Off-shoring IT in Romania

 Off-shoring in Romania is a hidden gem for technology outsourcing. The country's strategic location makes it one of the most featured countries among western European countries. Romania offers a substantial advantage, in quality and cost wise

What is Off-Shoring?

Off-shoring is the use of resources located outside the business location and managed from there. The advantages of off-shoring include cost savings, better quality, and reduced risk. However, the advantages are not free and there are also disadvantages of off-shoring.

Benefits of Off-Shoring

- Increase in Efficiency

- Off-shoring benefits organizations by increasing efficiency. The reason is that you have access to resources and expertise that you do not have in-house. - Better Quality

- Off-shoring offers the opportune opportunity to source services or products of superior quality at lower costs. You have the luxury of sourcing on-shore or offshore without compromising on the quality of service

- The use of off-shore resources results in a lower level of risk. With the use of offshore resources, you are able to avoid risks associated with in-house resources such as natural disasters, staff transfer, etc.

Disadvantages of Off-Shoring

- Another disadvantage of off-shoring is the availability of off-shore resources. When you send your operation offshore, it should be ensured that the offshore resources are sufficient to handle the workload. If this happens, you might end up incurring additional costs.

- Cultural Differences - Off-shore resources might differ from your culture and work ethics. Therefore, it becomes important to have a well-trained offshore team that can seamlessly work in the offshore environment.

- Interruption in Operations

- Even though you have access to high-quality resources, you cannot control external factors such as political instability, natural disasters, etc.

Conclusion

Off-shoring has become a popular alternative for organizations that want to lower costs and increase profits. However, it should be done only if it results in a higher quality and lower cost of products or services. Moreover, it is very important to find a reliable offshore services provider. For example, there are numerous companies that promise to offer low rates of offshore operations, but actually, they have no expertise to manage offshore operations. Off-shoring in Romania is a hidden gem for technology outsourcing. The country's strategic location makes it one of the most featured countries among western European countries. Romania offers a strong advantage, in quality and cost wise. Off-shoring in Romania is one of the best options for businesses that want to reduce costs and increase profits from their operations.

What can be our role

For clients we create the company and hire employees. We acts a local HR department once that the activities are up and running. We take care of all the paperwork and make sure that the company is compliant with Romanian rules and regulations.

We can host the company in one of our business centers at the start.

More info mail frjacobs@telenet.be

Our business center in Romania

A Business Center is a physical location that provides temporary office solutions for all types of entrepreneurs and organizations. Our business Center is located in a quiet area with quick access to all important links: banks, accountants or important state institutions. With almost 20 years of experience, we are the ideal solution for you.

ADVANTAGES OF ESTABLISHING YOUR COMPANY IN A BUSINESS CENTER?

One of the biggest advantages that Business Centers offer is flexibility. Establish your company in a Business Center means, above all, reducing expenses, when compared to a traditional lease. Obviously, the more convenient the location of a Business Center, the better it will be for the customer.

For younger companies or start-up entrepreneurs, and since the long terms of a leasing contract may represent a commitment that the structure may not support in the future, Business Centers are recommended for offering flexible terms and different room sizes, even with more affordable models, which have lower prices than a private office, but which also allow you to enjoy corporate services such as meeting room rental or reception and courier services. In contrast to renting an office by yourself, in a Business Center you will not have to worry about fees for electricity, water, security or other services; These are not, however, the only advantages.

With hundreds of companies established on behalf of our foreign clients, we offer the fastest and simplest option to set up Romanian companies at the lowest fees.

Moreover, such will be done by our professional lawyers, your presence in Romania is not required.

We will draft all the necessary documentation, in bilingual Romanian-English so that you understand everything. You will only need to sign such documents  and soon your company will be up and running.

We also offer all-inclusive services for the management of the company, such as company address rental, accounting, legal services and many more.

More info mail frjacobs@telenet.be 

Recruitment of engineers in romania

Are you looking for experienced engineers and technicians or are you yourself looking for a new job as a specialist or management professional in Engineering? We can find for you....

The engineers are again in great search on the Romanian labor market. In addition to computer scientists, companies offer jobs for mechanical engineers, construction engineers or energy engineers.

Why engineers in Romania? Because they are well trained, true professionals, they have a low rate of resignations and extremely dedication.

We can quickly provide top professionals on a contract, contract-to-hire, direct placement and managed resources basis.

Our Engineering expertise includes the following skill sets and focus areas:

Architecture & Engineering: Engineering, design and construction project support for buildings and other physical infrastructure

Product Engineering & Design: Mechanical, electronics and software support engineering roles for manufacturing

Software & Hardware: Skill sets supporting all phases of software and hardware development for physical-product-based computer systems

Focus Areas
Aerospace & Defense | Consumer & Industrial Products | Energy & Construction | Life Sciences | Retail & E-commerce | Transportation

Our recruitment methodology was developed in time to overcome the issue of clients finding that some people sent to them did not have the hands-on technical skills required to hit the ground running.

More info frjacobs@telenet.be

What is the procedure for opening a company in Romania?

 As an investor who wants to open a company in Romania, at first you should know the process of setting up a new enterprise and the steps you need to follow.

There are 6 steps that are mandatory to follow:

• Get your reservation of company name – form found at Trade Registry, you need to fill in 3 names in order of your preferences and the process takes about an hour. The issued name reservation certificate is valid for 3 months.

• After the name availability certificate is issued, the constitutive act is written, the authorized person of the company must file the documents at a bank where the social capital will be deposited (a minimum of 200 RON).

• Register the company at the Trade Registry – the process takes about 3 days and it is free of charge, you only need to pay the taxes for the Official Monitor publishing. Here you must present your articles of incorporation, constitutive act, social capital deposit proof from the bank and an application form which you can find there.

• Buying the unique registry for controls – provided by the law, it is mandatory to have a unique registry for controls from ANAF in 30 days from registering the company to Trade Registry.

• Register for VAT purposes – if you want, this is not mandatory for a new company. There are no costs, and this is also done at ANAF.

• Register employees’ contracts – if the case, this must be done online with the Territorial Labor Inspectorate (IML). The employer is obliged to keep track of all employees’ records internally, electronically and transmit them to IML.

more info mail frjacobs@telenet.be

5 reasons why you should consider doing business in Romania. Primary tabs View(active tab) Edit

 When looking for up-and-coming European Union (EU) countries that have started to catch the eye of investors over the last few years, you should take a close look at Romania. In recent years, the country has become a magnet for those attracted by the growing startup ecosystem, especially within large cities like Bucharest and Cluj-Napoca.

Below are 5 reasons why you should consider doing business in Romania.

Low taxes

The standard corporate income tax rate of 16% is one of the lowest in Europe, well below the EU27 average of 20.71%. In addition, Romania has singed various double taxation agreements through which protect companies and their profits from double taxation. This means that taxes will be paid only once, in the country where the profits are recorded.

At the same time, the Romania Fiscal Code includes a 16% corporate tax relief for profit reinvested in new technological equipment, as well as a personal income tax exemption for IT employees or those who carry out research & development and innovation projects.

Another fiscal incentive in Romania is related to the turnover tax rates used for micro-enterprises. A company (Romanian legal entity) is considered a micro-enterprise if its maximum turnover is up to EUR  1 million at the end of the previous year. According to the current rules, the turnover tax rates used for micro-enterprises are just:

• 1% for micro-enterprises with one or more employees
• 3% for micro-enterprises with no employees

In other words, if you own a start-up or a small to medium company, you should definitely come to Romania and benefit from one of the lowest taxation systems in Europe.

Budget-friendly country

Another advantage for doing business in Romania resides in its potential of highly skilled workforce at competitive prices (third lowest minimum wage in EU). This means that a company incorporated here will benefit from low-cost business operations.

In addition, companies that want to start or bring their business in countries like Romania have much to gain from its economic status. Reduced prices for office rents, salaries and accountant expenses combined with the low corporate taxes, and an important number of double taxation avoidance treaties, make Romania a perfect destination for starting or moving a business from abroad.

Affordable, high-quality professionals

Despite the reduced cost of workforce, Romania has a well-educated workforce with good knowledge of foreign languages. Around 80% of the schools in Romania teach English as a second language, making it the most studied foreign language in the country. Many Romanians also know German, French, Italian, Spanish or Hungarian.

new tacrates in romania

O. G. no. 16/2022 amended the Fiscal Code, therefore I present below the main provisions of the normative act.

 1. Dividend tax - the changes take effect on January 1, 2023

Starting from January 1, 2023, the tax rate for dividends distributed/paid between Romanian legal entities, as well as for those distributed/paid to non-residents, is increased from 5% to 8%.

2. Microenterprise income tax - changes come into effect on January 1, 2023

 Microenterprise income tax becomes optional.

A Romanian company can opt for the application of the microenterprise income tax if it cumulatively meets the following conditions on December 31 of the previous year:

• the revenues achieved did not exceed the equivalent in lei of 500,000 euros (modified condition - previously the ceiling was 1,000,000 euros);
• the social capital is owned by persons other than the state and administrative-territorial units - according to the Fiscal Code (unmodified condition);
• is not in dissolution, followed by liquidation, registered in the commercial register or in the courts, according to the law (unmodified condition);
• achieved revenues, other than consulting and/or management, in a proportion of more than 80% of total revenues (newly introduced condition);
• has at least one full-time employee active (newly introduced condition);
• has associates/shareholders who hold more than 25% of the value/number of participation titles or voting rights in no more than three Romanian legal entities that qualify to apply the tax system on the income of micro-enterprises (newly introduced condition);

The tax rate on the income of micro-enterprises is 1% (the 3% rate is repealed).

In conclusion, if a micro-enterprise achieves revenues greater than 500,000 euros/ does not have full-time employees or the share of revenues from consulting and/or management in total revenues is over 20% inclusive, during a fiscal year, it owes tax on profit starting from the quarter in which these limits were exceeded, because it no longer meets the conditions of the microenterprise tax.

The profit tax rate is 16%.

3. Special provisions for part-time employment contracts - the changes enter into force on August 1, 2022

The social security contribution owed by natural persons who obtain income from wages or wages assimilated to wages, based on an individual full-time or part-time employment contract cannot be lower than the level of the social security contribution calculated by applying the CAS rate on the gross minimum basic salary per country in force in the month for which the social insurance contribution is due, corresponding to the number of working days in the month in which the contract was active.

It applies starting with the income related to the month of August 2022.

In conclusion, for part-time work contracts, taxes will be calculated and paid at the level of the minimum wage in the country, if they are below the level of these taxes.

 

more info mail frjacobs@telenet.be

Recruitment of IT profiles in Romania

You have great recruitment plans and you want to move swiftly in a competitive market. You need to understand talent availability, compensation and how to be attractive. So you onboard the best talent in the shortest time possible.

We work closely with our clients to understand their needs and business, to ensure that not only the right skill set is found, but the right team and culture fit too. With this approach we have successfully delivered to a myriad of companies from startups looking to hire their first staff member through to high organizations working at scale.

In an ever-difficult market, we have ability to engage with and secure passive candidates is one of his greatest assets and is an essential skill for recruiting in the modern IT sector. Utilizing an extensive network of tech professionals combined with the latest industry tools and methods, we have a widespread pool of candidates to call upon and ensures the campaign is tailored to the individual needs of each vacancy and organization.

• CTO / Managerial
• Software Engineer / Developer / Analyst Programmer
• Test Analyst
• Product Owner / Product Manager
• Scrum Master
• Database Developer / DBA
• DevOps / SysOps / Systems Administrator
• IT Support / Networking Engineering / infrastructure Engineer
• Security
• Business Analyst
• Project Manager / Programme Manager
• Graduates
• Blockchain
• IoT
• Niche / Legacy Technologies
•  

If you are a company looking for a specialist IT professional, please get in touch with us.

mail frjacobs@telenet.be