If you want to start a business in Romania, one of the first questions you’ll ask yourself is: should I choose an SRL or a PFA? Both forms have advantages and disadvantages, and the right decision depends on your activity, development plans, and how you want to manage your taxes and responsibilities. In this article, we explain step by step what each option involves.
 
1. Administrative steps to set up an SRL or PFA
 
A. SRL (Limited Liability Company)
 
This is the most common legal form for SMEs in Romania, as it protects your personal assets and offers flexibility for growth.
 
Steps to follow:
  • Reserve the company name with the Trade Registry (1–2 business days);
     
  • Draft the articles of association, including shareholders, business activity, headquarters, and share capital;
     
  • Deposit the minimum share capital (200 RON);
     
  • Submit the file to the Trade Registry, including all required documents;
     
  • Obtain the unique registration code (CIF), which is also communicated to ANAF;
     
  • Obtain additional authorizations, if required by your activity (e.g. food services, transport).
     
 Duration: between 3 and 7 business days.
 
B. PFA (Authorized Natural Person)
 
This is a simpler and faster option, ideal for those who want to carry out their activity independently.
 
Steps to follow:
  • Submit the authorization request to the Trade Registry (including personal details, activity, headquarters);
     
  • Register for tax purposes with ANAF by completing the Single Tax Declaration;
     
  • Obtain any additional approvals, depending on your field of activity;
     
  • Optional: register for VAT purposes (if income exceeds 300,000 RON/year).
     
 Duration: between 2 and 5 business days.
 
2. Key tax differences
 
SRL:
  • May pay corporate tax (16%) or microenterprise tax (1–3% of revenues if turnover < €1 million).
     
  • Dividend tax: 10%.
     
  • Social contributions only for employees or paid administrators.
     
PFA:
  • Income tax: 10% applied to net income.
     
  • Social contributions (CAS and CASS) apply if annual income exceeds the threshold (12 minimum gross salaries).
     
  • Simplified accounting, based only on the cash-in/cash-out register.
     
3. Advantages and disadvantages
 
SRL – Advantages: protection of personal assets, stronger business image, easier access to financing, extended deductibility.
SRL – Disadvantages: more bureaucracy, higher accounting costs, more complex tax obligations.
PFA – Advantages: quick to set up, low costs, simple accounting, suitable for freelancers and liberal professions.
PFA – Disadvantages: unlimited liability with personal assets, limited growth options, fewer tax benefits.
 
4. Practical guide: required documents
 
For SRL: name reservation, articles of association, proof of headquarters, proof of share capital, shareholders’ statements, registry fees, specific authorizations (if applicable).

For PFA: authorization request, copy of ID, proof of headquarters, Single Tax Declaration, additional approvals (if applicable).
 
5. Conclusions and recommendations
  • If you want a small, independent activity without big expansion plans → PFA is the right option.
     
  • If you want to build a business with employees, partners, or investments → SRL is the recommended choice.
     
No matter what you choose, consult a specialist before making a decision, to avoid tax or administrative issues.
 
Need help choosing the right legal form or understanding your tax obligations?
Contact the Financess team for personalized assistance:
(+40) 749 097 969