A Romanian Individual Enterprise (“Intreprindere individuala”) is a business entity without legal personality, established by a single natural person.

There are a series of conditions for the creation of this type of Romanian business, respectively: the person requesting the registration is over 18 years of age, he/she does not have a fiscal record, he/she have a professional domicile, he/she fulfills the conditions in areas such as sanitary, veterinary, protection of the environment and of labor law.

The request to register a Romanian Individual Enterprise is filed with the Trade Register of the respective county. The Individual Enterprise is able to hire other persons through an Individual Labor Agreement, registered with the Territorial Labor Inspectorate and can collaborate with PFA Enterprises, with other individual enterprises or other legal entities. Also the natural person owning an Individual Enterprise can also be an employee of a third party activating in the same or any other field of activity.
 

There are a series of differences between the Romanian Individual Enterprise and the PFA (Persoana Fizica Autorizata), respectively:
- the PFA cannot hire employees;
- the PFA cannot be considered an employee of a third party, even if the collaboration is exclusive;
- the person owning the Individual Enterprise in Romania is considered a business entity since the date he/she is registered with the Trade Register, however this entity does not have legal personality in the sense of the Romanian law;
- The person owning an Individual Enterprise can also be employed by a third party;
- The Individual Enterprise is able to hire employees.
 

In order to fully understand the difference between a Romanian Individual enterprise, a PFA and a Romanian SRL with one shareholder (Limited Liability Company) please read our articles regarding to the creation and functioning of the PFA as well as the SRL:

Authorized Physical Person

Setting up a company in Romania

Types of Romanian Companies