commercial activities and issuing invoices, which violates the legal status and triggers severe tax penalties.
Failing to register with the tax authorities (ANAF) within 15 days of receiving the Ministry authorization.
Not budgeting for the annual 18,000 RON flat tax and the Ministry of Economy license fee.
Assuming the representative office provides limited liability protection to the parent company.
Neglecting local employment laws when hiring staff (REVISAL registration is still required).

Other entity types

Other formation options in Romania

Limited Liability Company (SRL)

Primary

Tax: 16.0%
Formation: $30

Joint Stock Company (SA)

Tax: 16.0%
Formation: $50

PFA (Sole Proprietorship)

Tax: 10.0%
Formation: $50

Branch Office

Tax: 16.0%
Formation: $50

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
🇷🇴 Representative Office(Representative Office)	0.0%	$1,200	$1,200

🇷🇴 vs 🇺🇸 United States 🇷🇴 vs 🇪🇪 Estonia 🇷🇴 vs 🇬🇧 United Kingdom 🇷🇴 vs 🇮🇪 Ireland All comparisons →

FAQ

Can a representative office in Romania issue invoices?

No, it is strictly prohibited from engaging in commercial activities and cannot issue invoices or generate revenue.

What is the tax rate for a representative office?

It does not pay corporate income tax. Instead, it pays a flat annual tax of 18,000 RON (approx. €4,000).

Do I need to travel to Romania to open the office?

No, you can appoint a local representative via a notarized and apostilled Power of Attorney to handle the registration process remotely.

Can a representative office hire local employees?

Yes, it can hire Romanian or foreign employees, but it must comply with local labor laws and register employment contracts in the REVISAL system.

How long does it take to set up?

The Ministry of Economy issues the authorization within 30 days of submitting the complete file, followed by tax registration which takes a few additional days.

Is a minimum share capital required?

No, because a representative office is not a separate legal entity, there is no minimum share capital requirement.

What happens if the office engages in commercial activities?

It will be reclassified as a permanent establishment, subjected to standard corporate taxes, and face severe financial penalties.

Does the parent company have limited liability?

No, the parent company bears full and unlimited liability for all debts and obligations incurred by the representative office.

Detailed Tax Rates

Corporate Income Tax

From	To	Rate

The standard corporate income tax rate is 16%. However, a Representative Office in Romania is not subject to standard CIT as it cannot engage in commercial activities; instead, it pays a flat annual tax of 18,000 RON (approx. 4,000 EUR).

Personal Income Tax (Top rate: 10.0%)

From	To	Rate
$0	No limit	10.0%

Romania applies a flat personal income tax rate of 10% on most types of income, including employment and self-employment income.

Capital Gains Tax

16.0%

Starting January 1, 2026, the capital gains tax rate for individuals and companies increased to 16% (previously 10%).

VAT / GST

21.0%

Registration Threshold: RON395,000

Non-resident providers of digital services to Romanian consumers must register for VAT or use the OSS scheme. The standard VAT rate increased to 21% in August 2025.

Withholding Tax

Dividends16.0%

Royalties16.0%

Interest16.0%

Withholding tax rates are 16% starting in 2026, but may be reduced or eliminated under applicable double taxation treaties or EU directives (e.g., Parent-Subsidiary Directive).

Payroll & Social Security

Employer2.3%

Employee35.0%

Employees pay 25% for pension (CAS) and 10% for health insurance (CASS). Employers pay a 2.25% work insurance contribution (CAM).

Other Taxes

Representative Office Flat Tax

Foreign companies operating a representative office in Romania must pay a flat annual tax of 18,000 RON.

Microenterprise Tax

Companies with revenues up to €100,000 and at least one employee may qualify for a 1% turnover tax instead of the standard 16% CIT.

Formation Requirements

Minimum Capital

No requirement

A representative office is not a separate legal entity and does not require any minimum share capital.

Local Director

Not Required

A local representative must be appointed via a notarized and apostilled Power of Attorney to manage the office.

Registered Office

Required

Virtual office allowed. $500 - $1,200 per year

Notarization Required

Yes

Power of Attorney (Remote)

Required

Required to authorize a local agent to submit the application to the Ministry of Economy and register with the tax authorities (ANAF).

Timeline

Standard: 30-45 days days

Expedited: 30 days days ($0)

Required Documents

1Parent company's Certificate of Incorporation (Trade Register Extract)Apostille needed
2Parent company's Articles of AssociationApostille needed
3Bank letter of good standing for the parent company
4Power of Attorney for the local representativeApostille needed
5Proof of registered office address in Romania

Compliance & Reporting

Annual Filings

Annual Flat Tax Return (Form 100)

Penalty: Late payment interest and penalties applied by ANAF.

Last day of February

Ministry of Economy License Renewal

Penalty: Revocation of the representative office operating authorization.

Annually

Audit Requirement

Not Required

Not applicable, as representative offices do not engage in commercial activities.

Accounting Standard

Single-entry bookkeeping (for local expenses)

Tax Return Deadline

Last day of February of the current tax year (anticipated payment).

VAT Filing Frequency

N/A

Data Protection

Must comply with EU GDPR regulations regarding the personal data of local employees and business contacts.

Banking & Payments

Banca Transilvania

The largest bank in Romania, offering comprehensive corporate banking services, though in-person visits or a local representative are typically required.

BCR (Banca Comercială Română)

A major traditional bank part of the Erste Group, known for strong corporate banking packages and an extensive local branch network.

ING Bank Romania

Highly rated for its digital banking platform and services tailored to foreign companies and multinationals operating in Romania.

Wise

Remote-friendly

A popular fintech alternative for multi-currency accounts, allowing remote setup for managing the administrative expenses of the representative office.

Payment Gateways

Stripe, PayPal, Netopia Payments, PayU

Currency

RON

Multi-Currency: Supported

Account Opening

Opening a bank account for a representative office can be challenging for non-residents due to strict KYC and AML regulations. Founders usually need to visit a local branch in person or appoint a local representative with a notarized Power of Attorney to complete the process. Note that since representative offices cannot generate revenue, these accounts are strictly for funding local administrative and payroll expenses.

Practical Information

Timezone

UTC+2 to UTC+3

Business Language

Romanian, English

Legal System

Civil law

Ease of Doing Business

#55

IP Protection

Romania adheres to EU intellectual property standards, providing strong legal protection for trademarks, patents, and copyrights through the State Office for Inventions and Trademarks (OSIM).

Double Tax Treaties

90 countries

Notable treaties: United States, United Kingdom, Germany, France, China, United Arab Emirates

Visa & Residency Options

Long-Stay Business Visa (D/AC)

Allows foreign investors who act as shareholders or administrators in a Romanian company to reside in the country, provided they meet minimum investment and job creation thresholds.

Digital Nomad Visa

Permits remote workers and freelancers employed by non-Romanian companies to live in Romania for up to 12 months, renewable if specific income requirements are met.