1. Filiala SUBSIDIARY
a foreign company may setup this entity in Romania, Filiala, as a 100% Romanian company:
Limited Liability Company = ro. Societate cu Raspundere Limitata, SRL - or
Joint Stock Company = ro. Societate pe Actiuni
Filiala is free to trade without restrictions: it can have clients and suppliers, it can employ personnel
the registration of Filiala is at both the Romanian Trade Registry and the Romanian Tax Agency
Filiala can benefit of reduced tax rate as micro-company (=ro. microintreprindere)
Tax risk: under certain conditions, Subsidiaries may be reclassified as Branches and taxed as such
2. Sucursala BRANCH
is equal, from the point of view of the Romanian Tax Code, to the Sediu Permanent (Permanent Establishment) - https://www.piroi.com/post/permanent-establishment-pe-in-romania-what-you-need-to-know
the Sucursala is mandatory, according to the Tax Code, when a foreign company has a contract in Romania with a Romanian client, contract which exceeds 183 days duration
Sucursala is an entity which pays taxes in the name of the foreign company
Sucursala is mandatorily a profit tax payer
the registration of Sucursala is also both at the Romanian Trade Registry as well as at the Romanian Tax Agency
3. Reprezentanta REPRESENTATION OFFICE
a way of registering a foreign company at the Romanian Tax Agency when the foreign company does not trade in Romania. As an example, a Reprezentanta only promotes its mother company in Romania
the main tax it has to pay is RON 18 000 a year
it may employ personnel
but it cannot sign any contracts with clients
the registration of this Reprezentanta is only at the Romanian Tax Agency, without the Romanian Trade Registry
4. Reprezentant fiscal TAX REPRESENTATIVE
the foreign company does not want to setup a full presence in Romania. Instead, it uses an intermediary (the Reprezentant fiscal), which it appoints with a Power of Attorney
the Reprezentant fiscal goes to the Romanian Tax Agency and obtains a dedicated Romanian tax code
the registration of this Reprezentant fiscal is only at the Romanian Tax Agency, without the Romanian Trade Registry