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How to register as self-employed person (PFA) in Romania

Question: How can I be a self employed person in Romania, from a legal point of view?

Answer: A self employed in Romania is registered as a PFA which stands for ”Persoana Fizica Autorizata”, phrase also commonly translated as a Romanian authorized physical person. This is actually a highly preferred alternative for perfectly qualified individuals who choose to set up their own business. This proved quite a convenient option for Romanians and it is still perfectly functioning for all natural persons seeking for a more approachable way to turn their experience and qualifications into real profit. From the legal point of view, there are certain conditions to be fulfilled in order to qualify for the status of PFA Romania.

If you are interested in this opportunity and feel confident in the knowledge and experience you have acquired up until the present moment, then you can start such a project. Our lawyers in Romania can assist you from the very begining. 

Question: What conditions do I need to meet if I want to register as an Authorized Physical Person, in Romania?

Answer: The first thing that should be handled in this respect is the registration procedure which means that you will be listed by the Trade Register Office as an authorised natural person. Here are some essential features which briefly illustrate the most important stages in the PFA Romania registration process and that have to be understood as essential conditions:

  1. you have to be over 18 years old;
  2. you either have to be qualified or trained, or you need the professional experience required to conduct the economic activity for which the authorization is requested (depending on specific circumstances);
  3. as any other legal entity, you must have a registered office;
  4. last, but not least, you must never have been convicted by a final court decision for committing the offenses punished by financial or customs laws, or for those involving financial and fiscal discipline as those that are enrolled in the tax record certificate.

Feel free to reach out to our Romanian lawyers for more information about these conditions.

Question: How and when do I register for VAT registration when having a PFA in Romania? Can your Romanian lawyers assist me?

Answer: The Romanian Authorized Physical Person can register for VAT in two situations: either when incomes exceed certain limits or when the individual voluntarily applies for VAT registration.

On the national level, self-employed persons with incomes of up to 65,000 EUR/year are exempted from VAT.   But, even if this limit is not surpassed, a self employed in Romania should register for VAT since certain instances may require this registration. In order to register for the intra-Community VAT, a Romanian self-employed must be previously registered for Romanian VAT. We are referring here to the situation when a Romanian authorized physical person provides intra-Community services. In this case, the individual must register for VAT in order to report the operations performed. This particular registration would not turn the person in question into a regular VAT payer. The VAT registration code received for intra-Community services cannot be used to issue invoices for economic operation carried out on the Romanian territory and intended for recipients established in this very same country. If you have questions on this procedure, please reach out to our attorneys in Romania.

A highly important aspect of the Romanian VAT regime concerns the legal possibility to regain the non-taxable privileges. Even if exceeding the 65,000 EUR/year threshold for only one year, individuals have the chance to return to VAT-exempt status for the following year, on condition that the annual turnover does not exceed the provided limits. So, at the beginning of the calendar year, a self-employed may request to be removed from the VAT registered persons record. 

Our lawyers in Romania can provide complete details on the taxation regime and the VAT registration process.

Question: What kind of activities can I perform as a Romanian PFA?

Answer: If you want to be registered as a Romanian authorized physical person, you should know that this legal entity can obtain approval to perform all kinds of economic activities that are mentioned in the CAEN Code, of course excepting those that are governed by special laws and that are reserved for a certain category of entrepreneurs. Assistance for obtaining special permits and licenses is provided by our Romanian law firm.

As you can see, under certain circumstances, the PFA Romania regime can become a little bit confusing. That is why our skilled experts are prepared to assist you concerning a wide range of issues regarding this topic. We come to your aid and we offer you permanent guidance throughout the entire process, representing you before the Romanian authorities. We can help you start your own business by authorising you as a natural person able to carry out independent economic activities. 

Our team of Romanian lawyers can answer additional questions depending on the activity you will undertake using the PFA.

When starting any type of business, one might need a team of professionals who can lead him or she through the intricate legal provisions. This is where our team of  laywers in Romania makes the difference. We are at your service anytime and ready to help you open a PFA or just to offer you the necessary legal information for your business. Call our law firm in Romania anytime for a free consultation.

by Cristian Darie