BUCHAREST - Romania’s business landscape demonstrated robust growth in the second quarter of 2025, with company registrations showing significant year-over-year increases across most months, though the market continues to experience substantial business churn according to official registration data.

Quarterly Performance Overview

The second quarter of 2025 saw a total of 36,125 new company registrations across April, May, and June, representing a strong recovery from the same period last year. The quarter displayed a clear upward trajectory, with May emerging as the strongest month with 12,879, followed by June with 11,765 and April with 11,481.

Year-over-Year Comparison Shows Strong Recovery

• June 2025: 11,765 registrations vs 9,583
• May 2025: 12,879 registrations vs 9,822
• April 2025: 11,481 registrations vs 11,645

PFA Dominance Drives Growth

The most striking trend in Q2 2025 was the explosive growth in Individual Enterprises (PFA) registrations, which showed remarkable year-over-year increases:

• June: 3,676 PFA registrations vs 2,081 in June 2024 - 76.7% increase
• May: 4,198 PFA registrations vs 2,187 in May 2024 - 92.0% increase
• April: 3,608 PFA registrations vs 2,557 in April 2024 - 41.1% increase

Limited Liability Companies (SRL) remained the dominant entity type but showed more modest growth:

• June: 7,677 SRL registrations vs 6,898 in June 2024 - 11.3% increase
• May: 8,143 SRL registrations vs 7,079 in May 2024 - 15.0% increase
• April: 7,427 SRL registrations vs 8,477 in April 2024 - 12.4% decrease

Industry Sector Trends

The quarter revealed significant shifts in industry preferences among new businesses:

Top Performing Sectors:

• Wholesale and Retail Trade: 11,942 registrations in June alone
• Transport and Storage: 11,855 registrations, showing 41.2% year-over-year growth in June
• Professional, Scientific and Technical Activities: 6,810 registrations
• Construction: 6,437 registrations

Sectors Showing Decline:

• Agriculture, Forestry and Fishing: 26.6% decrease year-over-year
• Financial Intermediation and Insurance: 13.4% decrease
• Manufacturing Industry: 6.8% decrease

Regional Distribution

Bucharest continued to lead in business registrations with 2,682 new companies in June, representing an 18.1% increase over June 2024. Other notable growth regions included:

• Dolj County: 149.2% growth (623 registrations vs 250 in 2024)
• Prahova County: 42.3% growth (377 registrations vs 265 in 2024)
• Bacău County: 43.5% growth (274 registrations vs 191 in 2024)

Business Ecosystem Health

Despite strong registration numbers, the quarter revealed ongoing challenges with business sustainability. The business churn rate remained elevated throughout Q2:

• April: 121.3% churn rate (13,922 exits vs 11,481 registrations)
• May: 115.2% churn rate (14,837 exits vs 12,879 registrations)
• June: 107.1% churn rate (12,601 exits vs 11,765.

Market Implications

The Q2 2025 data paints a picture of a dynamic but challenging business environment. The surge in PFA registrations suggests increased entrepreneurial activity, particularly among individual entrepreneurs and small businesses. However, the persistently high churn rates indicate ongoing challenges with business sustainability and market consolidation.

The 12-month moving average of 10,521 shows that current registration levels remain above the longer-term trend, suggesting continued entrepreneurial optimism despite market headwinds.

The data reflects a business environment where entry barriers remain low, particularly for individual entrepreneurs, but where maintaining operations long-term continues to present significant challenges. The quarter’s performance demonstrates resilience in Romania’s entrepreneurial ecosystem, though sustainability concerns persist as the market continues to mature.