Business Environment in Romania and Trade Links with Turkey
Romania offers a significant business environment for foreign investors thanks to its European Union membership, competitive labor costs, and strategic location in Eastern Europe. Its developing industrial infrastructure and access to the European internal market make Romania stand out as a regional operational hub.
For Turkey-based companies, Romania can be considered for production, logistics, automotive supply industry, trade, and expansion strategies in Europe.
Country Overview
- Official Name: Romania
- Capital: Bucharest
- Population: Approximately 19 million (2026 estimate)
- Official Language: Romanian
- Religion: Predominantly Orthodox Christianity
- Climate: Temperate continental climate
- Time Zone: UTC+02:00
- Country Code: +40
- Currency: Romanian Leu (RON)
How to Set Up a Company in Romania?
Main Types of Companies
- Limited Liability Company
- Joint Stock Company
- Branch
- Representative Office
The limited liability company model, which has similar characteristics to the limited company structure in Turkey, is the most frequently preferred type of company by foreign investors.
Establishment Process
- Determining the company name
- Preparing the articles of association
- Appointing managers and partners
- Trade Registry registration
- Tax registration
- Opening a bank account
Company establishment procedures in Romania can be carried out through digital systems, and bank compliance processes may be decisive in time planning.
Documents Required for Company Formation
For natural person partners:
- Passport copies
- Address verification documents
- Company formation documents
- Manager appointment information
For corporate partners:
- Company formation document
- Trade registry registration example
- Articles of association
- Board of directors decision
- Apostilled company documents
Document and translation processes may affect the time planning for structures in which Turkey-based companies are partners.
Is a Local Partner or Local Manager Required?
Foreign investors can own all of the shares in a company in Romania. A local partner is not required. Although a local resident manager is not mandatory, it may provide advantages in terms of banking processes and operational compliance.
Romanian Tax System and Tax Comparison with Turkey
Corporate Tax
- Romania: 16% standard rate
- Different rates may apply based on turnover for small businesses that meet certain conditions.
- Turkey: Different rates may apply depending on current legislation.
Value Added Tax
- Standard rate: 19%
- Turkey: The standard VAT rate is applied at different levels.
Withholding Taxes
- Dividend payments: approximately 8% (may vary depending on agreements)
Tax advantages may be available for certain payments under the Turkey-Romania Double Taxation Agreement. Financial structuring and transfer pricing planning should be evaluated during the establishment phase for Turkey-based companies.
Accounting System and Operational Compliance with Turkey
The accounting system in Romania is compliant with European Union accounting standards. Electronic tax declaration systems are widely used.
Legal Compliance Processes
- Annual financial reports
- Corporate tax returns
- VAT reporting
- Payroll declarations
System adaptation is possible for investors accustomed to accounting processes in Turkey; however, local legislation may require detailed monitoring.
Bank Account Opening and Turkey-Related Companies
Turkey-based groups should pay attention to the following issues when opening a bank account in Romania:
- Transparency of the ultimate beneficial ownership structure
- Clarity of the business plan
- European Union compliance obligations
Banks may conduct detailed reviews of international structures.
Romania Tax Residency Assessment
If the actual management of a company established in Romania is conducted from Turkey, this may require assessment in terms of tax residency. Therefore:
- Where management decisions are made
- The actual place of business of the manager
- Intra-group contracts
such elements should be planned during the establishment phase.
Romania Company Start-up Checklist
- Determination of legal address
- Completion of manager appointment
- Tax registration
- Activation of bank account
- Establishment of accounting system
- Payroll and social security records
- Digital tax portal access
- Planning of financial flows with Turkey
Social Security and Labor Legislation
Employers in Romania are required to register their employees in the social security system. Employer and employee contribution rates are calculated based on salary.
Company Formation Timeframe in Romania and Planning Perspective with Turkey
Average Durations
- Documentation preparation: 3–7 business days
- Company registration: 3–7 business days
- Bank compliance process: 7–15 business days
- Operational activation: 3–5 business days
Average total process: 2–4 weeks
Common Timing Mistakes Made by Investors
- Thinking that company incorporation alone is sufficient for operations
- Underestimating banking processes
- Not considering economic asset requirements
- Evaluating tax planning after incorporation
As the OzbekCPA team, we provide support in company incorporation, tax compliance, accounting organization, and corporate governance processes for investments to be structured between Turkey and Romania. Contact us.
