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Email: moc.leyvra@eciffo
Ukraine case: Protect your employees and your company
IT companies & staff relocation
As tensions are ramping up in Ukraine in recent weeks, tech companies have been putting emergency plans in place to offer various forms of assistance to their employees in the country to ensure their safety.
We're addressing IT companies that are operating in Ukraine and are thinking of relocating to Romania. We can offer the possibility to do so, either temporarily or for an indefinite amount of time.
Learn how
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Step 1 - Establish the legal entity
We can assist you in all the necessary steps to create the Romanian legal entity. What you need to decide is who will be the legal administrator of the new company. Our company can take the Administrator role on your behalf.
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Step 2 - Take care of your employees
Do you want to relocate your employees from Ukraine?
Romanian legislation was simplified allowing relocating Ukrainians in Romania much faster. With experience in relocating expats in Romania, our company will help you in this process.Do you want to hire new personnel?
Our recruiting network with hundreds of recruited personal is ready to find the right resources for you. -
Step 3 - Grow locally
No need to stop at the previous step! We are helping you understanding the local IT market and provide you the best services to facilitate your growth.
About Romania Geostrategic location
As part of the European Union, Romania stands for an incredible market opportunity in terms of size (the 8th in EU27) and population (the 6th in EU27), as the second-largest country in Central and Eastern Europe and the largest in SEE. Following the country's EU accession in 2007, investors here find themselves within a single market of almost 500 million consumers. As one of the largest in the world, it provides unique advantages for companies seeking new markets for development and growth. Besides being part of the great European family, Romania enjoys yet another significant international affiliation – NATO membership – standing as a pillar of strength in maintaining stability and security in the region.
Over the years, Romania has been able to cash-in on its geostrategic location, as positioned at the crossroads of three great markets: the European Union, the CIS states, and the Middle East. Furthermore, while remaining a strategic partner for the U.S., as the Eastern frontier of the Euro-Atlantic structure and a major geopolitical actor on the Black Sea.
About Romania Why Romania?
Romania is ideally located in the GMT+2 time zone, enabling easy, real-time communication with all European companies. Developers can also work efficiently with U.S. clients during the day (2-3 hours of overlap). Romania is easy to reach with a 2–3-hour flight from Frankfurt or London. Several major cities have international airports.
The average net salary of Romanian employees working in the data technology sector is the lowest in the IT industry worldwide. IT companies can save up to 50% – 60% in labor costs when outsourcing to Romania, depending on the developer's profile type and seniority.
Romania ranks 3rd in the Digital Nomad Index by CircleLoop's with one of the fastest-growing information technology markets in Central and Eastern Europe, enjoying some of the cheapest average monthly costs of fixed-line broadband packages ($8.15) and inexpensive and reliable internet access.
Taxation Micro-enterprises
The turnover tax rates used for micro-enterprises are:
- • 1% for micro-enterprises with one or more employees.
- • 3% for micro-enterprises with no employees.
However, any company with a minimum subscribed share capital of 45,000 RON and at least 2 employees may opt for applying the corporate income tax in lieu of the mandatory revenue tax, even if its turnover is less than EUR 1 million.
Taxation Corporate income tax
The standard corporate income tax rate of 16% remained constant over the last 17 years. It is also one of the lowest in Europe, well below the EU27 average of 20.71%.
The current withholding tax rate in Romania is 5%.
In general, the dividends paid are non-taxable if the beneficiary of the dividend had a minimum holding of 10% in the share capital of the distributing company, for an uninterrupted period of at least 1 year.
Non-residents may be eligible for a reduced rate under DTTs (double tax treaty).
Personal income tax
In Romania, the standard personal income tax rate is 10% (with a few variations). For IT workers the standard personal income tax rate is 0%. It is the lowest individual tax rate in the EU, the EU average being 37,87%.
Why Arvyel?
We're experienced in working with IT companies, offering a plethora of services from company establishment to legal administration and representation. Above all of that, we offer support when it comes to staff recruitment and management. Our services are aimed toward companies that are looking for a fast expansion in Romania, making sure that they have all the necessary resources and knowledge to do so.
With over 20 years of experience behind us, dominating the IT and Human Resources fields, we know what it takes for a tech company to thrive. Working closely with a network of true professionals, we manage to take care of everything related to management and administrative aspects, leaving you to focus only on growing your business.
Especially when it comes to this period in time, we understand the importance of loyal and effective staff members. We can work together in finding the right people for the job, establishing a successful retention and recruitment strategy.
List of services offered:
- • Accounting
- • Tax advisory
- • Statutory and group reporting
- • Tax registration and calculation
- • Payroll and HR
- • VAT representation
- • Corporate secretarial
- • Cash management
- • Incorporation and establishment
F.A.Q
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Do I need to come to Romania to open a local company?
You don't need to come to Romania to open a local company. Our company can take care of the entire process.
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What papers do I need to establish the company
The required papers to open a legal entity as foreign person are limited and not complex. However, if you are opening the company with a juridical person as a shareholder, more documents of proofs from the country of origin will be required.
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What is the best form of legal entity should I use?
For majority of the cases, a Limited liability company ("SRL - societate cu raspundere limitata") will fit your needs.
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Do I need a physical office in Romania?
Yes, as registered address you need an up-dated address, not a P.O. BOX. As a service, our company can provide the registered office address, you don't need to find and rent a location.