Legal & Tax Alerts

Amendments regarding the authorisation and operation of representative offices of foreign companies and economic organisations

On 4 August 2022, Government Ordinance no. 18/2022 on the authorization and operation in Romania of representative offices of foreign companies and economic organizations (“GO no. 18/2022“) was published in the Official Gazette of Romania[1]. GO no. 18/2022 regulates the procedure for authorizing the operation of representative offices through the dedicated electronic platform and other issues related to their activity.

Operation authorization (“Authorization”)

The procedure for authorizing the representative offices is available through the electronic platform managed by the Ministry of Entrepreneurship and Tourism. The Authorization is issued, upon request, for a minimum period of 1 year, with the possibility of extension for the same period and upon payment of the authorization fee of EUR 1,000 / year.

The deadline for processing the application is 30 days from the registration of the application or from the submission of the documents and information requested by the representative of the Ministry.

Any changes in relation to the data included in the Authorization, as well as those concerning the legal status, activity, share capital or registered office of the foreign company should be transmitted to the Ministry of Entrepreneurship and Tourism within 30 days from the date of their occurrence.

The validity of the Authorization to operate shall be extended on the basis of an application submitted at least 30 days before the expiry date, subject to payment of the authorization fee.

Withdrawal of the Authorization

The Authorization may be withdrawn by the Ministry of Entrepreneurship and Tourism, before the expiry of its validity, within 30 days from the request of the competent authorities, for the following reasons:

violation by the staff of the representative office of the legal provisions in Romania on money laundering and terrorist financing;

failure to comply with the activity stated in the Authorization and the conditions for carrying out the activity;

non-compliance with tax obligations.

Authorizations shall be automatically withdrawn within 30 days of their expiry if no extension has been requested.

Deregistration of the representative office

The request for deregistration shall be completed via the electronic platform and shall be accompanied by proof of deregistration of the representative office from the records of the tax authority (deregistration of the tax identification code). The Ministry of Entrepreneurship and Tourism will decide on the application for deregistration within 30 days from the request or from the submission of the requested documents and information.

Transitional provisions

Authorizations issued before the date of entry into force of GO no. 18/2022 remain valid.

The electronic platform will become operational no later than 180 days from the date of entry into force of GO no. 18/2022, and until that time, the submission and processing of applications will be carried out in accordance with the previously applied procedure.

[1] Official Gazette of Romania no. 779, P. I, 04.08.2022, pg. 2-4.

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