PFA (Sole Proprietorship) in Romania — HR & Recruitment Agency Formation Guide
Consider jurisdictions with clear labor leasing laws and favorable payroll tax structures if you plan to act as an Employer of Record (EOR). Data privacy compliance (like GDPR) is critical when handling candidate data.
Last verified: June 13, 2026
Corporate Tax
10.0%
State Tax
0.0%
Formation Cost
$50
Annual Fee
$0
Forming a PFA (Sole Proprietorship) in Romania as a HR & Recruitment Agency means a total tax burden of 10.0% and an official formation cost of $50. There is no minimum capital requirement. Standard formation takes 3-4 business days, or 1-2 business 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
≈ $360
Ongoing (per year)
≈ $350
Why PFA (Sole Proprietorship) for HR & Recruitment Agency?
A business model focused on sourcing, vetting, and placing candidates for client companies, or providing comprehensive human resources and payroll management services.
Ideal for
- Headhunters and executive search consultants
- Employer of Record (EOR) startups
- Freelance recruiters
- Global payroll providers
Challenges to watch
- Strict data protection and privacy regulations (GDPR, CCPA)
- Complex cross-border employment and tax laws
- High liability risks regarding employee misclassification
- Licensing requirements for temporary work agencies in many countries
Key decision criteria
- Does the jurisdiction require a specific license to operate a recruitment or staffing agency?
- Are there favorable tax treaties to prevent double taxation for cross-border placements?
- How strict are the local labor laws regarding temporary staffing and contractor classification?
PFA (Sole Proprietorship) formation requirements
Minimum capital
None
Standard timeline
3-4 business days
Expedited timeline
1-2 business days
Local director
Not required
Registered office
Virtual office allowed
Notarization
Required
The founder acts as the sole proprietor (authorized individual) and must have the legal right to reside and work in Romania.
Estimated breakdown (based on avg. $250,000 revenue)
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 charge 21% VAT, typically registering via the EU OSS scheme.
Banking & payments for HR & Recruitment Agency
Opening a traditional bank account for a PFA requires a Romanian Personal Identification Number (CNP) and usually an in-person visit to a local branch. However, since a PFA founder must already have legal residency to register the entity, local banking is straightforward once the CNP is obtained. For faster, remote setups, fintechs like Revolut Business and Wise are widely used.
Supported payment gateways
Remote-friendly accounts
Revolut Business
Highly recommended for PFAs dealing with international clients. Fully remote opening and excellent multi-currency support.
Wise
Ideal for receiving payments in multiple currencies with low conversion fees. Easy online setup for Romanian PFAs.
Romania incentives & advantages
Start-Up Nation Romania
Up to 250,000 RON (approx. 50,000 EUR) covering up to 90% of eligible project expenses.
Early Payment Tax Discount
Typically a 3% to 10% discount on the total tax amount owed, depending on the annual ANAF ordinance.
PFA (Sole Proprietorship) formation steps
Obtain proof of education or professional qualification (diplomas, certificates) matching your desired CAEN codes.
Secure a registered office (headquarters) in Romania, which can be a rented apartment, owned property, or a virtual office.
Reserve your business name at the National Trade Register Office (ONRC).
Prepare the registration file, including your ID, proof of address, qualifications, and standard ONRC forms.
Submit the application to the local Trade Register either in person or via the online portal.
Receive the Registration Certificate (CUI) within 3 to 4 working days upon approval.
Register with the tax authority (ANAF) and set up the Virtual Private Space (SPV) to comply with the mandatory RO e-Factura system.
HR & Recruitment Agency FAQ
Do I need a special license to start a recruitment agency?
It depends on the jurisdiction and your exact model. Executive search often requires no license, but temporary staffing or acting as an Employer of Record (EOR) usually requires strict licensing and capital deposits.
Which country is best for a global HR agency?
Countries with strong B2B service sectors, clear employment laws, and extensive double tax treaty networks, such as the UK, Singapore, or Estonia, are popular choices for global HR operations.
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Related terms
Key concepts you'll encounter when forming a HR & Recruitment Agency
Related guides
Complete PFA (Sole Proprietorship) guide
Taxes, requirements, banking, compliance
PFA (Sole Proprietorship) cost calculator
One-time and annual cost breakdown
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