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RoRomania Subsidiary.






Country Capital



Romanian leu (RON)

One way to grow your business in Romania is to set up a subsidiary. Without going through the Romania subsidiary setup process, you will not be able to hire employees, run payroll, or legally conduct business in the country. However, this vital process can take months to complete, thus delaying operations and potentially risking valuable talent.

Instead, partnering with an Employer of Record like G-P can be an effective alternative to establishing a Romania subsidiary. Our worldwide entity infrastructure allows companies to start hiring anywhere in minutes, swiftly and compliantly. However, if you have a lasting commitment to Romania, here’s the essential information you need regarding the subsidiary setup process.

How to set up a Romania subsidiary

If you decide to set up a Romania subsidiary on your own, you’ll need to consider several factors that could impact your operations. You must look at any existing trade relationships and examine the industry you want to break into. These considerations could influence where you base your headquarters in Romania.

Separate regions or cities in the country can have different laws. Try to set up your Romania subsidiary in a location that is best for your industry and is friendly to international businesses.

One of the most common subsidiary structures is a limited liability company or Societate cu Răspundere Limitată (SRL). The steps to set up an SRL include:

  • Obtaining RON 200 of minimum share capital
  • Obtaining a certificate of good standing of the parent company
  • Completing a Memorandum and Articles of Association of the parent company
  • Registering a physical office
  • Designating an administrator as the signatory for the subsidiary
  • Filing documents with the Trade Register to officially register

Romania subsidiary laws

Romania subsidiary laws differ based on the type of company you decide to incorporate. For an SRL, you will need at least 1 shareholder and a director who is not required to live in Romania or the European Union (EU).

Every year, limited liability subsidiaries have to submit financial statements and tax returns to the Romanian tax authority. An audit may be required if your subsidiary has more than 15 shareholders or exceeds specific turnover, asset, or employee thresholds.

Benefits of setting up a Romania subsidiary

Setting up a subsidiary is the first major hurdle to doing business in Romania. Once you incorporate, you’ll be free to operate your subsidiary in the country legally. Next, you can hire employees, set up payroll, and develop a compensation and benefits plan that works for your business.

An SRL offers additional benefits to both the subsidiary and the parent company. Since there is limited liability between both parties, the parent company does not have to worry about any losses or litigation against the subsidiary. On the other hand, the subsidiary is free to operate under its own structure to fit Romania’s work culture and unique business practices.

Other important considerations

If you decide to set up your Romania subsidiary alone, you will need a complete understanding of the country’s subsidiary laws. Certain parts of the process involve various fees, so you will also need to allocate a portion of your budget to that. Also, keep in mind that you may have to travel back and forth to Romania to handle specific documentation and other requirements.

Enter new markets with G-P — no new entities required.

Beat the competition and enter new markets in minutes, not months, with G-P. We’ve paired our industry-leading team of in-region HR and legal experts with our #1 Global Growth Platform™ to help you hire compliantly in 180+ countries, eliminating the need to set up local entities or subsidiaries.

Get in touch today to learn more about how we can streamline the global growth process.


THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). G-P does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect G-P’s product delivery in any given jurisdiction. G-P makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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