BUCHAREST - Romania’s business registration landscape is undergoing a significant transformation, with individual entrepreneurs increasingly opting for PFA (Authorized Physical Person) structures over traditional limited liability companies, according to June 2025 registration data.

The latest figures reveal a dramatic 76.65% year-over-year increase in PFA registrations, far outpacing the more modest 11.29% growth in SRL (Limited Liability Company) formations. This shift suggests changing preferences among Romanian entrepreneurs toward more flexible business structures.

Entity Type Breakdown Shows Clear Trends

In June 2025, Romania recorded 11,765, representing a substantial 22.77% increase compared to June 2024. The entity type distribution tells a compelling story:

• SRL remains dominant with 7,677, but its growth rate of 11.29% lags behind the overall market expansion
• PFA registrations surged to 3,676, up 1,595 from June 2024
• Individual Enterprises (II) showed healthy growth at 16.88%, reaching 367 registrations
• Traditional corporate structures like SA (Joint Stock Companies) and CA (Cooperatives) experienced significant declines of 70.83% and 89.86% respectively

Regional Patterns Reflect Economic Activity

The geographic distribution of new business formations reveals concentrated economic activity in urban centers, with Bucharest leading at 2,682, an 18.05% increase year-over-year.

Notably, Dolj County experienced explosive growth with 149.2% more registrations compared to June 2024, jumping from 250 to 623 businesses. Other strong performers included Prahova (42.26% growth), Bacău (43.46%), and Bihor (30.92%).

Industry Preferences Shape Entity Choices

The industry breakdown provides context for the entity type preferences. The top sectors for new business formation include:

• Wholesale and Retail Trade: 11,942 registrations
• Transport and Storage: 11,855 registrations (41.18% year-over-year growth)
• Professional, Scientific and Technical Activities: 6,810 registrations
• Construction: 6,437 registrations

The strong performance in transport and storage, combined with the PFA surge, suggests many new entrepreneurs are entering logistics and delivery services, where individual operator models are particularly suitable.

Business Ecosystem Context

While new registrations show robust growth, the broader business ecosystem reveals challenges. June 2025 saw 12,601, resulting in a net decline of 836 businesses. The business churn rate reached 107.11%, indicating slightly more businesses exited than entered the market.

The lifecycle data shows 1,665 business suspensions, 4,391 dissolutions, and 6,545 deregistrations during the month. Bucharest, Cluj, and Iași led in business suspensions, reflecting the concentration of economic activity in these urban centers.

Why the PFA Preference?

The dramatic shift toward PFA structures likely reflects several factors:

1. Administrative Simplicity: PFA registration involves less bureaucracy and lower startup costs compared to SRL formation
2. Tax Advantages: Recent tax framework changes may have made PFA structures more attractive for certain income levels
3. Flexibility: PFAs offer greater operational flexibility for individual entrepreneurs and freelancers
4. Digital Economy Growth: The rise of platform-based work and gig economy opportunities naturally favors individual business structures

The declining popularity of traditional corporate forms like SA and CA suggests entrepreneurs are increasingly favoring simpler, more agile business structures that can respond quickly to market opportunities.

Looking Ahead

The June 2025 data paints a picture of a dynamic Romanian business environment where entrepreneurial activity remains strong, but preferences are shifting toward more flexible individual business structures. While the overall registration growth of 22.77% indicates continued economic vitality, the negative net growth figure highlights the competitive nature of the market and the challenges businesses face in sustaining operations.

The concentration of activity in urban centers and the strong performance of service-oriented industries suggest Romania’s business landscape continues to evolve toward a more modern, service-based economy, with individual entrepreneurship playing an increasingly important role.