🏛️ Company formation

SRL vs PFA in Romania: Which to Choose

When starting out in Romania you’ll choose between an SRL (limited liability company) and a PFA (authorised individual / sole trader). For most foreign founders the answer is clear — here’s why.

Quick definitions

• SRL — a separate legal entity with limited liability; can be 100% foreign-owned, no residency required. The standard choice for businesses.
• PFA — a registered self-employed individual. Simple and cheap, but you’re personally liable, and it’s generally aimed at Romanian residents performing an individual activity.

Comparison

Criterion	SRL	PFA
Liability	limited to share capital	personal (unlimited)
Foreign ownership	yes, 100%, remote	impractical for non-residents
Taxation	micro 1% on turnover or 16% profit	personal income tax + contributions
Best for	businesses, founders, holdings	resident individual freelancers

Which should a non-resident choose?

Almost always the SRL: it offers limited liability, full foreign ownership, the micro-company tax option, and can be set up remotely. A PFA rarely fits a non-resident’s situation.

Important: tax rates and the micro-company conditions change periodically (2026 figures used here). Confirm current rules before deciding — see our Romania company tax guide.

Get set up correctly

We register your Romanian SRL remotely, in English, with the right tax setup — see company formation in Romania.