Employer of Record Romania: How to Hire Without Setting Up a Local Entity

# Employer of Record Romania: How to Hire Without Setting Up a Local Entity

Hiring in Romania without a registered legal entity used to mean working around the edges of compliance. Under Government Emergency Ordinance No. 32/2026, those edges became significantly harder to navigate. New employer registration obligations, financial guarantees, mandatory contract templates, and digitalised immigration procedures all require a legal presence on Romanian soil — or a partner that already has one.

That is precisely what an Employer of Record does.

What Is an Employer of Record?

An Employer of Record (EOR) is a company that becomes the legal employer of your workers in a target country on your behalf. The worker performs work for your organisation, under your direction, to your standards — but the EOR signs the employment contract, registers with local authorities, handles payroll and tax withholding, and assumes the legal compliance obligations in that jurisdiction.

For Romania, this means the EOR takes on:

• Registration and authorisation on the WorkinRomania.gov.ro platform (required under GEO 32/2026 for all non-EU worker hiring)
• Execution of Romanian-law employment contracts, including bilingual requirements introduced under Order 655/2026
• Social security, income tax, and health insurance contributions under Romanian law
• Work permit and visa authorisation processing via IGI and ANOFM
• Compliance with Romania's Labour Code, working time regulations, and leave entitlements
• Statutory notifications for inspection authorities

You retain full control over the worker's day-to-day tasks, deliverables, and performance. The EOR handles everything that makes them employable in Romania.

Why Incorporating in Romania Is Not Always the Answer

Establishing a Romanian SRL (limited liability company) or branch takes time — typically four to twelve weeks depending on the route — and triggers a range of ongoing administrative obligations: VAT registration, corporate tax filings, annual reporting, registered office requirements, and director liability. For companies that need one or two workers in Romania for a defined project or trial period, these costs and obligations are disproportionate.

EOR removes the incorporation step entirely. You can have a worker compliant and on payroll in Romania in as little as two to three weeks, with no local entity overhead and no ongoing corporate filing obligations on your part.

How EOR Works Under GEO 32/2026

GEO 32/2026 changed the legal architecture for hiring non-EU workers in Romania in ways that make EOR more relevant than ever. The ordinance requires employers to:

• Register on the WorkinRomania.gov.ro platform before initiating any hiring process
• Hold full ANOFM authorisation for D/AM2 permanent employment, including proof of 24 months of economic activity, 50 average employees in the prior year, and a EUR 1,000 financial guarantee per worker
• Submit all documentation through the integrated digital portal, which connects to IGI, ANOFM, and Romanian consulates in a single workflow

A company without a Romanian entity cannot hold WorkinRomania authorisation — the platform requires a Romanian fiscal registration number (CUI/CIF). An EOR that is already registered and authorised on the platform can bring your workers under its sponsorship immediately, without the pre-qualification waiting period.

For D/AM1 (highly skilled workers), the requirement is less stringent — registration without full authorisation is sufficient. But registration still requires a Romanian legal entity. Again, the EOR's existing registration covers your workers from day one.

What EOR Covers in a Romanian Context

A comprehensive Romania EOR service covers the full lifecycle of employment:

**Onboarding and immigration.** The EOR prepares and submits the D/AM1 or D/AM2 visa application through WorkinRomania.gov.ro, including all supporting documentation: the employment offer, the bilingual contract, the employer's registration or authorisation certificates, and any professional qualification evidence required.

**Contract preparation.** Under Order 655/2026, contracts for non-EU workers must follow specific templates and be provided in Romanian and in the worker's home language. The EOR prepares, executes, and registers the contract with the Labour Inspectorate (ITM).

**Payroll and withholding.** Romanian payroll involves employee and employer social security contributions, income tax, health insurance, and unemployment fund contributions. The EOR calculates, withholds, and remits these each month, providing you with a single invoice.

**Ongoing compliance.** The EOR monitors changes to worker status, manages contract extensions or terminations in accordance with Romanian law, handles annual leave accrual and statutory entitlements, and maintains the employment file required by Romanian labour regulations.

**Quota management.** For D/AM2 hires, the EOR tracks quota availability across the 90,000-slot national ceiling and advises on timing of applications to avoid delays caused by quota exhaustion.

When EOR Makes Sense — and When It Does Not

EOR is the right solution when:

• You need to hire one to twenty workers in Romania without incorporating
• You are running a proof-of-concept or defined-term project in Romania before committing to full entity setup
• You have a non-EU worker candidate who needs a Romanian employer of record for the GEO 32/2026 visa application
• Speed is a priority — you need the worker compliant and productive faster than an entity setup would allow
• You want to limit Romanian administrative overhead and keep finance and HR functions centralised

EOR is less appropriate when:

• You have twenty or more permanent employees in Romania, at which point entity setup typically becomes more cost-effective
• You need to enter into large contracts or hold assets in Romania in your own company name
• You are operating in a regulated sector (financial services, healthcare, legal) where the operating entity matters for licensing purposes

In some cases, EOR makes sense as a bridge — you use it while incorporating, then transfer workers to your own entity once the SRL or branch is registered.

Key Risks If You Hire Without an EOR or Local Entity

Some companies attempt to engage Romanian workers or non-EU workers via B2B contracts, treating them as independent contractors. Under Romanian law, labour inspectors apply an economic reality test: if the contractor works fixed hours, under your supervision, for a single client, on equipment you provide, the relationship will likely be reclassified as employment. Penalties include back-taxes, social security arrears, and fines per undeclared worker.

For non-EU nationals in particular, working under a contractor arrangement without a valid work permit and visa is an immigration violation that can result in deportation, a re-entry ban, and sanctions against the engaging company. GEO 32/2026 explicitly prohibits engagement of non-EU workers outside the authorised visa and permit framework, regardless of the commercial structure.

How Nestlers Group Approaches EOR in Romania

Nestlers Group's Employer of Record service is built around Romania's current legal framework, including the GEO 32/2026 obligations and the WorkinRomania.gov.ro platform. We hold the registrations, authorisations, and financial guarantees required to sponsor both D/AM1 and D/AM2 workers on behalf of our clients, and our Work Permit and Visa Support team manages the full application process from platform submission to consulate appointment.

Our Payroll and HR Compliance team handles monthly payroll processing, ITM contract registration, social security filings, and the annual and termination-related reporting obligations that come with Romanian employment law. Clients receive a consolidated monthly invoice and a dedicated point of contact for any compliance queries that arise.

For companies exploring Romania as a hiring market, our EOR service is typically the fastest and most cost-effective way to start.

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*Sources: Government Emergency Ordinance No. 32/2026 (Official Gazette No. 335, 27 April 2026); Order 655/2026 on mandatory employment contract templates for non-EU workers; WorkinRomania.gov.ro platform documentation; Romanian Labour Code (Law 53/2003, consolidated); National Agency for Employment (ANOFM), employer authorisation requirements, 2026; General Inspectorate for Immigration (IGI), work permit and visa procedures, 2026.*