How to register & tax regime of Authorized Natural Persons - PFA in Romania

For those who want to do business in Romania, but don't want to create a limited liability company (SRL, which stands for Societate cu Raspundere Limitata), the most common method is to register as a PFA (Persoana Fizica Autorizata/Authorized Natural Person, or a Sole Trader). It is much easier and the tax regime is more relaxed than in the case of a company.

Whether you are a freelancer or a highly qualified person, or you are producing a commodity you want to sell, in Romanian law the PFA is the equivalent of self-employed, a form of organization that allows you to work on your own, but also to hire up to three employees. Foreigners who want to register as PFA in Romania must meet the same conditions as Romanians, but only after having obtained residence in Romania and a local ID. On top of this, the diplomas obtained in another country, as well as the professional qualifications, must be recognized in Romania by the Ministry of Education or the Ministry of Labor. A foreign citizen who wants to become PFA in Romania must also have a contract with the National Health House (CNAS), where they will pay the mandatory health insurance contributions.