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Romanian Business Landscape Shows Dramatic Shift in Entity Preferences as SRL Dominance Continues

Published August 1, 2025

July 2025 Analysis Reveals Strong Growth Across All Major Business Structures

Romania’s entrepreneurial landscape underwent significant transformation in July 2025, with business registrations showing remarkable growth across most entity types, particularly among individual enterprises and limited liability companies. The data reveals a clear preference for flexible business structures that offer limited liability protection while maintaining operational simplicity.

SRL Maintains Dominant Position

Limited liability companies (SRL) continued to be the preferred choice for Romanian entrepreneurs, accounting for 10,832 in July 2025. This represents a substantial 110.58% increase compared to the same period last year, when 5,144.

The SRL structure’s popularity stems from its balanced approach to risk management and operational flexibility. Entrepreneurs appear to value the limited liability protection that separates personal assets from business obligations, while still benefiting from relatively straightforward administrative requirements compared to larger corporate structures.

PFA Registrations Surge as Individual Entrepreneurship Booms

Individual enterprises (PFA) showed the most explosive growth among major entity types, with 3,886 representing a 148.62% year-over-year increase. This surge suggests a growing preference for simplified business structures among individual entrepreneurs, freelancers, and small-scale operators.

The PFA’s appeal lies in its administrative simplicity and tax advantages for smaller operations. The dramatic growth in this category indicates that Romania’s entrepreneurial ecosystem is becoming increasingly accessible to individual business owners seeking to minimize bureaucratic overhead while maximizing operational flexibility.

Regional Distribution Reflects Economic Concentration

The geographic distribution of business registrations reveals significant regional disparities, with Bucharest leading at 3,172, followed by Ilfov (824) and Iași (665). However, the most impressive growth rates occurred in counties like Alba (480.36% increase), Dolj (314.67%), and Sibiu (190.91%).

This pattern suggests that while the capital region continues to dominate in absolute numbers, secondary urban centers are experiencing rapid entrepreneurial development. The growth in counties like Alba and Dolj may reflect regional economic diversification and the expansion of business opportunities beyond traditional economic hubs.

Industry-Specific Entity Preferences Emerge

The industry breakdown shows distinct patterns in entity type preferences. Wholesale and retail trade led with 14,213 registrations, followed closely by transport and storage at 14,065. Professional, scientific, and technical activities accounted for 8,312 registrations, while construction registered 7,984 new businesses.

The transport and storage sector showed particularly strong growth at 51.35% year-over-year, suggesting increased logistics and supply chain activity. This growth likely reflects both domestic economic expansion and Romania’s strategic position in European trade networks.

Corporate Structures Show Mixed Performance

While individual and limited liability structures dominated, traditional corporate forms showed varied performance. Joint-stock companies (SA) registered 13 new entities, representing a 225% increase from the previous year. However, this growth comes from a very small base of only 4 registrations in July 2024.

General partnerships (SNC) showed the highest percentage growth at 800%, though this represents an increase from just 1 to 9 registrations. The limited absolute numbers suggest that these more complex corporate structures remain niche choices, primarily suited for specific business needs or larger-scale operations.

Business Ecosystem Shows Healthy Balance

The overall business ecosystem demonstrated robust health, with 15,168 new registrations compared to 14,109 business exits, resulting in net growth of 1,059. The registration-to-exit ratio of 1.08 indicates a healthy business environment where new enterprise creation slightly outpaces business closures.

The business churn rate of 93.02 suggests a dynamic market where businesses regularly enter and exit, reflecting normal market evolution rather than economic distress.

Structural Implications for Romania’s Economy

The data reveals several important trends in Romania’s business landscape:

  1. Simplification Preference: The strong growth in SRL and PFA registrations indicates entrepreneurs prefer structures that balance legal protection with administrative simplicity.

  2. Individual Entrepreneurship Boom: The PFA surge suggests Romania is experiencing growth in individual entrepreneurship, potentially driven by digital platforms, freelance opportunities, and small-scale service businesses.

  3. Regional Diversification: While Bucharest remains dominant, strong growth in secondary counties indicates economic opportunities are spreading beyond traditional centers.

  4. Sector-Specific Dynamics: The concentration in trade, transport, and professional services reflects Romania’s evolving economic structure and integration into regional and global markets.

The July 2025 data paints a picture of a vibrant, evolving business environment where entrepreneurs are increasingly choosing entity structures that match their risk tolerance, operational needs, and growth ambitions. The continued dominance of SRL structures combined with the explosive growth in individual enterprises suggests Romania’s entrepreneurial ecosystem is maturing while remaining accessible to new market entrants.

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