How can you carry out an IT and software development activity in Romania?

The IT industry in Romania has experienced an impressive development, especially in recent years, with more and more professionals working in this field. Anyone who wants to work in this field can be hired by an IT company, can conclude a collaboration agreement, or even start an IT business in Romania.

The first step is to set up a company that can have as its object of activity either software development activities or customer-oriented software, or any other related IT activities. The Romanian Law Firm Pavel, Mărgărit and Associates recommends the legal advice of a a specialized lawyer in setting up IT companies and technology, media and telecommunications legal services (TMT) to take all the necessary steps in this regard.

Both the Romanian and non-Romanian markets provide software development people with a variety of options they can operate, either by concluding employment contracts with IT companies, performing activities physically or remote or by concluding collaboration contracts, the IT service providers being organized as Authorized Person (PFA) or SRL (Limited Liability Company). A large part of the IT companies abroad have started to recruit Romanian citizens who can perform the remote activity in Romania.

Read more about: Nearshore software development

The nearshore outsourcing meaning is as follows: the software development service provider is located in another country either in the same time zone or with a 1-3 hours difference at most, usually on the same continent.

The minimal time difference facilitates uninterrupted communication. The differences in legislation are either minimal or absent (like, for example, in the EU). All the other disparities between the core and remote teams are either negligible or manageable, as a rule.

Yet, the IT outsourcing cost savings are far from maximal. Those who opt for nearshore software development also miss out on the opportunity to select the top IT outsourcing companies in the niche of interest.

Nearshore software development services flourish on the borders of different economic zones with a noticeable gap between average salaries.

The Romanian market is also open to foreign people who wish to provide IT activities for Romanian IT companies.

”Statistically, as for the information provided by the National Office of the Trade Register, at the level of 2021, 10,964 IT companies were set up in Romania, compared to 7,146, registered at the level of 2020. Therefore, it can be observed a 30% increase of the number of IT companies performing in information and communications area, observing a growing interest for setting up these types of companies”, declares the Managing Partner Radu Pavel.

Pavel, Mărgărit and Associates Romanian Law Firm recommends hiring a lawyer specialized in technology, media and telecommunications legal services (TMT) legal services to provide information on the best method of providing software development services, customer-oriented software, product editing activities, software, custom software development activities, as well as any other activities in information technology, depending on the client’s requests and need.

Legal assistance may be provided for the establishment of an IT company in Romania, from the drafting of all necessary documents to this end, the establishment of the registered office and until their registration with the competent authority.

A lawyer in technology, media and telecommunications legal services (TMT) may also provide legal assistance for obtaining licenses for the purchase of software, the sale and purchase of software, reviewing contracts, regulating contractual provisions to protect copyright, concluding license agreement or assignment of copyright in the field of IT, software agreements, GDPR compliance, may revise a possible employment or collaboration agreement to be concluded by the person working in the field of software development.

In order to carry out all these steps, as well as to choose one of the most suitable options, the Pavel, Mărgărit and Associates Romanian Law Firm recommends hiring a Romanian lawyer specialized in setting up IT companies and technology, media and telecommunications legal services (TMT).

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