Testimonial
Manuel Ramos
TERAO ASIA
Managing Director
We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.
5/5
Romania, with its strategic location in Eastern Europe, skilled workforce, and rapidly growing economy, is an attractive destination for companies looking to expand. As a member of the European Union, Romania offers significant opportunities for growth, particularly in the technology, manufacturing, and automotive sectors. However, expanding into the Romanian market requires navigating local labor laws, tax regulations, and ensuring compliance with employment legislation. An Employer of Record (EOR) in Romania simplifies the process, allowing businesses to hire local employees without establishing a legal entity.
This guide will explore how EOR services can help your business grow in Romania while remaining compliant with local regulations.
The process of working with an EOR in Romania begins with a comprehensive review of your business objectives. The EOR assesses your workforce needs, including the number of employees, their roles, and the timeline for entering the Romanian market. Based on this, the EOR customizes its services to fit your specific needs, ensuring a smooth and compliant market entry.
Once the plan is set, the EOR handles all recruitment and onboarding tasks, ensuring that all employment contracts comply with Romanian labor laws. This includes managing work permits, visa processing, and payroll setup. Acting as your legal employer, the EOR ensures that your employees are hired in compliance with local regulations, saving you the hassle and expense of setting up a local entity.
Once your operations are established, the EOR continues to manage ongoing HR tasks such as payroll processing, benefits administration, and tax compliance. The EOR ensures compliance with Romanian social security contributions and health insurance requirements, providing a seamless HR solution between your business and your Romanian team. This allows you to focus on growing your business while the EOR takes care of all local employment regulations.
Navigating the labor laws and tax regulations in Romania can be challenging, but an EOR simplifies the process by managing these complexities, enabling your business to enter the market more quickly and efficiently.
Romania’s legal framework can be complex, requiring in-depth knowledge to ensure compliance. An EOR ensures your business follows all local employment laws, tax regulations, and social security contributions, minimizing the risk of non-compliance.
By acting as your legal employer in Romania, the EOR takes on the risks associated with employment regulations. The EOR manages employment contracts, payroll, and benefits, ensuring compliance with Romanian labor laws and protecting your business from potential legal exposure.
An EOR offers a cost-effective solution for entering the Romanian market. By outsourcing payroll and HR tasks, businesses can avoid the costs associated with establishing a legal entity, making it ideal for temporary or project-based expansions.
By outsourcing HR tasks such as recruitment, payroll, and tax management to an EOR, your company can focus on core business activities and growth strategies, without the administrative burden of local employment laws.
Testimonial
Manuel Ramos
TERAO ASIA
Managing Director
We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.
While establishing a local subsidiary in Romania is an option, using an EOR can provide several distinct advantages:
An EOR enables faster entry into the Romanian market. Setting up a legal entity can take months, while an EOR can have your team operational within weeks, allowing for rapid market entry.
Both EORs and subsidiaries must comply with Romanian labor laws and tax regulations, but an EOR brings local expertise to ensure full compliance, reducing the need for in-house legal or HR teams.
For small or temporary teams, an EOR is often a cost-effective solution compared to setting up a local entity. An EOR allows businesses to avoid incorporation costs and reduce ongoing administrative overhead, making it easier to enter the market.
While incorporating a company in Romania gives you full control over your HR and operational processes, working with an EOR still provides significant oversight over your local workforce without the administrative burden of setting up a legal entity.
Selecting an EOR with a strong reputation and experience in Romania is essential. Look for an EOR that has worked with businesses in your industry and successfully managed local employment needs.
Ensure the EOR offers a full range of services, including payroll processing, tax compliance, and adherence to Romanian labor regulations. Customization of services to meet your business’s specific needs is also important.
Your EOR in Romania should have the ability to scale its services as your business grows. Whether you are starting with a small team or planning rapid expansion, the EOR should be flexible enough to handle more complex administrative tasks as needed.
Clear and reliable communication is key to a successful partnership. Choose an EOR that provides regular updates on regulatory changes, deadlines, and any issues affecting your operations. Having a dedicated point of contact ensures streamlined communication.
Compare pricing models from different EOR providers in Romania to ensure you are getting competitive and transparent costs. Make sure there are no hidden fees and that the pricing model aligns with your business’s budget and long-term goals.
Employment contracts in Romania must comply with local labor laws and include terms such as salary, working hours, benefits, and termination clauses. An EOR ensures that all contracts are legally compliant and tailored to your business needs.
In Romania, probation periods typically last up to 3 months for standard employees and up to 6 months for managerial positions. An EOR ensures that probationary periods are structured to meet legal requirements while providing flexibility for employers.
The standard workweek in Romania is 40 hours, with strict regulations governing overtime. Employees are entitled to regular rest periods, and overtime must be compensated either with extra pay or additional time off. An EOR helps manage working hours and ensures compliance with Romanian labor laws.
Employees in Romania are entitled to 20 days of paid annual leave, with additional paid leave for public holidays, sick leave, and maternity/paternity leave. An EOR manages leave entitlements, ensuring compliance with Romanian labor laws and proper employee compensation.
Employers and employees in Romania are required to contribute to the social security system, which includes health insurance, pensions, and other benefits. An EOR manages these contributions and ensures compliance with Romanian social security regulations.
Severance pay in Romania is typically required in cases of redundancy or termination without cause. An EOR ensures compliance with Romanian labor laws concerning severance pay and termination processes, minimizing legal risks for your business.
An EOR manages the entire recruitment process, from sourcing candidates and drafting compliant contracts to onboarding employees in full accordance with Romanian labor laws.
An EOR ensures compliance by managing all aspects of employment, including payroll, social security contributions, and tax filings, all in accordance with local legal requirements.
Yes, an EOR in Romania can handle the entire process of obtaining work permits and visas for expatriates, ensuring compliance with Romanian immigration laws and facilitating a smooth hiring process.
With an EOR, businesses can typically start hiring within a few weeks. The EOR manages all legal, administrative, and compliance tasks, ensuring rapid market entry.
Industries such as technology, manufacturing, automotive, and pharmaceuticals benefit greatly from using EOR services in Romania, allowing them to expand quickly and efficiently.
An EOR in Romania manages payroll, including calculating salaries, taxes, and social security contributions, ensuring timely payments and full compliance with Romanian labor regulations.
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