BUCHAREST - Romania’s business landscape showed continued strength in July 2025, with company registrations reaching 15,168, marking a dramatic 117.7% increase compared to the same month last year. However, the data reveals a more complex picture when business exits are factored in, with the overall business churn rate reaching 93%.

Robust Registration Growth Across All Major Categories

The year-over-year comparison shows explosive growth across nearly all business entity types. Limited liability companies (SRLs) led the way with 10,832, representing a 110.6% increase from July 2024. Individual enterprises (PFAs) showed even stronger growth, surging 148.6% to 3,886 registrations.

“The data indicates a significant entrepreneurial surge across Romania,” noted business analysts. “The growth patterns suggest both established businesses expanding through new SRL formations and individuals entering the market through PFAs.”

Individual entrepreneurs (IIs) also saw substantial growth, rising 88.8% to 387 registrations, while partnerships (SNCs) experienced an extraordinary 800% increase, though from a very small base.

Regional Distribution Shows Widespread Growth

Bucharest maintained its position as Romania’s business hub with 3,172 new registrations, representing a 75.2% year-over-year increase. However, the most dramatic growth occurred in regional centers, with Alba County leading at a staggering 480.4% increase (650 registrations), followed by Dolj County at 314.7% (622 registrations).

The data shows a healthy geographic distribution of business formation, with strong growth in traditional economic centers like Cluj (659 registrations, +102.2%), Timiș (634 registrations, +99.4%), and Iași (665 registrations, +143.6%).

Industry Trends Reflect Economic Shifts

The wholesale and retail trade sector remained the largest by registration volume with 14,213 businesses, while transport and storage showed the strongest growth momentum with 14,065 registrations, representing a 51.4% year-over-year increase.

Professional, scientific, and technical activities (8,312 registrations) and construction (7,984 registrations) rounded out the top sectors, indicating continued strength in knowledge-based services and infrastructure development.

The technology sector, represented by telecommunications and IT services, maintained a solid presence with 5,201 registrations, while manufacturing showed steady growth with 3,624 new businesses.

Business Lifecycle Data Reveals Rising Exit Rates

While new business formation remains strong, the business ecosystem shows signs of increased churn. Total business exits reached 14,109, representing a churn rate of 93%.

Deregistrations led the exit categories with 7,144 cases, up 58.6% from July 2024. Dissolutions showed the sharpest increase, rising 104.1% to 5,136, while temporary suspensions increased 65.8% to 1,829.

“The rising exit rates, particularly in dissolutions, suggest some businesses may be struggling with the current economic environment despite strong formation numbers,” observed market analysts.

Net Growth Remains Positive

Despite the increased exit activity, the Romanian business ecosystem maintained positive net growth of 1,059. The health ratio of 1.08 indicates that for every business that exited, 1.08 new businesses were formed.

The 12-month moving average of registrations stood at 11,204, significantly below the current month’s performance, suggesting the July figures represent an acceleration in business formation rather than a seasonal pattern.

Looking at the Big Picture

The July 2025 data paints a picture of a dynamic Romanian business environment with strong entrepreneurial momentum but increasing competitive pressures. The combination of robust registration growth and rising exit rates suggests a maturing market where business formation is becoming more responsive to market conditions.

While the data shows healthy net growth, the rising churn rate warrants monitoring in coming months to determine whether this represents normal market adjustment or the beginning of a broader trend in business sustainability challenges.