the labor and employment practice area. 4-10 Muntii Tatra Street, 5th floor Bucharest 1 RO-011022 Romania +40 (21) 312 10 08 Phone +40 (21) 312 10 09 Fax mihaela.cracea@pachiu.com www.pachiu.com Romanian employment market is recognized by domestic laws and has been proven to be a very dynamic and valuable influx channel providing a highly qualified and trained work force. The most demanding industries for skilled foreign work force in Romania are, broadly, the automotive industry, telecommunications, trade and petroleum industry, etc. While the most desired job positions are CEO, CFO, sales managers, marketing managers, supply planning manager, as well as the technical positions of engineer, operations specialist and others. Moreover, multinational companies are frequently appointing employees of the parent companies as directors of their Romanian subsidiaries. In most of the cases, they decide to relocate the directors to oversee the development and all the activities of the subsidiary company, and sometimes they apply to obtain a residence permit for such directors in Romania. Factors including how easy it is to access the Romanian employment submitted to public authorities, and how long and time consuming the procedures are, vary depending on the type of residence you want to obtain for foreign citizens. (In this article, the term "foreign citizen" refers to citizens outside UE/ SEE/Swiss Confederation. The citizens of the latter are assimilated with Romanian nationals and benefit from the same treatment with regard to access to the Romanian employment market.) Consequently, in relation to foreign citizens, the most commonly used procedures are those related to the following types of residence permits: (i) for commercial activities; (ii) as director of a Romanian company; (iii) for assigned employee; (iv) as employee of a Romanian company. The common feature of all the above types of residence permits is the initial term of validity, which is one year. Further extensions, where possible, are also provided for successive terms of one year. In other words, in order to maintain the right of residence in Romania for type of such residence, foreign citizens are required to apply each year for the relevant extensions. Regarding the differences between the above options, although we are not aiming here to provide a detailed description of each procedure, we will try to provide an overview of the essential features of such procedures, in terms of the main conditions to be accomplished when accessing them. The residence permit for commercial activities is open to the shareholders of Romanian companies, either limited liability companies or joint-stock companies. The approval of the Romanian Centre for the Trade and Foreign Investments Promotion (RCTFIP) is the main and preliminary condition for obtaining the residence permit as shareholder of a Romanian company. Such approval is issued under the following conditions: the value of the shares the applicant owes within a Romanian company is at least EURO 100,000, if the company is a limited liability one and of EURO 150,000 if the company is a joint-stock company. Moreover, the applicant is required to submit a 12-month business plan regarding the development of such a Romanian company. For further A Guide for Foreign Workers in Romania |