Global Upside helps businesses expand into Romania by providing talent acquisition, human resources, accounting, payroll, tax, incorporation, and professional employer organization (PEO)/employer of record (EOR) services. Our comprehensive offerings create an end-to-end solution that helps you establish your business and optimize your operations, all while maintaining compliance with Romania’s laws and regulations.
The hiring and incorporation processes in Romania are often complex, time-consuming, and involve numerous legal and compliance challenges. Global Upside simplifies these processes and lifts the compliance burden from your business. Our teams have the experience and expertise required to help you establish a legal entity in Romania. We also offer PEO/EOR solutions to companies interested in hiring employees quickly, without setting up a legal entity in the country.
Romania’s economy saw a boost in the last few years which is driven by strong manufacturing exports, exceptional agricultural yields, and growing fiscal policies that augmented the capital’s annual fiscal debit. Automotive parts and accessories are the most valuable exported products in Romania. Amongst the top 10 export categories, cereals have seen the fastest growth which was accelerated by higher global sales of corn.
- Romania ranks as the 46th largest economy in the world in terms of nominal GDP.
- Romania ranks as the 19th largest economy in the EU.
- Romania ranks 41 as the best country in the world for business.
A joint stock company (JSC) is an individual and distinct establishment that is managed by a board of directors who are elected by the investors in a one-tier system. The board of directors appoints the managers. Meanwhile, a two-tier system has a supervisory board and an executive board. The members of the former are appointed by the general meeting of investors, whilst members for the latter are appointed by the former.
A limited liability company (LLC) is an individual and definite entity that is managed by one or more directors. The directors are appointed by the investors during the general meeting. The LLC is represented by its directors.
It takes approximately two to three weeks to establish a legal entity set up in Romania.
The Labor Code (Law No. 53/2003) governs the employment bonds in Romania. It came into effect in March 2003 and was revised in May 2011. This law administers both collective and individual employment relationships and other vital employment-related concerns.
Mentioned below are the terms to be included in the employment contract:
- Name and address of both the parties
- Job location
- Job title and description
- Date of commencement of the job
- Employment duration
- Leaves and holidays
- Salary, bonuses, and payroll cycle
- Working hours
- Probationary period
Being a member of the European Union (EU), Romania is subject to the accounting, assessing, and financial reporting prerequisites established in EU Regulations and Directives as rendered into national laws and guidelines
In Romania, Law 82/1991 with the subsequent revisions and supplements is known as the Accounting Law, ratifies the Ministry of Public Finances (MFP) as the auditing standard-setter that is accountable for altering EU regulations that necessitate the application of IFRS as approved by the European Commission into national law.
For the processing of personal data, GDPR is applicable in Romania as it is a member of the EU. According to the law, employers must notify the employees about personal information processing.
Anti-Bribery & Anti-Corruption Law
The Romanian Criminal Code (RCC) is the main legislation that governs anti-corruption and anti-bribery offenses under Law no. 286/2009. RCC convicts both active and passive bribery, in addition to influence-peddling and buying impact. These corruption offenses are furnished by Article 289-292 of the RCC, with enhanced forms provided in Law 78/2000. The offenses apply to both the private and public sectors.
1. Bribery of Public Officials:
i) Imprisonment for up to 3 to 10 years
ii) A monetary fine
iii) Confiscation of received benefits
i) Dissolution of the establishment
ii) Monetary fine
iii) Suspension from performing activities from 3 months up to 3 years
iv) Prohibition from public procurement from at least 1 up to 3 years
2. Bribery of Private Officials
According to the provisions of the Anti-corruption Law, the punishment limits are decreased by one-third for private officials. Officials may face a temporary restraint on the exercise of specific rights.
i) A monetary fine from RON18,000 up to RON1.5 million (€3,800 – €317,000)
ii) Dissolution of the establishment
iii) Suspension from performing activities
iv) Prohibition from public procurement