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Although the choice of the type of Authorized Natural Person (PFA) existing in Romania seems to be at the free choice of the entrepreneurs, in reality it is influenced by the activity to be performed, more precisely, it is about the CAEN codes specified in Order no. 925/2017. The Romanian law firm Pavel Mărgărit and Associates recommends calling on the services of a lawyer specialized in commercial and fiscal corporate law, considering the fact that the type of Authorized Natural Person (PFA) existing in Romania and which will depend on the activity carried out will influence the entire r legal status of the Authorized Natural Person (PFA) in Romania , especially when it comes totax payment procedure by Authorized Natural Persons (PFA) in Romania.
The procedure for registering an Authorized Natural Person (PFA) in Romania
The procedure for registering an Authorized Natural Person (PFA) in Romania is mainly governed by the provisions of GEO no. 44/2008. According to it, the Authorized Natural Person (PFA) must have its main office on the territory of Romania, regardless of the type of activity carried out, being required to be registered in the Trade Register, competent according to the office thus chosen.
There are certain standard conditions provided in the legislation on the matter, which must be met for the activity to be carried out by the Authorized Natural Person (PFA) in Romania, among them mentioning as an example the full capacity of the natural person. In addition to these conditions that must be respected and interpreted ad literam , the documents that must be submitted to the Trade Registry to start the procedure for registering an Authorized Natural Person (PFA) in Romania are of particular importance, which is why the Romanian Society of Lawyers Pavel Mărgărit and The associates recommend using the services of a lawyer specialized in corporate, commercial and fiscal law, considering the rigor and accuracy required by the state institutions in the drafting or submission of the documents as well as due to the provisions in the matter, the analysis of which must be done strictly.
The legal regime of the Authorized Natural Person (PFA) in Romania
The legal regime of the Authorized Natural Person(PFA) in Romania will be mainly influenced by the type of Authorized Natural Person(PFA) applicable, on a case-by-case basis. Thus we mention two types of Authorized Natural Persons (PFA) existing in Romania, namely PFA with income norm and PFA in real system. The difference between the two is given by the way in which the income tax and the mandatory social contributions that must be paid to the Romanian state are calculated, respectively what is the basis of calculation from which to start. The annual gross income achieved by the PFA must also be taken into account, exceeding the threshold established by law, determining the transition to the real system.
Of interest is the fact that not every PFA can choose taxation based on the income norm, but only those that carry out certain activities established by the Romanian state. The Romanian law firm Pavel Mărgărit și Asociatii recommends calling on the services of a lawyer specialized in commercial and tax corporate law, who can guide you in understanding the applicable provisions, given the fact that there are certain CAEN codes that determine the application of the taxation regime based on the norm of income, so the choice of the object of activity must be made with special care, taking into account all applicable consequences.
Tax payment procedure by Authorized Natural Persons (PFA) in Romania
PFAs that are taxed under the real system pay tax at 10% of net income. Taxation at the rate of income implies the application of the percentage of 10% to a predetermined amount, called “rate of income”, regardless of the income made by the PFA. Irrespective of the chosen taxation method (in the real system/with the income rate), if the total annual income on the basis of which the tax due is calculated is higher than the minimum wage in the economy multiplied by 12 months (or, for newly established PFAs, with the number of months of activity), then the PFA also owes pension and health contributions.
The Romanian law firm Pavel, Mărgărit și Asociații has extensive experience, within it working lawyers specialized in corporate, commercial and tax law, who assist and represent numerous clients, both Romanian and foreign, both at the stage of drafting the necessary documents and in relations with the state authorities, when necessary.
The Romanian law society Pavel, Mărgărit și Asociații recommends contacting a lawyer specialized in corporate, commercial and fiscal law who can guide interested persons in choosing the most suitable and advantageous system for carrying out their activity as an authorized natural person (PFA) in Romania.