Business in Romania

A business in Romania is an organized activity that offers goods or services in exchange for money. People may describe a business as a firmă or întreprindere, while the legal structure determines how it operates. A common company form is the SRL, short for societate cu răspundere limitată. A person working independently may use a PFA, short for persoană fizică autorizată, when that form fits the activity and applicable conditions. The choice between a company, PFA, and another structure affects liability, administration, taxation, accounting, contracts, and how money is taken from the activity. It should be based on the real work, expected risk, and planned growth. Business registration is connected with the Trade Register, known as ONRC. The activity also needs an appropriate CAEN classification, which describes the type of economic activity carried out. A business normally needs clear ownership information, a registered address, suitable activity permissions where required, accounting records, invoices or receipts, and a way to track income and costs. Some activities need additional approvals or professional qualifications. Taxes and social contributions depend on the structure, income, employees, and activity. A business owner should not mix personal and business money without keeping proper records and should obtain accounting advice when the situation is complex. If the business hires staff, it becomes an employer and must follow employment, payroll, workplace safety, and personnel-record duties. Working with contractors or independent persons is not automatically the same as employing them. A realistic business plan starts with a customer problem, a clear offer, expected costs, a price, and a method for finding customers. The owner should also plan for slow months, unpaid invoices, safety risks, and the possibility that the idea may need to change.