Are you a foreign company and would you like to test the market in Romania? Maybe not decided yet to establish a legal entity in Romania?
A foreign company can have an employee in Romania without establishing a legal entity or a branch in Romania. This solution is well known as an Employment without Establishment (EWE).
To make that happen the company must be registered to the local competent tax authority, the company then becomes a Non-Resident Employer.
Non-Resident Employers are legal entities that do not have a permanent office in Romania and they owe compulsory social security contributions in Romania for salaries and other incomes similar to salaries paid to their employees working in Romania.
Social security contributions should be declared and paid to the authorities according to the local legal provisions in force.
The contractual relationship with rights and obligations between the non-resident employer and the employee should meet the minimum requirements of the Romanian Labour Code.
Advantage of the Employment without Establishment (EwE) setup:
- Time – establishing a legal entity, opening a bank account, finding an office will take longer than registering the foreign company to the local authorities.
- Costs related to opening a limited liability company or branch or representative office or office lease or lawyers’ fees are significantly much higher compared to Employer Without Establishment setup.
- The establishment procedure of a Non-Resident Employer is much more simple, compared to the registration of a limited liability company or a branch and can be much quickly achieved.
- Provides help to the investors to settle their business in Romania within a reasonable time until they are more confident to open new office after a period of market testing.
- Getting to know the market from own experiences, with own local employees, is much better and efficient.
- Helps the investors to understand the market before establishing a legal entity in Romania.
- There is no required local accounting compliance for such an establishment, therefore no additional accounting service fees are involved.
The BPiON Professional team is always at your disposal to provide more clarification and details about how to become a non-resident employer and how to meet HR and Payroll compliance.
EwE (Employment without Establishment) services that BPiON can provide for you:
- Registration of the Foreign Employer
- Registration of the Employee working for a Foreign Employer
- Representation in front of the local authorities
- HR administration & Payroll services
- Managing salaries and budget payments on behalf of the Foreign Employer or/and Employee
- Deregistration of the Foreign Employer or Employee
Do not hesitate to contact us!