Entrepreneurs who open a recruitment agency in Romania follow the requirements for local company creation and engage in activities that fall under the scope of the 7810 NACE code. At the same time, their firm observes the relevant labor law provisions, as well as those for working with qualified human resource specialists.
Our team at Darie, Manea & associates can give you complete information about the requirements for opening a recruitment agency, as well as the need to obtain a recruitment license in Romania. Additionally, our law firm in Romania can provide you with a registered office in Romania and manage the entire registration of your company.
The steps needed to open a recruitment agency in Romania
Investors who wish to start a recruitment business will need to follow the general steps for company formation in Romania.
Recruitment firms may be established as a locally registered company (either a public or a private limited liability company), or the branch of a foreign recruitment company that wishes to expand its activities in Romania.
The differences between the branch (an extension of the parent company) and the subsidiary (a locally registered company owned by a foreign legal entity) can be explained in greater detail by our Romanian lawyers.
Below, we list some of the key steps needed to open a private limited liability company that will offer recruitment services in Romania:
- Choose the company name and check if it is available;
- Prepare the company’s constitutive documents (the Articles of Association);
- Gather the needed documents for registration (the shareholder’s identification documents, details about the company administrator, and others);
- Register the new company with the National Trade Register in the city in which the company is based;
- Obtain accreditation from the National Employment Agency to provide labor mediation services on the domestic market.
Special provisions for services offered by recruitment agencies in Romania
Investors who open a recruitment company in Romania need to obtain an accreditation from the authorities when they provide services on the domestic market, however, they also need to comply with different other requirements when they offer services related to the placement of Romanian employees abroad.
Law no. 156/2000 on the protection of Romanian citizens who seek employment abroad through a local recruitment agency lists some of the conditions that need to be fulfilled by companies that offer these types of solutions.
Our attorneys in Romania highlight the following:
- The recruitment agency must have the space and facilities necessary for the proper conduct of business;
- They must employ experienced personnel;
- Have an organized a database that contains offers and requests for jobs abroad, information about their employment conditions, and the qualifications and skills of their their applicants;
- Conclude agreements that contain firm offers of employment with legal entities, individuals, and business organizations abroad;
- Be registered with the Territorial Labor Inspectorate in the jurisdiction in which they are established.
The contracts concluded with legal entities, individuals and foreign business organizations, containing solid offers of employment shall include at least the following:
- the duration of the contract;
- the number of jobs abroad for which the contract is concluded;
- working and resting time;
- the obligations of Romanian citizen employees abroad;
- function, profession or occupation;
- the nature and duration of the employment, the conditions of the employment, of termination of employment or re-employment;
- the hourly and monthly salary, as well as the wage payment dates;
- the benefits, overtime and other labor rights;
- the cases in which the salary rights can be traced;
- the duration, manner of granting and the financial rights related to the annual leave;
- working conditions, safeguards and safety at work;
- the possibility of transferring the salary in Romania;
- health insurance for Romanian employees, similar to that of citizens of the host country;
- the compensation of Romanian employees for occupational accidents, occupational diseases or death;
- conditions of housing, living or, where appropriate, rental housing and feeding;
- ensuring the formalities, establishing the conditions for transport from Romania to the state that provides the job offers and the return of the Romanian citizens and their family members who accompany or visit them, as well as bearing the related costs thereto;
- fees and contributions chargeable on the Romanian citizens’ income, ensuring the avoidance of double taxation or double social security contributions;
Our Romanian lawyers also point out one more important issue: if you decide to open a recruitment agency, you have the legal obligation to ensure that the labor contract is concluded in the Romanian language as well.
Recruitment agencies also operate through authorized recruitment agents who need to be licensed by the Ministry of Labor.
Darie, Manea & associates can represent you before all the competent authorities and provide you with the legal assistance you need in order to obtain the recruitment license in Romania. One of our lawyers in Romania can offer professional guidance during the licensing process and in all communications with the Romanian authorities.
Are you looking to buy property in Romania that will be used as the office for your new recruitment agency? Our team will help review the purchase agreement and sign the final form of the contract, as well as make the needed registration with the land registry and cadastre authorities. You can also reach out to us for land purchase purposes, which is subject to different rules.
Recruitment company taxation and compliance in Romania
In addition to following the steps for company registration in Romania, investors who wish to open a recruitment company in Romania will need to observe the ongoing requirements for tax compliance and annual financial reporting.
As previously stated, the micro-company regime can be an advantageous one for small and medium-sized recruitment firms. Qualifying companies are subject to a lower tax as microenterprises, at either 1% or 3% of their revenue.
One of the most important criteria for the micro-company regime is for the company to have an annual turnover below EUR 500,000. Our attorneys in Romania can give you more details.
For large recruitment firms (i.e., those that do not qualify for the micro-company turnover threshold), the corporate income tax rate is 16%.
Other relevant tax rates are briefly outlined below by our tax lawyers in Romania:
We remind entrepreneurs interested in company formation in Romania that the Tax Code is updated regularly, and these taxes can be subject to change.
For updated information, as well as other details on annual tax reporting and filing for investors who set up a recruitment company in Romania, feel free to reach out to our local team.
Our team of lawyers in Romania is set out to provide you with any further information you may need regarding the process and the factors that make Romania a great investment country.
You can also find more information about opening up companies in Romania, the tax system and the registration process on our website.