General Partnership (SNC) in Romania

General Partnership · Formation from $50

Last verified: June 13, 2026

Corporate Tax

16.0%

State Tax

0.0%

Formation Cost

$50

Annual Fee

Comparison Scores

Privacy, remote setup, banking, and tax efficiency

Privacy4/10

Remote Setup6/10

Banking7/10

Tax Efficiency7/10

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

Family-owned businesses looking for a formal, recognized legal structure.
Professional associations where partners have a high degree of mutual trust.
Small-scale joint ventures between existing companies pooling resources for a specific project.
Founders who wish to contribute labor or specialized skills rather than financial capital.

Who Should Avoid This?

Scenarios where another structure may be better

High-risk businesses or industries prone to litigation, due to unlimited personal liability.
Startups seeking venture capital, angel investment, or external funding.
Solo entrepreneurs, as the structure legally requires at least two partners.

Advantages

+No minimum share capital requirement (0 RON) to establish the partnership.
+Highly flexible management and operational structure agreed upon directly by the partners.
+Partners can contribute with labor, industry knowledge, or services instead of just financial capital.
+Ideal for family-owned businesses or close-knit professional associations where trust is high.
+Can be formed by both natural persons and legal entities (corporate partners).

Disadvantages

-All partners have unlimited and joint liability for the partnership's debts and obligations.
-Transferring partnership interests to third parties is difficult and typically requires unanimous consent.
-The death or withdrawal of a partner can trigger the dissolution of the partnership unless the articles state otherwise.
-Highly unattractive to outside investors (angel investors or VCs) due to the unlimited liability risk.
-Requires a minimum of two partners at all times; cannot be operated as a solo venture.

Formation Steps

Step 1: Choose and reserve a unique partnership name with the Romanian National Trade Register Office (ONRC).

Step 2: Draft the Articles of Association (Constitutive Act) detailing partner contributions, profit-sharing ratios, and management rules.

Step 3: Obtain notarized specimen signatures for the partners who will act as the administrators of the SNC.

Step 4: Secure a registered office address in Romania through a lease agreement or a commodatum (free use) contract.

Step 5: Submit the complete incorporation file, including identity documents and the Constitutive Act, to the ONRC.

Step 6: Register for taxation (Corporate Income Tax or Microenterprise Tax) and apply for a VAT number if applicable.

Step 7: Open a corporate bank account in Romania to manage the partnership's financial operations.

Cost Breakdown

Detailed breakdown of formation and ongoing costs

Item	Type	Amount
State filing fee (ONRC)	One-time	$50
Notary and translation fees	One-time	$150
Registered office address (1 year)	Annual	$300
Accounting and tax setup	One-time	$100
Ongoing accounting services (estimated annual)	Annual	$1,200
First year total		$1,800
Annual ongoing		$1,500

Real-World Examples

Typical use cases for this entity type

A local family-run bakery or craft workshop where all family members are actively involved in daily operations and management.
A small consulting or accounting firm formed by two trusted colleagues who want a simple, flexible partnership structure.
A joint venture between two local construction firms that pool their equipment and labor for a specific regional infrastructure project.

Common Mistakes

Pitfalls to avoid during setup and operations

Failing to clearly define profit and loss sharing ratios in the Articles of Association.
Underestimating the severe financial risk of unlimited and joint liability for business debts.
Not including clear provisions for the death, withdrawal, or expulsion of a partner, leading to forced dissolution.
Mixing personal and business finances, which complicates accounting and exacerbates liability issues.
Choosing an SNC when a Limited Liability Company (SRL) would offer the same tax benefits with liability protection.

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

Representative Office

Tax: 0.0%
Formation: $1,200

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
🇷🇴 General Partnership (SNC)(General Partnership)	16.0%	$50	$0

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

FAQ

What is the minimum share capital for a Romanian SNC?

There is no minimum share capital required by law to form a Societate în Nume Colectiv (SNC) in Romania.

Are partners personally liable for the debts of an SNC?

Yes, all partners in an SNC have unlimited and joint liability. This means personal assets can be used to settle business debts if the partnership cannot pay them.

Can a foreign citizen be a partner in a Romanian SNC?

Yes, foreign individuals and foreign corporate entities can be partners in a Romanian SNC without any residency restrictions.

How is an SNC taxed in Romania?

An SNC is a legal entity and is subject to the standard 16% corporate income tax. If it meets the criteria (revenue under €100,000 and at least one employee), it can opt for the 1% microenterprise tax regime.

Can an SNC be converted into an SRL (Limited Liability Company) later?

Yes, Romanian company law allows an SNC to be transformed into an SRL or SA through a formal legal process and an amendment to the Articles of Association.

Do I need to visit Romania to form an SNC?

The formation process can largely be done remotely using a Power of Attorney for legal representatives. However, opening a corporate bank account may require an in-person visit depending on the bank's KYC policies.

How many partners are required to form an SNC?

A minimum of two partners is required to establish and maintain a General Partnership (SNC) in Romania.

Can a partner contribute services instead of cash?

Yes, in an SNC, partners can contribute industry knowledge, labor, or services, which will be valued and stipulated in the Articles of Association.

Detailed Tax Rates

Corporate Income Tax

From	To	Rate

The standard corporate income tax rate is a flat 16%. A special microenterprise tax regime of 1% on turnover applies to companies with annual revenues up to €100,000 and at least one full-time employee.

Personal Income Tax (Top rate: 10.0%)

From	To	Rate
$0	No limit	10.0%

Romania applies a flat 10% personal income tax rate on most types of income, including employment and self-employment income. Dividends are taxed at 16%.

Capital Gains Tax

16.0%

Capital gains derived by companies are included in ordinary profit and taxed at the standard 16% corporate rate. For individuals, capital gains are generally taxed at 10%, though certain financial instruments and dividends are taxed at 16%.

VAT / GST

21.0%

Registration Threshold: RON395,000

Non-resident providers of digital services to Romanian consumers must register for and charge VAT at the standard 21% rate, typically via the EU OSS scheme.

Withholding Tax

Dividends16.0%

Royalties16.0%

Interest16.0%

The standard withholding tax rate is 16% for dividends, interest, and royalties paid to non-residents. This can be reduced to 0% under the EU Parent-Subsidiary and Interest & Royalties Directives, or lowered by applicable double tax treaties.

Payroll & Social Security

Employer2.3%

Employee35.0%

Employees bear the majority of social contributions, paying 25% for pension (CAS) and 10% for health insurance (CASS). Employers pay a 2.25% work insurance contribution (CAM).

Other Taxes

Specific Building Tax

A local property tax is levied on buildings, with rates varying depending on whether the building is residential or non-residential, and its location.

Microenterprise Tax

Qualifying companies with revenues up to €100,000 and at least one employee can opt for a 1% tax on turnover instead of the 16% corporate profit tax.

Incentives & Support

R&D Tax Incentives

Companies can opt for an additional 50% deduction of eligible R&D expenses, or a new 10% refundable tax credit introduced in 2026.

50% extra deduction on R&D costs or a 10% tax credit deducted directly from corporate income tax.

Eligibility: Must perform eligible applicative research and/or technological development activities in Romania.

Tax Exemption for Reinvested Profit

Profit reinvested in technological equipment, computers, software, and cash registers is exempt from corporate income tax.

16% corporate tax exemption on the reinvested amount.

Eligibility: The equipment must be new, used for business purposes, and kept for at least half of its useful economic life.

Formation Requirements

Minimum Capital

No requirement

There is no minimum share capital required by law for a General Partnership (SNC) in Romania.

Local Director

Not Required

Foreign citizens and corporate entities can act as administrators without residency requirements.

Registered Office

Required

Virtual office allowed. $150 - $300 per year

Notarization Required

Yes

Power of Attorney (Remote)

Required

A notarized and apostilled Power of Attorney is required for a local representative to submit the incorporation file to the ONRC on your behalf.

Timeline

Standard: 3-5 business days days

Expedited: 1-2 business days days ($100)

Required Documents

1Passport copies of all partners
2Notarized specimen signature of the administratorApostille needed
3Articles of Association (Constitutive Act)
4Proof of registered office (lease or commodatum agreement)
5Power of Attorney (if forming remotely)Apostille needed

Compliance & Reporting

Annual Filings

Annual Financial Statements

Penalty: Fines between RON 2,000 and RON 5,000. Starting in 2026, a delay of 5 months leads to the company being declared fiscally inactive.

May 31 of the following year

Corporate Income Tax Return (Form D101)

Penalty: Late filing penalties and daily interest charges on the outstanding tax amount.

June 25 of the following year

Audit Requirement

Not Required

Statutory audit is only required if the company exceeds two of three thresholds for two consecutive years: Total assets > €4M, Net turnover > €8M, Average employees > 50.

Accounting Standard

Romanian GAAP (OMFP 1802/2014)

Tax Return Deadline

June 25 of the following year

VAT Filing Frequency

Monthly or quarterly, depending on annual turnover

Data Protection

Must comply with the EU General Data Protection Regulation (GDPR).

Banking & Payments

Wise

Remote-friendly

Highly recommended for non-resident founders needing quick access to RON and EUR accounts with low FX fees.

Revolut Business

Remote-friendly

Offers seamless multi-currency corporate accounts and corporate cards, fully supporting Romanian entities.

Banca Transilvania

The largest bank in Romania, offering excellent local merchant services, but requires an in-person visit to open an account.

ING Bank Romania

Popular among tech startups for its robust digital banking platform, though strict KYC rules apply for foreign directors.

Payment Gateways

Stripe, PayPal, PayU, EuPlatesc, 2Checkout

Currency

RON

Multi-Currency: Supported

Account Opening

Opening a traditional bank account in Romania usually requires an in-person visit by the company administrator and solid proof of local economic substance. However, non-resident founders can easily use digital platforms like Wise or Revolut Business to open multi-currency accounts remotely.

Practical Information

Timezone

UTC+2 (EET) to UTC+3 (EEST)

Business Language

Romanian (official), English (widely used in business)

Legal System

Civil law

Ease of Doing Business

#55

IP Protection

Romania is a member of the EU, WIPO, and the EPO, offering robust intellectual property protection aligned with European standards. Trademarks and patents are registered through the State Office for Inventions and Trademarks (OSIM).

Double Tax Treaties

90 countries

Notable treaties: United Kingdom, Germany, United States, France, Netherlands, Turkey

Visa & Residency Options

Commercial Activities Visa (D/AC)

A long-stay visa for foreign nationals acting as shareholders or administrators in a Romanian company, requiring a business plan endorsement and a minimum investment (typically €50,000).

Digital Nomad Visa

Allows non-EU remote workers and founders of foreign companies to live in Romania for up to a year, provided they earn at least three times the Romanian gross average salary.