Getting a VAT number in Romania: PFA or SRL?
People asking about a Romanian “VAT number” usually mean one of two things: a PFA, the authorised natural person, or an SRL trading as a company. The tax and liability consequences differ sharply.
What a PFA actually is
The PFA registers with the trade registry, has its own tax code and invoices in the person's name.
The substantive difference from a company is liability: with a PFA you answer with personal assets.
When a PFA works
When you serve a handful of clients, don't plan to hire more than a person or two, and want immediate access to the money you earn.
It is also the cheapest to maintain: lighter accounting and fewer obligations.
When an SRL works
When you want limited risk, partners, employees, financing, or the option to sell. The SRL separates business assets from personal ones.
On tax, a Romanian SRL may fall under the micro-company regime, taxed on revenue instead of profit — the main reason people choose it.
Taxes and contributions in short
A PFA on the real system pays income tax and contributions tied to minimum-wage thresholds, declared annually.
An SRL pays through the company across the year and distributes profit as dividends. Exact rates change with each budget law.
The practical rule
Small turnover and working alone: PFA. Planning to grow, hire or serve larger clients: SRL.
Frequently asked
Can I switch from PFA to SRL later?
Yes. You open the SRL and close or suspend the PFA. Not automatic, but routine.
Which is cheaper to run?
The PFA, as a rule: simpler accounting and fewer filings.
Where am I personally liable?
With a PFA. An SRL limits liability to the share capital.