Romania continues to be an attractive place for foreign companies to invest in, whether they be from the EU or outside. Problems often arise in the development of the investment when the question of the management of the business investment must be considered. Whilst in many cases local management can run the company, in the initial stages it may be necessary to bring in senior management from outside Romania.
Often the planning of bringing in the external manager especially from a non-European country is not considered until late into the planning process of the venture and, as the Romanian requirements in this regard are quite strict there can be delays in the development of the investment in Romania due to the requirements to bring in non-EU managers and the Romanian law.
Foreign companies rather than employing the managers direct often second management staff from the home country. This, whilst not intrinsically difficult it does need to be handled in a proper manner. The period of secondment can be anywhere between one and three years depending on the job description and work undertaken by the secondee. This article sets out the checklist of what is required to obtain a valid secondment to Romania.
For the non – EU secondee the first step for the company is to obtain the secondment authorization. The secondment authorization is made by applying to the Immigration authorities for the authorization. The application can be made whether the applicant is resident in or outside of Romania. It is our view it is better to make an application before a secondee comes to Romania as there can be problems if the application is delayed or refused.
To process the application the following documents are required to be lodged with the Immigration authorities to obtain the secondment authorization:
• Application form.
• Copy and original of the Registration Certificate of the Romanian company.
• An excerpt from the Trade Registry for the Romanian company (proving the company is not undergoing an insolvency procedure).
• Evidence that the Romanian Company has no unpaid taxes to the Romanian state. This is obtained through a fiscal certificate issued by the Romanian tax authorities.
• The criminal record for the Romanian Company; (a Power of attorney must be issued for a proxy to obtain the criminal record here in Romania. This POA must be executed in front of a notary public and issued with an apostille).
• Copy of the labour contract registered at the authorities from the country of origin translated and authenticated (with apostille).
• Copy of the secondment contract authenticated (with apostille).
• Secondment decision authenticated (with apostille).
• Excerpt from the Trade Registry from the company that seconds the employee; (with apostille). This excerpt must contain information about the shareholders of the company).
• Curriculum Vitae and two ¾ photos of the worker.
• The foreigner’s own statement that he or she is medically fit to work and has a minimum knowledge of Romanian or knows an international language, again given in front of a notary (with apostille).
• Education certificates required for the foreign worker to work on this position in Romania (these documents need to be authenticated and apostilled)*.
• Criminal record for the employee from the country of origin, authenticated (with apostille).
• Copy of the border crossing document (passport, visa).
• Stamp tax of 5 lei.
• Taxes [the equivalent (in lei) of the 200 EURO consular fee].
These documents must be submitted to the General Inspectorate for Immigration who is required to review them and issue a decision within 30 days.
In addition to these documents it is necessary for the following additional documents to be drafted and prepared by the Romanian and seconding company. These are:
• The secondment contract between the foreign employer (Parent or associated company) and the Romanian company (in English authenticated with apostille) and
• The secondment decision of both companies.
The secondment decisions must include certain mandatory provisions. These are:
• The duration of the secondment.
• Details of the headquarter of the company where the transfer is being made.
• The position in the company, as an employee, manager, specialist, etc.
• The salary, whether its monthly or otherwise, and other conditions of work.
• A provision stating that the original employer will at the termination of the employment in Romania, rehire the employee in their previous position, or second them to another affiliate company.
Once the secondment approval has been obtained it is then necessary to apply for the long stay visa. There is normally no issue with obtaining the long stay visa as it is issued only following the approval of the secondment.
The documents required to obtain the long stay visa are:
• The secondment authorization issued by the General Immigration office.
• Evidence of the means of financial support for the seconded employee which should be at least the average gross salary in Romania. This figure needs to be ascertained at the time of the secondment as the amount changes from month to month as issued by the Romanian authorities.
• A certificate of the criminal record issued by the authorities from the state of origin or from the state of residence of the proposed employee. This needs to be authenticated, (with apostille).
• Evidence of medical insurance (for the period of the visa) for the employee.
The authorities have thirty days to issue the visa once all the relevant papers are lodged with them.
The final stage is for the seconded employee to obtain a residence permit. This permit is issued in respect of not only the employee but also his dependents (wife, and children).
The Documentation required to obtain the single residence permit as a seconded employee is like that previously required and consists of:
• An Application form.
• The border crossing document (original and copy).
• The Proof of the authenticated secondment decision.
• Proof of accommodation in Romania in original and a copy.
• Evidence of means of subsistence of at least one month the average gross salary in the Romanian economy.
• Proof of social health insurance.
• A Medical certificate (stating that the seconded employee is not a threat to public health.
• Taxes [the equivalent (in lei) of the EURO consular fee – payable to the Treasury/CEC BANK S.A. in the account of the state budget no. 20330102, and a payment in RON representing the equivalent of the residence permit, is paid into the CNIN account RO05CECEB30033RON2244514 at any CEC BANK S.A unit.
Again, the authorities are required to process the application within thirty days.
As is normal in Romania it can be seen from the above that there is a requirement for many documents and certifications to satisfy the bureaucratic machine. From our experience as Romanian lawyers dealing with such issues it is important to obtain all the above documentation at the earliest opportunity. We have dealt with clients who have become very frustrated at the delays encountered because the documentation has not been produced in time, but normally this has been caused by failure of the client or the employee to supply the documents required.
Whilst the Client or their HR department can deal with some of the requirements specialized legal assistance does make the process quicker (and cheaper) with the minimum of delay. Like many matters in Romania the problems encountered can be minimized with some planning and thought.
I hope that this article will be used as check list for any company or organization who is considering sending a seconded employee of whatever seniority to Romania.
*All education qualification certificates must be recognized by the Romanian Ministry of Education. A tax of 50 lei must be paid for each recognition of the relevant certificates of the employee.
