How to open a PFA company in Romania

Are you looking to incorporate your very own business in Romania? Did you know that the Romanian PFA might be a great option for you, especially if this is your first company?

Find out everything you need to know about the Romanian PFA, from our lawyers, below!

What exactly is a PFA?

For starters, let’s see what a PFA really is.

PFA stands as an abbreviation for the Romanian term „Persoana Fizica Autorizata’’. This can translate to solo entrepreneur or solo professional, self-employed person or certified legal person.

Such a company is opened by submitting a set of paperwork with the Romanian Companies’ House or Trade Registry (ORC – Oficiul Registrului Comerțului). A Romanian lawyer can submit these papers online, without any issues, even remotely.

How does a PFA work?

The PFA is a Romanian solo entrepreneurship, which is generally used by people who are working on their own or who only want to employ a few other people.

Some people decide to open a PFA in Romania when they do not have a very high income. If they have a higher income, they generally prefer a SRL, which stands for Societate cu Raspundere Limitata (a Romanian LLC, limited liability company). SRL can be a limited liability company with a single founder (or more, if needed).

When can I open a Romanian PFA?

Here are the main conditions for opening a PFA in Romania:
– you should have Romanian residency, otherwise known as a CNP – this is needed in order to pay your taxes later and to prove your link to the Romanian state
– you must show proof of education or professional experience in your field of work – without such papers you cannot be considered a professional for your desired activity code (CAEN)

Is PFA my best choice for a Romanian company?

Not necessarily. The PFA is a good choice if your income is not very high or if you work on your own. But in other cases, the Romanian SRL (equivalent of a LLC) or even SA (joint stock company) can be better, either for tax reasons or because you want to have more shareholders in your firm.

As regards taxes, it is best to discuss with your future Romanian book keeper and make some calculations before you open your company with your Romanian lawyer. An accountant can offer valuable insight and help you make the best decision. You should also discuss the „norma de venit” option with them, which offers many fiscal advantages.

If you have not chosen a Romanian accountant already, ask your lawyer for a recommendation!

Can I open a PFA without professional help?

Unfortunately, opening a PFA can be quite complicated if you are not a legal professional.

This is especially true for PFAs opened by expats, because all paperwork is in Romanian.
So we strongly recommend you to have a lawyer help you, because if you draft the papers incorrectly it will be more expensive and it will take more time to correct them later.


If you would like to address more questions or if you need a legal consultation, you can contact us at office@rrpb.ro or by accessing our site www.rrpb.ro for more information.

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