How to register a company in Romania?

In order to register a company in Romania, you need to choose the type of company form you want to incorporate, to prepare the necessary documents and to submit the application to the Romanian Trade Registry. Most common forms of companies in Romania are the Limited Liability Company (LLC), Joint Stock Company (SA) and sole trader (PFA).

How long does it take to open a company in Romania?

The company formation in Romania process will take 2 working days, since the date the incorporation application is submitted to the Romanian Trade Registry.

What is the main advantage to open a company in Romania?

One of the lowest taxation in EU: 1% turnover tax for the companies whose turnover does not exceed EUR 60,000 and have at least one employee or 3% turnover tax if the companies has a revenue exceeding EUR 60,000 or the companies is engaged in some specific activities.

Can I start a company in Romania as a foreigner?

Foreign citizens and legal persons can quickly and easily incorporate their own company in Romania, without any restrictions. There is no need for a Romanian shareholder and director

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18 October 2023

Hot to get A1 Form regarding the payment of the social contributions?

Looking to obtain the A1 Form? Well, you've come to the right place! Getting your hands on this important document is easier than you might think | The A1 Form is a crucial document for individuals who work or travel across different countries within the European Union (EU) | It serves as proof that you are covered by the social security system of one EU country while working in another | So, let's dive into the process of obtaining this valuable form! | all you need to know about A1 Form or A1 Certificate or, more precisely, portable document (pd) A1 | an essential document when you decide to detach your employees to work in another EU countries | How to obtain the A1 Certificate? | Obtaining A1 Certificate in Romania

Access A1 form for social contributions Romania

Are you in need of an A1 Form? Fear not, for we have the solution for you! The A1 Form, a document of utmost importance for individuals working or traveling within the European Union (EU), is your key to ensuring social security coverage while abroad. This form, also referred to as the Certificate of Coverage, acts as proof that you are covered by the social security system of one EU country while working in another. Now, let's explore the steps you need to take to obtain this essential document.

Curious about when you'll be needing the A1 Form? When do you need the A1 Form?

The A1 form becomes necessary when you are involved in cross-border activities within the EU or EEA. Whether you are a business owner sending employees to work in another country or an individual taking up a temporary job assignment abroad, this form ensures that you remain covered by your home country's social security system. It helps prevent double taxation and ensures that you continue to receive the benefits and entitlements you are entitled to in your home country.

you want to extend your business activity outside the Romanian borders within the rest of the European Union member stated, including the Economic European Area (EEA), meaning Norway, Island, Liechtenstein and Switzerland?
have you concluded a service agreement with a client located outside Romania and you need to move your employees abroad in order to perform the contract?
do you have employees temporary detached to work abroad (civil aeronautical personnel, truck drivers, pilots, train conductors, IT experts) or your company is a transport company?
do you find difficulties preparing the legal documents regarding these employees?

If your answer is YES to any of the 4 questions below, then it is necessary to obtain the A1 Form or A1 Certificate or, more exactly, the Portable Document (PD) A1, for your employees.

If you are planning to work or provide services in another EU or EEA country, it is crucial to obtain the A1 form. This document acts as proof that you are subject to the social security legislation of your home country and not the host country. It is required to avoid any legal complications and ensures that you are not liable for social security contributions in the country where you will be working temporarily. The A1 form is an important document for both employers and individuals, as it guarantees compliance with social security regulations and protects the rights and benefits of workers engaged in cross-border activities.

Ever wondered about the A1 form? What is the A1 form? Let me enlighten you! It's a form that serves a crucial purpose

The A1 form is issued by the social security authorities in the home country of the individual. It contains important information such as the individual's personal details, the duration of the posting, the nature of the work being carried out, and the applicable social security legislation. The form must be carried by the individual while working abroad and may need to be presented to the authorities in the host country as proof of social security coverage. It is important for individuals to understand the requirements and regulations surrounding the A1 form to ensure compliance with social security obligations while working in different EU or EEA countries.

Starting from 1st of May, 2010 it entered in force, in relation between the European Union member state, EEA states and Switzerland, the Regulation no. 883/2004 of the European Parliament and of the Council on the coordination of social security systems and the Regulation no. 987/2009 of the European Parliament and of the Council laying down the procedure for implementing the Regulation no. 883/2004. These EU regulations shall be applicable in case of migrant workers, being defined as a person - employed or self-employed in a member state of the EU who, during his professional career, is engaged in remunerated activity or performs its work in several countries at the same time.

The Regulation no. 883/2004 of the European Parliament and of the Council on the coordination of social security systems provides the rule that the social security contributions are due in the state where the worker performs his activity, excepting some specific situation. These exceptions are:

detachment (for dependent activities);
pluri-activity (when the worker in question carries out simultaneously and in the usual way: independent and/or remunerated activity in two or more EU member states).

Thus, the A1 Form is obtained in order to apply one of these two exceptional situations. The A1 Certificate exclusively proves that its holder is in the social security system from the sending state (the state to which the institution that issued the document belongs), the lack of it not being of a nature to prevent the carrying out of professional activities on the territory of another member state, in such a case the general rule in the field becomes applicable - that of insurance according to the legislation of the place where the activity is carried out.

Form A1 (the former Form E101 or E103) is a portable document which confirms the payment of social contributions in another member country of the European Union, necessary for persons posted in other countries or working in several countries at the same time. So, the A1 Certificate is useful to prove that you pay social security contributions in another EU country as a posted worker or while working in several countries at the same time.

In other words, the A1 Form certifies that social contributions (pension insurance, work accidents, occupational diseases, social health insurance and family benefits and indemnities) are paid in the state where you have concluded the individual employment contract. by obtaining the A1 Form you have the possibility to pay social contributions in Romania for employees who work in another EU member country. By obtaining the A1 Form you have the possibility to pay social contributions in Romania for employees who work in another EU member states. Thus, the holder of the A1 Form proves that he is subject to the social security legislation of the sending state (Romania), for the entire period of validity of the document (2 years).

The A1 Form cannot be assimilated, from the legal perspectives and effects, to a work permit.

Why you should obtain the A1 Form? Find out why the A1 Form is an absolute must-have!

The A1 Form is an essential document that holds great significance for individuals who work or travel abroad. It serves as proof that you are covered by the social security system of your home country while temporarily working in another country within the European Economic Area (EEA) or Switzerland. Obtaining the A1 Form ensures that you are entitled to the same social security benefits and protections as the local workers in the country you are visiting. By obtaining the A1 Form, you are safeguarding your rights and ensuring that you are not subjected to any unnecessary complications or legal issues during your time abroad. This document acts as a guarantee that you will continue to contribute to your home country's social security system, allowing you to maintain your entitlement to benefits such as healthcare, pensions, and unemployment benefits.

In order to work, temporarily, compliant to all legal requirements in another state. This form is required by the authorities, both from the country where the employee works and from the sending state (Romania) and in its absence, the authorities of the country where the employee works will require affiliation to their social insurance system and the payment of related social contributions. The Form A1 certifies that the employee is temporarily working in another EU/EEA/Switzerland member state, therefore there is no obligation to declare and pay social contributions in the country where the employee effectively works.

Wondering what could happen if you don't manage to obtain the A1 form? What happens if you do not get the A1 Certificate? Well, let me enlighten you!

Failing to obtain the A1 Certificate can have serious consequences for individuals working or traveling abroad. Without this document, you may be considered as not being covered by any social security system, leaving you vulnerable and unprotected in case of any unforeseen circumstances. This means that you may not have access to essential healthcare services, and you may not be eligible for certain benefits or protections that local workers enjoy.

Moreover, not having the A1 Certificate can lead to legal issues and potential penalties. Many countries have strict regulations in place to ensure that individuals working within their borders are properly registered and covered by the social security system. If you are found to be working without the necessary documentation, you may face fines, legal proceedings, or even deportation.

If the A1 Certificate shall not be obtained, the social contributions are paid in the state where the employee works and the employer company (in this case, the Romanian company) must authorize itself in that state where the employee works as a payer of the social contributions there.

Please note that performing a remunerated activity in the state where the employee effectively works without obtaining the A1 Form or without paying social security contributions in that country is considered to be illegal activity and this may also attract the criminal liability of the company director and the company itself, being considered tax evasion.

Discover the advantages that come with acquiring the A1 Form! What are the benefits of obtaining the A1 Certificate?

Obtaining the A1 Form brings numerous benefits and peace of mind for individuals working or traveling abroad. Firstly, it ensures that you have access to the same social security benefits and protections as the local workers in the country you are visiting. This means that you can receive necessary healthcare services, claim pensions, and avail unemployment benefits if needed.

Additionally, having the A1 Certificate simplifies administrative processes and reduces the risk of encountering legal issues. It serves as proof of your compliance with the social security regulations, eliminating any doubts or concerns that may arise during your stay abroad. By obtaining the A1 Form, you can focus on your work or travel experience without worrying about potential complications or penalties.

1. the employees of an EU/EEA member or Switzerland can work in any other EU member states for a maximum period of 2 years, being at the same time insured in his country of origin;

2. the employees are still socially insured within the Romanian social security system, considering that Romania is the country of origin;

3. recognition of professional qualification shall not be required;

4. no work permits shall be required;

5. after the retirement, the employees will not have to contact the social security institutions of the states where he was delegated/temporarily seconded;

Eager to find out what it takes to get the A1 Form? What are the conditions in order to get the A1 Form?

To obtain the A1 Form, there are certain conditions that need to be met. This form is primarily used for individuals who are working or providing services in one country while being covered by the social security system of another country. It serves as proof that the individual is subject to the social security legislation of their home country and is exempt from paying social security contributions in the country they are working in.

1. the company must have at least 4 consecutive months of activity performed in Romania, starting from its incorporation date, prior to submitting the request for A1 Certificate issuance for its employees;

2. the company's income gained in Romania must be at least 25% of the total income of the company; please note that there is an exception here regarding the transport companies, where the company's income gained in Romania must be at least 5% of the total income of the company;

3. number of the seconded employees must be maximum of 50% of the total number of its employees;

4. the company must have performed commercial agreements in Romania both prior to the secondment, as well as after the employees' detachment;

5. the company must conclude an agreement with the employer from the country where the employees will effectively work, together with its authorized translation, providing the contractual right and obligations of the parties, the tasks to be accomplished by the detached employees and the performing period of the agreement.

Who will issue the A1 Form?

When it comes to issuing the A1 Form, the responsibility lies with the competent institution in the individual's home country. This institution is typically the social security authority or a similar government body that oversees social security matters. They are responsible for verifying the individual's eligibility for coverage and ensuring that the necessary documentation is provided to support the application for the A1 Form.

The A1 Certificate shall be issued in Romania by the National House of Public Pensions.

Interested to know the specific timeframe for obtaining the A1 Form? How soon can you obtain the A1 Form?

Are you wondering about the timeframe for obtaining the A1 Form? Well, let me assure you that we strive to provide a swift and efficient service to meet your needs. The exact time it takes to obtain the A1 Form can vary depending on several factors. Firstly, it depends on the specific requirements and regulations of the country you are applying from. Different countries may have different processing times and procedures in place.

The period for issuance of the A1 Certificate is, in practice, of 45 calendar days, starting from the submission of the complete documentation with the National House of Public Pensions.

Find out the documents required in order to obtain the A1 Form!

What are the necessary documents needed to obtain the A1 Certificate? When applying for the A1 Certificate, there are a few important documents that you will need to provide. Firstly, you will need to submit a completed application form, which can usually be obtained from the relevant authority or embassy. This form will require you to provide personal information such as your name, address, and contact details.

In order to obtain the A1 Form, the National House of Public Pensions requests a very complex file and the lack of any of these requested documents makes the issuance process difficult or even unsuccessful, the request being denied. So, in practice, the file is generally be prepared by a specialized and competent lawyer.

In order to obtain the A1 Certificate, the local regulations provide the following necessary documents required to be presented before the National House of Public Pensions:

a) for the companies that are detaching their employees in other countries of the European Union:

the request form for obtaining the A1 Certificate; the application can be obtained directly from the National House of Public Pensions;
the company registration certificate, in certified copy (signed and stamped on each page); please note that the original must also be presented;
the fiscal certificate, proving that the company has no fiscal debts, it is valid only in the month in which it was issued (30 days);
the statement on own responsibility with the current number of employees - signed and stamped by the company's legal representative;
the company confirmation excerpt, issued by the Romanian Trade Registry;
the company's financial statements, in certified copy (signed and stamped on each page);
the financial balances for the last two months;
the statement on the employer legal representative own responsibility regarding the turnover for the last year;
the service agreements where the Romanian company is a party, performed on the Romanian territory (before and during the detachment period);
the detachment agreement between the Romanian company, seconded employee and the entity from the other member state where the employee effectively works;
the ultimate Form 112 and the Appendixes no. 1.1 and 1.2, in certified copy (signed and stamped on each page);
the identity cards of the detached employees, in certified copy;
the individual employment agreement with its addendums, in certified copy (signed and stamped on each page);
the certificate ascertaining the contribution period for the last 12 months, issued by the Local County Pension House, in original;
the statement on the employer's own responsibility attesting that the employee has another Form A1 or not.

b) for the self employed independent worker who moves temporarily, as a seconded person, to the territory of another EU member state:

must be registered at the Romanian Trade Registry and have a fiscal identification certificate (CIF), sole registration certificate (CUI) and/or fiscal code, providing such certificates;
must have performed in Romania, at least 2 consecutive months, substantial activities specific to his professional field and not just administrative activities that are not specific to his own activity field. These aspect can be proven by presenting financial documents (tax decision, register of receipts and payments), as well as ongoing commercial agreements concluded with natural or legal persons from Romania to be performed in Romania;
the gross income earned by the self-employed worker in Romania must represent at least 25% of the gross income earned by the self-employed worker both in Romania and in the state of employment, in the last 2 years;
the activity of the worker who moves temporarily, as a seconded person, to the territory of another EU member state corresponds to the field of activity of the independent activity in Romania;

c) pluri-activity means the situation in which a worker simultaneously or alternatively performs salaried and/or independent activities on the territory of two or more EU member states. Pluri-activity situations particularly refer to the activities carried out by certain socio-professional categories, such as civil aeronautical navigation personnel, truck drivers, train conductors, IT experts who carry out activities alternatively or simultaneously on the territory of several EU member states, activities carried out by nature them, on the territory of several member states, etc.

Our lawyers assists foreigners and local companies interested in all and any aspects related to the A1 Form issuance in Romania. For more details regarding A1 Form, please feel free to contact our law firm using the contact form.

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Die Anwalts-Ecke ist nichts anderes als ein juristischer Blog mit Nachrichten und Updates zur rumänischen Gesetzgebung, der sich ausschließlich an Unternehmer und Investoren in Rumänien richtet. Alles, was Sie als Ausländer über die Gründung eines Unternehmens in Rumänien wissen müssen, die Unternehmensregistrierung in Rumänien, die Gründung eines Unternehmens in Rumänien, die Firmengründung in Rumänien, die Eröffnung eines Unternehmens in Rumänien.

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