Topic 1 Steps & tips on how to set up a business in Romania
- Foreign Direct Investment (FDI) is a very important component of the Romanian economy. More companies worldwide choose Romania to start investing, and the main investing countries are the Netherlands, Germany, Austria, Italy and Cyprus.
- Romania benefits of the European Union Structural Funding opportunities – mainly invested in developing the country’s infrastructure, labour market and job opportunities development and support, hence contributing to the economic and social progress.
- Romania has a very high touristic potential – according to Emerging Europe 2022 report “The Future of Sustainable Travel”, Romania is in the top 5 countries in Central and Eastern Europe that best capitalizes its potential as a tourist destination.
- Before investing in a foreign country, the company investors the tax system of that specific country. Romania has one of the lowest flat corporate tax, VAT and income tax rates in the European Union (i.e. tax on profit is 16%, but it is even lower for companies with annual turnover below EUR 1 million).
- In Romania you can buy a land at low prices (three to seven times cheaper than other EU countries).
Many Entrepreneurs from third country nations are very interested to develop a business plan in Europe. Romania stands out because it has many pros as a business environment.
If you are a foreign citizen and you want to open a business in Romania, you will be able to do it in two situations:
- When you have applied for the right to reside in Romania (in order to perform a commercial activity).
- When you have obtained the right to temporary or permanent residence in Romania.
1. When you have applied for the right of residence in Romania to perform a business activity
If you are a foreign citizen, you can obtain the right of residence in Romania for the purpose of performing commercial activity in compliance with the applicable law.
In order to obtain a visa for the purpose of conducting commercial activities, you must obtain the approval of the Romanian Centre for the Promotion of Trade and Foreign Investments. The approval is also necessary when you are a shareholder or associate with leadership or management responsibilities in a company (a Romanian legal entity) that is about to make an investment.
- The approval of the Romanian Centre for the Promotion of Trade and Foreign Investments is valid for a period of six months starting from the date of issuance and aims to prove the fulfilment of the technical conditions for the investment made by the foreign citizen.
2. When you have obtained the right to temporary or permanent residence in Romania.
Foreign citizens who have obtained the right to reside in Romania also have the right to start work by establishing a business.
- Unlimited Company.
- Limited partnership.
- Partnership limited by shares.
- Limited liability company.
In Romania, the prevalent type is the Limited Liability Company – LLC (SRL), which can be set up by just one person-sole partner. The maximum number of associates in such a company is 50. In order to set up SRL, the registered capital must stand at a minimum of 200 RON.
A natural or legal person can be a sole partner only in one SRL.
- Following the previously attached video, it is important to mention that currently, the National Registry of the Trade Register provides certain on-line services, such as: application for the registration of a company, checking the availability of the name of the company etc.
- For more, please details see: https://portal.onrc.ro/ONRCPortalWeb/ONRCPortal.portal.
- Contact information for the National Registry of the Trade Register:
- fax (+4021) 316 08 29
- e-mail: onrc@onrc.ro
- Online, through the RECOM service: http://recom.onrc.ro.
- After submitting the documents, you will receive a certificate which will include a single registration code (CUI). Based on this certificate, you can start your business. Carrying out any trading activity in Romania is taxed and you will have to pay taxes for the entire duration of your activity, according to the profit you are going to make.
- A work authorization is the official document issued in accordance with the applicable legislation, which gives the holder the right to be employed or posted in Romania, with one employer and in one position.
- This means that if you are part of the category of foreign citizens who need a work authorization and you change your position, job or employer, you will need a new work authorization.
- The work authorization is not requested under the specific conditions provided by Article 5 of GEO no. 56/2007 regarding employment and the posting of foreigners to Romania.
- A work authorization cannot be granted to those foreigners who in the past 2 years have had the right of residence for commercial activities and have not respected the business legal provisions stipulated by the legislation regarding foreigners involved in economic activities in Romania.
Important notes:
A work authorization is issued for a person to be accepted to enter Romania and to extend their right of residence for periods no longer than one year.
The work authorization issued by the Romanian Immigration Office on your name, at the request of the employer.
Foreign citizens students who have a residence permit for studies are allowed to work for the duration of their studies, provided they work for a part time program – maximum 4 hours/day – and they need a work authorization. At the end of the education period, if the former student is employed in the field from which he/she graduated, then he/she can get a work visa without having to leave Romania and without the employer having to pay the fee. The Romanian Immigration Office will issue the permanent (full-time) worker authorization based on the employment contract, without asking from the employer the documents needed for this type of authorization.
Types of work authorizations that can be granted to foreigners:
Gives the holder the right to be employed based on the individual employment contract concluded for an indefinite or limited period, with just one physical or natural person in Romania, or with a branch or office in Romania of a foreign company.
Gives the holder the right to carry out work for a period of maximum one year within minimum 5 years, based on a posting decision by an employer, foreign legal person, to an employer legal person in Romania or branch/office in Romania of a legal person based abroad. Under the international agreements, conventions or understandings to which Romania is party, the period for which the posted worker carries out an activity on Romanian soil can be extended, by observing the conditions and situations specifically stipulated by those conventions.
Gives the holder the right to be employed on Romanian soil for a period of 6 months at the most, within 12 months, with no possibility of extension for another job.
Gives the holder the right to be employed in Romania for an internship, with the goal of getting a professional qualification.
Gives professional athletes the right to be employed by just one Romanian employer (whose main object of activity is sporting events) for a period of 12 months at most, with the possibility of extension over new periods of time of up to 12 months.
Gives the holder the right to be employed, based on a valid employment contact, concluded for a period of at least one year, by a natural or legal person in Romania, for a job that entails high skills.
You can find details regarding the application for a work authorization, application analysis and issuance in EGO no. 56/2007. For further details go to the ORI web page ( The Romanian Immigration Office): https://igi.mai.gov.ro/en/employment-and-posting/ For each type of authorization there is a list of needed documents.
The application for a work authorization is analyzed and receives a resolution from the Romanian Immigration Office within 30 days since its registration date. If additional verifications are needed to make sure all conditions are met, the deadline can be extended by up to 15 days.
If the foreigner’s work relations stopped before the expiration of the work authorization, the TCN can be hired by another employer only if he/she receives a new work authorization. The application for a new work authorization must be filed by the new employer within 60 days since the cessation of the work relation was registered. In this case, although the employer changes, the foreign citizen will be able to get a new work authorization without having to leave the country.
If the employment contract you concluded with your employer is terminated and you cannot find a new job within 60 days, the work authorization will be cancelled, just like your right of residence. Therefore, you will have to leave Romania and obtain a new visa.
- Asylum seeker can have the right to work and start up a business in Romania 3 months after applying for asylum.
- According to the Romanian Constitution, as a person granted asylum, you benefit from all the fundamental rights, except for the political ones.
- They can continue to work if they were residing and working legally before seeking asylum.
- The asylum seeker can be issued with a document certifying the right to work in Romania by the General Inspectorate for Immigration.
- Individuals who have the status of refugees or international protection have the right to practice medical professions in Romania if they speak the Romanian language, and if they have completed their studies in Romania.
- The Coalition for the Rights of Migrants and Refugees (CDMiR) was formed in 2017, in response to the increasing needs of migrants and refugees.
- Start-Up Nation Romania 2022 (non-refundable state funding up to 200.000 LEI for new businesses);
- EEA Grants, “Romania – SMEs Growth Programme” (focus areas: green industry innovation; blue growth, ICT);
- The Regional Operational Program (non-reimbursable funds for Small and Medium Enterprises, 25.000E – 200.00 E funding, with 10% co-financing);
- Horizon Europe – focused on innovation and research.
