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Forming an SRL
You can read the formation process on SRL in Romania.
Self-Employed in Romania, the PFA and the SRL Rule by Rule
The PFA and the SRL are two of the forms Romanian law gives a freelancer. Here they are compared on liability, tax, contributions and entry conditions, with 2026 figures.
Short answer
A freelancer in Romania can work as a PFA (persoană fizică autorizată, authorised natural person). A PFA is not a company: the person answers with all personal assets after any allocated assets (art. 20(1) OUG 44/2008, 2008 text). The other route is an SRL (societate cu răspundere limitată, limited liability company). Its members answer up to the subscribed capital, with a 500 lei minimum when newly formed (Art. VI(2) Law 239/2025).
This guide sets out the law for each form. It does not say which one to use, because that choice belongs to a CCF tax consultant or a CECCAR accountant. It lists no jobs. For registration, see company registration in Romania from abroad.
What does self-employed mean in Romania?
Romanian law gives a freelancer several forms, among them a natural person (the PFA) and a company (the SRL). This guide compares those two forms. It does not rank the people who use them.
The PFA
A PFA is an authorised natural person who works mainly with their own labour and is entered in the trade register (art. 2(i) OUG 44/2008, 2008 text). It is not a company. The person is liable without limit after any assets set aside for the business.
The SRL with one member
One person may form this company with the articles only (art. 5(2) Law 31/1990, text of January 2024). Its members answer only up to the subscribed capital (art. 3(3)). Romanian legal forms compares all company forms.
The sole enterprise
OUG 44/2008 names it beside the PFA (întreprindere individuală in Romanian). Under the 2008 text it may hire employees, and a PFA may not (art. 17, 24). This guide does not cover it further.
Independent, not dependent, activity
The Fiscal Code counts an activity as independent only if it meets at least 4 listed criteria. One criterion is the freedom to work for several clients (art. 7 pt. 3, 2026 consolidation). The test is set out below.
How do the PFA and the SRL compare rule by rule?
The rows restate rules from the sources and give no verdict. Choosing between the two forms is tax consultancy (art. 3(1)(a) OG 71/2001). That choice goes to a CCF tax consultant (a member of the tax consultants' body) or a CECCAR accountant (a member of the accountants' body).
| Rule | PFA | SRL |
|---|---|---|
| Legal status | An authorised natural person | A company; one member allowed |
| Liability | All personal assets, after any assets set aside for the business | Up to the subscribed share capital |
| Capital | None stated in the 2008 text | Minimum 500 lei when newly formed |
| Who may register | Romanian, EU and EEA citizens; a third-country national on the D/AE visa where the activity is regulated by special laws | Natural and legal persons may found an SRL, and owning one needs no visa (art. 1(1) Law 31/1990, text of January 2024); the D/AC visa exists for a non-EU shareholder with management duties in a Romanian company |
| Income tax on the activity | 10 percent on independent income | 1 percent micro tax or 16 percent profit tax |
| Taking money out | The income itself, taxed as above | Dividends: 16 percent final tax |
| Pension and health | CAS from 12 gross minimum wages, CASS base capped at 72 | Salary and dividend rules |
| Books | Single-entry | Full accounts |
| Micro regime | Not available | Available within conditions |
| VAT exemption | Up to 395,000 lei | Up to 395,000 lei |
| Annual return | Single return by 25 May | The company's own returns |
Who can register as a PFA, and what does a non-EU citizen need?
The 2008 text names who may register as a PFA. The immigration ordinance carries the PFA rules over to foreigners. Owning an SRL needs no visa (art. 1(1) Law 31/1990, text of January 2024). Under OUG 194/2002, a non-EU citizen who lives or works in Romania follows the immigration rules. This guide does not state how the visa fits with a PFA registration.
Romanian, EU and EEA citizens
Under the 2008 text, Romanian citizens and citizens of other EU and EEA states may carry on economic activity. They may do it as a PFA, sole enterprise or family enterprise (art. 3(1) OUG 44/2008).
Third-country nationals
The immigration ordinance applies the PFA rules to a foreigner on the long-stay visa D/AE. This foreigner will carry on economic activities regulated by special laws (art. 41(1)-(2) OUG 194/2002, April 2026 consolidation). The Ministry of Foreign Affairs says the PFA ordinance does apply to foreigners in practice.
The D/AE file
The file holds proof that the special law's conditions are met (art. 41(1)(a)). It also holds travel medical insurance with cover of at least EUR 30,000 (art. 41(1)(b), as amended from 27 April 2026) and a criminal record certificate (art. 41(1)(c)). The sources do not say how an applicant meets the first item before a PFA exists, so this guide gives no steps.
Liberal professions
Romania grants a different visa, D/AP, for liberal professions regulated by special laws (MAE visa types). OUG 44/2008 does not apply to liberal professions (art. 1(2), 2008 text).
Extension of stay
A foreigner who came for economic activities can have the stay extended. The foreigner must prove the special law's conditions and show means of at least the average gross monthly salary (art. 53 OUG 194/2002). These are the conditions of IGI, the immigration inspectorate.
Age and authorisation elsewhere
The applicant must be at least 18. An EU or EEA national who is already authorised for an economic activity in another member state may get authorisation in Romania for it (OUG 44/2008, 2008 text).
The SRL founder's visa and the digital nomad visa
A non-EU founder of an SRL with management duties uses the D/AC visa, not D/AE (MAE visa types). The digital nomad visa is for income from a company registered outside Romania and is not a route to a Romanian PFA.
For the whole route of a foreigner, see the full guide to starting a business.
Who is the applicant?
Citizens of Romania and of other EU and EEA states
PFA under OUG 44/2008, art. 3(1)
A third-country national
D/AE long-stay visa for activities regulated by special laws, then the PFA rules apply, art. 41(1)-(2) OUG 194/2002
Liberal professions
D/AP visa, outside OUG 44/2008
A non-EU SRL founder with management duties
D/AC visa
The digital nomad visa
Income from a company registered outside Romania, not a route to a Romanian PFA
How is a PFA registered in Romania?
We file SRL registrations and do not file PFA registrations. The steps follow the 2008 text with two amendments made by Law 265/2022 (2022 text). This guide gives no registration time, fee or online-filing route for a PFA.
Hold a professional seat
The PFA must have a professional seat (sediu profesional) in Romania and a right to use the property at that address (art. 5 and 9(2) OUG 44/2008).
Register and obtain authorisation first
The PFA must register and get authorisation before the activity starts (art. 7(1)).
File at the trade register
File the application with the trade register at the tribunal of the county of the seat (art. 10(1)). It needs an identity document, proof of the right of use, a self-declaration and, where a special law asks, proof of qualification (annex pt. 1).
Sign the declaration
By signing, the applicant takes responsibility that no final judgment bars the right to carry on the activity (art. 130 pt. 1 Law 265/2022, 2022 text, inserting art. 8(4) in OUG 44/2008).
Complete an incomplete file
The applicant has at most 15 days to complete an incomplete file. The applicant can ask for an extension and must give reasons (art. 11(3)).
Receive the certificate
The certificate carries the CUI, the unique registration code. It proves registration, authorisation of operation and tax registration (art. 13(3)).
Three rules follow registration. One registration certificate is issued per legal status, so a person holds one PFA (art. 14(1)). A PFA still needs the licences and permits that special laws require before starting (art. 6(2)). A temporary interruption may not exceed 3 years (art. 130 pt. 2 Law 265/2022, 2022 text, inserting art. 14(8)).
How is a self-employed person taxed in Romania in 2026?
The Fiscal Code (Law 227/2015, ANAF consolidation to Law 170/2026) taxes a PFA's income as independent income. ANAF is the tax administration. This guide states the rules and computes nothing for a person.
10 percent on independent income
Independent income covers production, trade, services and liberal professions (art. 67(1)). The income tax rate is 10 percent (art. 64(1)).
The real system
Net income is gross income minus deductible expenses, taken from the books (art. 68(1)). The accountant can say which expenses are deductible.
The income norm
The income norm (normă de venit) of the place of activity can set net income (art. 69(1)). This applies to activities other than liberal professions, and only to activities on the Ministry of Finance list. A norm may not be below 12 gross minimum wages (art. 69(3)).
The EUR 25,000 switch
A taxpayer on a norm must use the real system from the next fiscal year if the previous year's gross income exceeded the lei equivalent of EUR 25,000 (art. 69(9)).
The two-year option
A taxpayer who opts for the real system stays in it for 2 consecutive fiscal years (art. 691(2)).
The single return
The taxpayer files the single return (Declarația unică) by 25 May of the year after the income was earned (art. 122(3)). The section on books and returns below covers who prepares it.
How much CAS and CASS does a PFA pay?
CAS is the pension contribution and CASS the health contribution. Both are set in gross minimum wages, so the table prints bands, not lei amounts.
| Line | Rate and when due | Base | Article |
|---|---|---|---|
| CAS, when due | 25 percent; due when the year's cumulated independent income reaches at least 12 gross minimum wages; not owed by pensioners or by persons insured in their own pension systems | Not 25 percent of all income, see the next row | art. 138(a), 148(1), 150(1) |
| CAS, base | As above | A base the taxpayer chooses: at least 12 minimum wages for income between 12 and 24, at least 24 at or above 24 | art. 148(2) |
| CAS below 12 | Optional | The taxpayer's choice, not below 12 minimum wages | art. 148(4) |
| CASS, rate and cap | 10 percent of the year's net income | The base is capped at 72 gross minimum wages | art. 156, 170(1) |
| CASS, floor | Where the base is below 6 minimum wages the PFA pays up to the level of 6, unless it already pays CASS on at least 6 from salary or other income, or has a pension | 6 minimum wages | art. 174(6)-(7) |
| Loss | A tax loss or zero net income means no CASS on it, with an opt-in | None | art. 174(2) |
The table prints no lei amount. The bands use the gross minimum wage in force on 1 January of the income year (art. 1351(3) Fiscal Code). Its 2026 level in lei is a question for a CCF tax consultant or the accountant.
CAS is a base the taxpayer chooses within floors. It is not 25 percent of all income. Below 12 minimum wages CAS is optional, on a base of at least 12. A tax loss or zero net income means no CASS on it (art. 174(2)).
CAS and CASS bands, in gross minimum wages
CAS, pension, 25 percent
- 12 minimum wagesOptional below 12; due from 12, on a chosen base of at least 12 for income between 12 and 24art. 148(1), 148(2), 148(4), 150(1)
- 24 minimum wagesA chosen base of at least 24 at or above 24art. 148(2)
CASS, health, 10 percent
- 6 minimum wagesA floor base of 6, unless CASS is already paid on at least 6 from salary or other income or the person has a pensionart. 174(6)-(7)
- 72 minimum wagesThe base is capped at 72art. 156, 170(1)
A tax loss or zero net income means no CASS on it, with an opt-inart. 174(2)
Fiscal Code, 2026 consolidation. Both tracks use the same unit, gross minimum wages; no lei amount is printed.
How do liability, staff, books and the payment account differ?
These are the points a freelancer meets after the tax: who answers for debts, what capital is needed, who may be hired and who keeps the books.
Liability
A PFA answers with the assets set aside for the business, if any, and then with all personal assets (art. 20(1) OUG 44/2008, 2008 text). SRL members answer only up to the subscribed share capital (art. 3(3) Law 31/1990, text of January 2024).
Capital
The PFA rules state no capital. A newly formed SRL needs a minimum share capital of 500 lei since 18 December 2025 (Art. VI(2) Law 239/2025). The 500 lei does not oblige an existing low-turnover SRL to top up.
Employees
Under the 2008 text a PFA may not hire employees (art. 17(1)) and a sole enterprise may (art. 24). The text in force today may differ, so this guide gives no current hiring rule.
A job at the same time
A person may be a PFA and an employee of a third party at once (art. 17(2)). An SRL member may also hold a paid mandate, shown in the SRL tax table below.
Books
A PFA keeps single-entry books (art. 15). An SRL keeps full accounts (art. 1(1) Law 82/1991). It does this through a CECCAR member under a contract (art. 10(3)) or, as a rule, through its own department (art. 10(2)).
The payment account
Legal persons must hold a payment account in Romania. A newly formed one opens it within 60 working days (Art. II pt. 3 Law 239/2025). The text names legal persons, and this guide does not extend it to a PFA.
Want the SRL filing steps talked through? We prepare and file SRL registrations. The choice of form stays with a tax consultant.
What does the SRL side look like on tax?
Micro tax, profit tax and dividends make up the SRL's tax picture. The guide to the turnover-based micro company tax has the micro rules in full, with the employee condition. Here they are one row.
| Item | Rule | Article |
|---|---|---|
| Micro regime access | Only a Romanian legal person can be a micro-enterprise, so a PFA cannot use it | art. 47(1) |
| Micro rate and ceiling | 1 percent; revenue ceiling the lei equivalent of EUR 100,000 | art. 51(1), 47(1)(c) |
| Paid administrator | An administrator under a mandate contract (contract de mandat) paid at least the national gross minimum wage satisfies the employee condition | art. 51(4)(b) |
| Profit tax | 16 percent of taxable profit, for an SRL outside the micro regime | art. 17 |
| Dividends | 16 percent final tax on dividends to individuals, withheld by the paying company | art. 97(7) |
| Dividends and CASS | For a Romanian-insured shareholder, dividends net of the tax withheld count towards CASS in flat bands of 6, 12 or 24 minimum wages; dividends are not in the CAS base | art. 170(2)-(4) |
You can read the formation process itself on SRL in Romania. Where the articles are bespoke, a partner Romanian lawyer prepares them. That is lawyer work (Law 51/1995 art. 3(1)(c), 3(2)).
Can a PFA and an SRL be kept at the same time?
A person holds one PFA, since one registration certificate is issued per legal status (art. 14(1) OUG 44/2008, 2008 text). The same person may be a PFA and an employee of a third party (art. 17(2)).
The SRL's micro ceiling adds the revenue of a PFA or sole enterprise run by a shareholder who holds more than 25 percent (art. 47(11)(d) Fiscal Code). Keeping both does not split turnover for that test. The PFA itself cannot use the micro regime. Whether to hold both is a question for a CCF tax consultant.
What is the independent-activity test, and why does a one-client freelancer need to know it?
The Fiscal Code counts an activity as independent only if it meets at least 4 of the listed criteria (art. 7 pt. 3, 2026 consolidation). One criterion is the freedom to work for several clients (pt. 3.2).
A freelancer with a single client may be tested against that list. This guide does not set out what follows from failing the test. A CCF tax consultant can answer that.
Does a self-employed person in Romania have to register for VAT?
A taxable person established in Romania may stay outside VAT under the special exemption regime (regim special de scutire) if annual turnover is not above 395,000 lei (art. 310(1) Fiscal Code, 2026 consolidation). The article speaks of any taxable person established in Romania, so it reaches a PFA as well.
An exempt person must still request a special VAT code (art. 317(1)(b), (c)). This applies before the person supplies services to a customer in another member state who owes the VAT there. It also applies before the person receives services from a supplier in another member state, when the recipient owes the VAT in Romania. That code does not make the person a normal VAT payer (art. 317(10)). We promise no VAT code: ANAF runs a risk analysis on a company registered for VAT after registration (art. 316(9)). This site's VAT pages cover the VAT number and its registration.
Who keeps the books, files the return and decides the form?
Three tasks fall outside this guide and outside our work. The statutes say who does each.
The books
A company's outsourced accounting needs a contract with an authorised CECCAR member (art. 10(3) Law 82/1991). Unauthorised practice is a criminal offence (art. 43(1) OG 65/1994). We do not keep books.
The return
The law reserves accounting work for clients to CECCAR members entered in the register as expert contabil (chartered accountant) or contabil autorizat (licensed accountant) (art. 21(1) OG 65/1994). A company's own department is the other route (art. 10(2) Law 82/1991). The PFA makes its own single return, or a CECCAR accountant makes it under a contract. We do not prepare or sign returns.
Choosing the form, answering ANAF, appeals
Tax consultancy covers choosing a form or regime for a person, giving a tax opinion, answering ANAF in a procedure and appeals (art. 3(1)(a), (e), (f) OG 71/2001). These tasks go to a CCF tax consultant or a CECCAR accountant. This guide recommends nothing.
From our practice
Alexandra Neagu sets out the same statutory rules as the tables above. She refers the choice to a CCF tax consultant or the client's accountant, because the choice is tax consultancy.
VAT, customs and tax compliance lead.
Which questions does this guide leave open?
The questions below are not answered in this guide.
- Whether a person living abroad may keep a PFA, and the tax residence effects of moving
- CAS and CASS for a freelancer insured in another EU state (the A1 certificate question)
- How a non-EU applicant meets the D/AE condition before a PFA exists, and registers
- The current text of OUG 44/2008 after later amendments: hiring, activity codes, citizens
- The fee, any online filing route and the current issue term of the PFA certificate
- The consequences of failing the independent-activity test
- Deductible expenses in the real system and the activities eligible for the income norm
- Whether the payment-account duty reaches a PFA
- The 2026 gross minimum wage in lei
- Which average gross salary IGI applies to the extension of stay
A CCF tax consultant, the client's accountant or IGI holds the answer to each of these, not this guide. This guide guesses none.
Official sources
The rules and figures above come from these texts. The SRL section also cites Law 51/1995 art. 3 by name.
- OUG 44/2008, 2008 text: PFA status, registration, liability, books
- OUG 194/2002, IGI consolidation of April 2026: D/AE and D/AP visas, extension of stay
- Ministry of Foreign Affairs e-visa list: D/AE documents, foreigners and the PFA ordinance
- Ministry of Foreign Affairs e-visa types: D/AP, D/AC and the digital nomad visa
- Law 265/2022, 2022 text: PFAs in the trade register, art. 4 and 130
- Fiscal Code, Law 227/2015, 2026 consolidation: tax, CAS, CASS, VAT
- Company Law 31/1990, January 2024 text: liability, one-member SRL
- Law 239/2025, Art. VI(2): 500 lei minimum capital of a new SRL
- Law 239/2025, Art. II pt. 3: payment account of legal persons
- Accounting Law 82/1991: full accounts and outsourced accounting, art. 1 and 10
- OG 65/1994: accounting work for clients reserved to CECCAR members, art. 21 and 43
- OG 71/2001, CCF copy: tax consultancy, art. 3
Frequently asked questions about the PFA and the SRL
Which is better for a freelancer in Romania, a PFA or an SRL?
This guide does not say. Choosing a form or regime for a person is tax consultancy (art. 3(1)(a) OG 71/2001). The guide sets the statutory rules of both forms side by side in a table. The choice goes to a CCF tax consultant or a CECCAR accountant, who can work from your own figures.
Am I personally liable for the debts of my PFA?
Yes, in the end. A PFA answers first with the assets set aside for the business, if any were set aside, and then with all personal assets (art. 20(1) OUG 44/2008, 2008 text). The members of an SRL answer only up to the subscribed share capital (art. 3(3) Law 31/1990, text of January 2024).
Is a PFA a company?
No. A PFA is an authorised natural person who works mainly with their own labour (art. 2(i) OUG 44/2008, 2008 text). The SRL is the company. One person may form it with the articles only (art. 5(2) Law 31/1990, text of January 2024). The two differ on liability, capital, tax and books.
Can a foreigner register as a PFA in Romania?
The 2008 text gives Romanian, EU and EEA citizens that right (art. 3(1) OUG 44/2008). For a third-country national, the immigration ordinance extends the PFA rules to the D/AE visa (art. 41(1)-(2) OUG 194/2002). The Ministry of Foreign Affairs says the PFA rules apply to foreigners in practice. The D/AE file steps are not given here.
Can a non-EU citizen be self-employed in Romania, and which visa applies?
The visa depends on the activity. D/AE is the visa for an economic activity regulated by special laws (art. 41(1) OUG 194/2002). D/AP is for a liberal profession, and a non-EU SRL founder with management duties uses D/AC. The stay is later extended on proof of means of at least the average gross monthly salary (art. 53). The conditions are IGI's, and we promise no visa.
Do I need to live in Romania to have a PFA?
A PFA needs a professional seat in Romania and a right to use that address (art. 5 and 9(2) OUG 44/2008, 2008 text). This guide does not settle whether a person living abroad may keep a PFA, or what moving in or out of Romania does to tax residence. A CCF tax consultant answers that.
What is the difference between a PFA and an SRL?
A PFA is a natural person with unlimited liability after allocated assets, no stated capital, 10 percent income tax and single-entry books. An SRL is a company. Its members answer up to the subscribed capital, and a new one needs at least 500 lei. It pays 1 percent micro tax or 16 percent profit tax and keeps full accounts.
How is a PFA taxed in 2026?
Independent income is taxed at 10 percent (art. 64(1) Fiscal Code). Net income comes from the books under the real system (art. 68(1)) or from the income norm for eligible activities (art. 69(1)). The single return is due by 25 May of the following year (art. 122(3)). CAS and CASS come on top, within their thresholds and exceptions.
How much CAS and CASS does a PFA pay?
The answer is in bands of gross minimum wages, not lei, because the 2026 minimum wage level is not confirmed. CAS, at 25 percent, is due once cumulated income reaches 12 gross minimum wages, on a chosen base (art. 138(a), 148). Pensioners and persons insured in their own pension systems do not owe it (art. 150(1)). CASS, at 10 percent, applies to net income and is capped at 72 minimum wages (art. 156, 170(1)).
Can a PFA use the 1 percent micro-enterprise tax?
No. Only a Romanian legal person can be a micro-enterprise (art. 47(1) Fiscal Code), and a PFA is a natural person. An SRL can use the 1 percent rate within the revenue ceiling of the lei equivalent of EUR 100,000 (art. 51(1) and 47(1)(c)). Further conditions are set out in the micro company tax guide.
What is an income norm (normă de venit) and who can use it?
An income norm is a fixed net income set for an activity at the place where it is carried on. It replaces the books for activities other than liberal professions (art. 69(1) Fiscal Code). Only activities on the Ministry of Finance list qualify. A norm cannot be below 12 gross minimum wages (art. 69(3)).
Can I keep a PFA and an SRL at the same time?
The rule stated here is about the micro ceiling. The SRL adds the revenue of a PFA or sole enterprise run by a shareholder who holds more than 25 percent when it tests the ceiling (art. 47(11)(d) Fiscal Code). Keeping both does not split turnover for that test. Whether to hold both is a question for a tax consultant.
Does a self-employed person in Romania have to register for VAT?
Not for the standard regime if turnover stays low. A taxable person established in Romania may stay outside VAT under the special exemption regime if annual turnover is not above 395,000 lei (art. 310(1) Fiscal Code). An exempt person must still get a special VAT code in the cross-border service cases listed in art. 317(1)(b), (c).
What are the tax laws for self-employed individuals in Romania?
The Fiscal Code, Law 227/2015, holds them. It covers independent income (art. 67), the 10 percent tax (art. 64), the real system and the income norm (art. 68 and 69) and the single return (art. 122). It also covers CAS (art. 138 and 148) and CASS (art. 156, 170 and 174). The test for whether an activity counts as independent is in art. 7 pt. 3.
Questions about an SRL filing? We answer them Monday to Friday, 09:00 to 18:00 Bucharest time.