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Representative OfficeDigital Products Seller

Representative Office in Romania — Digital Products Seller Formation Guide

Focus on jurisdictions that support global payment processors. If selling to EU customers, consider how the jurisdiction handles VAT OSS (One Stop Shop). US LLCs are popular for accessing Stripe, while UK or Estonian companies offer great European integration.

Last verified: June 13, 2026

Corporate Tax

0.0%

State Tax

0.0%

Formation Cost

$1,200

Annual Fee

$1,200

Forming a Representative Office in Romania as a Digital Products Seller means a total tax burden of 0.0% and an official formation cost of $1,200. There is no minimum capital requirement. Standard formation takes 30-45 days, or 30 days expedited. No local director is required; the process can be managed remotely. This guide covers the steps, tax breakdown, banking options, and compliance requirements — all from verified data.

First-year total cost

$7,200

Ongoing (per year)

$6,800

Detailed cost calculator →

Why Representative Office for Digital Products Seller?

Entrepreneurs selling non-physical goods such as software, e-books, online courses, templates, and digital art. This business model requires a jurisdiction with excellent payment gateway access (like Stripe or PayPal) and clear rules on digital VAT/Sales Tax.

Ideal for

  • E-book authors
  • Online course creators
  • Software and SaaS developers
  • Digital template designers

Challenges to watch

  • Managing global VAT and sales tax compliance
  • High chargeback rates for digital goods
  • Intellectual property protection across borders

Key decision criteria

  • Access to Stripe, PayPal, and other major payment gateways
  • Tax treaties to avoid double taxation on royalties
  • Ease of remote company management and banking

Representative Office formation requirements

Minimum capital

None

Standard timeline

30-45 days

Expedited timeline

30 days

Local director

Not required

Registered office

Virtual office allowed

Notarization

Required

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

See the full guide for all documents and requirements →

Estimated breakdown (based on avg. $60,000 revenue)

Gross Revenue$60,000
Corporate Tax-$0
Formation Cost-$1,200
Annual Fee-$1,200
Net Profit$57,600

Simulate with your own revenue →

VAT / Sales Tax

Standard rate 21%. Registration threshold: 395,000 RON. 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.

Banking & payments for Digital Products Seller

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.

Supported payment gateways

StripePayPalNetopia PaymentsPayU

Remote-friendly accounts

  • Wise

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

Representative Office formation steps

1

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

2

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

3

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

4

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

5

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

6

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

7

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

8

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

9

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

Digital Products Seller FAQ

Do I need to charge VAT on digital products?

Yes, in many jurisdictions like the EU, UK, and parts of the US, you must collect VAT or sales tax based on the customer's location, regardless of where your company is incorporated.

Which country is best for a digital product business?

The US (Wyoming or Delaware LLC) is excellent for Stripe access and low maintenance. Estonia (OÜ) is ideal if you want to keep profits in the company tax-free and need EU market access.

Can I run this business as a digital nomad?

Absolutely. Digital product businesses are location-independent. However, ensure your chosen corporate structure doesn't trigger tax residency issues in the country you are temporarily living in.

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