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Joint Stock Company (SA) in Romania

SA · 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

Privacy4/10
Remote Setup5/10
Banking8/10
Tax Efficiency8/10
Overall Score6/10

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

  • Large corporations planning to establish a major subsidiary or manufacturing plant in Romania.
  • Startups and scale-ups intending to raise significant venture capital or private equity.
  • Companies planning an Initial Public Offering (IPO) on the Bucharest Stock Exchange.
  • Financial institutions, insurance companies, and investment funds (which are legally required to be SAs).

Who Should Avoid This?

Scenarios where another structure may be better

  • Solo founders and small business owners (an SRL is much more suitable and cost-effective).
  • Bootstrapped startups with limited initial capital.
  • Freelancers, consultants, and digital nomads seeking a simple corporate structure.

Advantages

  • +Ideal for raising significant capital and issuing shares to the public or institutional investors.
  • +Can be listed on the Bucharest Stock Exchange (BVB) or other European financial markets.
  • +Shareholders' liability is strictly limited to their subscribed capital contributions.
  • +High credibility and prestige among banks, large corporate clients, and international partners.
  • +Allows for complex corporate governance structures suitable for large-scale operations.
  • +Shares are easily transferable compared to a Limited Liability Company (SRL).

Disadvantages

  • -High minimum share capital requirement of 90,000 RON (approximately €18,000 or $19,500).
  • -Requires at least two shareholders to incorporate and maintain the company.
  • -Complex and strict corporate governance, requiring a board of directors and statutory auditors (censors).
  • -Higher formation, legal, and ongoing maintenance costs compared to an SRL.
  • -Extensive financial reporting, auditing, and compliance obligations.

Formation Steps

1

Step 1: Choose and reserve a unique company name with the National Trade Register Office (ONRC) (1-2 days).

2

Step 2: Draft the Articles of Association (Statut) and have them notarized, detailing the complex governance structure (2-3 days).

3

Step 3: Open a temporary capital account and deposit the minimum share capital of 90,000 RON, ensuring at least 30% is paid upon registration (1-2 days).

4

Step 4: Obtain sworn statements and specimen signatures from the founders, board members, and statutory auditors (1-2 days).

5

Step 5: Secure a registered office address in Romania and provide proof of the lease or property ownership (1-2 days).

6

Step 6: Submit the complete incorporation file to the ONRC for registration and obtain the Certificate of Incorporation (3-5 days).

7

Step 7: Register for corporate tax, VAT (if applicable), and file the Ultimate Beneficial Owner (UBO) declaration (2-4 days).

8

Step 8: Convert the temporary bank account into a fully operational corporate bank account, which may require an in-person bank visit (3-7 days).

Cost Breakdown

Detailed breakdown of formation and ongoing costs

ItemTypeAmount
State filing and publication feesOne-time$150
Notary fees (Articles & Declarations)One-time$250
Legal and incorporation service feesOne-time$1,500
Registered office (Virtual office)Annual$400
Accounting and audit (estimated annual)Annual$3,600
First year total$5,900
Annual ongoing$4,000

Real-World Examples

Typical use cases for this entity type

  • OMV Petrom S.A.: The largest energy company in Southern and Eastern Europe, structured as an SA to manage massive capital and public trading.
  • Banca Transilvania S.A.: A leading Romanian bank, utilizing the SA structure as required by financial regulations and to facilitate its listing on the BVB.
  • Digi Communications (operations via RCS & RDS S.A.): A major telecommunications provider using the SA structure for its extensive infrastructure investments and corporate governance.

Common Mistakes

Pitfalls to avoid during setup and operations

  • Choosing an SA when an SRL would suffice, leading to unnecessary administrative burdens and high costs.
  • Failing to deposit the required 30% of the 90,000 RON minimum share capital before submitting the incorporation file.
  • Overlooking the mandatory requirement to appoint statutory auditors (censors) or a financial auditor.
  • Underestimating the complexity and time required to open a corporate bank account for an SA structure.
  • Not maintaining a proper registered office, which can lead to the company being declared fiscally inactive by ANAF.

Other entity types

Other formation options in Romania

Compare with Other Countries

Country / TypeTaxFormationAnnual
🇷🇴 Joint Stock Company (SA)(SA)16.0%$50$0

FAQ

What is the minimum share capital for a Romanian SA?

The minimum share capital for a Societate pe Acțiuni (SA) is 90,000 RON (approximately €18,000 or $19,500). At least 30% of the subscribed capital must be paid upon registration.

How many shareholders are required to form an SA?

A Romanian SA requires a minimum of two shareholders. They can be individuals or corporate entities of any nationality.

Can a foreigner be a director of a Romanian SA?

Yes, foreigners can be appointed to the Board of Directors. However, depending on the management structure, certain residency or local representation rules may apply for practical banking and administrative purposes.

What is the difference between an SA and an SRL in Romania?

An SRL (Limited Liability Company) is simpler, requires lower capital (500 RON in 2026), and is best for SMEs. An SA is for large enterprises, requires 90,000 RON capital, has strict auditing rules, and can issue public shares.

Do I need to travel to Romania to set up an SA?

While the company registration process can be initiated remotely via a Power of Attorney, opening a fully operational corporate bank account for an SA almost always requires the physical presence of the directors due to strict KYC regulations.

Are statutory auditors required for an SA?

Yes, an SA must appoint at least three statutory auditors (censors) and one alternate, or a financial auditor if the company is subject to mandatory statutory financial audits.

How long does it take to incorporate an SA?

Once all documents are prepared, notarized, and the capital is deposited, the ONRC typically processes the registration within 5 to 10 business days.

Can an SA benefit from the microenterprise tax regime?

Yes, if the SA meets the criteria (annual revenue under €100,000, at least one full-time employee, and specific ownership conditions), it can opt for the 1% microenterprise tax instead of the standard 16% corporate tax.

Detailed Tax Rates

Corporate Income Tax

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The standard corporate income tax rate is a flat 16%. A minimum turnover tax (IMCA) of 0.5% applies to large companies (turnover > EUR 50 million) if their calculated profit tax is lower than the minimum tax. A microenterprise regime (1% on turnover) is available for companies with revenue up to EUR 100,000 and at least one full-time employee.

Personal Income Tax (Top rate: 10.0%)

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$0No limit10.0%

Romania applies a flat 10% personal income tax rate on employment and most other personal income. However, employees are also subject to high mandatory social security contributions (35% in total).

Capital Gains Tax

16.0%

Capital gains derived by companies are generally treated as ordinary business income and taxed at the standard 16% corporate rate. A participation exemption applies if the company holds at least 10% of the shares for an uninterrupted period of at least one year.

VAT / GST

21.0%

Registration Threshold: USD65,000

Foreign businesses providing digital services to Romanian consumers must register for VAT or use the EU OSS (One-Stop Shop) scheme. The standard 21% VAT rate applies to digital services.

Withholding Tax

Dividends16.0%
Royalties16.0%
Interest16.0%

The standard withholding tax rate on dividends, interest, and royalties paid to non-residents is 16% (increased from 10% for dividends in 2026). Rates may be reduced or eliminated under EU Directives or Double Taxation Treaties.

Payroll & Social Security

Employer2.3%
Employee35.0%

Employees pay 25% for pension (CAS) and 10% for health insurance (CASS), totaling 35%. Employers pay a 2.25% labor insurance contribution (CAM).

Other Taxes

Local Property Tax

Local taxes apply to buildings and land. For buildings owned by companies, the rate varies between 0.2% and 1.3% of the taxable value, depending on the municipality and whether the building is residential or commercial.

Microenterprise Tax

A preferential 1% tax on turnover is available for companies with annual revenues up to EUR 100,000 that have at least one full-time employee.

Incentives & Support

Reinvested Profit Tax Exemption

Profits reinvested in technological equipment, computers, and software are exempt from corporate income tax.

16% tax exemption on the reinvested amount.

Eligibility: The equipment must be kept in use for at least half of its normal useful life.

R&D Tax Deduction

Additional deduction for eligible research and development expenses.

150% deduction of eligible R&D expenses.

Eligibility: Activities must be classified as applied research or technological development.

IT Salary Tax Exemption

Income tax exemption for employees engaged in software creation.

0% personal income tax (normally 10%) on gross salaries up to 10,000 RON/month.

Eligibility: Employees must hold specific IT roles and the company must generate revenue from software development.

Formation Requirements

Minimum Capital

USD 19,500

90,000 RON (approximately $19,500). At least 30% of the subscribed capital must be paid upon incorporation.

Local Director

Not Required

Foreign nationals can serve as directors without restrictions, though a local representative may be practically required for opening a corporate bank account.

Registered Office

Required

Virtual office allowed. $300 - $600 per year

Notarization Required

Yes

Power of Attorney (Remote)

Required

Required if the founders are not physically present in Romania to sign the incorporation documents before a local notary.

Timeline

Standard: 3-5 business days days

Expedited: 1-2 business days days ($150)

Required Documents

  • 1Passport copies of founders and directors
  • 2Articles of Association (Statut)
  • 3Sworn statements of founders and administratorsApostille needed
  • 4Specimen signatures of administratorsApostille needed
  • 5Proof of registered office (lease agreement or property deed)
  • 6Bank certificate confirming share capital deposit

Compliance & Reporting

Annual Filings

Annual Financial Statements

Penalty: Fines up to 4,500 RON. From 2026, failure to file within 5 months of the deadline triggers fiscal inactivity and potential dissolution.

150 days after financial year-end (typically May 30/31)

Annual Corporate Income Tax Return

Penalty: Late payment interest and penalties apply based on the amount owed.

June 25 of the following year

Ultimate Beneficial Owner (UBO) Declaration

Penalty: Fines ranging from 5,000 to 10,000 RON.

Within 15 days of any change, or annually if required

Audit Requirement

Required

An SA must appoint at least 3 statutory auditors (censors). A full financial audit is mandatory if 2 of 3 thresholds are met: assets 16M RON, turnover 32M RON, 50 employees.

Accounting Standard

Romanian Accounting Standards (OMF 1802/2014) or IFRS

Tax Return Deadline

June 25 of the following year

VAT Filing Frequency

Monthly or quarterly, depending on turnover

Data Protection

Strictly adheres to EU GDPR. Registration with the local authority (ANSPDCP) may be required for specific large-scale data processing activities.

Banking & Payments

Payment Gateways

Stripe, Netopia Payments, PayU, PayPal, 2Checkout (Verifone)

Currency

RON

Multi-Currency: Supported

Account Opening

Opening a corporate bank account for a Romanian SA as a non-resident is highly challenging and almost always requires an in-person visit due to strict KYC and AML regulations. Traditional banks demand extensive documentation, including proof of local substance and detailed business plans. Fintechs like Revolut Business or Wise offer a smoother, remote-friendly alternative, but they still require the company to be fully registered and active first.

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 aligns with EU standards for intellectual property protection, governed by the State Office for Inventions and Trademarks (OSIM). Registration processes are straightforward, and enforcement is generally reliable through specialized courts.

Double Tax Treaties

90 countries

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

Visa & Residency Options

Commercial Activities Visa (D/AC)

A long-stay visa for foreign nationals who are or will become shareholders or administrators of a Romanian company, requiring a solid business plan and a minimum investment of €100,000 or the creation of 15 jobs for an SA.

Digital Nomad Visa

Allows remote workers and entrepreneurs to live in Romania for up to a year, provided they can prove a monthly income of at least three times the Romanian gross average salary (approx. €3,300 - €3,700/month).

Guides by Business Type

Changelog

Data updates and changes on this page

Updated minimum share capital requirements, tax rates, and formation steps for Romanian SA entities for 2026.

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