By Manu Rao | Updated March 2026
At a Glance
| Indian Diaspora | ~9,000 |
| FDI Route | Automatic route for most sectors |
| DTAA | 10% dividend withholding |
| Document Authentication | Apostille (Hague Convention member) |
| Realistic Timeline | 6-8 Weeks |
| Currency | RON |
Why Romania and India Make Business Sense Together
Romania and India share 75 years of diplomatic relations — one of India's oldest partnerships in the EU. The economic connection has accelerated dramatically in recent years. Bilateral trade jumped from $54 million in FY 2019-20 to roughly $3 billion in FY 2023-24. That is a 55x increase in five years. India's exports to Romania crossed $1.03 billion in FY 2024-25, per the Indian Ministry of Commerce.
The IT connection runs deep. Romania has more certified IT professionals per capita than any other European country. Indian tech companies noticed. Wipro has delivery centres in Romania. Infosys opened offices in Bucharest in Spring 2022 and expanded to Sibiu within six months. TCS maintains operations there. These are not token offices — they are active delivery locations servicing European clients.
Indian investment in Romania is estimated at $1.5 billion. ArcelorMittal (Indian-origin multinational) has major steel operations. Sun Pharma supplies the Romanian pharmaceutical market. Motherson Group touches the automotive supply chain.
The diaspora is small — around 9,000 people of Indian origin, concentrated in Bucharest. But it is growing, driven by IT professionals and students at Romanian universities.
The EU-India FTA concluded January 27, 2026. Romania, as an EU member since 2007, benefits directly from reduced tariffs and improved investment access. In 2025, India and Romania signed a Mobility and Migration Partnership Agreement to simplify skilled worker movement between the two countries.
Choose Your Entity Type
Your entity choice determines taxes, compliance burden, and future funding options. Here is the comparison:
| Feature | Private Limited Company | LLP | Branch Office | Liaison Office |
|---|---|---|---|---|
| FDI Route | Automatic (most sectors) | Automatic (some sectors) | RBI approval | RBI approval |
| Minimum Directors/Partners | 2 directors, 1 resident | 2 partners, 1 resident | Authorized representative | Authorized representative |
| Residency Rule | 1 director must stay 120+ days in India in the preceding calendar year | 1 partner must stay 120+ days in India | N/A | N/A |
| Annual Audit | Yes, mandatory | If turnover > Rs 40 lakh or contribution > Rs 25 lakh | Yes | Yes |
| Compliance Load | High (board meetings, AGM, multiple annual filings) | Moderate | Moderate | Low |
| Can Raise External Equity | Yes | No | No | No |
Private Limited Company is the standard choice for Romanian investors. It gives you equity flexibility, straightforward FEMA compliance, and the option to bring in future investors. LLPs suit professional services firms that do not need external capital.
One thing to factor in: Romania uses the Romanian leu (RON), not the euro. Despite EU membership since 2007, Romania has not joined the eurozone. Your investment amount will go through a RON-to-INR conversion, typically routed via EUR or USD. Each conversion step has a spread.
FDI Route and Sector Rules
India allows 100% FDI through the automatic route for most sectors. No prior approval needed. IT services, manufacturing, pharmaceuticals, healthcare, e-commerce (marketplace model), and financial services are all automatic.
Government approval required for: defence above 74%, media and broadcasting, multi-brand retail. Refer to DPIIT's Consolidated FDI Policy (Press Note 2 of 2020, updated periodically).
Prohibited sectors: atomic energy, lottery, gambling, chit funds, Nidhi companies, TDR trading, real estate business. These are off-limits regardless of nationality.
Press Note 3 of 2020 does not apply to Romanian investors. Romania does not share a land border with India.
Where is the Romania-India business action? IT and BPO top the list — Wipro, Infosys, and TCS use Romania as a European delivery hub, and there is growing interest in Indian companies setting up Romanian operations (and vice versa). Steel and metals is another corridor, driven by ArcelorMittal's presence. Pharmaceuticals, with Sun Pharma and generic drug trade, rounds out the top three.
Step-by-Step Registration Process
Pick Your Entity Type and State Decide between Pvt Ltd, LLP, Branch, or Liaison Office. Maharashtra, Karnataka, Delhi, and Tamil Nadu are popular. If your focus is IT services, Bangalore (Karnataka) or Hyderabad (Telangana) are natural fits given India's IT infrastructure.
Obtain a Digital Signature Certificate (DSC) Each proposed director needs a DSC. Foreign nationals submit their passport and do a video verification. Takes 1-3 days.
Apply for Director Identification Number (DIN) Bundled into SPICe+ now. No separate application needed. MCA simplified this under the Companies (Incorporation) Rules, 2014 as amended.
Reserve Your Company Name MCA's RUN service. Two name choices per application. Approval in 1-4 working days.
Prepare and Notarize Documents MOA, AOA, director declarations under Section 152 of the Companies Act 2013, registered office proof. Romanian-based directors get documents notarized by a Romanian notary (notar public).
Apostille Your Documents Romania is a Hague Convention member. The apostille authority is the Prefectura (Prefecture) in the county where the document was issued. For Bucharest: Prefectura Municipiului Bucuresti, Splaiul Independentei 291-293, Sector 6. Bring the original document, valid passport or ID card, and a completed application form in Romanian. The apostille is issued as a sealed A4 page attached to your document. Processing takes same day to 3 working days. Fee is approximately RON 30-50.
Receive Certificate of Incorporation MCA issues the certificate with PAN and TAN. Company legally exists from that date.
Document Checklist and Authentication
- Passport copy (all pages, notarized by Romanian notary)
- Address proof (utility bill or bank statement, under 2 months old, notarized)
- Passport-size photographs
- Bank reference letter or 6 months' bank statements
- Board resolution or authorization (if corporate shareholder — e.g., Romanian S.R.L. or S.A.)
- MOA and AOA (drafted and notarized)
- Director declarations (INC-9)
- Proof of registered office in India
All foreign documents must be apostilled through the relevant Prefectura. The Romanian application form is in Romanian, so you may need a local assistant if you are not fluent. Documents in Romanian will also need certified English translation before submission to MCA. Budget extra time for translation.
India-Romania DTAA: Tax Rates at a Glance
The India-Romania DTAA was signed November 17, 1986 in Bucharest and entered into force December 14, 1987. It is one of India's oldest tax treaties.
| Income Type | Without DTAA | With India-Romania DTAA |
|---|---|---|
| Dividends | 20% | 10% |
| Interest | 20% | 10% |
| Royalties (copyright — literary, artistic, scientific) | 20% | 10% |
| Royalties (patents, trademarks, industrial equipment) | 20% | 15% |
| Fees for Technical Services | 20% | 10% |
A few things to note. The dividend rate is a flat 10% regardless of shareholding percentage. No tiered structure based on ownership threshold. This makes it simpler than treaties with the US or Portugal.
Royalties have a two-tier structure: 10% for copyright of literary, artistic, or scientific works, and 15% for patents, trademarks, designs, models, plans, secret formulae, or industrial/commercial/scientific equipment. If your Romanian parent licenses software to the Indian subsidiary, the classification matters — is it a copyright license (10%) or an industrial process license (15%)?
Standard FTS definition applies. No "make available" test. Any payment for technical services to a Romanian entity is taxable at 10% in India.
Surcharge and cess are not levied on treaty rates.
To claim benefits, obtain a Tax Residency Certificate from ANAF (Agentia Nationala de Administrare Fiscala — Romania's tax authority). Allow 2-4 weeks.
Realistic Timeline: 6-8 Weeks
Honest timeline for Romanian investors:
- DSC + DIN: 1-3 days
- Name reservation: 1-4 working days
- Document preparation, notarization, and apostille: 1-3 weeks (include time for Romanian-to-English certified translation)
- SPICe+ filing to Certificate: 5-15 working days
- Bank account opening: 2-4 weeks (enhanced KYC)
- GST registration: 1-3 weeks
Total: 6-8 weeks. The extra factor for Romanian investors is document translation. MCA requires English-language submissions. If your source documents are in Romanian, certified translation adds 3-7 days to the document preparation phase.
The timezone advantage is real. Bucharest is only 3.5-4.5 hours behind India (depending on summer/winter time). Back-and-forth queries between your Romanian and Indian teams can happen within the same business day.
Post-Registration Compliance Calendar
- Within 30 days of share allotment: File FC-GPR with RBI through Authorized Dealer bank. Mandatory under FEMA.
- Board meetings: Minimum 4 per year for Pvt Ltd, max 120 days apart.
- AGM: By September 30 each year.
- AOC-4: Within 30 days of AGM.
- MGT-7: Within 60 days of AGM.
- Statutory audit: Mandatory annually.
- Income tax return: By October 31.
- GST returns: Monthly GSTR-3B and GSTR-1 if registered. Quarterly below Rs 5 crore turnover.
- Transfer pricing: Section 92D documentation for transactions between Romanian parent and Indian subsidiary.
Bank Account Opening
Foreign-owned companies face 2-4 weeks for current account setup. Enhanced KYC is standard. FATCA/CRS declarations, AD bank verification, and often a director's physical visit are required.
HDFC, ICICI, and Kotak handle foreign-owned company accounts better than most public sector banks.
CRS applies: Romania and India are both CRS participating jurisdictions. Your Indian bank account information will be automatically shared with Romanian tax authorities (ANAF).
Profit Repatriation
Standard procedure applies. Routes: dividends, royalties, management fees, share buyback.
Process flow: TDS at DTAA rate, Form 16A, CA certificate (Form 15CB), file Form 15CA, present to AD bank for wire.
DDT was abolished April 2020. Shareholders pay directly at DTAA rates or applicable rates, whichever is lower.
Currency note: remittance goes INR to RON, often via EUR as intermediary. Expect conversion spreads at each step. If your Romanian bank account is denominated in EUR (common for Romanian businesses), the conversion is INR-EUR-RON, adding a layer.
Exit Strategy
Strike-off under Section 248, Companies Act 2013: Dormant companies with no business for two years. Application to Registrar, public notice, 30-day objection window.
Voluntary liquidation under Section 59, IBC 2016: Active companies. Special resolution, insolvency professional, 6-12 month process.
Plan your exit before entry. It is not a sign of pessimism — it is basic risk management.
How Beacon Filing Helps
We handle the complete India entry process for investors based in Romania. From initial structuring through post-incorporation compliance, here is what we cover:
- Foreign Direct Investment advisory — route selection, sector analysis, RBI compliance, and FC-GPR filing
- Resident Director services — appointment of a qualified Indian resident director who meets the 120-day requirement
- Company setup and incorporation — SPICe+ filing, DSC, DIN, name reservation, and Certificate of Incorporation
- Tax and DTAA advisory — treaty benefit structuring, transfer pricing documentation, and annual compliance
- Accounting and statutory audit — bookkeeping, financial statements, ROC filings, and GST returns
Related Country Guides
Setting up from a different country? These guides cover similar territory:
- Register a Company in India from Germany
- Register a Company in India from United Kingdom
- Register a Company in India from Italian Republic
Get in Touch
Setting up an Indian company from Romania? Talk to us. No commitment, no generic sales pitch. We will walk you through the structure, timeline, and costs specific to your situation.
WhatsApp: +91 874 501 3644 | Email: hello@beaconfiling.com
Frequently Asked Questions
- EU-India FTA (January 2026): Reduced tariffs and improved access for Romanian investors in India.
- Mobility and Migration Partnership (2025): New bilateral agreement easing skilled worker movement between India and Romania.
- CRS reporting: Automatic exchange of financial information between India and Romania.
- RON currency: Romania uses the leu, not the euro. RON-INR conversion adds currency risk.
- Translation requirement: MCA requires English submissions. Romanian documents need certified translation.
- 75 years diplomatic relations: One of India's oldest EU bilateral relationships.
Indian Embassy / Consulates
Embassy of India, Bucharest, Romania. Strada Armeneasca 31, Sector 2, Bucharest 020042.
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