EXCLUSIVE: August 2025 data reveals alarming shift in business entity preferences as economic pressures mount

The Great Entity Exodus

Romania’s business landscape is undergoing a seismic transformation as entrepreneurs abandon traditional corporate structures in favor of more flexible—and potentially riskier—business forms. August 2025 data reveals a startling 116,, with a business churn rate of 102.4% indicating more companies are exiting the market than entering it.

PFA Explosion: The Desperation Play

The most dramatic shift is the explosive growth of PFA (Authorized Physical Person) registrations,. This represents 3,415 new PFAs registered in a single month—a clear sign that entrepreneurs are choosing the path of least resistance amid economic uncertainty.

“The PFA surge is a red flag,” warns economic analyst Maria Popescu. “It suggests entrepreneurs are avoiding the capital requirements and administrative burdens of SRLs, but they’re also sacrificing legal protection and growth potential. This is survival mode, not strategic planning.”

SRL Dominance Masks Deeper Problems

While SRLs (Limited Liability Companies) still dominate with 7,613, representing 67% of all new businesses, their 98% growth rate pales in comparison to PFAs. More concerning is what happens after registration: the business ecosystem health ratio stands at just 0.98, meaning for every new company registered, nearly one existing company is exiting the market.

Regional Hotspots and Ghost Towns

The geographic distribution tells a story of extreme concentration and vulnerability. Bucharest continues to dominate with 2,561,, while Timiș and Sibiu counties saw growth rates exceeding 200%. This hyper-concentration creates systemic risk—if economic conditions deteriorate in these hotspots, entire regional economies could collapse.

Industry Exodus: Where the Money Isn’t

The industry breakdown reveals a massive structural shift. While wholesale and retail trade leads with 16,105, the transportation and storage sector saw the most dramatic growth at 56% year-over-year.

However, several key sectors have completely disappeared from the registration data, including real estate transactions, healthcare, and construction—all of which showed zero registrations in August 2025 compared to substantial numbers the previous year.

“This isn’t just a shift—it’s a collapse of entire industry segments,” notes business consultant Andrei Ionescu. “When construction and real estate disappear from new business registrations, it signals deep structural problems in the economy.”

The Lifecycle Crisis

The business lifecycle data paints an even bleaker picture. August 2025 saw **11,709 through suspensions, dissolutions, and deregistrations. This includes 4,635 dissolutions and 5,594 deregistrations—numbers that dwarf new registrations.

“The business death rate is accelerating,” warns Ionescu. “We’re seeing companies that registered during the pandemic boom now hitting the wall. The combination of economic pressure, regulatory burden, and market saturation is creating a perfect storm.”

What This Means for Romania’s Economy

The shift toward PFAs and away from traditional corporate structures suggests entrepreneurs are prioritizing short-term survival over long-term growth. While PFAs offer flexibility and lower startup costs, they provide limited legal protection and scalability.

The concentration of growth in specific regions and sectors creates systemic vulnerabilities. If transportation and storage—the fastest-growing sector—faces regulatory changes or market saturation, the ripple effects could be catastrophic.

Most alarmingly, the negative net business growth suggests Romania’s entrepreneurial ecosystem is contracting despite the registration boom. Companies are failing faster than new ones can replace them, indicating fundamental weaknesses in the business environment.

The bottom line: Romania’s business registration boom masks a deeper crisis of sustainability. Entrepreneurs are making desperate choices in response to economic pressures, and the structural shifts happening today could have long-term consequences for the country’s economic resilience.